This is a particularly difficult post for me as I have long been supportive of eConnect and its proprietary technology. But I have also long been troubled by eConnect's apparent lack of corporate responsibility in attempting to achieve its goals. Specifically:
1) 254,376,163 shares of common stock issued and outstanding as of 03/01/01. This includes 27,100,000 shares to Richard Epstein and Alliance Equities, and 17,629,120 shares to Alpha Venture Capital issued for lines of credit to keep the company afloat. Moreover, hundreds of thousands of shares have been issued to consultants and firms in exchange for little appreciable service. The list of inappropriate warrants is alarming and questionable of Hughes' ability to make sound business decisions.
2) $59.95 per eCashPad. Who the heck ever thought this one up??? eCashPads should be free. Consumers are wary enough of purchasing online, but the only way that they will be convinced that eConnect has the right solution is for merchants to embrace it... which will only happen if everybody has one, ready and waiting to purchase online. Not only is the premise that consumers are willing to pay an extra $59.95 (plus shipping and handling) to buy a CD on amazon.com foolish, but the technical support required to initiate and maintain service is non-existent with only 12 full-time employees. eConnect needs thousands of subscribers, but lacks the infrastructure to support anyone. Consumers don't care about details until it affects them personally... and eCommerce is supposed to afford convenience, not inconvenience. All the RGTecq algorithms in the world won't convince them that they will only be secure if they spend $59.95 for an eCashPad, nothwithstanding any problems with installation and execution.
I have always felt that eConnect was a viable concern, but their dilution of share price and uninspired corporate strategy has exhausted my support. I wish you all the best in your endeavors, but ECNC is no longer one of mine.
Jim
AI
