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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K -- Ignore unavailable to you. Want to Upgrade?

To: francis terry who wrote (5570)	9/8/1998 10:12:00 PM
From: CatLady	Read Replies (1) \| Respond to of 7491

Cashco mentioned in the Wall Street Journal Interactive Edition, in an article about on-line investing. interactive.wsj.com Excerpt: When Cashco Management Inc. wanted to attract investors to its stock, it turned to Global Penny Stocks, an on-line investment newsletter. In exchange for a payment of $3,950, Global Penny Stocks' publisher, George Schlieben, issued a "special research report" on Cashco and gave it a "buy" rating. He predicted the company's stock -- trading at around 44 cents a share on the OTC Bulletin Board when Mr. Schlieben issued the report on April 20 -- would hit $2 to $2.50 a share in the next year, and $4 in two years. A few days after the report, the stock climbed to 51 cents a share, before beginning a steady decline. A disclaimer in small print above the research report said that Mr. Schlieben received a fee from Cashco to write the report, but didn't say how much. Also not clearly disclosed was that all the information in the research report, including the stock-price targets, came from Cashco, a tiny Philadelphia-based company with an unusual product mix. The company sells wood-based kitty litter as well as software to fix the Year 2000 problem. Sites like Global Penny Stocks are part of the glut of free investment advice on the Internet, where users crowd on-line discussion forums and chat rooms to talk up their stock picks. But with so much information flying around so quickly -- and with the sources of that information often dubious or cloaked in anonymity -- the Internet can be a dangerous place for investors. "People who believe everything or even most of what they read on-line are crazy," says John Stark, the Securities and Exchange Commission's head of Internet enforcement matters. His office is responsible for investigating on-line investment fraud and other violations of SEC regulations in cyberspace. And, Mr. Stark says, he has never been busier. "You've [had] the greatest bull market in history smack up against the greatest information revolution in history, and you've really got to be careful," he says.