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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Dako who wrote (960)	5/13/1999 11:57:00 AM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 7056

I guess Pussy's errant brother could not take it:"Hitsgalore.com Shares Fall After Founder Reed Resigns Rancho Cucamonga, California, May 13 (Bloomberg) -- Hitsgalore.com Inc. shares fell as much as 28 percent after the Internet company said its founder quit as a director and officer following accusations he cheated customers in a previous job. The shares fell 2 1/2 to 9 1/2 in early trading of 224,000 shares. Earlier they touched 8 5/8. Dorian Reed, who's the largest shareholder, resigned his posts as chief technology officer and director, a spokesman said. It came after Hitsgalore stock fell 53 percent on Tuesday on reports the company didn't disclose fraud charges against Reed. Last month Reed and Audrey Reed were ordered by a federal judge to pay $613,110 to 100 customers for false claims made by Internet Business Broadcasting, a failed online advertising company they worked for. It's unknown if the Reeds are related. The Federal Trade Commission accused Reed and co-defendants of touting a 100 percent annual return on investments of $5,000 to $7,500 in IBB Internet advertising banners. The company was also accused of not providing refunds when investors didn't receive their promised results. The FTC described Reed as IBB's ''principal telemarketer.'' Hitsgalore.com is making claims similar to IBB's. It says on its web site that investors, by paying $99 to sponsor banner ads on the Internet, can earn $495 if they get 20 more investors to also pay $99 to Hitsgalore.com. Hitsgalore.com was founded in July, four months after the FTC sued Reed. It's based a few blocks from IBB's former headquarters in Rancho Cucamonga, California, 60 miles east of Los Angeles. Hitsgalore.com went public on Feb. 11 by merging with Systems Communications Inc., a publicly traded shell company. In the merger agreement, filed with the Securities and Exchange Commission, Hitsgalore.com said there were no suits or governmental investigations against any of its officers, directors or employees. It didn't disclose the FTC's case against Reed in subsequent SEC filings. The company's market value rose from $53 million to $1 billion within three months after it went public. --David Evans in Los Angeles (310) 827-2348 with reporting by Andy Davidson in Tokyo (813) 3201-8950 /ad/jh