stock ticker: DUVT

DURAVEST…No Money, No Business, Big Market Cap…How Do You Think This Will End?

Duravest Inc. (OTCBB: DUVT)

Number of Outstanding Shares: 36.76 million

Market Capitalization: $126 million

Revenues Since Inception: 0

Cash in the Bank: $40 thousand

Total Public Companies CEO involved with: 4

Full Time Employees: 0

Revenue Streams: 0

AIN’T NOTHIN BUT A SHELL STOCK!

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Has E-Universe Created A Universe of Deception?

E-Universe graduated from the OTC to NASDAQ small cap in April of 2000. Unfortunately, management has maintained that small stock mentality even though their market cap has grown to a lofty $135 million. What is most concerning with this company is not just their small cash position but rather the stock promotion that has taken this company’s stock price from $2 to a high of $8.50. We believe that this promotion and the company’s disclosure warrant investigation by the SEC. More importantly, it warrants investigation by anyone who owns the stock or who might think about purchasing the stock.

E-Universe is an online content company that uses content as a vehicle to build a database and then they sell that database to third parties. E-Universe also generates revenue from online advertising. They do not break down their numbers on their filings but it is of the opinion of Stocklemon that the bulk of the revenue is generated from selling its users names to third party companies, so they can get those needless emails. This business model has generated marginal income for the company yet enough to make them cash flow positive for the last quarter. However, all that glitters is not gold. It is our belief that the company has many skeletons in their closet and their future is questionable after their proposed merger with L90 was called off. Stocklemon’s research will show you what the company does not want you to know.

WHO IS AURA AND WHAT DO THEY DO?

“The Company agreed to purchase programming and investor relations services from Aura (Pvt), Ltd., for a three year period that commenced January 2, 2001. In connection with this agreement, the Company issued warrants for 385,000 shares of the Company’s common stock at an exercise price of $2.50. The warrants have been valued at $495,232 on the financial statements using the Black Scholes option pricing model with a risk free interest rate of 5.75%, a volatility of 141% with no expected dividend yield and a life of three years.”

http://www.freeedgar.com/search/ViewFilings.asp?…

Stocklemon called E-Universe and was told that Aura is a foreign corp based out of London. When we asked a top executive at E-Universe for references on Aura we were turned away and told that we could not get the phone number, name of principal, or mailing address of Aura. Their lack of candor made Stocklemon even more suspicious and sent us to do our homework.

THIS IS WHAT WE FOUND

Aura is a Pakistani corp whose principal is a man named Qaiser Imran. They are an investment vehicle with real estate holdings which include a cardiac treatment center in Pakistan. THEY HAVE NEVER DONE INVESTOR RELATIONS NOR ARE THEY AN INVESTOR RELATIONS COMPANY. The agent for the company in the United States is named Saied Kashani, a Harvard educated lawyer. During a telephone conversation, Mr. Kashani confirmed Aura’s investment in Ontro (ONTR), another listed stock, but did not know anything about E-Universe or the terms of the relationship between Aura and E-Universe. When asked if Qaiser Imran knows Rafi Khan, Mr. Kashani’s stated, “OF COURSE THEY ARE RELATED”.

This is not the first time that Rafi has allegedly used relatives as fronts.
http://www.stockpatrol.com/schlock/doghouse/netsol4.html

RAFI KHAN

For those of you who are not familiar with Rafi Khan we suggest you read the links below. Without us saying anything, his track record speaks for itself.

Rafi Khan Income Tax Case:
http://www.usdoj.gov/usao/cac/pr/136.htm

Rafi Khan Banned From the Securities Industry:
http://www.sec.gov/litigation/admin/34-42867.htm
L90 ACQUISITION

E-Universe was almost able to pull off a major coup if it were not for the SEC. They had signed a letter of intent to acquire online advertising company L90. With this acquisition, L90 would have brought their $50 million in cash into the merged company. Unfortunately for E-Universe, the rug got pulled right out of that deal 5 weeks after the SEC started an investigation into the financial statements of L90.
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020311/wr_nm/tech_l90_dc_3
ANATOMY OF THE SONY DEAL

E-Universe claims that Sony has put a $17 million investment in the company. Yet, when you read closer you will see that Sony exchanged one of their internet properties for an inflated value and then turned around and gave the company the money to buy this property. Stocklemon believes that Sony found the exit door on a money losing deal……very smart Sony. EUNI walked away with the cachet of using the Sony name and nothing more than a $5 million in cash, through discounted stock, and a worthless internet property that cost them close to $10 million.

E-Universe has attempted to prove its credibility through an “investment up to $17 million made by Sony”. The following are what Stocklemon believes to be the more salient deal points:

· E-Universe overpaid by $9.6 million for the Sony property.
· E-Universe only received a $5 million cash infusion from Sony.
· The Sony property lost $16.8 million for Fiscal 2000.
· The funds were raised at a 30% discount to market value.

“On July 13, 2001, the Company entered into a Share Purchase Agreement with 550 Digital Media Ventures, Inc. (the “Investor”), a subsidiary of Sony Music Entertainment, Inc., for the purchase of Indimi, LLC (”Indimi”), in a business combination accounted for as a purchase. The purchase price of $9.94 million will exceed the fair value of the net assets of Indimi by an estimated $9.6 million. In connection with the Share Purchase Agreement, the Company also
http://www.freeedgar.com/search/ViewFilings.asp?…

NO FULL DISCLOSURE

In the press release issued by EUNI after the Sony deal, the company went through great detail outlining this partnership to their shareholders in an extensive release, but they failed to mention two important issues to their shareholders. Maybe they just forgot to tell their shareholder that:

1. They overpaid by $9.6 million for the Infobeat.
2. This Infobeat property lost $16.8 million year end 2000.
http://www.euniverse.com/euni_press_releases.cfm?id=586

EUNI PAYS FOR COVERAGE

There have been numerous complaints to Stocklemon from investors saying that they are sick and tired of receiving spam email to buy EUNI stock. It is our belief that E-Universe treats stock promotion as if they were a .20 cent OTC Stock. Furthermore, they do not even have coverage from a major brokerage firm. Below are samples of some of the coverage on E-Universe. Please read the disclaimers on them.

In the eloquent research report put out by Taglich Brothers, we read on the bottom of the report that EUNI has paid for this report to get published. Moreover, they keep Taglich Brothers on monthly retainer.
http://www.taglichbrothers.com/equityuniverse/…

The company does the same thing with http://www.internetstockreview.com/. Internet Stock Review has consistently been spamming email boxes throughout the world with information on EUNI. Funny enough that the same company that has a no spam policy for registrants to its website does not mind spamming potential investors on a daily basis. Look at the disclaimer and see the amount of money that they pay for these spam emails. Internet Stock Review makes TWICE as much in monthly fees than the CFO does in salary, not even including their options.
http://www.internetstockreview.com/disclaim.html

Conclusion

We are not saying the company itself is a scam. Stocklemon believes that they have done a good job leveraging their database and selling it to third party sources for revenue. Yet, what is going to happen when all of the Sony stock becomes free trading? Also, based on the theory that a chain is only as strong as its weakest link, we believe that the company might face some regulatory problems in the future in relation to its stock promotion. It is of our opinion that their revenue and cash position do not warrant their current lofty stock price. We believe that the company is grossly overvalued and will eventually trade back to the $2 level where it was a year ago.

EYPSF is like an onion, the more you peel it back, the more it stinks.

In our last report, we compared EYPSF to Enron and to that we offer a sincere apology….to Enron. The head of the Enron Audit Committee was Robert Jaedicke, the retired dean of Stanford University’s Graduate School of Business. One of the heads of Energy Power System’s Audit Committee is Mr. Milton Klyman. Mr. Klyman is the former dean of “Do We Cheat Em’ and How University.”

Not only is Milton Klyman on the audit committee of Energy Power Systems but he also a director of the company. Who is Mr. Klyman and how did he get involved in EYPSF?

A brief bio of Milton Klyman is offered in the company’s 20f filing

“Milton Klyman has been a director of the Company from December 1997 to September 2000. Mr. Klyman was re-appointed a director of the Company April 2001. Mr. Klyman serves as a director on the boards of several companies including Agnico Eagle Mines Limited, Sudbury Contact Mines Limited, Black Mountain Minerals Inc., Academy Explorations Limited and Oil Springs Energy Corp. Mr. Klyman is a self-employed financial consultant and has been a chartered accountant since 1952. “

Mr. Cassina and Mr. Klyman also sit on the board of Oil Springs Energy. That is the wonderful 2-cent stock of a company that sold some of its alleged oil properties to EYPSF (Please Read Previous Report for Further Details).

Stocklemon’s research has been able to draw a direct line between this EYPSF board member and a now defunct Canadian Brokerage Firm, which was expelled by the Ontario Securities Commission.

Gordon-Daly Grenadier

Gordon-Daly Grenadier was a notorious penny stock firm in Canada. They were shut down in the year 2000 for numerous violations of Canadian Securities Law. VIEW SOURCE

During the period of 1996 to 1999 virtually all of Gordon-Daly’s business consisted of it acquiring stock for its own account and selling that same stock to its clients. Gordon-Daly made over $31 million on this fraud played upon their clients.

The original founder of Gordon-Daly Grenadier was Harry Bergman. Bergman then became a promoter, which used this firm to sell his stocks. The Ontario Securities Commission noted that there were 8 issuers for whom Gordon-Daly was market maker and Harry Bergman was the promoter. Guess who was the client of Gordon-Daly who helped orchestrate this whole scam? Milton Klyman. Mr. Klyman was a Director of ALL 8 of these companies and served as the President of one of them. Mr. Klyman is currently a director of Energy Power Systems. In his bio it mentions that he was a director of Black Mountain Minerals. Here is the true story of Black Mountain Minerals.

• Gordon-Daly acquired 5.1 million shares at an average of .70 a share
• Gordon-Daly sold all of its shares to its clients at an average of $1.91
• Gordon-Daly accounted for 99% of reported trading in Black Mountain Minerals
• Black Mountain Minerals last traded on June 29, 2000 at $.20……..as far as stocklemon knows it no longer trades. VIEW SOURCE

Here is a list of some of the brokers at Gordon-Daly and their punishments as handed down by the Ontario Securities Commission.

Stocklemon enjoyed a quote in the 20f filing of Energy Power Systems which reads, “In April of 2001 the Company asked Mr. Klyman to join the board of the Company in order for the Company to avail itself of Mr. Klyman’s financial expertise and fulfill certain listing requirements of the American Stock Exchange.”

WHAT A JOKE!!! The only expertise Mr. Klyman brings is how to separate an investor from his money. What has he ever brought to the AMEX? It seems as if he would be more suited to get the company de-listed. VIEW SOURCE

Stocklemon will continue to investigate Energy Power Systems and uncover more truths about this company. We encourage every shareholder to call Jim Cassina and ask him if this report is nothing but all true. Enjoy yourself as you hear Cassina trip on his own words.

Stay Tuned for our next report on Energy Power Systems that will focus on their revenues and accounting procedures.