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Thanks for the reply.I know about the charts,& relying on 1 or 2 stocks deal. to bad you and or I can't short pennies, I guess they know we could make millions then,lol,,, dilution,panic selling will help that. Thanks.
Oh, I agree. I've seen all the television ads. They run on late night television. They are usually on when I can't sleep ;)
They wouldn't keep running those ads if they weren't getting customers. Maybe iHub is full of lurkers that attended one of these Better Trades, InvesTools, WizeTrade, Option Magic, Waxie the Ninja Pajama Trader or whatever seminars are out there.
Dr worm,
It would be great to hear of both good and bad experiences. Not just from recent experiences, I'd like to hear from anyone who had ever attended such a seminar, and whether they think the seminar has proven worthwhile or not.
It's a shame nobody posts here. I know there are new traders who have experiences with trading seminars, systems, whatever.
I guess nobody wants to say much, good or bad, about them.
Or they are too embarassed to admit they paid for their "system" or whatever?
I would think this would be a popular thread for new traders.
its bullshit. a kid who started with 10K didnt have to worry about rent, kids, mortage etc etc etc There is no secrets, due you DD, buy ow sell high, unless you have the balls to short..read charts, talk to other investors and have a big set of Kahunas...be prepared and realize that if you put it ALL in 1 or 2 stocks, you will lose it eventually
Anyone heard of Timothy Sykes, he made millions from the pennies, he is suppose to have a book out soon, been looking but can't find it yet anyone found it??
Hello everyone,
I am new to the boards.I'm wondering if anyone has heard of Jack Carter and his investing system "Investor's secrets to
making profit-rich stock trades?If so I would like your opinion of it.
Thanks,Leonard
I have heard good things about the eSignal trading seminar
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I got an INVESTools mailer inviting me to a seminar in the Dallas area yesterday. Coincidence?
Investools 4Q Losses 9c/Shr Vs 15c>IED
Investools 4Q Rev $36.8M Vs $24.9M, +48%>IED
23 Feb 2006, 07:17am ET
Investools 4Q Rev $36.8M Vs $24.9M, +48%>IED
23 Feb 2006, 07:17am ET
INVESTools Reports Record Fourth Quarter and 2005 Adjusted EBITDA of $11.3 and $27.8 Million on Sales Transaction Volume of $50.0 and $176.2 Million
23 Feb 2006, 07:00am ET
E-mail or Print this story
- - - - -
SALT LAKE CITY--(BUSINESS WIRE)--Feb. 23, 2006--INVESTools Inc. (AMEX:IED), the market leader in fulfilling the lifelong education needs of self-directed investors, today announced record results for the quarter and year ended December 31, 2005.
Highlights of the periods included:
-- Revenue of $36.8 Million for the Fourth Quarter and $138.6
Million for Fiscal Year 2005
-- Record Sales Transaction Volume of $50.0 Million for the
Fourth Quarter and $176.2 Million for Fiscal Year 2005
-- Net Loss of $4.2 Million for the Fourth Quarter and $15.7
Million Loss for Fiscal Year 2005
-- Record Adjusted EBITDA of $11.3 Million for the Fourth Quarter
and $27.8 Million for Fiscal Year 2005
"We are pleased to report record fourth quarter and fiscal year 2005 results for our shareholders. Market acceptance of the INVESTools brand has increased margins on an adjusted basis to over 20% for the quarter and cash and cash equivalents grew to $33.4 million at year end demonstrating the strength of our operations," said Lee K. Barba, Chairman and CEO. "As a result we continue to expand and accelerate the investment in our growth strategies for 2006 -- particularly our online initiatives -- and in the scalability of our infrastructure."
"The introduction during the fourth quarter of our new Web site, www.investools.com , and the online 5 Step Investing Formula and Currency Trader courses gained student acceptance ahead of expectations and we have begun direct online sales to prospective students in the first quarter of 2006 to complement our offline sales and fulfillment leadership. With the recent announcement of our relationship with Yahoo! Finance, which will begin testing later in the year, INVESTools continues to open new online distribution channels with industry leaders to attract highly qualified students seeking sophisticated expertise and access to financial markets through investor education."
Revenues increased 43 percent to $138.6 million in 2005 from $97.2 million in 2004, based on a 44 percent growth in underlying sales transaction volume to $176.2 million in 2005 compared with $122.6 million in 2004. Sales transaction volume, a non-GAAP financial measure, represents sales generated in a particular period before the impact of recognition of deferred revenue from prior periods and the deferral of current period sales. Please refer to the reconciliation of total revenue to sales transaction volume below for further discussion of the relevance of this measure.
Net loss in 2005 totaled $15.7 million, or $0.35 per share, compared to a net loss of $11.7 million, or $0.26 per share in 2004. The net loss in the year was impacted significantly by the net increase of $37.0 million of deferred revenue, which will be recognized in future periods. The net increase in deferred revenue resulted from increased sales of continuing education products, primarily the Master Investor Program, the Program of High Distinction, Active Investing Series, and during the fourth quarter, the Company's new online courses. The majority of costs associated with this revenue are expensed as incurred at the time of the sale. Offsetting this deferral of current period sales transaction volume was deferred revenue from sales transaction volume in prior periods, a portion of which was fulfilled and recognized as revenue.
Adjusted EBITDA increased 62 percent to $27.8 million in 2005 from $17.2 million in 2004. As a percentage of sales transaction volume, adjusted EBITDA, increased to 16 percent in 2005, up from 14 percent in 2004. The Company believes that adjusted EBITDA, a non-GAAP financial measure, is an important measure of financial performance because it increases the comparability of operating performance between periods. This is caused primarily by the impact of accounting for costs associated with deferred revenue, as the majority of such costs are expensed as incurred at the time of the sale. Please refer to the reconciliation of net income/loss to adjusted EBITDA below for further discussion and a calculation of this measure.
Sales transaction volume generated during the fourth quarter ended December 31, 2005, increased 37 percent to $50.0 million compared to $36.4 million for the same period a year earlier. This increase in sales transaction volume resulted in a 48 percent increase in revenues for the fourth quarter to $36.8 million from $24.9 million for the same period a year ago. On a sequential basis, revenue for the fourth quarter of 2005 decreased slightly to $36.8 million from $37.0 million in the third quarter of 2005. Sales transaction volume generated during the fourth quarter of 2005 increased 30 percent to $50.0 million from $38.5 million in the third quarter of 2005 reflecting continued growth of sales of the INVESTools brand and a return to a higher volume through the Company's co-marketing channels.
Net loss in the fourth quarter totaled $4.2 million, or $0.09 per share, compared to a net loss of $6.7 million, or $0.15 per share in the fourth quarter of 2004 and a net income of $4.0 million, or $0.09 per share in the third quarter of 2005. The increase in net loss in the quarter was driven primarily by an increase in sales transaction volume compared to the prior quarter and the related impact on net change in deferred revenue. Changes to the increase in deferred revenue in future periods will continue to have an impact on our operating results. Accordingly, the Company feels that adjusted EBITDA is a relevant measure of operating performance from a comparability standpoint. This net increase in deferred revenue resulted from $38.1 million, or 76 percent, of sales transaction volume in the quarter being deferred for recognition in future periods even as the majority of costs associated with such revenue were expensed as incurred at the time of the sale.
Adjusted EBITDA was $11.3 million in the fourth quarter, up 92 percent from $5.9 million in the same quarter a year ago and up 64 percent sequentially from $6.9 million in the third quarter on 30 percent higher sales transaction volume. As a percentage of sales transaction volume, adjusted EBITDA increased to 23 percent in the fourth quarter of 2005, up from 16 percent in the prior year quarter, and up from 18 percent in the third quarter of 2005.
Additions to deferred revenue approximated 76 percent of sales transaction volume during the quarter, therefore, additions to deferred revenue in the quarter increased proportionately to $38.1 million from $26.2 million in the third quarter of 2005. Concurrently, deferred revenue recognized into income, which approximated 39 percent of beginning deferred revenue balances during the fourth quarter, increased to $25.1 million from $24.8 million in the third quarter of 2005 consistent with the increasing balance in deferred revenue. These trends widened the net increase in deferred revenue to $13.2 million in the fourth quarter from $1.5 million in the third quarter.
Cost of revenue in the fourth quarter held constant at 47 percent of sales transaction volume, increasing to $23.3 million from $18.3 million in the third quarter of 2005. The Company did experience an increase in the percentage of graduates from its partner branded events compared to the previous quarter, resulting in an increase in partner commission expense during the quarter. Partially offsetting the increase in partner commission expense as a percentage of sales transaction volume, the Company realized savings in payroll costs related to fulfillment areas. During the quarter, upsell rates improved to 31 percent from 30 percent in the prior quarter generating a higher percentage of higher margin continuing education sales which also contributed to cost of revenue remaining flat compared to the prior quarter.
Selling expense in the fourth quarter of $10.0 million was up slightly compared to the preceding quarter level of $9.4 million reflecting the Company's continuing emphasis on marketing under the INVESTools brand.
General and administrative expense in the fourth quarter held constant at 14 percent of sales transaction volume, increasing to $6.8 million from $5.4 million, in the third quarter of 2005. Primarily contributing to the increase in expense were year end accounting fees, compensation expenses, Sarbanes Oxley Section 404 compliance expenses and other professional fees.
During the fourth quarter of 2005, the Company graduated approximately 15,900 students. Through December 31, 2005, the Company's graduate base increased to approximately 209,000 students from its investor education programs. Active subscribers to its Online Investor Toolbox(TM) and Prophet.Net websites increased to 68,000. The increase relates primarily to the higher volume but lower price point of Success Magazine graduates from the second quarter of 2005 that renewed at substantially lower rates than the Company's other channels. Subscription retention rates for channels other than Success Magazine continue to exceed 65 percent.
As of December 31, 2005, the Company had cash, cash equivalents (including restricted cash) and marketable securities of $33.4 million, compared to $25.5 million at September 30, 2005. During the fourth quarter, the Company used $3.1 million for investments related to technology projects and for computer related equipment. The Company did not acquire any common stock during the fourth quarter pursuant to its stock repurchase program. To date, the Company has repurchased 1.4 million shares at a cost of $3.6 million under this program.
Explanation of Non-GAAP Information
The Company believes that sales transaction volume before changes in deferred revenue is an important measure of business volume. It is consistent with the amount of cash receipts from selling activities in the period and with the majority of the components of cost of revenue. The table below provides a reconciliation of sales transaction volume to total revenue for the periods indicated:
Quarters Ended
Dec. Sept. June March Dec. Sept.
31, 30, 30, 31, 31, 30,
----------------------------------------------
($ in millions) 2005 2005 2005 2005 2004 2004
Sales Transaction
Volume $ 50.0 $38.5 $ 45.7 $ 41.9 $ 36.3 $30.2
Change in Deferred
Revenue $(13.2) $(1.5) $(11.5) $(11.3) $(11.4) $(6.3)
----------------------------------------------
Total Revenue $ 36.8 $37.0 $ 34.2 $ 30.6 $ 24.9 $23.9
==============================================
The Company believes that adjusted EBITDA as shown in the table below is a valuable representation of operating performance given the impact of accounting for deferred revenue and for costs associated with deferred revenue. The table below provides a reconciliation of net income (loss) to adjusted EBITDA for the periods indicated:
Quarters Ended
Dec. Sept. June March Dec. Sept.
31, 30, 30, 31, 31, 30,
------------------------------------------
($ in millions) 2005 2005 2005 2005 2004 2004
Net Income/(Loss) $(4.2) $ 4.0 $(6.3) $(9.3) $(6.7) $(3.2)
Depreciation and
Amortization $ 0.9 $ 0.7 $ 0.7 $ 0.5 $ 0.4 $ 0.2
Other Non-Cash Items $ 1.8 $ 0.6 $ 0.8 $ 0.6 $ 1.2 $ 0.5
Net Change in Deferred
Revenue $12.8 $ 1.6 $11.6 $11.0 $11.0 $ 6.1
------------------------------------------
Adjusted EBITDA $11.3 $ 6.9 $ 6.8 $ 2.8 $ 5.9 $ 3.6
==========================================
INVESTools Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
December 31,
-----------------------
2005 2004
----------- ----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 11,466 $ 10,736
Marketable securities 16,871 13,840
Accounts receivable, net 3,353 2,194
Current portion of restricted cash 4,722 384
Other current assets 3,133 2,493
----------- ----------
Total current assets 39,545 29,647
Long-term restricted cash 366 1,876
Goodwill 18,085 14,315
Intangibles, net 5,199 2,152
Furniture, fixtures and equipment, net 8,890 1,574
Other long-term assets 614 214
----------- ----------
Total assets $ 72,699 $ 49,778
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of deferred revenue $ 68,215 $ 31,957
Current portion of capital lease obligations 125 -
Accounts payable 3,210 4,994
Accrued payroll 3,522 2,178
Accrued tax liabilities 7,359 5,103
Other current liabilities 4,193 4,273
----------- ----------
Total current liabilities 86,624 48,505
Long-term liabilities:
Other accrued liabilities - 84
Long-term portion of capital lease
obligations 513 -
Long-term deferred revenue 9,301 8,421
----------- ----------
Total liabilities 96,438 57,010
Stockholders' deficit:
Common stock 447 449
Additional paid-in capital 131,162 129,097
Accumulated other comprehensive loss (116) (32)
Deferred stock compensation (3,742) (998)
Accumulated deficit (151,490) (135,748)
----------- ----------
Total stockholders' deficit (23,739) (7,232)
----------- ----------
Total liabilities and stockholders' deficit $ 72,699 $ 49,778
=========== ==========
INVESTools Inc. and Subsidiaries
Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Years Ended
December 31, December 31,
------------------------ ---------------------
2005 2004 2005 2004
------------ ----------------------- ---------
(unaudited) (unaudited) (unaudited)
Revenue $36,817 $24,920 $ 138,621 $ 97,169
Costs and expenses:
Cost of revenue 23,317 20,936 92,161 65,659
Selling expense 10,003 5,756 37,332 24,493
General and
administrative
expense 6,780 4,376 24,182 17,843
Special Charges 1,019 681 1,077 1,084
------------ ----------- ----------- ---------
Total costs and
expenses 41,119 31,749 154,752 109,079
------------ ----------- ----------- ---------
Loss from operations (4,302) (6,829) (16,131) (11,910)
Other income:
Gain (loss) on sale of
assets - 2 (93) (77)
Interest income and
other, net 199 116 596 268
------------ ----------- ----------- ---------
Total other income 199 118 503 191
------------ ----------- ----------- ---------
Net loss before income
taxes (4,103) (6,711) (15,628) (11,719)
Income tax expense 114 5 114 8
------------ ----------- ----------- ---------
Net loss $(4,217) $(6,716) $( 15,742) $(11,727)
============ =========== =========== =========
Net loss per common
share - basic and
diluted $ (0.09) $ (0.15) $ (0.35) $ (0.26)
============ =========== =========== =========
Basic and diluted
weighted average
shares outstanding 44,747 44,958 44,933 45,045
============ =========== =========== =========
INVESTools Inc. and Subsidiaries
Consolidated Statement of Cash Flows
(in thousands)
Quarters Ended Years Ended
December 31, December 31,
----------------------- ---------------------
2005 2004 2005 2004
----------- ----------- ----------- ---------
Cash flows from (unaudited) (unaudited) (unaudited)
operating activities:
Net loss $(4,217) $(6,716) $(15,742) $(11,727)
Depreciation and
amortization 900 351 2,714 960
Stock compensation
expense 174 87 576 290
Deferred tax expense 114 - 114 -
Loss on sale of assets - - 93 79
Provision for bad debt 3 3 54 3
Provision for
inventory reserve 123 171 123 171
Provision for sales
reserve 389 425 1,882 1,652
Impairment of
internally
capitalized software 1,000 486 1,000 486
Changes in operating
assets and
liabilities, net of
effect of acquired
businesses:
Accounts receivable 180 102 (995) (1,525)
Restricted cash 367 (40) 369 (384)
Other current assets (322) 255 (1,085) (2,273)
Accounts payable (1,049) (286) (1,894) 2,610
Deferred revenue 12,800 11,084 37,001 25,290
Accrued payroll 122 (155) 1,266 425
Other current
liabilities 87 944 (2,824) 382
Accrued tax
liabilities 1,159 370 2,256 1,062
----------- ----------- ----------- ---------
Net cash provided
by operating
activities 11,830 7,081 24,908 17,501
----------- ----------- ----------- ---------
Cash flows from
investing activities:
Purchases of
marketable securities (8,200) (5,834) (10,836) (16,776)
Proceeds from the sale
and maturities of
securities 1,600 1,600 7,735 10,731
Proceeds from sale of
equipment - - 40 -
Purchases of
furniture, fixture
and equipment (3,057) (672) (8,823) (1,458)
Cash paid in business
acquisition, net of
cash received - - (7,777) (62)
----------- ----------- ----------- ---------
Net cash used by
investing
activities (9,657) (4,906) (19,661) (7,565)
----------- ----------- ----------- ---------
Cash flows from
financing activities:
Payments on notes
payable / capital
lease obligation (26) 1 (66) (253)
Changes in long-term
restricted cash 25 (7) (3,194) (1,513)
Repurchase of stock (404) (715) (1,394) (2,213)
Exercise of stock
options 10 132 137 321
----------- ----------- ----------- ---------
Net cash used by
financing
activities (395) (589) (4,517) (3,658)
----------- ----------- ----------- ---------
Increase in cash and
cash equivalents 1,778 1,586 730 6,278
Cash and cash
equivalents
Beginning of period 9,688 9,150 10,736 4,458
----------- ----------- ----------- ---------
End of period $11,466 $10,736 $ 11,466 $ 10,736
----------- ----------- ----------- ---------
CONTACT: INVESTools Inc.
Ida Kane, 801-816-6918
SVP & CFO
ida.kane@investools.com
or
Paul Helbling, 281-588-9732
SVP & CAO
paul.helbling@investools.com
SOURCE: INVESTools Inc.
Invested Central Seminar with Jack Steiman:
When: October 28 & 29, 2006
Where: Atlantic City, Tropicana.
Cost: $1,195 for members. $1,595 non members.
Price Includes:
2 Day Seminar. Course manual. Invested Central Reception. Friday Night Hotel Room. Saturday Breakfast. Saturday Lunch
Covered:
• How to read and understand stock charts
• Understanding the importance of critical Moving Averages
• Understanding Gaps
• Understanding Dojis
• How to spot Bull and Bear Flags
• Understanding Triangle Formations
• Understanding Critical Trend Lines
• Spotting Cup & Handle Formations
• Spotting Head & Shoulders formations
• Learning to spot and use Volume Trends as a powerful tool
• How to minimize Losses
• Understanding Pattern failures
• Learning how to take a gain
• Knowing when a stock is extended
• Reading the stochastics
• How to interpret the options market
• Put/Call Ratio The contrarian theory
• Spotting critical Divergences
• How to read relevant internals (daily indicators)
• How to use Sentiment Indicators; Trin, Arms Index, McClellan Oscillator, VIX
• How to take the emotion out of trading
Website: www.investedcentral.com
Trend Trading To Win Seminar:
When: March 25-27th, 2006
Where: NYC Holiday Inn Martinique.
Cost: $1,495 for members. $1,995 non members.
Covered: Candlesticks. Swing Trading. Window Dressing. Gaps. Option. Futures.
Website: www.trendtradingtowin.com
Hey nice site. I'll post a few I know of but haven't attended. Stay tuned.
Online Trading Academy -- this one is advertising on cable television (CNBC) a lot in the Dallas area -- anybody have experience with this one?
There are photos and bios of each of their instructors on this page:
http://www.onlinetradingacademy.com/aboutus.shtm
Online Trading Academy (OTA) started educating students in the art of trading in June, 1997. As the leading trading school in the world, we now offer state-of-the-art teaching facilities and professional instruction, as well as a wide array of beneficial home study materials. OTA offers a spectrum of trading styles and instruments, from Day Trading, Swing Trading, Position Trading, and Investment Theory for Stocks, Options, Futures (Eminis & Commodities) and Currencies. We are committed to offering you the best in Financial Education!
Also, it's a FRANCHISE business:
http://www.tradingacademy.com/franchise/index.shtm
I actually met Wade Cook at a seminar in Columbus Ohio, he didn't strike me as an idiot or a thief, he only stayed in our class for 30 to 45 minutes and had to catch a plane, but seemed nice. I had no idea he was in so much trouble, actually makes me sad. If I would not have gone to that seminar I'm not sure what I'd be doing today, I'm thankful I went. However, if he did steal from the elderly (which I doubt) then I hope he pays the price. Problem with todays society everyone and their brother is sueing each other so who knows what is real and what is not. My best guess is in the three days I was at that seminar, they preached PAPER TRADING FIRST 100 times and then some. Anyway, thanks for the update on Wade Cook, kinda blew me away!
Wade is a local idiot here in Washington State I've been following for years waiting for him to go down.
He has screwed more elderly out of their money than RSMI.
Of course he got a head start on those RSMI con men.
There are bound to be others with experiences with some of these seminars... I would LOVE to hear from a Wize Trade fanatic... they went away for a while, but are back now... running teevee ads in Dallas like crazy again...
Thanks. What ever happened to Michael Parness and his Lisa Guerrero teevee ads anyway? Is he back to living on a park bench? I saw him on a Fox talking head stock show one Saturday, and he looked so out of place...
ROTF...that's one way to make money; screw the government and hope you don't get caught...
For Release: February 21, 2002
FTC Seeks Civil Contempt Order Against Wade Cook Financial Corporation, Operator of "Wall Street Workshop"
Commission Alleges Continuing Violations of Two Injunctive Provisions
Despite collecting millions from consumers over the past five years pitching his "Wall Street Workshop" to investment-minded consumers, financial "guru" Wade Cook and his company, Wade Cook Financial Corporation (WCFC), allegedly have failed to comply with an October 2000 U.S. District Court order. Among other things, they have failed to disclose the current rate of return for their stock trading investments, substantiate all promotional claims, and make redress payments to compensate eligible customers who did not make more money trading stocks than they had paid to attend the workshop. Accordingly, the FTC today announced it is seeking civil contempt against Cook, WCFC, and Stock Market Institute of Learning, Inc. (SMIL), the successor to Wade Cook Seminars, Inc. (WCSI). In addition to asking the court to enforce the original terms of the order, the FTC is requesting that an administrator be appointed to oversee the redress fund, and that the redress program be extended to cover purchasers of stock market investment seminars from October 13, 2000 through the present.
"When the FTC enters into an order settling allegations that a defendant misled or defrauded consumers, it expects the terms of that order to be followed," said J. Howard Beales III, Director of the Commission's Bureau of Consumer Protection. "If an order's provisions are not met, the FTC can and will seek civil contempt charges and appropriate consumer redress. There has been serious consumer injury in this case, and that injury must be addressed by the defendants."
Case History
According to the FTC's 2000 complaint, WCFC's advertising and promotional materials contain express or implied false claims that Cook had earned and consumers would earn extremely high rates of return -- returns of 20 percent or more per month -- on their investments using Cook's trading strategies.
The complaint also alleged that the testimonials presented in promotional materials and financial clinics do not reflect the typical or ordinary experience of the Wall Street Workshop graduates, as claimed by the defendants. The complaint further charged that WCFC did not possess and rely upon a reasonable basis to substantiate its claims. Finally, the complaint alleged that, in connection with representations about their success in the stock market, WCFC failed to disclose the actual rate of return earned on its stock market investments, which was far lower than the claimed rate of return.
Concurrent cases were filed by offices of the state attorneys general of Washington, Texas, California, Alaska, Arizona, Idaho, Illinois, Kansas, Missouri, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin. The Washington Department of Financial Institutions provided assistance.
The FTC's Contempt Charges
According to the FTC, since the order was issued in October 2000, WCFC and Cook have been operating in violation of two injunctive provisions: 1) Paragraph I.A., which requires WCFC to disclose the current rate of return from stock trading in all promotions for its stock trading seminars; and 2) Paragraph I.E., which prohibits unsubstantiated promotional claims for its stock trading seminars. The Commission contends that while WCFC has made some required changes to its promotional material, its Financial Clinic speakers continue making success and earnings claims that have no reasonable basis and that they can not substantiate. When WCFC has disclosed rates of return either at the Financial Clinics or in promotional materials, the FTC says, it is typically much higher than what was actually earned.
The Commission further alleges that WCFC and Cook have violated the redress provisions of the order by: 1) failing to comply with the deadlines established for processing consumer claims; and 2) failing to make redress payments owed. The FTC contends that WCFC also has misinterpreted the order's requirements by mailing the redress program notices to consumers using its return address on the envelope instead of that of the FTC Redress Program, causing more than half of the eligible consumers to disregard the Redress Program notices.
Relief Sought
Based on these allegations, the FTC is seeking a court order holding WCFC and Cook in contempt for noncompliance with the prior order, and is seeking compensatory sanctions and other relief including: 1) compensation for consumers who were injured by WCFC's and Cook's violations, with both jointly liable for the payment of refunds to post-October 13, 2000 claimants; 2) a requirement that WCFC and Cook obtain a signed and dated rate of return disclosure form containing the correct rate of return from each consumer paying to attend one of the company's seminars; 3) the appointment of a redress administrator to take control of the redress program; 4) the payment by WCFC and Cook of $5 million into a redress fund established and controlled by the administrator, and 5) re-mailing of redress program notices.
The FTC application for a motion for contempt was filed in the Federal District Court for the Western District of Washington on February 20, 2002.
--------------------------------------------------------------------------------
NOTE: The filing of a motion for contempt does not constitute a finding or ruling that the defendant has actually violated the court's order. The determination of whether the defendants have in fact violated the order will be decided by the court.
Copies of the motion for contempt are available from the FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Mitchell J. Katz
Office of Public Affairs
202-326-2161
STAFF CONTACT:
Eleanor Durham or Bob Schroeder
FTC Northwest Region
206-220-4476 or 206-220-4477
(FTC File No. X010014; Civ. Action No. C00-1698Z)
(http://www.ftc.gov/opa/2002/02/wadecook.htm)
You have landed at WadeCook.com
Wade Cook Financial Corporation (WCFC) has filed for Chapter 11 Bankruptcy and is no longer providing seminars for new or old customers. If you are trying to contact the Trustee of the WCFC Estate, please contact them directly at 206-442-5523 or email them at WCFCTrustee@foster.com
In the wake of the Chapter 11 bankruptcy of WCFC, many people were left unserved after they had paid for enrollment to financial education seminars.
If you are one of those unserved students, Profit Strategies Group, Inc. recognizes your serious interest in money management and trading education and would like to help you continue your efforts. We have a successful history of helping individual investors, just like you, to create and conserve financial wealth. Because you recently paid for something that you did not receive, we would like to make you an offer…
You’re Invited
Profit Strategies Group, Inc. is an educational organization that teaches people how to create and conserve financial wealth. Our company is not related to the former WCFC, but as part of a transaction with the estate of Wade Cook Financial Corp., our company has offered to waive the $3,995 tuition for our seminars for anyone who was owed a WCFC seminar when they went out of business. Our seminars are produced in association with Optionetics, a leader in the investment education field.
Click Here for Details of the Offer
Our offer to waive the tuition for a 2-day seminar will not effect an individual’s right to pursue any money owed from WCFC and has no bearing on legal suits against Wade Cook Financial.
Wade Cook and wife enter pleas to tax fraud charges
01/20/2006
Associated Press
Asset protection guru Wade B. Cook and his wife, Laura, pleaded not guilty Thursday to charges of tax fraud, conspiracy and obstruction of justice.
Cook, 56, has conducted hundreds of seminars on asset protection, stock market investing, real estate acquisition and avoidance of income tax. He and his wife, who live about 25 miles east of Seattle near Fall City, were charged last month with concealing nearly $8.9 million in royalties from 1998 to 2000.
Thursday's hearing had been delayed while the Cooks attempted to find attorneys to represent them. Laura Cook asked once again for a delay, which Magistrate Judge Mary Alice Theiler denied, and she was represented at the hearing by Jim Frush. Frush told the judge that Laura Cook is trying to pull together the money needed to retain him, and that if she succeeds, he would likely represent her at the trial.
Following their arraignment, Wade Cook's finances were the subject of a closed court hearing, held to determine whether he qualified to have a court-appointed lawyer. The judge agreed to appoint Angelo Calfo to represent him, but said Wade Cook must reimburse the court from his monthly royalty payments.
Cook, a former cab driver, shut down his operations in February 2003, a month after his Tukwila-based company sought Chapter 11 bankruptcy protection. Creditors alleged that the company had made dubious loans to executives and failed to pay for employees' health insurance coverage despite collecting premiums.
Considered taking OptionEtics after a friend promoted it. Didnt take it after I read about their suspicious money back guarantee. Besides its an overpriced course, can learn the same stuff from a book.
Wade Cooked preached mostly covered calls during our seminar. I started out small and eventually was comfortable enough to make larger trades. After awhile I decided to do more short term trading which is much more aggressive than writing covered calls. Overall my experience after attending Wade Cooks seminar was positive, however most people are too naive and fall in love with one or two stocks and get stuck. I fell in love with one stock but unfortuneatly it's a pink sheet and has very little liquidity. Other than that I don't have a whole lot of input for you, I'm interested in your subject and hope you get more posts. I'm not adverse to attending another seminar someday if it looks interesting. GL
Can you say something about it? What was it like? Did you leave with anything valuable or useful? Do you use anything you learned today as you trade? thanks.
Okay, fess up -- if you attended one, share your experiences with people!
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02/13/06
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