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Notice how Pearlman was brought to justice by the Feds and not the State of Florida's Office of Financial Regulation (OFR) which had been dicking around since the first complaints surfaced over a decade ago.
As an example, they dropped an investigation of the Ponzi scheme years ago on the basis of a letter from Pearlman that asserted nothing was wrong. So, they asked the scammer if he was scamming and when he said he wasn't the case was put to bed. That's some great regulatory policing right there. No wonder Florida is home to so many scams.
The sad thing is, in the period between when the OFR should have shut him down and the time when it got so egregious that the Feds had to step in, hundreds more people were scammed. A lot of them were retirees whose life savings vanished. There have been 3 suicides so far blamed on this con.
Welcome to Florida. Home of EGIL.
It's complete nonsense. PRLog is one of those free (and useless) internet PR mills. Real companies use the likes of Business Wire and PR Newswire where press releases are transmitted to the press directly using carefully developed geographic and / or industry-specific contact lists. Releasing to the internet is really of no value in comparison to doing it the proper way.
Added to that, the source of this release was "Investors International Group", which has put out precisely 1 release on PRLog (this one). This would not be allowed on Business Wire or PR Newswire - you have to be a verified PR agency working on behalf of a company, or a verified contact within that company with the appropriate authority.
So, it's a scam release and EGIL almost certainly had nothing to do with it. If they want to put out fake news, they are perfectly capable of doing it on their own.
It's not halted, it's languishing in the dark. Check out its listing below and click on the stop sign near the top-right of the page to see details of the basis on which it's trading (a big red warning sign - literally):
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=egil
Good to see some of you guys are taking action, though. Best of luck.
No problem with you asking the question As I disclosed way back, I found this message board while doing research on the Trans Continental ponzi scheme (the link being the ridiculously fanciful press release relating to in-flight testing of the PC Edge / PocketSurfer on a non-existent airline).
I've never had investments in either company. I just find it disturbing how people can get away with this stuff. I truly feel sorry for the victims since I made what turned out to be a really bad investment in the past (people went to jail on that one, but little money back if you don't count the tax write-off). So, anyways, that's the connection and why I initially made a few posts here. I like the people, and have pretty much stuck around for the chat and to offer help and analysis when I can. Hopefully I'm making a positive contribution, but I'll let you guys be the judge of that
Certainly, the more complaints these agencies receive, the more likely they are to act. It doesn't take long to kick off a complaint, so I would agree that anyone that believes they were scammed should be encouraged to file their own complaint. That's why we have these agencies, and this is the job we as taxpayers are paying them to do.
As for EGIL being a dairy company, it seems they bought that as a shell. The only reason to do something like that is so you can claim to have been in business for a lot longer than you really have. It's a very questionable practice; perfectly legal, but a red flag nonetheless.
Best of luck with your initiative, and for all who follow suit.
I take your point, but class action lawsuits are expensive and generally only worthwhile if there are significant corporate assets to go after. I don't believe this would be the case here, so it is highly unlikely you could interest a law firm in doing this on a contingency basis.
However, if a criminal case is brought, the assets of the individuals involved can be seized and used to make restitution. Lou Pearlman / Trans Continental Airlines is a good example of how this works ( http://blogs.tampabay.com/money/trans_continental_news/index.html ). Additionally, prosecutors can go after anything they can successfully show were the proceeds of a criminal enterprise (such as homes in the name of a spouse, trust funds, etc).
A good basis to proceed on is misrepresentation and operating a pump-and-dump scheme. They will want to hear about specific examples and see a pattern of this. A classic example would be the press release announcing in-flight trials on a non-existent airline.
If you want to act, you can direct complaints to the following agencies to kick things off:
SEC:
http://www.sec.gov/complaint.shtml
Florida Office of Financial Regulation (you do not have to be a Florida resident to do this - it is enough that a company is headquartered there):
http://www.flofr.com/Securities/Complaints/DOSComp_Process.htm
FBI (scroll down to the paragraph on Market Manipulation):
http://www.fbi.gov/publications/financial/fcs_report2006/financial_crime_2006.htm#CorporateFraud
If one or more of these agencies investigates and brings a prosecution, that's when other affected individuals can file their interest with the court. Restitution, if awarded, is shared amongst everyone who files. In addition, if a conviction is obtained it can be used to justify a fraud loss on your taxes with the IRS.
Hope this information is helpful.
Hi Matty,
Going back to the original post and your question as to whether I think it's good or bad, it seems to me that 159 GBP including 1 year of internet access is a very good deal - especially when you compare that to the total cost of a smart phone with typical monthly service charges. So, the price is good and, with the bundled access, is a much better deal than EGIL are currently offering in the US. Distribution is good too with Amazon selling it direct as well as it being sold through a number of other outlets. So, it is somewhat disturbing that, despite this, it doesn't seem to be terribly well received. Certainly it doesn't seem to bode well for EGILs chances of ever finding a mass market.
Those reviews are troubling too. Sure the device has limitations, but you'd think that the value proposition would make people more willing to overlook them and be at least a little bit more enthusiastic.
This is a tricky category to do direct comparisons in because the markets are quite different, but there does seem to be something of a disconnect. Perhaps people are heavily polarized - on the one hand you have people that want basic phone and text service at a low price and on the other hand you have people that want really good internet capabilities and are prepared to pay the price for a smart phone, leaving very little interest in the middle ground (a cheap cell phone plus a separate, low-cost internet device). I'm beginning to think this might be the case. I'd be interested to hear what your thoughts are.
On the exchange rate thing, I think we might be in agreement (same amount of hours worked at the same job to pay for the same consumer goods). Where it gets distorted is where you earn in one currency but spend in another and exchange rates come into play - this imbalance is why vacationing in Europe is very expensive for Americans, but vacationing in America is very cheap for Europeans. The point being, the PocketSurfer is very well-priced for someone earning money in GBP and is certainly a lot more attractively priced than the exchange rate would lead you to believe.
It's just to explain that people in the UK earn and spend pounds like people in the US earn and spend dollars. The extremely low value of the dollar makes using exchange-rates meaningless in terms of real-world comparisons of the price of consumer goods. In other words, if I have to work, say, 5 hours to pay for a TV in the US I would be working 5 hours in the UK to pay for the same TV.
I have worked in both the US and the UK and have family in both countries, which is why I wanted to highlight that - with exchange rates as they are - suggesting that someone take the UK price and multiply by (roughly) 2 to get the dollar price doesn't give you an accurate picture of consumer spending power.
This is also why the US is such a bargain vacation spot for people in the UK right now - it's like doubling your money. Ditto why US exports are doing really well - they're artificially cheaper and more competitive because of that.
11% price drop in the UK to £159.99 (consumer spending-power equivalent to $159.99 USD), including one year of free internet access. Mixed user reviews. Frequent negatives are problems with color, connectivity, and build quality.
http://www.amazon.co.uk/Datawind-PocketSurfer2-Portable-Internet-Device/dp/customer-reviews/B000UGXWZE/ref=cm_cr_dp_all_recent?ie=UTF8&customer-reviews.sort%5Fby=-SubmissionDate&coliid=&showViewpoints=1&customer-reviews.start=1&qid=1206641176&sr=8-1&colid=#customerReviews
Why confuse people with irresponsible lies and misrepresentations - unless, of course, you're seeking an IR job with EGIL, in which case you have met the pre-requisites admirably
I concur. Matty, you seem like a very nice guy and I wish you all the best. But to be optimistic about EGIL after lie after lie is wishful thinking. Not even pumping press releases affect this stock any more. The only things that will are sales and distribution, which show no more signs of coming to fruition than at any point in the past.
As far as a valuation goes, even if they do get sales and distribution - it's not their product. There's no intellectual property there whatsoever, and that's what creates a multiple in technology stocks. Without that, there's no big upside no matter how rose-colored your spectacles are.
Here's Lou Pearlman's plea agreement (the narrative starts neat the bottom of page 17 under 'THE FACTS'):
http://blogs.tampabay.com/money/files/plea030408.pdf
And here's the press release from December of 2006 with Pearlman and Parnas teamed up to talk about how the PC Edge was entering flight testing on Pearlman's non-existent airline:
http://www.equitygroups.com/pinksheets/egil/messages/91273.html
Some peoples lies and misrepresentations know no bounds - until the indictments get handed down.
Want to form your own Datawind or EdgeTech? Then follow the formula and take an off-the-shelf product from China. They have lots of stuff to choose from.
e.g.: http://www.manufacturers.com.tw/
Realize that some of these companies can't scale and offer low quality / functionality, but you don't need to care about that. This stuff is cheap. And if you use one of these products to create a penny stock and hype it, you too can enjoy pump-and-dump profits. Who cares about building up retail sales or anything else. It doesn't matter. Just do some press releases with inflated promises, then sit back and profit while continuing to live in your mom's basement eating Cheetos and playing video games.
Datawind aren't that much better. Google it a bit and you'll come up with gems like this press release from May 2006 "launching" the device in India. Needless to say, nothing happened there either.
http://www.hindu.com/2006/05/31/stories/2006053104461600.htm
"Seasoned Management" sounds tasty. I'd recommend taking some of that and either grilling or oven-roasting for 25-35 mins. Serve with some Mixed Vegetables (aka: the rest of the company, or some of the recent posters to this board). Add a sprinkling of dried-up BS (plenty of it around). Bon appetit
> Nice Ray Lewis Pick, glad we could help. :)..
Yes, I'm sure everyone will turn to EGIL for all their misleading faked-up screen-shot needs - especially when there is no chance of them ever looking like that in reality.
I also love the the use of "Worlds fastest Handheld's Device" on the images. What contraction is supposed to be indicated by the apostrophe in "Handheld's"? How come every word gets capitalized, except for "fastest"?
http://www.uncov.com/assets/2008/1/10/delivery-of-fail.jpg
Sure, lets let the EGIL guys run and mix it up a bit. I'm completely serious, I think that would be healthy.
On today's news... signing a reseller agreement so you can resell Zoho is kind of lame. Anyone can do that, especially at this point in Zoho's fast-track-to-fail. What else do they want to sign a reseller agreement for - the George Foreman Grill? Bowflex?
Review: http://www.uncov.com/2007/12/13/zoho-show-is-why-you-need-a-dual-core-cpu
Lets use their participation in this forum to press them on mainstream distribution plans, which is what's really critical (sales), otherwise whatever freely-available reselling agreements they sign, they'll be reselling zero to a user-base of zero. x% of $0 = $0.
I'm sure everyone can imagine what a sticker saying 'Ray Lewis Special Edition' looks like. It will at least give PC Edge users something to gaze at while they can't use the Ray Lewis site since it's all Flash-based and the PC Edge can't display it.
Good job too, considering the site is touting a mobile version with an image of an iPhone. It would be tragic for them to see that.
Incidentally, EGIL also has Flash content on the top screen of its web site with no non-Flash alternative, so you're looking at a big blank space if you try to access that with a PC Edge.
Kinda shows you where they're at if their own web site isn't geared to work with the very product they're supposed to be selling.
Have a nice weekend everyone, remember it's the last before Valentines Day, so do something nice.
I empathize with your frustration, but I think that everybody deserves an honest crack at the whip. EGIL has lied to and misled investors on a continual basis, despite having distributorship of a product that could actually succeed.
It is a service to others to provide all the relevant information which, in this case, largely consists of balancing the information that comes out of the company itself.
Best of luck with your other investments.
I wholeheartedly agree with that sentiment.
The difficulty / interesting factor here is that the unit has so-far shown it potentially deserves a place in the marketplace, while the management of EGIL have so-far shown they potentially deserve a place in the dock of a courtroom.
It's a shame the original message was deleted, because I think it was just the result of an entirely understandable frustration.
Mick, you are correct. It's the same unit as EdgeTech's PC Edge, just distributed by the manufacturer (Datawind) directly in the UK and under the name PocketSurfer 2.
The unit distributed by Datawind outside the UK and Germany is the original PocketSurfer 1. Why this is the case isn't clear - maybe supply problems.
http://www.datawind.com/html/home.htm
The info you cited applies equally to the original PocketSurfer as well as the PocketSurfer 2, which is the same unit being marketed by EdgeTech in the US as the PC Edge.
The main difference between the PocketSurfer and PocketSurfer 2 (aside from the improved aesthetics and RAZR-like keypad) is that the new unit has cell connectivity built-in (including the ability to accept a SIM card).
The original unit required that you plug it in to a cell phone - in other words, it used your cell phone for connectivity and had none of its own. This made it a bit awkward to use and incurred the cost of a data plan from your cell phone provider. With the new unit, you still need a separate data plan in the US, but you don't have to connect it to your cell phone and there is the potential to market it the same way it is being marketed in the UK and Germany - with a data plan bundled into the price.
The new unit also offers a primitive form of GPS (location-finding) based on it knowing its distance from cell towers and doing the math from there (cell tower triangulation). This is similar to GPS on the iPhone, except that the iPhone also utilizes mobile hot-spots (Wi-Fi) to pinpoint your location better. Neither are usable for turn-by-turn directions, but are useful in pinpointing your general location (thereafter you can look for street signs to get more exact).
So, here's a little blurb on why the screen looks bad...
They (Datawind and, by extension, EdgeTech) are using GPRS (a cell standard that is ubiquitous but slow compared to AT&T's EDGE network and far slower than 3G). So, to get around the problem of painfully slow page-loading they set up their own servers to intercept your request for a page, take a picture of the results, compress that picture down, and then send it to your unit.
The picture is enhanced by a technique called image-mapping, which results in hyperlinks working and it being aware of where there's a textbox (for example, the area where you enter search text on google.com). Because you're using a picture of the web page rather than the actual / real web page, entering text is done via a separate box that appears along the top of the screen.
Advantages:
- Speed (especially noticeable compared with other GPRS units).
Disadvantages:
- Degraded image quality.
- More complex navigation, poorer text entry, scrolling issues.
Essentially, it's a trade-off between speed and clarity (plus some ease-of-use). Some people will absolutely reject that compromise, but it will work perfectly well for basic use such as checking e-mail, basic browsing, and instant messaging - especially when you factor in price: for example, Datawind in the UK sell for the practical equivalent of $279 with free internet access for a year and then a low price thereafter. That compares well with more advanced devices that cost a lot more in terms of initial purchase + data contract.
EdgeTech need a similar service-bundling deal here (currently it requires a $30 a month data plan with T-Mobile), which is a barrier to sale for EdgeTech and something they derive no revenue from (presuming they actually sell some in significant quantities).
Some of the reported problems in the UK with pages failing to load, failing to scroll, etc could very well be due to a poor server infrastructure rather than a cell problem (poor reception) or a design problem (poor antenna). I suspect that's something they need to work on.
Another concern is what happens as device and service costs continue to fall. I'm not as-concerned about that because there's nothing, for example, stopping Datawind including 3G when the cost of that falls - as long as they can offer a price-performance that's better than competing units they should be fine. My most serious concerns are about distribution and ability-to-execute, which both Datawind and EdgeTech continue to fail miserably at.
FYI: CNN publishes feeds from PR Newswire. Anyone in corporate PR or a PR agency can get an account (for a fee) and publish whatever they like (again, for a fee) and it will be picked up by CNN and other outlets.
To suggest that CNN (or any other news source) somehow endorses this content is inaccurate and misleading (not that I'm accusing you of doing that intentionally - a lot of people genuinely don't understand how this process works).
As a guideline, anytime you see a blurb about the company at the bottom (called a "boilerplate") and / or contact information at a company or agency, then you are looking at a Press Release, not something that is genuine reporting.
The main competitors to PR Newswire are BusinessWire and Reuters. They all work much the same way.
Let me suggest the following as a suitable replacement:
"EdgeTech has no products or intellectual property. It is merely a distributor of a poorly-conceived mobile web-browser that is rapidly becoming obsolete. The company has demonstrated an abysmal failure to execute over the years, which is reflected in their stock performance. The only notable success has been in generating over-hyped press releases. The company has an active message board, largely populated by people who are fascinated by how long this company can keep operating without criminal indictments being handed down. Investors are advised to approach with extreme caution and for entertainment purposes only."
Did that fix it for you?
I think the main point is that this is a company that has demonstrated a consistent an abysmal failure to execute.
They don't have a product (they are simply a reseller), so there is no intellectual property there whatsoever (which is what creates value). Looking at the provider of the technology, Datawind, you can clearly see a similar abysmal failure to execute. They are still touting the previous model and, like EGIL, have a web site that is next to impossible to use on the very device they are selling (Flash-based).
Does the product have any worth? Yes, it does. There is a definite niche there for the sort of offering they are making in the UK - equivalent to $170 for a mobile internet browser with no connectivity charges for the first year, and then a low rate thereafter.
To succeed - which they still technically can - requires a deal with a mobile network operator, aggressive pricing, and widespread distribution. I don't see any competence or desire to achieve that. The thought of them faffing around out in Arizona yet again on the investors dime is, frankly, disgusting.
> You can call the company but they are at the Superbowl. The whole staff and I know they took hundreds of PC edges with them.
Yes - be sure to visit EdgeTech's Official Superbowl Technology Experience Center, located in the disabled cubicle of the mens bathroom, level 4N. No appointment necessary - just sit in an adjacent stall and start tapping your feet.
Another day, another seller on Amazon UK. This time, it's "Specialtech", who I assume are "special" in the sense of having to ride the short bus to school. They have a whopping 2 units available.
http://www.amazon.co.uk/Datawind-PocketSurfer2-Portable-Internet-Device/dp/B000UGXWZE/ref=sr_1_1?ie=UTF8&s=electronics&qid=1200843445&sr=1-1
WTRB seems to have the largest inventory on the planet. You just want to slap these guys, because there absolutely is a market for this product. And it still confounds me that Datawind themselves are touting the old model on their main website. What's the deal with that?
Somebody needs to get serious about supply. If there are build problems, then fix them. Up the ante in terms of applications (see below) and have EGIL become a virtual network operator (MVNO) like Virgin and 7-11 so they can eliminate the need in the US to have a separate data contract and also make the pricing more attractive. Finally, get mainstream distribution through Walmart, Target, Best Buy or someone similar. Enough with the "Spend and Leave" stores in Tampa Bay.
In terms of applications, there are lots out there that are free. Everex (http://www.everex.com) have got this down, and all they're really doing is putting up icons for web-based applications like Skype and Google Docs and marketing the functionality of those free applications as a selling point. There is absolutely no technical reason why EGIL can't do the same thing. It's just smart marketing combined with good distribution.
The really frustrating thing about EGIL is that there's a real product with a real market - it's not just a scam based on vaporware, so why they insist on operating like it is is beyond me. Somebody needs to buy a clue and learn how to take advantage of the opportunity that's right in front of them. Sorry for the rant, but this really is annoying to watch. Hope you're all having a good weekend.
True. If there's one thing that EGIL has a world-class advantage in, it's hot air
Apple have sold 4m iPhones worldwide, which is 20,000 devices every day. To suggest that EGIL will be able to sell a full quarter of what Apple can do with the iPhone makes the phrase "wildly optimistic" seem like a gross understatement, especially when EGILs current distribution consists of a handful of small electronic boutiques in Florida.
WTRB must be grinding up and smoking those PocketSurfers.
> Why are we looking at amazon uk to see if it is a good device?
It's a good test of the market, being that it's been available there since October, is priced a lot more competitively than it is in the US, has had mainstream distribution, and has an open feedback forum where real users can comment on their experiences.
If Datawind themselves can't make a success of it there, there's little chance EGIL will be able to do so here.
It would be great to have similar US data but, of course, there isn't any. So much for the "must-have product of 2006".
http://www.allbusiness.com/technology/software-services-applications-internet-social/5423512-1.html
UPDATE: Amazon UK have lost interest in it. As of today, it's no longer sold or dispatched from them directly, although you can still buy it from an outside source.
http://www.amazon.co.uk/Datawind-PocketSurfer2-Portable-Internet-Device/dp/B000UGXWZE/ref=sr_1_1?ie=UTF8&s=electronics&qid=1200562609&sr=1-1
Here's a review from Mobile Computing in the UK, where it gets a 1 out of 6 despite being a lot more realistically priced over there and having better distribution via the manufacturer directly:
http://www.mobilecomputermag.co.uk/20071211207/datawind-pocketsurfer2.html
Delivery times on Amazon UK have slipped to 1-2 months, with mixed reviews.
http://www.amazon.co.uk/Datawind-PocketSurfer2-Portable-Internet-Device/dp/B000UGXWZE/ref=sr_1_1?ie=UTF8&s=electronics&qid=1200562609&sr=1-1
If Datawind are having problems getting and selling product at a much cheaper price, it doesn't bode well for EGIL - even if they had a clue about how to market and distribute on a wide scale, which they apparently don't.
While I remain dubious about the management of EGIL, there are surprisingly positive signs. For starters, the product has a very valid market position, it works, and consumers seem to like it (see amazon.co.uk for customer reviews). If EGIL can swing decent distribution (as DataWind have succeeded in doing in the UK), then EGIL has a fighting chance of making it a success.
Cost is still higher in US. EGIL should look at becoming a virtual network provider to improve the cost / benefit (much in the same way that Virgin Mobile doesn't have it's own network in the US, they piggyback on Sprint). In the UK, Datawind units ship with no monthly service charge for the first year and with either an O2 or T-Mobile SIM card (Datawind's choice, not the customers - for whom the choice is transparent, as it should be).
Wishing everyone a Happy and Prosperous New Year - you guys deserve it.
Datawind have started selling through Mobile Planet in the US. The unit is $305.95 at retail and requires a $30 a month data plan from T-Mobile.
http://www.mobileplanet.com/d.aspx?i=158909
The unit got the required FCC approval for sale in the US a couple of days ago:
http://gullfoss2.fcc.gov/oetcf/eas/reports/ViewExhibitReport.cfm?mode=Exhibits&RequestTimeout=500&calledFromFrame=N&application_id=385892&fcc_id='R37-DWRC04
At best, EGIL will only be a very minor sales channel for Datawind. In the UK, the big reseller is Amazon, but there are plenty of others. Expect a similar approach in the US.
The pumping is starting in full swing. Lots of penny stock pay-to-pump sites now covering EGIL. Examples:
http://www.tradingmarkets.com/.site/news/Stock%20News/881801/
http://www.beaconequityresearch.com
http://www.transworldnews.com/NewsStory.aspx?id=29660&cat=8
I hope those of you that were scammed manage to get some, if not all, of your money back in this cycle.
Now that a few weeks have passed, there are some reviews on Amazon UK. A couple read suspiciously like someone from Datawind wrote them, but the others - on the whole - are actually pretty positive (discounting the one that went up in smoke and the other one where the keyboard fell off).
http://www.amazon.co.uk/Datawind-PocketSurfer2-Portable-Internet-Device/dp/customer-reviews/B000UGXWZE/ref=dp_top_cm_cr_acr_txt/203-8213112-3514331?ie=UTF8&showViewpoints=1&customer-reviews.start=1&qid=1194990259&sr=8-1#customerReviews
I think sales are slow, though, judging by the suggested pairing with an Eagles CD for 3 or 4 weeks and now with a Nokia internet tablet. Those pairings are based on what other customers checked out with in their basket, so weird pairings mean few customers.
EdgeTech has added a new demo on their site which is the same one as a UK reseller called Linsar has been using for weeks and a different one from what Datawind have on their sites. Obviously Edgetech just paid for their logo to be slapped on someone elses demo, but it's a sign of life nonetheless. Links to both versions:
http://thepcedge.com/html/demostration.htm
http://www.linsar.com/pocketsurfer-2.htm
Incidentally, the Linsar-badged version is available through Asda (which is owned by WalMart) in the UK. Outside the UK, Datawind are still showing the old unit. It's all very confusing and one hell of a way to run things, but it seems that there's a potentially decent product hidden somewhere in this mess. However, whether EGIL can or will ever manage to exploit that has to be seriously questioned. I'm not even sure what rights EGIL still have to it.
You're right. I'm sorry. I misread the date. Everyone, please ignore my last post.
$1m letter of credit announced for EGIL to buy PocketSurfer units:
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20061026005...
Note that the web site link at the bottom of the release goes to a defunct web site and also that this is through the Silverman & Minahan Group, which EGIL had dealings with before:
http://sec.edgar-online.com/2006/04/26/0001116502-06-000867/Section11.asp
Silverman are in deep, so perhaps this is their way of trying to rescue some of their investment by offering to underwrite purchase orders EGIL makes to Datawind. Unfortunately, EGIL needs a lot more help than that even if all the past problems and deceptions didn't exist which, of course, they do.