Wednesday, August 25, 2004

Greater Fool Theory

I have been on a road trip for the past 10 days signing books, visiting book stores and media and so have not been posting substantial stuff. That will resume next week.

However, I was looking at the 16,000 shares of SVCX purchased yesterday at $0.45 and can't help wondering just what would make someone toss almost $8,000 on a stock based on no credible news, no product, no visible customers and no current SEC filings.

Wednesday, August 18, 2004

Fast Talking and Fancy Dancing


Something exists, or it doesn't;

Something works, or it doesn't;

Customers exist or they don't;

Commitments are honored, or they're not.

All the fast talking and fancy dancing in the world may obscure reality but will never change it.

SEC Filings?

Other than ownership filings and those mysterious auditor filings, there has been nothing from SVCX since January 2004.

In the absence of SEC filings, audited financials and solid data (which the CEO and CFO must legally stand behind) there is no credible information from the company.

No credible information means that all of the trades which have taken place this year are either purely speculative or insider trading.

And that means that the listed stock price is NOT based on value, but is just a sucker's bet.

Blue smoke, mirrors and excuses ...

Seems to be ALL that SVC Financial has to show.

While CEO Chris Haigh claims to have a working product, he is incapable of showing it to anyone outside the company. I'd say that means he does NOT have the working product he claims.

He also claims he has 12 "customers." But he won't name them. Could that be because no customers exist? And by customer, I mean someone using the system for "REVENUES" that SVCX would get a share of.

Pocketpass had paying customers a year ago -- Wine Market Report and Olive Software/Active paper. And we had many others evaluating it because a year ago, anybody with a web connection could download Tibanna and use it ... it was a complete product ... rules, wrapper and payment processing system. Tibanna was its own sales vehicle until Transfund choked it to death.

Further, from what I have been able to tell, the "Mazarin" product sounds like an application tool kit rather than a product that is ready-to-use "out of the box" as Tibanna was. Sure, the first tibanna was for .pdf, but each supported format was going to cost $5K or less.

Tibanna's target market was not simply the technically adept (which is what you have to use an apptoolkit) but to expand far, far beyond that and migrate to the content creator.

If what I have heard is true, then it is VERY dismaying, because there are other companies offering toolkits ... nobody needs another tool kit ... and the transaction processing side is the CORE of the system and the profit model. without the back-end, the product is useless.

So, there's no credible proof of real customers and nothing other than a few "strategic alliances" that are just hype.

Monday, August 09, 2004

Fired Auditors Cover Their Assets?

I'll make no comment on this until after this Friday (8/13/04) other than to say it makes me wonder just what the heck really is going on.

From FORM 8-K/A Filed By SVC Financial Services With The SEC August 9, 2004

Exhibit 16.1

August 6, 2004

Securities and Exchange Commission

450 Fifth Street, N.W.

Washington, D.C. 20549


Commission File No. 000-26969

Ladies and Gentlemen:

We have read Item 4 of SVC Financial Services, Inc.'s Form 8-K/A dated August 3, 2004, and we agree with such statements, except that [emphasis added]

(1) in reference to item (a)(iii), we are not in a position to confirm that the change was ratified by the Board of Directors of SVC Financial on December 18, 2003 as no formal written communication was received by us regarding the change, and

(2) we are not in a position to confirm that SVC Financial Services, Inc. engaged new principal accountants on December 18, 2003, and therefore, during the fiscal years ended December 31, 2002 and 2001, and the subsequent interim period to the date hereof, SVC Financial Services, Inc. did not consult Weinberg regarding any of the matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-B.

Very truly yours,

/s/ Lichter, Weil & Associates

Lichter, Weil & Associates

Saturday, August 07, 2004

Waiting ....

A bit more than a week now and...nothing. Not a product, not a word.