Not on Yahoo, why?
Report by Analyst With Conflict
Virginia, March 21 (Bloomberg) -- Xybernaut Corp., a maker
of wearable computers, announced last month that an
investment research firm issued a 'buy' recommendation
predicting its shares would double in six months.
month later, Xybernaut shares had indeed doubled,
reaching 29 31/32 on March 2. The report by Access 1
Financial, based in Santa Monica, California, predicted a
rosy future for Xybernaut, with revenue rising from
the $3.3 million it posted in 1999 to $8.3 million
this year and $26.7 million in 2001.
discussions with management, we were impressed by their
fundamental vision of mobile computing as the future of the
PC business,'' wrote Mark Bergman, president and
founder of Access 1 Financial.
Virginia-based Xybernaut nor Access I disclosed that Bergman
owns options to buy shares in Xybernaut, where he
worked as a sales executive from late 1997 until Sept.
1998. The report did include a standard disclaimer
stating Access 1 employees may buy or sell shares of
stocks of companies it recommends.
declined to discuss the extent of his Xybernaut
John Moynahan, Xybernaut's chief
financial officer, said in an interview that Bergman's
connection to Xybernaut wasn't disclosed because 18 months
had passed since he left the company.
Previously, in January 1999, Bergman issued a Xybernaut `buy'
recommendation while working at a New York firm called FAB
Capital Corp. He then optimistically forecast that
Xybernaut revenue would hit $40 million in 1999. That
report also failed to say Bergman had worked for
Xybernaut, which he'd left four months earlier.
Moynahan, who became Xybernaut's CFO last May, said
Bergman's employment record should have been made clear
Xybernaut shares rose 4 1/8, or 24
percent, to 21 5/16 in trading of 10.8 million shares.
Moynahan attributed today's rise to investor excitement
about a report scheduled to run on CNBC tonight
featuring the company's wearable computer being used at a
General Electric Co. turbine manufacturing plant.