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|| TechWeb News
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|| Tuesday June 9, 1998
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|| http://www.techweb.com
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|| A CMP Service
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=== In This Issue ===========================
--- Top Headlines ---
Federal Y2K Bug Costs Reach $5 Billion
--- The Scoop ---
Will Stock Genie Grant Your Wishes?
--- Internet News ---
Take Trademarks Out Of Domains, Panelists Say
--- Notably Quotable ---
Business Demands A New Internet
--- The Full Story ---
3Com Unveils New ADSL Line
=== Headlines ===============================
--- Federal Y2K Bug Costs Reach $5 Billion ---
Total federal spending on year 2000 compliance has reached $5 billion,
up from $4.7 billion three months ago, according to findings released
by the U.S. Office of Management and Budget late Monday. The report,
based on quarterly progress reports from 24 federal agencies on their
year 2000 projects, also says 15 agencies are behind on their projects,
and now must report their progress on a monthly basis.
http://www.techweb.com/news/story/y2k/TWB19980609S0012
--- IBM Announces ViaVoice 98 Software Line ---
IBM kicked off a major war in the voice-recognition software category
last summer with a low-cost title called ViaVoice. Monday, the company
announced a major upgrade to the ViaVoice product line.
http://www.techweb.com/news/story/TWB19980609S0005
--- Compaq Will Sell Direct To Keep Business ---
Compaq will sell hardware and services through its reseller partners
whenever it can, but will sell direct to customers if that is the only
way to keep their business.
http://www.techweb.com/news/story/TWB19980609S0004
--- Judge Schedules Microsoft Hearing ---
U.S. District Judge Thomas Penfield Jackson called a scheduling hearing
for Tuesday morning on the U.S. vs. Microsoft antitrust case.
http://www.techweb.com/news/story/msftdoj/TWB19980609S0003
For full coverage of today's 25+ stories, visit:
http://www.techweb.com/
=== The Scoop ===============================
Will Stock Genie Grant Your Wishes?
By Russell Wayne, TechInvestor contributor
Over the years, we've seen our share of questionable investment
strategies and ideas. These kinds of things tend to proliferate during
periods of market strength and can reach a fever pitch when stocks are
peaking, as they have been in recent months.
Quite a while back, we had the interesting experience of meeting with a
promoter who was bringing a blind pool of investments to market. The
offering was relatively small, less than $10 million, and the promoter
candidly said there were no definite plans to invest the proceeds of
what appeared to be a successful offering in the making. The market was
hot. Investors were hungry. And the merits of the deal were anything
but top priority.
There are numerous other ways to go broke, and, in most cases,
investors have access to sufficient information to make a decision not
to do something foolish. Nevertheless, there are always a few people
who believe in the tooth fairy throughout their lives. This is the
audience that takes seriously the kinds of meaningless chatter found in
investment chat rooms. There are numerous investment websites that are
equally questionable.
Keeping in mind the ongoing need to separate the wheat from the chaff,
we turn to Stock Genie, one of the more dubious sites we have come
across. At the home page, you are directed to click on Magic Moe (blue,
of course), which leads you to another page that is primarily a
disclaimer about the relationship between Stock Genie and the profiled
company. Investors who have any interest in checking out Stock Genie
would be best advised to focus on this page.
It turns out Stock Genie has a significant interest in the companies
profiled. This month's company, for example, paid $50,000 to retain
Stock Genie as a consultant for promotional services over a two-year
period. In addition, the disclaimer indicates "... the editor or the
editor's affiliates and/or family may have interests or positions in
stock of the companies reviewed." In the case of the current profile,
Voxcom Holdings, that interest amounts to 220,552 warrants exercisable
at $4 each (approximately the current price) through June 1999. If
exercised, the warrants, which were purchased in a private transaction,
would dilute earnings by 22 percent and give the party at least 18
percent ownership of the company.
This kind of thing is the polar opposite of the coldly, unemotional
analysis to which investment professionals aspire. It is one of the
more flagrant examples of conflict of interest we have seen. Even so,
all the information about this is disclosed up front. The problem, of
course, is that slim contingent of people who won't bother to pay
attention or will be sufficiently fascinated by the image of the blue
genie to ignore all the warning signs.
Now more than ever, selectivity and care are essential to a proper
program of investments. It takes time and considerable effort to get
the job done. Rubbing this genie's lamp, in our opinion, is not one of
the wiser methods one would want to employ.
=== Internet News ===========================
--- RealNetworks Fends Off Microsoft Challenge ---
Forget the browser wars. The release of RealNetworks' RealSystem G2
streaming-media player and Microsoft's NetShow 3.0, both scheduled to
come out of beta-testing this summer, sets up a battle between maturing
Web video and audio formats that could eventually determine the look
and sound of online multimedia.
http://www.techweb.com/news/story/TWB19980609S0015
--- Take Trademarks Out Of Domains, Panelists Say ---
NEW YORK -- The Clinton administration did not punt last Friday when it
revised its policy recommendations for the Internet domain names
system, said a Commerce Department official Monday night.
http://www.techweb.com/news/story/domnam/TWB19980609S0013
--- Former Netscape CTO Launches New Company ---
A week after stepping down as Netscape's chief technology officer, Eric
Hahn has resurfaced as head of a Silicon Valley start-up that aims to
help other start-ups get off the ground.
http://www.techweb.com/investor/story/INV19980609S0001
=== Features ==================================
--- FTC v. Intel: Antitrust Bust ---
The trustbusters strike again -- this time the Federal Trade Commission
is in pursuit of Intel. Stay tuned to TechWeb for coverage of the
latest government antitrust action.
http://www.techweb.com/wire/special/1998/0698intel.html
--- TechWeb Internet Scorecard ---
The promise of new kinds of Net names fades into the future, while South
Park's Kenny dies a thousand online deaths. Find out who's up and who's
down in the Insider Scorecard.
http://www.techweb.com/internet/scorecard
=== Notably Quotable =======================
"The Internet has been irrevocably changed by its adoption by the
business community, and that demands a different Internet than in the
past."
- Don Telage, Network Solutions
http://www.techweb.com/wire/story/domnam/TWB19980609S0013
=== The Full Story =========================
--- 3Com Unveils New ADSL Line ---
By Todd Wasserman, Computer Retail Week
3Com announced Tuesday a combination V.90/asymmetrical digital
subscriber line modem and two other ADSL products the company promises
will be compatible with a splitterless ADSL standard.
Splitterless ADSL is a slower form of ADSL that does not require
installation of a hardware device, called a splitter, by the telephone
company.
3Com's (company profile) peripheral component interconnect-based
V.90/ADSL modem is targeted as an original equipment manufacturer
device for PC vendors, said Laura Howard, vice president of 3Com's DSL
initiative. No PC vendors have been announced yet.
Howard said the device will also be available through retail, though no
channel partners have been announced. The modem carries a $269
suggested retail price.
The other products include an OfficeConnect ADSL router, which carries
a $595 SRP, and an external universal serial bus ADSL modem at a $299
SRP. The latter product is not V.90-compatible, but Howard said Santa
Clara, Calif.-based 3Com may release an external V.90/ADSL modem if
there is enough demand.
The three products will be compatible with a splitterless ADSL standard
when one is established, Howard said.
She said she believes there is a "50-50 chance" the International
Telecommunication Union will approve a draft standard for splitterless
ADSL in October.
"Determination of standard in October is a lofty goal," Howard said,
"but people are working very hard on it."
Citing 3Com's projection that a base of only 15 million users will be
living in areas where ADSL is available by late 1999, Howard said she
does not expect ADSL modems to be widespread at retail anytime soon.
"You might see it at CompUSA, tied to [telephone company-based]
service," she said, "but I don't think every CompUSA is going to carry
this, because not all regions will have it."
Howard, however, said there may be a market for ADSL/V.90 combination
modems for upgrade-weary customers. She also said she expects more PC
vendors to offer the combination modems standard with some models.
"Their goal is to add value at the same prices," she said.
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