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Tuesday, 08/09/2005 3:57:36 PM

Tuesday, August 09, 2005 3:57:36 PM

Post# of 23033
Stock Lemonade
http://www.yp.com/stocklemonade.html

Introduction to Stocklemon.com
This page is devoted to the exposure of Stocklemon.com and its tactics and the Company’s response to the short sellers and stock manipulators associated with Stocklemon.com.

We find the self-serving statements made in Stocklemon.com’s distorted reports to be damaging to our real long-term investors who have a right to make their investment decisions based on accurate disclosure, such as that found in the Company’s SEC filings and through their own due-diligence.
Who is Stocklemon.com?
Stocklemon.com has a history of taking unsupported accusations, misleading statements, outdated information and unrelated facts and posting them on their website in an effort to cover its principals’ short positions in the company’s on which it “reports.” It is not a coincidence that the Stocklemon.com campaign began immediately on the heels of the Company’s stock achieving an all-time high of $4.52 per share.

As previously pointed out by the Company, the principals of Stocklemon.com may have short-selling positions in the companies they claim to have issued an unbiased report about. Unlike real journalists who work for respected papers, such as the Wall Street Digest and The Wall Street Journal, who do not have a vested interest in the outcome of the stock price of the companies on which they report, Stocklemon.com’s sole purpose seems to be to profit by driving down the prices of stock in which they have short positions.

The disclaimer on the Stocklemon.com site speaks loudly:

“Disclaimer: Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market.” [Emphasis added]

When the author of the recent Stocklemon.com “report” on the Company was interviewed by Ed Taylor, a reporter for the Tribune, he admitted to taking positions in the stocks on which he reports. Read the article for yourself here:

Firm sues author of scathing report
A Short-Selling Primer
We thought a brief explanation of short selling would be helpful to those who are not familiar with the concept. Stocklemon.com and its operators engage in transactions that benefit from the fall of stock prices. Stocklemon.com conducts these transactions in company stock immediately prior or subsequent to its issuance of a negative report on the company in question – a report that often is replete with unsupported and defamatory accusations. Stocklemon.com issues these reports knowing that they are likely to drive down the stock price of the company. Here is how short selling works:

Introduction to short selling
The Stocklemon.com Scheme
The Stocklemon.com disclaimer plainly admits that it does not provide all of the information that may be available. This type of selective reporting and selective disclosure is the key element of Stocklemon.com’s scheme. Complete and accurate disclosure would be antithetical to the purpose of Stocklemon.com. Presenting a report of complete information in a manner that is current, accurate and fair would not achieve the goal to which Stocklemon.com has pledged itself – the distortion of truth with the intent to exact downward pressure upon stock prices in which it holds short positions. It is quite simple. It is also illegal!

To further its scheme, Stocklemon.com and its promoters then use various stock chatboards to talk up a Stocklemon.com report. Interestingly, if you research the posters on these sites, you will find the same posters on other sites related to other companies that Stocklemon.com has issued reports upon. Is it a coincidence that the same people just happen to always have positions in “problem” companies that Stocklemon.com suddenly discovers? It is more likely that these posters are plants and/or active collaborators with the principals of Stocklemon.com in the short selling of these companies’ stock for their personal gain. You, as the reasonable investor, will have to decide for yourself.
YP.Net- The Truth
The reports issued by Stocklemon.com are designed to detract from true fundamentals of this Company.

YP.Net Reports Approximately 144% Increase in Revenue, 227% Increase in Operating Income and 114% Increase in Net Income

We ask our long-term investors, who believe in the soundness of our business model and the strength of our fundamentals: “Why should you believe misinformation that is admittedly designed to allow the person providing that information to profit at your expense?” It is because of our ardent belief that it is inherently unfair and unreasonable to allow our stockholders and the investing public to be assailed with such fabrication and manipulation that we promptly filed suit against Stocklemon.com and its promoters to prevent further damage to innocent investors and the long-term value of our stock.
Transparency vs. Concealment
Unlike YP.Net, Inc., which is required to produce public disclosure about its business, business practices, officers, directors and results of operation, Stocklemon.com does not provide any disclosure.
Who is the principal(s) of Stocklemon.com?
What is their phone number? Where are they located?
How do they make money?
We know it is not from their website. The only way Stocklemon.com makes money is through manipulation…of the investing public and stockholders like you.
Our Challenge
We challenge Stocklemon.com to produce the foregoing information, to end its covert tactics and to stop using the I Internet as a citadel of deceit and attack. Disclose who you are and disclose the positions you have had in each company upon which you report. Finally, disclose the ill-gotten profits you have reaped on these transactions.
We Are Not Alone
In the interim, we think the public will find the following news articles interesting. They speak volumes about the practices of Stocklemon.com.

http://www.wallstreetdigest.com/specialstock/specialstocklogin.html

http://news.morningstar.com/news/PR/M11/D20/1069386667179.html

http://www.theaxcess.net/health_04_1103.html

http://216.239.37.104/search?q=cache:WtMKwQkHpxkJ:www.sec.gov/rules/proposed/s72303/jscheib112603.tx...
YP.Net Answers Stocklemon.com




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