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To: Andrew Vance who wrote (14383)	6/11/1998 8:52:00 PM
From: Andrew Vance	Respond to of 17305

AV--StevieBoi will have to forgive my re-posting of a story but I couldn't find the copywright notice. SGI stock suit could set precedent By Dan Goodin Staff Writer, CNET NEWS.COM June 10, 1998, 6:40 a.m. PT When lawyers for Silicon Graphics and some of its shareholders square off in federal appeals court tomorrow, high-tech companies and investors advocates alike will be watching closely. At stake in the case, to be argued in the U.S. Court of Appeals for the Ninth Circuit in San Francisco, is how far Congress intended to raise the requirements for filing stock fraud lawsuits when it enacted the Private Securities Litigation Reform Act of 1995. Although shareholders have filed dozens of securities fraud cases since the law took effect, In Re Silicon Graphics Securities Litigation is believed to be the only case to reach the appellate level. Attorneys on both sides of the issue say it is likely to result in a landmark decision that will profoundly affect when and how future securities cases can be litigated. "This is the first big case to interpret this new statute, and it will have a dramatic effect on the way these cases are filed and litigated," said Jerry Birn, an attorney from Wilson Sonsini Goodrich & Rosati who is representing SGI. As a testament to the intense interest it has created, four national groups--including the Securities and Exchange Commission, Securities Industry Association, American Electronics Association, and Washington Legal Foundation--have filed amicus or "friend of the court" briefs. "This is a ground-breaking case, and all [the amicus parties] want it to go their way," said Len Simon an attorney from Milberg Weiss Bershad Hynes & Lerach who is representing SGI shareholders. "There will be a lot of hell to pay and work to be done to undo the effects of a negative ruling." Enacted in December of 1995, the Private Securities Litigation Reform Act, or PSLRA, significantly raises the requirements for the filing of stock fraud suits. It requires shareholders to "state with particularity facts giving rise to a strong inference that the defendant" defrauded investors. It is the only law to date that Congress has passed over the veto of President Clinton, who worried that the law would unfairly curb investors' ability to sue for fraud. The intent of the law was to limit the number of shareholder lawsuits filed against companies that experience sharp stock drops. The law was of particular interest to high-tech firms because their volatile stocks tend to make them a favorite target of plaintiffs attorneys. Under the law plaintiffs "have to allege more, with more specificity and [they] have to do it without the benefit of discovery," the often costly, fact-finding part of a case that can last months or years, said Robert Varian, a securities defense attorney at Brobeck, Phleger & Harrison. Previously, plaintiffs generally were required only to state why they believed a fraud took place, a standard that technology companies said was unfair. "There's unquestionably many shareholder cases that have merit," said Wilson Sonsini's Birn. "But there were an overwhelming number that seemed to be the proverbial fishing expedition, reflexively filed on a stock drop in the hopes that a company decides that it's cheaper to settle than to fight the lawsuit." The PSLRA, he added, was designed to end that practice. And in many cases, the law has done just that. SGI shareholders filed suit in January of 1996, shortly after the company confirmed rumors that revenues for its fiscal second quarter would miss analysts' forecasts. SGI's stock dropped to about $22 a share, compared to more than $44 a share just four months earlier. The shareholder lawsuit alleged that SGI committed fraud by announcing in October of 1995 that its second quarter revenue would be on target with analysts' predictions in an attempt to inflate the price of SGI stock. It alleged that SGI was well aware in October that there were problems with a reorganization of its North American sales force, as well as snags in selling its Indigo2 product line, but concealed them from investors. The suit also took aim at six SGI executives who sold nearly $14 million worth of stock shortly before the drop. In September 1996, U.S. District Judge Fern Smith of San Francisco dismissed the case, finding that the shareholders' reference to unspecified "negative internal reports" in the complaint was not enough to meet the "strong inference" requirements of the PSLRA. Smith gave plaintiffs' attorneys permission to refile the complaint if they could bolster it with more specific allegations. A month later, plaintiffs' attorneys filed an amended complaint that slightly altered some of the allegations. While it made specific reference to internal SGI documents that allegedly discussed problems that would cause SGI to miss analysts' forecasts, the amended complaint failed to provide the specific contents or authors. In May of 1997 Smith again dismissed the suit. "If the court allowed plaintiffs to go forward with such general allegations, the strengthened standard of the [PSLRA] would lose its meaning," Smith ruled. Although the amended complaint contained allegations more elaborate "than the ones dismissed in September 1996, they remain too generic to create a strong inference of fraud" under the statute. Smith went on to outline the type of detail she believed was necessary to support a claim of securities fraud. "The allegations should include the titles of the reports, when they were prepared, who prepared them, to whom they were directed, their content, and the sources from which plaintiffs obtained this information." The judge said that without such detail, "any company that has announced low earnings would be vulnerable to allegations that such reports exist." Smith's decision is by no means the last word on the PSLRA. In the 30 months since the law took effect, dozens of other courts have offered competing interpretations, in part diluting the intent of Congress to create uniform standards for securities litigation across the country. The Ninth Circuit's decision could be issued anywhere from one month to a year or more from now. While it will be binding in only nine states, it is likely to provide strong persuasive authority in other jurisdictions as well. A number of legal observers add that they would not be surprised if the Supreme Court ultimately heard the case. Simon, the attorney representing the plaintiffs, said it would be a mistake for Smith's ruling to become the standard for how the law is construed by the courts. "I think she's misread the law in three or four ways, and we expect her to be reversed," he said. "I don't know what more we could have alleged." Related news stories Senate to stem shareholder suits May 13, 1998 Senate moves on shareholder suits April 29, 1998 Two Bills to make high-tech visits September 16, 1997 Shareholder suit nixed again May 29, 1997 Shareholder suits war continues April 7, 1997 Investor suits flood Valley March 28, 1997

To: Andrew Vance who wrote (14383)	6/11/1998 9:02:00 PM
From: Andrew Vance	Respond to of 17305

AV--I have had some private discussions on CCGI, not to be confused with CSGI over the past few weeks. As I was deleting the bevy of saved messages from Hotmail (Yep, went over the 2000K limit again), I came across this email to me. It dates back to early March this year. X-From_: analystsgroup@goplay.com Fri Mar 13 10:17:18 1998 Subject: Our New Pick: CCGI Date: Fri, 13 Mar 1998 07:52:22 -0800 Reply-to: "analystsgroup" <analystsgroup@goplay.com> From: "analystsgroup" <analystsgroup@goplay.com> To: forum@the-stock-market.com Undervalued Dog, Volume 3, No. 9, March 13, 1998 Notice: This investment newsletter (Undervalued Dog) was intended for a specific audience. If you received this private e-mail in error or would like to be removed from our list, please reply with "remove" in the subject line. We sincerely apologize any inconvenience that may cause. If anyone that you know wants to subscribe this newsletter, please let him/her send an e-mail to forum@the-stock-market.com with subscribe in the subject. The subscription of this newsletter is free. Who we are: We are a group of equity analysts for many financial organizations. We specialize in discovering undervalued small- and micro-cap stocks in terms of their book value, growth potential, annual revenue, annual income, and potential acquisition or merger. We are using certain criteria to screen stocks in a database that contains all public companies and then we have an in-depth analysis by using sophisticated professional procedures. We provide unbiased commentary on stocks that we recommend. Disclaimer: The information that the Undervalued Dog provides is not a solicitation to buy or sell securities. We are not stock promoters. We do not accept payment of any kind from the companies we introduce or their public relationship firms. Investing in securities is speculative and may carry a high degree of risk. As a reader of the Undervalued Dog you will be responsible for your own trading and investment decisions. You have to set your own goals whether you want to invest for short or long term. The Undervalued Dog is not responsible for your investment decision. We give you ideas, stock picks, and buy alert to work with. We advise you do a little research yourself to make a proper investment decision depending on your own risk objectives. The information set forth herein is obtained from sources believed reliable, but the Undervalued Dog does not guarantee its accuracy or completeness. Investors are urged to obtain information directly from the company to further add to their investment decision. The Undervalued Dog is not liable for any investment decision made. We are an investment analyst group only. We may have positions on stocks that we recommend. ----------------------------------------------------- ----------------------------------------------------- ---------- ComTech Consolidation Group, Inc. (OTC BB, CCGI) Recent Price: $0.4375-0.50/share Daily Average Volume: 20.3 K 97 EPS: $0.01/share (loss) Estimated 1998 EPS: $0.10-0.15/share Trailing PE:4 Industry Average PE: 49.85 Div/Shr: None Yield: None 52-week Range: $0.281- 5.0/share Outstanding Shares: 13.38 M Floating Shares: 2.4 M Profit Margin: 25% 1997 revenue: $ 0.825 M Estimated 1998 revenue: $10- 15 M SEC filing:April, 1998 Annual Meeting: June CCGI is extremely bullish. Tendencies for prices to advance are extreme at 95-100% with a short term (1-6 months) upside potential of $4.00 and a long term (12-36 months) upside potential of $10.00. Buy under $2.00. BUSINESS SUMMARY AND CORPORATE BACKGROUND: CCGI is a consolidation company that is actively consolidating (acquiring) businesses in two high growth industries: Internet Communications and Home Health Care. Computer networks have become an indispensable for corporations - many of which have set up Intranets, or private computer networks, that allow employees to access company records and documents from remote locations and communicate with each other. Zona Research, a Redwood, California market research firm, estimated that investment in Intranets could rise to more than $13 billion in 1999 from $2.67 billion in 1996. Along with the convenience of remote access, however, has come the threat of unauthorized eavesdropping, tampering and intrusions - because these transmissions often take place over unsecured telephone lines. This vulnerability has created a rapidly growing demand for computer security hardware, software and monitoring services. According to DataQuest, which tracks the computer industry, Corporate American spent $6 billion in 1996 on computer network security. CCGI has positioned itself to be what management believes is the only company offering a complete range of security solutions for every form of electronic network communication. CCGI, through wholly owned Networks On-Line, Inc. (NOL, http:// www.nol.net), offers telecommunication related products and services, including network hardware and security systems, secured communication products, computer products, Internet/ Intranet products and secured virtual private networks. The company is both a national Internet service provider and systems integrator. It is mainly focused in the area of telecommunications network security and Internet services for commercial customers. As both a national Internet service provider (ISP) and systems integrator, CCGI can provide enterprise solutions independently, completing a project without outsourcing itself or requiring the use of subcontractors. The company is also qualified as a Sun, Tricord, NSG, Hewlett Packard and IBM RISC value added reseller. CCGI's wholly owned NOL is Houston's seventh Internet access provider and is an authorized reseller for manufacturers such as Ascend, Cisco, 3Com, Bay Networks and Digital Link. Most of these manufacturers have or are currently being utilized by all ISPs in their local Internet access services. NOL has an exclusive service contract with a nationwide telemarketing firm to sell local dial Internet access in over 100 U.S. cities. The company plans to seek out viable Internet telecommunication and network service entities for consolidation or acquisition to further develop its communications network. CCGI's development of a domestic network and its international expansion plans are in line with its goal to become a leader in network access and intrusion security monitoring. Another high growth industry is health care whose total expenditures in the health care industry exceeded $1.56 trillion dollars in 1997. Approximately $45 billion of this was spent on home health care, one of the fastest growing segments of the industry. The home health industry is undergoing a massive restructuring which is being driven by Medicare/Medicaid. New regulations, increased scrutiny by inspectors and higher quality of care expectations are creating uncertainties for small operators and thereby creating opportunities for companies which offer solutions. CCGI recently acquired Professional Management Providers (PMP). PMP's core business is home health care consulting. PMP is aggressively seeking to acquire and consolidate home health agencies. Letters of Intent have been received from seven agencies and negotiations to acquire an additional sixteen are underway. By improving communications technology and centralizing overhead, it is estimated that operating costs can be reduced by 10- 15%. The additional sixteen acquisitions will add revenues of $10 million to CCGI in 1998. RECENT DEVELOPMENT AND ANALYSIS: CCGI has retained the services of I.W. Miller & Co., Inc. to create and maintain a public awareness regarding the growing business activities of CCGI. Also, CCGI Board of Directors has authorized management to develop and implement a buyback program of its common shares. As initially envisioned the proposed buyback program will be conducted in privately negotiated transactions, commencing as soon as the program is further refined and is fully developed. ''The board authorization to buy back stock reflects our belief that the current market price of CCGI stock is undervalued and represents a solid Company investment at this time. As initially envisioned the program will protect and preserve the equity value of individual CCGI shareholders, regardless of cost basis,'' said Mr. Roger Stewart, Chairman and Chief Executive Officer. Since CCGI went public in June, 1997, the stock price has sunk from the area of $7.50-9.50 to the current lowest level at $0.30-0.50 including 1 to 2 split last September. Technical analysis indicates CCGI continues to consolidate under $1.00 and its On Balance Volume indicates its under accumulation and its Relative Strength trades at an extremely oversold level. Given its oversold condition, its price remaining within 12 month the lowest trading range and the appearance of significant accumulation, its shares appear ripe for a move upwards. We are very impressed with the background of the management members and the smooth way they have handled the acquisitions. They presented us two priorities that the company has now. First, the management intends to grow the company by aggressively acquiring other profit businesses. The management told us that 1998 promises to be very productive and profitable and the company is now positioned to make significant gains in the high growth industries in 1999 and 2000. They are confident that CCGI will become a 100-million company by the year of 2000. Second, they intend to enhance shareholder value. Obviously, lack of savvy knowledge in stock market and efforts from its previous PR firm has contributed to the stock poor performance in the past nine months. The management is committed to changing this situation by hiring a new PR firm. The company will become a fully reporting company in April, 1998 and prepare to move its stock in NASDAQ. With these recent developments in coupled with its stock buy-back program, we recommend CCGI to both aggressive and conservative investors. We advise accumulating its shares now, since once its shares begin moving up again they are likely to do so very quickly and consequently will be very hard to buy. Company Officers: Roger R. Stewart Chief Executive Officer/Chairman Richard A. Behlmann - President & Chief Operating Officer Don E. Brown - Executive Vice President Chris Balque - Secretary & Controller Company website: http:// www.nol.net/ccg2/ (under construction), ccg.net Contact: Don E. Brown - Executive Vice President ComTech Consolidation Group, Inc. 10497 Town & Country Way, Suite 460 Houston, TX 77024 Tel: 713-467-7281 Fax: 713-467-0488 Investor Relations: I. W. Miller & Co, Inc. Ira Miller or Omar Sanchez: 800-496-4553 ----------------------------------------------------- ----------------------------------------------------- ----------- STATEMENT OF DISCLAIMER: The information presented in the Undervalued Dog is not an offer to buy or sell securities referred to herein. By no means is the above company information complete. One should obtain financial statements and a full due diligence package, including chronological news releases, from this company prior to reaching any investment decision. One should also use the full battery of available technical analysis, including stock charts, moving averages, etc. and consult a licensed financial advisor for an independent opinion. The Undervalued Dog is not in the financial advisory business. The Undervalued Dog is not responsible for the outcome of anyone's investment decision. All the above disclaimers hold true for me also. I am doing nothing but sharing information relative to a stock discussed previously both in private and on this thread. Andrew

To: Andrew Vance who wrote (14383)	6/11/1998 10:33:00 PM
From: Andrew Vance	Read Replies (1) \| Respond to of 17305

AV--While emptying out the infamous Hotmail folders of saved "weird" stocks that rubbed me the wrong way, I decided to share this little pearl. It was actually sent out by one of the more well known forums that tends to get slightly wacky at times, if you catch my drift. Date: Sun, 29 Mar 1998 21:51:09 -0500 Subject: / Pick, Part 2: Westrend Natural Gas The Upside The important factor in understanding the upside opportunity in this company goes back to my earlier comments on the generally low tech nature of the energy industry. In that lie the seeds of Westrend's upside, because it is on the fast track to building a group of complementary high tech businesses to capture market share. It is for that reason that, instead of relying on an old design - no matter how good - the first thing which Mark Roberts and Oscar Taylor did when restarting Taylor Rigs was to do a redesign, so that their rigs now boast a number of advancements which none of the competition offers. Pushing against the tech envelope was also why Westrend bought Alamo Logging Services, a "wire line" company which uses advanced technology to help producers analyze production and monitor performance at all stages during the life of a well, with a focus on those involving deep horizontal drilling. That's good, because while the last oil boom was driven by taxes, this one is all about profits - with horizontal drilling at the heart of it. But here's the important point. Taylor Rigs and Alamo Logging Services are just the first two acquisitions in Mark Roberts' quest to build the Microsoft of the energy services business. His management approach is simple: Find great companies run by great people, and provide the financial support needed to develop innovative products and services. then step back and let proven management take the acquired companies to their full potential. As I write, Mark Roberts is involved in negotiations with a number of top rung niche technology companies, and new acquisitions should be announced soon. As an investor, a bet on Westrend has nothing to do with the kind of overnight 10-for-1 returns which can occur when a big field is discovered. Rather, it is a more conservative bet that Westrend can continue to successfully pursue its mission of becoming a dominant player in the high tech side of the energy services industry. If it succeeds, then a 10-for-1 is a distinct possibility, but it won't happen overnight. On the other hand, the company has two successful divisions currently operating, providing positive cash flow which should accelerate, perhaps dramatically, over the next year. At today's prices, Westrend, which trades under the symbol WRN.V, represents a fairly safe double on your money, after which you can take a free ride on the possibility that Mark Roberts will translate his vision into reality. Summary of Corporate Development Strengths Westrend Natural Gas is a diversified, growth and technology oriented oil field service and manufacturing company. Its principals and member companies have been in business for over 15 years and is now embarking on an exciting and highly profitable phase of its corporate development. The company is confident that it will continue to build on its strong customer base and service mix. Some of the key corporate strengths are as follows: ú A strong Board of Directors and management team with over 100 years of cumulative direct experience in the oil and gas services industry. ú A diversified and complementary service mix that focuses on dependability and quality. ú A diversified client base that ranges from small to large oil and gas exploration and development companies. ú A dedication to entrepreneurial approaches to business and minimal corporate overhead. ú A commitment to serving the needs of the shareholder including providing for improved share liquidity and investment opportunities in the near future. The existing corporate strengths of Westrend Natural Gas Inc. combined with the features and benefits of its array of oil and gas services, will give the company a competitive advantage over small - medium sized companies offering similar or independent services. --------------------------------------------- Last Quarterly Report (Third Quarter) was also provided (Form 61) which DOES NOT INCLUDE EARNINGS from Taylor Rigs. The fourth quarter including the year-end audited financial report will be out toward the end of May 1998 and the First Quarter 1998 will be out by the end of June 1998. ***************** *************** ***************** I find it amazing that no sooner did this come out in print over the internet, then the stock started to fall in price and hasn't stopped. The word got out, a few days passed at relatively the same price, then POOF you lose 50% of your investment. Almost as if the new buyers were paying a premium to take the shares off the hands of the author and his group of investors. Stronger hands to weaker hands. Now may be the time to jump aboard this fantasy. It us up $0.05 today and I am sure there will be some buying of this stock such that a new group of suckers (err, investors) can be enticed into this stock when it gets pumped up to around $0.75-$0.85 through another advisory such as the one above. Do not take this as investment advice, I just have some free time to kill as most of my areas of investment interest are languishing, falling on their swords, or just convulsing violently with the terminal case of ASIAN AIDS(Another Indescribably Disasterous Situation). Yeah for Japan!!! The bozos are now saying they will do something about the weak Yen. As I do some folder house cleaning, it feels good to do a little Monday Morning Quaterbacking on some of the more visible nasty come ons from the first quarter of 1998. Have fun with this one and no intentional flame was meant towards anyone. After all, it COULD HAVE BEEN JUST A COINCIDENCE that the stock started to fall within days after the glowing report. Andrew