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

To: StockDung who wrote (26458)	4/2/1999 1:55:00 PM
From: summerboy	Read Replies (2) \| Respond to of 122087

if i read it right, why would comdisco buy so many shares of cyoe in open market, or want to own 5% of crappy cyoe? Harold

To: StockDung who wrote (26458)	4/3/1999 10:09:00 PM
From: Wolff	Read Replies (1) \| Respond to of 122087

Crescent's Curcio to TSC: 'I Don't Have to Tell You Anything' By Kambiz Foroohar Senior News Editor 12/10/98 3:36 PM ET TheStreet.com today finally tracked down Gene Curcio, the head of Crescent Communications Inc., the company cited by Coyote Network (CYOE:Nasdaq) as its largest customer. Dun & Bradstreet's business databases, accessed through www.knowx.com, reveal a Crescent Communications at 11 Trade Center, STE 32372, Long Beach, Calif. According to D&B, the company was incorporated in California, founded by Bob Gibson, who was also the company's chief executive. No Gene Curcio is listed. D&B did list a Long Beach, Calif., phone number. A TSC reporter called that number to speak to Bob Gibson to see if he had heard of Gene Curcio. Instead, Gene Curcio himself answered the phone. "I do exist," he said in a hoarse voice. In a 15-minute interview, Curcio tried to explain the confusing Securities and Exchange Commission filings by Crescent and said that he had no idea why Coyote had any trouble locating him. As reported in a group of stories yesterday, TSC had asked Coyote for information about Crescent. Asked today about the address of Crescent, Curcio said his company was based in 1 World Trade Center, Long Beach. "The D&B info is a typo, is wrong. There is no 11 Trade Center." He did not elaborate on why he has not corrected that error in the D&B filing. He conceded that he did not actually have an office at 1 World Trade Center, as previously claimed by Coyote. "I have a P.O. box there. I had an office on the 23th floor in 1992, but I have a P.O. box there now." The landlord at 1 World Trade Center referred TSC to the post office. The post office said it could not comment on P.O. box ownership. No P.O. box is listed in the Nevada incorporation statement that lists Curcio or in the D&B filing. What about the phone number listed in D&B? "This is my private line," he said. Curcio said Comdisco (CDO:NYSE) bought equipment from Coyote and "leased it back to me." As for Bob Gibson? "He left after six months. Can't I let go of people?" The D&B records are reported to be current through Nov. 2, 1998. Why did he not return messages left with his phone message service company from TSC? First Curcio said he hadn't gotten any messages from TSC. Then he said that he felt no reason to return such calls. "I don't have to tell you anything," an angry Curcio said. "I am a private company and who are you?" Curcio said the company was incorporated in Nevada. He declined to answer questions about why D&B listed his company as incorporated in California. Also, this morning the California Franchise Tax Board said that in 1995 it had suspended the business license of the only Crescent Communications Inc. in its database, because it did not file income tax returns. The board monitors and administers only income taxes. It is not known if this is the same Crescent Communications that Curcio heads. "I am hard to get hold of and your reporter is no Jim Rockford," Curcio said. What about Coyote's problems in locating him since Coyote is a 20% owner of Crescent Communications? "Maybe they did not want to tell you that. Why should they talk to you? I know nothing about Coyote or Comdisco," he said, referring to their businesses. "Coyote wanted a steady monthly income and that is why they bought 20% of my company. But I don't know why they couldn't get hold of me."

To: StockDung who wrote (26458)	4/3/1999 10:11:00 PM
From: Wolff	Read Replies (1) \| Respond to of 122087

blast from the past--->As Its Stock Remains Halted, Coyote Raises Question of Third-Party Lessor By Kambiz Foroohar Staff Reporters 12/10/98 3:34 PM ET The Nasdaq Stock Market halted trading in Coyote Network (CYOE:Nasdaq) stock this morning in the wake of stories published yesterday in TheStreet.com and following a press release about the stories from Coyote. In its press release, Coyote said that the TSC stories are "potentially misleading." The company, however, did not clarify questions raised about its largest customer, Crescent Communications Inc. Even though it owns 20% of Crescent, Coyote referred to a research report when describing the location of the company as Long Beach, Calif. The company also explained how its arrangement with Crescent works, citing Comdisco (CDO:NYSE) as the unnamed third party mentioned in a description of its business relationship with Crescent in a recent Securities and Exchange Commission filing. Coyote shares dropped 6 7/16, or 45%, yesterday, finishing at 7 13/16. The stock has not traded today. Today TSC reached Gene Curcio, the head of Crescent. TSC wrote yesterday that it was having a hard time tracking Curcio down. Exhaustive research, including a trip to the Long Beach location cited by Coyote, came up empty. Incorporation documents were found in Nevada, but messages left at a number affiliated with Crescent weren't returned. Coyote, after assuring TSC on Friday that it would most definitely get us in touch with its largest customer, declined to return calls and offered no further guidance concerning Crescent and Curcio. In its press release today, Coyote referred to a "Kaufman Brothers Intraday Note" that said Crescent was based in Long Beach. Yesterday, Kaufman Brothers analyst Vik Grover, who rates Coyote a buy, told the Los Angeles Times that Crescent was based in Mexico. A copy of a Kaufman intraday note obtained by TSC and dated Dec. 9 says: "Let us set the record straight: Crescent Communications is indeed incorporated in Nevada but is based in Long Beach. Crescent is actually a Mexico-based switchless reseller doing business under the name 'Crescent Communications SA de CV'." Curcio said that since his firm is private, he didn't feel a need to make it known where he works and operates. He explained certain discrepancies in corporate filings and incorporation statements in an interview, but the conversation raised still more questions than it answered. Moreover, Curcio said names listed on various filings related to Crescent referred to dismissed employees and wrong addresses in the filings were typos. (For details of the Curcio interview and for more on Crescent, please see our related story.) Also, this morning the California Franchise Tax Board said that in 1995 it had suspended the business license of the only Crescent Communications Inc. in its database, because it did not file income tax returns. The board monitors and administers only income taxes. It is not known if this is the same Crescent Communications that Curcio heads. The Coyote press release focused on the arrangement of the dealings between Comdisco, Coyote and Crescent. Prior to its press release, issued this morning, Coyote said it sold roughly $11 million of product to Crescent Communications. A quarterly SEC filing said, "In September 1998, the Company [Coyote] sold approximately $13,000,000 of equipment to Crescent Communications, Inc. ("Crescent") through a third party leasing arrangement." (The company said it deferred recognition of about $2.5 million.) In its filing, Coyote had made no mention of Comdisco. In a press release dated Sept. 24, Coyote had indicated that Comdisco had "agreed to provide lease financing for the initial portion of the equipment order." Coyote also has said it acquired a 20% stake in Crescent. A spokeswoman for Comdisco confirmed today that her company has bought $12 million of equipment from Coyote Network and has in turn leased that equipment, made by Coyote and other companies, to Crescent Communications. "At this point that's all the information I have." She said she is trying to get additional details concerning the companies' relationship. Comdisco leases, sells and refurbishes computer equipment. The spokeswoman had told TSC yesterday and also when first contacted more than a week ago that she was not aware that her company did business with Crescent. Yesterday she also cited a company policy of not commenting on a customer without that customer's permission. The press release does not include a quote from Comdisco or Crescent. Finally, Coyote states that its "'insiders' and 'affiliates' can not and will not 'short sell' Coyote stock." TSC reported earlier that in SEC filings, Coyote noted that listed stockholders might decide to short their own company's stock. By selling shares short, a person aims to profit from a fall in the share price. Comdisco might choose to sell about 193,000 Coyote shares if a registration filed Dec. 3 with the SEC becomes effective. Between March and September, Comdisco bought warrants for more than 190,000 shares in Coyote, with exercise prices ranging from $3.81 to $8.33 per share.

To: StockDung who wrote (26458)	4/3/1999 10:23:00 PM
From: Wolff	Respond to of 122087

backgrounder on..... Michael Fantetti, an outside investor, can choose to divest himself of 33% of his stake, worth $1.9 million if the $16 share price holds. Fantetti had obtained warrants that are exercisable at $2.86 per share. Squeglia did not call TSC back with a phone number or address for Fantetti. But someone using the alias "mfantetti" has been an aggressive defender of Coyote on the Yahoo! and Silicon Investor message boards. "This company is poised for an explosion in revenue, and of course earnings," "mfantetti" wrote early on the morning of Nov. 26. According to SEC documents, Michael Fantetti on Sept. 8 filed a Form 144 -- a notice of the proposed sale of restricted securities -- to sell 22,000 shares.

To: StockDung who wrote (26458)	4/3/1999 10:25:00 PM
From: Wolff	Respond to of 122087

blast from the past2-->Coyote Insiders Register to Sell Shares By Kevin Petrie Staff Reporter 12/9/98 10:07 AM ET Just a month after securing a listing on the Nasdaq, Coyote Network (CYOE:Nasdaq) has given notice that some of its backers and executives will be free to sell as many as 5.4 million shares as various warrants are converted into stock. Currently 10.5 million shares are outstanding. Coyote stock has risen from about 10 to as high as 16 3/4 since joining the Nasdaq Nov. 5. On Tuesday, shares dropped 1/4 to close at 14 1/4. According to documents filed Dec. 3 with the Securities and Exchange Commission, numerous insiders are poised to sell huge chunks of their holdings. These stockholders say in the filing that they might make the unusual decision to short their own company's stock. By selling shares short, a person aims to profit on a fall in the share price. Company spokesman Tony Squeglia says Coyote insiders are simply registering stock that underlies warrants they received in the summer of 1997. He denies that managers intend to sell, but that's exactly what this registration will enable them to do. "You don't file an S-3 unless you plan to prepare your shares for eventual sale or some kind of trade," says Bob Gabele, president of CDA/Investnet, a service that tracks insider trading. He says those trades might include hedging, shorting or selling. "Somebody's thinking about selling stock." At the time of the registration, the shares were trading at 16. Using that price, as much as $86.6 million in stock will be offered for sale. CEO James Fiedler will be able to offer one-third of his position for sale, according to the S-3 document, which says he can sell up to 183,750 shares. That includes stock obtained through warrants that were priced under $3 per share when issued in mid-1997. His spokesman and partner Tony Squeglia has the ability to sell about 16,000 of his 42,000 shares, some obtained through warrants priced under $3 per share. Still, he insists they will not pull out. "The management of the company is not selling shares," Squeglia says, speaking only for himself and Fiedler. Michael Fantetti, an outside investor, can choose to divest himself of 33% of his stake, worth $1.9 million if the $16 share price holds. Fantetti had obtained warrants that are exercisable at $2.86 per share. Squeglia did not call TSC back with a phone number or address for Fantetti. But someone using the alias "mfantetti" has been an aggressive defender of Coyote on the Yahoo! and Silicon Investor message boards. "This company is poised for an explosion in revenue, and of course earnings," "mfantetti" wrote early on the morning of Nov. 26. According to SEC documents, Michael Fantetti on Sept. 8 filed a Form 144 -- a notice of the proposed sale of restricted securities -- to sell 22,000 shares. Also filing to sell is the JNC Opportunity Fund, administered by Olympia Capital in Bermuda. JNC will be free to sell 2.6 million shares worth $41.6 million (again, assuming a price of $16 a share). An Olympia official took a message for JNC management, but JNC did not return inquiries by TSC. New York-based hedge fund Strategic Restructuring Partners is registering all 1.3 million of its shares, although managing partner Richard Haydon says he doesn't intend to sell. Haydon's portfolio also includes warrants that are exercisable at less than $3 per share. Another bearish sign: The SEC registration document says these stockholders might short shares of Coyote. "From time to time the selling stockholder may engage in short sales [and] short sales against the box," the document says. Neither the SEC nor the Nasdaq has any rules barring insider short sales, but Gabele calls this type of provision a "yellow flag." Sometimes insiders decide individually to short or somehow hedge their positions, Gabele says. But it is unusual for a company to state this possibility outright in an SEC filing.

To: StockDung who wrote (26458)	4/3/1999 11:00:00 PM
From: Wolff	Respond to of 122087

Here is why CYOE should be the "posterboy" for the SEC and its efforts to stop internet hyper and bulletin board fraud. What is sooooo amazing is that we have such a clear record of facts of insider postings. As a follow-up yes, these posters never did return, and when I check for the GenXXXXX name it had not information but I could not create a new record using it either, kindof has the lets pull this name off as evidence feel. Chatters Get the First Word on Coyote By Kevin Petrie Staff Reporter 2/22/99 6:58 PM ET Is information leaking from Coyote Network (CYOE:Nasdaq)? Last Thursday afternoon, Coyote, a network supplier and provider of phone services based in Westlake Village, Calif., announced a $10 million financing "commitment" that appeared to ease its cash shortage. On PR Newswire, the release is time-stamped at 3:55 p.m. A company spokesman says the news was released at 4:00 p.m. Trouble is, people perusing the Yahoo! Finance message boards knew about the deal well ahead of time. At midday Thursday, a writer using the alias "eggmn" offered the following information: "a very reliable source tells me that the company will close on a $10mil financing BEFORE next friday." Anyone who bought on the tip would have turned a quick profit: Shares jumped from below 5 to close at 5 3/4 as almost 1 million shares traded. According to Coyote's latest 10-Q released last week, both the Securities and Exchange Commission and the Nasdaq are inquiring about its activities, after TheStreet.com reported on Dec. 9 that it could not find a headquarters, business license or active tax records for one of its main customers. Shares have slipped from 14 1/4 on Dec. 8 to 5 1/4 on Monday. This is not the first time that message boards have offered accurate news ahead of the company. On the morning of Feb. 10 Coyote announced plans to acquire Apollo Telecom, an international telecom services company based in Salt Lake City, and boost its stake in the Italian concern Systeam S.p.A to 60% from 9%. The deals generated little surprise among Internet chatters. In a post titled "What's cookin'..." on the evening of Feb. 3 "GenXXXXX" wrote: "Expect ... news of a merger and an increase in its ownership in an already owned company." Coyote spokesman Tony Squeglia says the company will look into the message postings. "When we have news to announce, we announce that news publicly through our news releases and through our filings," Squeglia said. An official for the Securities and Exchange Commission declined to state whether it is investigating these messages; Coyote says it has not been contacted. Yahoo! does not moderate its boards and declined to comment on any particular board. The two predictions of deals might be a little too specific for comfort. An SEC spokesman said generally the SEC brings civil actions against people suspected of insider trading, or refers the matter to the U.S. attorney for criminal proceedings. To be sure, the investment bulletin boards on Yahoo! Finance and Silicon Investor are rife with misinformation, hype and bizarre exchanges, even on the best of days. Recently, the boards devoted to Coyote have exploded with feverish speculation about Coyote and Crescent Communications. David Zlotnick, an independent attorney based in San Diego, says that Internet bulletin boards are treated as any other form of communication. Any potential legal case likely would involve the writer rather than people who read the message and acted on it, he says. Zlotnick is not currently involved in any legal matter with Coyote. Zlotnick sued Diana Corp., Coyote's predecessor, on behalf of bond holders in a subsidiary several years ago. The case was settled. Who are these guys posting messages? On Feb. 8, GenXXXXX claimed not to be a Coyote insider (usually meaning a company officer or key employee) but to "work with one." In a different message, GenXXXXX claims to own 5,000 shares. Yahoo! reveals personal information about participants only if it is forced under a subpoena or similar legal measure. A Yahoo! official declines to state whether the company has been involved in any case of potential insider trading. GenXXXXX might be in trouble even if he or she doesn't work for Coyote. In several recent cases the SEC has argued that third parties might be breaking the law if they act on private information, even if they are not technically company insiders, Zlotnick says. "That's the kind of gray area that courts are struggling with now," he says. Internet bulletin boards have seen a few uncanny predictions in the past. For example, TSC writer Erle Norton reported that someone known as "Molson DE" spelled out plainly Nortel's (NT:NYSE) acquisition of Bay Networks just four days before the deal was announced in June. "My college roommate is an accountant for BAY and they submitted their final paperwork to the CFO this morning," said Molson DE. "I am a buyer tomorrow." Nortel still declines to comment on the incident.