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To: Sai P. yandamuri who wrote (1036)	8/16/1998 2:15:00 PM
From: ztect	Respond to of 40688

Sai, Many analysts who cover OTC BB issues are pretty dubious characters. C&D certainly falls within this camp. Most of the better known and RESPECTED analysts wouldn't stick their necks out or put their reputations on the line for fledgling and unproven companies. They have too much at stake, plus most of these investment houses wouldn't invest in BB issues anyway. However, I came across the following which may provide the "objective" coverage that would help any small issue especially one like PNL. I am emailing this info to Glenn Zagoren and hope he convinces PNL's other directors to enroll in this "Seal" program. Even though I'm offering this information, hitherto I have not found out how exactly a company enrolls in the PAR program which provides the independent analysis to participate in the seal program. Z members.xoom.com biz.yahoo.com biz.yahoo.com Public Announcements about Seal Program -------------------------------------------------------------------------------- SEAL OF BEST PRACTICES - AN INTRODUCTION Principles: 'Disclosure', 'Scrutiny' and 'Accessibility' The 'Seal of Best Practices in Investor Relations' program has evolved since September, 1996, under the auspices of a Board of Directors answering to a membership primarily comprising individual investors, when the non-profit Investors Research Institute, Inc. was established to develop and implement a program to insure that all classes of investors may have timely access to information about public companies equal to that previously available only to Wall Street professionals. A growing number of Street professionals have joined or endorsed the missions of IRI because they believe not only in the inherent fairness of IRI's standards, but also that if individual investors have a higher level of comfort in the marketplace, a higher level of capital will flow to the small- and mid-capitalization marketplaces, creating jobs, opportunities and economic strength. Any sized public company may voluntarily pledge, through its corporate officers, to uphold the principles that are at the foundation of the Institute's 'Seal' program. THREE PRINCIPLES To achieve its missions, and on behalf of its individual investor members, IRI has established task forces and programs built around a tripartite grouping of "Best Practices" principles under which public companies may qualify to receive a "Seal of Best Practices in Investor Relations" upon agreeing to adhere to its set of guidelines. A public company may join IRI and display the general Corporate Member Seal by agreeing to these principles. A company may achieve a special, or "Elite", status by reporting it has satisfactorily achieved of all of the milestones signifying superior investor relations in each of the following categories: "DISCLOSURE", "SCRUTINY" and "ACCESSIBILITY". -------------------------------------------------------------------------------- ELITE SEAL OF BEST PRACTICES - SPECIFIC MILESTONES CHECKLIST Investors can ask companies you follow: "Where's Your Seal?" 'Elite': achieve each of the following within year of enrollment. Dates and documentation should be attached to the IRI 'Report Form' verifying the following: SCRUTINY The principles of "scrutiny" are achieved through: __ A. ANALYST COVERAGE. __ 1. Analyst coverage must be professional and independent. __ 2. Coverage must be no less than quarterly, following each earnings release. __ 3. Analyst must be qualified by experience and/or professional training in the CFA program. __ 4. Analyst may not be paid by company, directly or indirectly. __ 5. Public Analysis & Review (PAR) or comparable enrollment is acceptable for qualification. [To meet the standards for ''scrutiny'', the companies have agreed to position their companies for professional analyst coverage, or to enroll in the unique Public Analysis & Review (PAR) program, which assigns an independent analyst to regularly follow and report on companies with little or no coverage.] __ 6. The reports should be given the widest possible distribution. __ 7. Report summaries must be simultaneously released to all classes of Investors. __ 8. Full text of analyst report(s) should be accessible on the world wide web. ACCESSIBILITY The principles of "accessibility" are achieved through: __ B. CONFERENCE CALLS. __ 1. At least one conference call must be scheduled annually. __ 2. All conference calls must be pre-announced to all classes of investors. __ 3. All calls must be equally accessible to individual investors, minimally on "listen" mode. __ 4. At least one conference call annually must accept questions from individual investors. __ 5. "Listen" mode may be achieved via a simultaneous audio or video webcast. __ 6. Transcripts of conference calls should be posted on the world wide web. __ C. INVESTOR PRESENTATIONS. __ 1. At least one annually must be before an audience which includes individual investors. __ 2. All presentations should be pre-announced, via a generally-distributed press release. __ 3. The qualifying presentation must be globally available via simultaneous audio or video webcast. __ 4. The audio or video should be archived and available on a website for at least 90-days. __ 5. The archival should include a text transcript linked to or posted with the webcast. DISCLOSURE The principles of "disclosure" are achieved through: __ D. CORPORATE INFORMATION. __ 1. Companies must strive to achieve timely issuance of corporate reports. __ 2. A corporate profile must be available via Market Guide, Standard & Poor's, Hoovers, or other comparable agency, or prepared by the company in comparable format and posted on a website. __3. Companies which are not "fully reporting" as defined by regulation, to receive the 'Seal', however, must make public comparable quarterly financial information and disclosures required by such filings. __ E. PRESS RELEASES. __ 1. Press releases must be given the widest distribution, insuring equal access to individual investors. __ 2. Timing of press releases must not favor professional traders with after-hours trading access. __ 3. Pre-market releases are encouraged to be posted and/or issued after 6 p.m. ET on the previous trading day to provide individual investors with adequate opportunity to perform personal diligence. __ F. DILUTIVE EVENTS ANNOUNCEMENTS. __ 1. Any change in the number of shares issued or made available in the course of a financing must be announced at the time of the dilutive event. __ 2. Disclosure regarding insider buying or selling must be made at the time of the event. __ G. WEBSITE DESIGN. __ 1. Timely electronic posting of new corporate materials must be achieved. __ 2. A separate website, or separate section for investor information must be available. __ 3. A minimum of three (3) years of press releases must be archived. __ 4. Easy contact points for investors to speak with company representatives must be included. __ 5. The site should contain, or link to all professional commentary about the company, pro and con. __ 6. The site should contain, or link to all information about the company. IRI standards are voluntary; IRI has no independent means to verify the accuracy of information provided to it by the companies, but invites members of the organization and the general public to send electronic e-mail to iri@investorsresearch.org questioning any company's compliance with its verified reports. IRI sponsors a number of Task Forces with oversight into each of these standards. The standards are thus subject to change at any time. All members of IRI are eligible to serve on the 'Task Force on Best Practices in Investor Relations' as well as its subpanels, or to effect the standards by other means consistent with the IRI by-laws.

To: Sai P. yandamuri who wrote (1036)	8/17/1998 1:56:00 PM
From: The Flying Crane	Read Replies (2) \| Respond to of 40688

Hi everyone: I am telling you, I am having a hard time adjusting to the time difference here. I took a badly needed nap at 05:00 pm in the afternoon and couldn't wake up until 10:00 pm at night! Now, I am wide awake with all night to go! Guess what, I am currently 12 hours ahead of New York eastern time. My 10:00 pm here Monday night is New York 10:00 am Monday morning! If only this 12 hours head start is the real future, I could report back to you guys... so much for day-dreaming here... Hey Sai, I have been waiting and waiting and thought you would never ask! See below: Mr.Patience,With all due respect, I just would like to know your definition of 'longterm' investment. IMO any investment with a period of less than one year is considered to be 'Shortterm'. I assume U are here in PNLK for more than 1 year. Before I answer, I will like to say that I agree with terri acey's definition of long term investment also. Here is my take on the subject. There are different ways to look at long-term investment. You can buy matured blue chips stock for dividend income and average appreciation. Or you can buy start-up companies with no dividend but enormous appreciation. Regarding blue chips. Yes, there are many blue chips that can appreciate better than average also. Warren Buffet builds up his wealth picking only blue chips stocks that many thought were fully matured already. Thus, there is some talent required in picking blue chips stock for long-term appreciation over dividend income. And Warren Buffet has a keen intelligence to realize this talent as an early age! His buy and hold strategy brought him great wealth and reputation beyond anybody dream. Of course, buying start-up company for long-term also requires talent. But this is a different kind of talent. For this talent also requires a vision of the 'new' future and a strong 'stomach' to go with it. This is pure speculation at its best. Meaning it has great risk to go along with the great return. Nevertheless, the toughest job is finding the right start-up to apply this special talent. Since I am no longer as young as Warren when I realize the 'secret' of long-term investment, I choose the second route- buying start-up companies for long-term investment. If I see a company I am going to invest has potential to grow more than 3 years out, it is a long-term investment. The beauty of buying start-up as long-term is that all you need is one 'hit' and you will more than cover all your losses from the many 'misses'. But in order for this one 'hit' to be BIG, you must hold this small tree until it becomes a big tree! How many times have you heard people complaining that they wished they hadn't sold Microsoft, Intel, Amazon, or Yahoo so early? Let's say you buy stock 'ABCD' at $1.00 and sell it at $5.00 because you think there will be some profit-taking consolidation taking place based on your technical analysis. Alas, this profit-taking is short-lived because 'ABCD' management announced better than expected profit or a new partnership relationship. Stock price immediately goes up to $7.00. Will you chase it then? You see, you now have a new dilemma that long-term investors don't have to deal with. If you don't chase it and want to wait until it comes back down to $5.00 (a very common tactic for short-term traders because they don't want to pay more than they sold it for!), you run the risk of missing the 'entire' appreciation of the stock for the next xxx years. Each price increase from the $7.00 just make it so much harder for you to buy back in! Remember, I am simply explaining why I believe in long-term appreciation. Of course, if you are a pure short-term trader like Rudy, you will not care if 'ABCD' price shoots to the moon after you get out at $5.00. Because this is the risk you and Rudy are willing to take. And all this is based on the assumption that the start-up I picked is a valid and potent one. And for each start-up that doesn't pan out, you and Rudy will have plenty of 'feel good' stories to tell! But I am willing to bet that after 10 years, I will have more money than you and Rudy combined if we start with the same capital base. And all I have to do is to apply some vision of the future in picking my start-up companies for long-term investment! IMO one should take stock price & Analysts opinion into consideration while evaluating whether to invest in a company for a longterm or not. PNLK is not a proven company for us to say that we don't need or we don't care for a third party/Analysts opinion to evaluate their business goals. Again, I think you are still using traditional thinking process in evaluating long-term investment. IMHO, the beginning of the internet age shifts the whole paradigm of well known investment strategies. Analysts opinion from well known brokerage houses were way to promote awareness of the company to many investors who were not aware of it. How can you blame them, there are more than 10,000 stocks in NYSE and Nasdaq alone! But the proliferation of internet access changes all that. The BEST example I can give you is AOL (America Online). Well known brokerage houses did not cover AOL until early investors were taking home 10-bagger (10 times of original investment). So, how did AOL generate so many interest buyers that propelled it to a 10-bagger before the big guys started recommending it? Can you make a guess? Could it be possible that many early investors who bought AOL were SUBSCRIBERS of America Online? Did I ring a bell yet? Analysts are FULLTIME PROFESSIONALS and it is their job to follow these companies closely. If they don't do good work, they will lose their jobs. If you follow the WSJ daily, you might be inclined to believe there are many job turnover for stock analysts. A lot of companies, especially startups like PNLK do have aggressive business goals but a majority of them fail during implementation phase. Ahhh, this is where the beauty lies. Will PNLK succeed? My opinion is YES and I am willing to bet on it! Are you willing to bet on it? As U know, With all the recent runup in internet stocks, A lot of investors/traders/analysts are following new internet issues closely. I am sure by this time most of internet companies investors would have at least heard about PNLK. If all these people have at least put in half the trust that U have put in PNL's management, this issue would not be trading at such a depressed price levels. Again, as I have discussed above, buying start-up as long-term investment is NOT everyone cup of tea. And many short-term traders bailed out because of no news. It takes lot of gut to stick this one out. If I remember reading correctly, although he is referring to Blue Chips stock, one of Warren Buffet favorite techniques is to buy as the point of maximum pessimistic. U mentioned 'shortterm manipulation'. Yes! Manipualtion does occur in much hyped, startup & unproven companies. Can someone even think of manipulating stocks like INTC,MSFT or YHOO ? On the other hand they can manipulate KTEL,KLB,EGGS etc. Unfortunately, 'short term manipulation' is all too common for any stock trading. It is all part of the trading games. You will just have to accept it as part of the overall scheme of thing. And long term play is one way to weather all this short term manipulations. IMO A company can not be successful in LONGTERM if they can't achieve SHORTTERM goals. This is especially TRUE with startup companies like PNLK. It is all depended on what you called 'short term goals'. If you are referring to short term 'stock' price increase, then I will have to disagree with you. Stock price increase or decrease at this early stage is nothing more than emotional trading. But short term goals like reaching 35,000 subscribers by end of next summer projected by PNL management is DEFINITELY VERY IMPORTANT to build up confidence for long term success. This I will agree wholeheartedly! This one is surely a long reply in light of current action! Hey, I can feel the ground shaking! Something big is coming this way? Prosperity to ALL!