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

To: Anthony@Pacific who wrote (28213)	4/8/1999 6:57:00 PM
From: HRAKA	Read Replies (1) \| Respond to of 122087

So $1,750 does not include hotel? Meaning $1,750 + hotel price? hraka

To: Anthony@Pacific who wrote (28213)	4/8/1999 7:05:00 PM
From: Wolff	Read Replies (1) \| Respond to of 122087

Associated Press article on PAIR with Anthony's interview. dailynews.yahoo.com Internet Hoax Sends Stock Soaring By EILEEN GLANTON The Associated Press NEW YORK (AP) -- Wall Street has always trafficked in rumors. But as an online hoax demonstrated this week, the lightning speed of the Internet can give a scam a big head start on the truth. A bogus report on PairGain Technologies posted Wednesday on the World Wide Web boosted the company's stock price 31 percent before the story was debunked. The incident caught the attention of regulators and reminded investors, especially impulsive day traders, that the speed and simplicity of the Internet can also wreak havoc. ''The Internet has become the world's largest conference call,'' said Anthony Elgindy, an online trader who runs Pacific Equity Investigations, a research firm. ''And plenty of the people talking about stocks have hidden motives for what they're saying.'' No one yet knows the source or the motives behind the fraudulent report on PairGain, which appeared early Wednesday on Angelfire.com, a Web site that allows surfers to create personal Web pages. The report said PairGain, a Tustin, Calif., maker of telecommunications equipment, would be acquired by an Israeli firm, ECI Telecom, for $1.35 billion, or about twice its current market value. Traders leapt on the hot tip, buying up shares and touting the stock in chat rooms run by Yahoo! The report appeared credible, with quotes from company officials, and the page was a near-perfect replica of the Web site run by financial news giant Bloomberg LP. PairGain shares, which closed at $8.50 Tuesday, rose as high as $11.12 1/2 on Wednesday before company officials confirmed the report was untrue and the page was yanked from the Internet. The stock settled back to close at $9.37 1/2, on volume of 13.7 million shares. On an average trading day, about 2 million shares of PairGain change hands. Volume Thursday was down to 1.2 million shares as PairGain slipped 25 cents to close at $9.12 1/2. PairGain and Bloomberg officials said Thursday that they had turned the matter over to the Securities and Exchange Commission, which wouldn't confirm details of any investigation. But legal experts said the perpetrator of the PairGain hoax could find himself charged with securities fraud and wire fraud, and could face five to 30 years in prison and fines of up to $1 million. The losses to investors who took the bait are tough to tally. Dozens of stock traders lamented the hoax in postings on investment chat rooms, but none were forthcoming about their own experiences. A few chastised themselves for responding so quickly to the PairGain rumor. ''Let's raise our requirements for allowing ourselves to be impressed,'' wrote one trader. ''Criminality deserves no admiration,'' wrote another. Yet rumors spread over the Internet have been the lifeblood of the growing ranks of day traders, who try to make quick profits from the twists and turns of corporate America. News of the latest merger, a stunning shakeup, a strong profit report, is readily accessible at all hours. And in chat rooms or message boards, thousands of anonymous traders encourage each other to buy, sell, or hold. Chief executive officers, waitresses and teen-agers alike can log on and offer investment advice without ever disclosing their true identities. ''The Internet makes people less accountable,'' said Elgindy. It also makes it relatively easy to reproduce and transmit information, whether it's genuine or fraudulent. ''Duplicating the look and feel of a Bloomberg news report would be pretty easy for any graphic designer,'' said John Delaney, co-chairman of the new media practice at Morrison & Foerster, a New York law firm. A Bloomberg spokeswoman said the company was not aware of any previous attempts to reproduce its site. A number of Internet service providers said they routinely remove pages that violate copyright. Companies are becoming more sensitive to violations that affect their business and individuals are more likely to press government to crack down on such scams when it affects their own pocketbooks. ''I think we'll see more cases of Internet fraud,'' Delaney said. ''The Web means that scoundrels are able to disseminate fraudulent information far more widely and much more quickly.''