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Technology Stocks : CustomTracks Corporation (CUST) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (236)	5/25/1999 12:51:00 AM
From: Maarten Z	Respond to of 2514

Great product or great scam?? Looking at the charts for the first time you would have to say "wow" From 10 at the beginning of the year to an intraday hi of 90 today. This company must have an amazing product. Analyst coming out with 230 target. But then you start trying to do some DD on this new product and instead of getting a clearer picture - it gets hazier. During 1997 and 1998 CUST sold off all of its businesses. In Nov 98 it sold off Electronic Security Group which was its remaining revenue generating business. So what business are they in? The 98 2/3Qtr report states that they are going into digital music business - Mr Cook's startup -Petabyte this apparently never takes off or has been shelved indefinitely. The 98 year end report shows that they have 80+million in cash and have decided to develop an internet payment system. If nothing else by yearend 98 their EPS went from <1.17> to 1.66 Of course all of that is gain on the sale of their failed businesses. With 80 mill in cash they set out to create their innovative internet payment system. Feb 1997 they contract out to Lante Corp an internet sales commerce firm to help develop this product. Almost nothing else is available no details on product - nothing. Except that the product will be out by 3rd quarter 99. That is amazing. Looking at R&D expenses for 1st Qtr 99 you can see 2.7 million. Less than 3 million in R&D for 3 monthes and they are able to forecast roll out in 5-6 monthes. Apparently this idea was already formed in Petabyte. Frankly there is nothing much elso out there. All you can say for sure is this is a company that has quickly entered on arena after another and FAILED. Now all the sudden they have found the golden key, and apparently there are many investors out there who believe it. Again looking at the charts this is not a one day wonder- it has gone up steadily since the beginning of the year and found support at every higher level. No product no sales nothing. And yet.