To: Bill Wexler who wrote (19259 ) 6/27/1998 1:21:00 PM From: C.K. Houston Read Replies (5) | Respond to of 31646
<I haven't labeled anybody anything. I said I suspected a stock promotion scheme. The red flags were C.K. Houston's report, the incessant hype over the internet, and the odd letters and phone conversations - supposedly held between IR and private investors - that get leaked out on the internet. > BILL WEXLER (Silicon Investor Post #19259, June 25, 1998 9:44PM EST)Message 5021706 =============================================================== Bill Wexler,Implying that I am involved with some stock promotion scheme DOES make me angry ... and is a blatant lie!! I've spent a lot of time trying to educate the general public on Y2K issues, and specifically "embedded systems" because there has been such a lack of understanding on these issues. I've spent thousands of dollars of my OWN money trying to educate the public. I've been an unpaid advocate because I wanted to maintain my credibility. Except for meeting TAVA Technologies management at the stockholders meeting in January, I have NO contact with them. (Except for a marketing guy who I've contacted for materials or for clarification on technical aspects of Y2K fix.) Same with Scott. Because I've participated so actively on the TAVA thread & because I put the TAVA research report together so people could understand the Y2K embedded system problem, industry niche and TAVA, I've intentionally maintained a distance from TAVA because I don't want any trouble with the SEC. I've NEVER publicly made TAVA financial or stock price projections. What I try to do is share and disseminate information, mainly relating to Y2K embedded systems issues. Bill Wexler, you don't know me, but Congressman Horn now does. So, do others who have testified before senate and congressional subcommittees on Y2K issues. So do the 50+ attorneys I met with in D.C. earlier in the week when I spoke at a Y2K Legal Liability & Risk Assessment Conference. So does a BBC broadcast producer who wants to develop a story on Y2K embedded systems problems. So do numerous Y2K Project Managers & engineers from Fortune 500 companies, whom I've met at various conferences I've attended. So do numerous people on SI whom I've met in various cities thru my travels. They have a far better idea of my character and integrity than you do.Your innuendo, in regards to me personally IS libelous. Libel is based on intent. You might be able to get away with it one time, but to continue to do so IS crossing the line, and confirms intent.I have forwarded my research report and several of your posts to the SEC and SI. (Not TAVA.) Let them determine who's involved with a "scheme" ... you or I. I have nothing to hide. I would have preferred to not have responded to you directly, but it was necessary to have the "electronic trail" to prove that you received this message. Cheryl ==============================================================Excerpt from a recent Wexler post (from his Doom Index thread): Message 5008369 <TO EVERYONE: Re: TAVA - my fraud detectors have now kicked in. Most who follow this thread know that I am particularly interested in companies that may be engaged in a scam, are fraudulently promoting their stock, or both. Fraudulent stock promotion means that management will resort to the use of ambiguous or misleading press releases, post hype on the internet, or pass misleading "teaser" information to investors and analysts which then leads to rampant speculation. One of my favorite pet indicators is the "insult index". In other words, if investors posting on internet chat forums start berating me for daring to short the stock - without offering any rational justification for buying/holding the stock ... Along the lines of the "insult index", I like to see angry email. However, I was surprised to receive my first hate mail only about an hour or two after I put TAVA on the index ... I will first post a copy of the original email sent to me. >This is what Wexler later posts and refers to as "hate" mail: "Bill I have read many negative posts by you regarding TAVA. On this one my "short" friend you are dead wrong. I have spent 25 years in the electronic test industry and I can tell you the problem is real. Had lunch with John Jenkins CEO of TAVA at RedChip in Scottsdale on May 8th. This guy is jazzed about his company and its business potential. TAVA has landed a very impressive list of Fortune 500 clients. The wild cards are the Utility industry, Jenkins told me the RW Beck alliance was starting to bear fruit, and CD sales. The Strategic Partners Solutions program has signed up more than a dozen foreign companies which further leverages TAVA's products and services. TAVA will grow the SI business internally, from Y2K cash flow, and through acquisitions. Jenkins told me this at the luncheon. If you have shorted this stock you have made a serious mistake. You have lumped this company in with all the "garden variety" Y2K providers. The DDIM's, Zitel's etc. This is no IT company. It's specialized within a niche industry with little competition and a very significant advantage or barrier to competiton - its 15,000 (and growing) database and methodology. If you research it - you will cover - bet on it." <Note, this email was unsigned and was delivered from a mail alias on AOL. I assumed that it was an individual investor in TAVA. > BILL WEXLER Message 5008400 [C.K. SIDEBAR:] Good assumption that it was an individual investor. But definitely nothing nefarious or underhanded. Two stockholders sat at the same table with Jenkins at the RedChip Review meeting. Both wrote detailed summaries of what was discussed and made public posts on SI. I included full summary in my TAVA Research Report. ========================================================== <... A few hours later I get a response from TAVA's investor relations !!!! The reason I mentioned that my "fraud detectors" have now kicked in is because this email exchange suggests that TAVA investor relations may be a little...ahhh...overenthusiastic and perhaps a bit paranoid. I'll leave it up to the reader to decide. > BILL WEXLER, Silicon Investor June 25, 1998 1:54AM ESTThis is blatantly false. TAVA Investor Relations did not contact nor respond to Wexler's post of June 25. The previous week (June 17, 1998) TAVA Investor Relations responded to an email from a stockholder, who in turn posted the entire response publicly on SI. It's patently obvious in this post (which Wexler himself wrote) that TAVA IR did not react nor respond directly to him: <The mysterious AOL Tavazoid sends back this reply : "Here is the company's (Investor Relations) official word on the loan you reference."> This was followed by what was a cut & paste of the June 17 post referenced below. NOTE: Wexler already stated in previous post re "AOL Tavazoid" ... <I assumed that it was an individual investor in TAVA. > ... yet Wexler says: I get a response from TAVA's investor relations!!!! REFER 6/17: Message 4898963 REFER 6/25: Message 5008369 REFER 6/25: Message 5008450 =============================================================== Cheryl C.K. HOUSTON