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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: MaryinRed who wrote (26260)	4/1/1999 1:00:00 PM
From: Bear Down	Read Replies (1) \| Respond to of 122087

USA Talks Says It's Subject of SEC Securities Fraud Inquiry San Diego, April 1 (Bloomberg) -- USA Talks.com Inc., whose shares resumed trading in February after a two-week suspension by the Securities and Exchange Commission, said it's the subject of a continuing securities fraud investigation by the agency. The investigation involves possible false statements by the company about its business operations, the company said in its annual report filed today with the SEC. USA Talks, which provides unlimited long-distance telephone service over the Internet for a flat fee, saw its shares soar from a low of 5/8 in September to a high of 12 31/32 on Jan. 20. The SEC halted trading on Jan. 20, citing questions about the accuracy of public information about the company. The commission on Jan. 28 approved a formal order of investigation. In promotional materials it distributed in January, USA Talks projected earnings of $16 million on revenue of $85 million this year. It also said profit would rise to $43 million on revenue of $227 million in 2000. President William Ervine made similar estimates in an interview. In today's report, it issued a revised forecast. USA Talks projected operating losses for 1999 of $5 million. It said its loss for 1998 widened to $6.1 million, or 11 cents a share, from $1.8 million, or 4 cents a share. It had no revenue either year. The company's shares fell 1/32 to 3 7/8 at midday