Replies to post #110 on KowaBunga! Inc fka KOW (KOW)

[abh3vt]

Bo, I've been doing some more digging around the PrimaryAds acquisition, and think I found several of the reasons behind the slide in THK.

First, there was a sharply critical article by a blogger who saw adware/spyware in PrimaryAds sales:
http://www.revenews.com/jeffmolander/archives/000495.html

Then, this view was picked up by another influential internet stock blog:
http://www.internetstockblog.com/2005/04/the_danger_list.html

"THK seems to face particular risk. It acquired an affilate network company called PrimaryAds this month, and according to Jeff Molander, " PrimaryAds is well known to be partnered with [Adware provider] MetricsDirect / 180Solutions".

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Now, IMHO that is factually not true. I confirmed with PrimaryAds today that they terminated their relationship with 180solutions over a year ago. This is backed up by Kowabunga's CTO Jeff Doak:

http://www.internetstockblog.com/2005/05/cto_of_kowabung.html

Note that Jeff Molander tempered his original comments about PA's relationship with 180solutions:

"While not all CPA and/or affiliate networks are alike, I stand on my original comments - that PrimaryAds has been well known (among my respected sources) to have, in the past, been partnered with MetricsDirect / 180Solutions. This may no longer be the case and you are a far better judge of that than I am.

italics added for emphasis.

PA also maintains it doesn't do business with any known adware company and would terminate its relationship immediately if uncovered. They said they would know based upon increased clicking activity as tracked by DRT's software. THK was supposedly aware of the older relationship with 180, and did its own DD to make sure there wasn't any other adware cos involved.

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In addition to the fears of adware enhanced revs, the lawsuit filed by THK against DRT to force it to continue supplying network tracking software and services for PA is a black eye for THK, imho. I think it serves to highlight the fact that THK bought what is essentially a brokerage and not the technology that serves as the backbone. Plus, it shows that Kowabunga isn't ready to assist PrimaryAds (although they could in the future). Unless Kowabunga agrees not to develop similar software, I think DRT does have a point about guarding its network technology secrets. I could be mistaken about this; I have tried to speak with Jeff Doak but he's at a conference today.

Just thought you (and others) should know all the facts.