I'm embarrassed to have anyting to do with GTSM. I - all of us -- should have seen the company for what it was worth years ago. Consider:
1. Its employees are only part time.
2. Its (hoped for) businesses are exotic semiconductors, a radical electric motor, and an anti-crop fungus. That's an inherently absurd mix for a tiny company. They all promise not merely a business but a radical big business... one of the hallmarks of penny stock type tactics.
3. GTSM appears not even to own the patent on the magic electric motor anymore. It was issued in the name of a subsidiary that GTSM tells us was dissolved for noncompliance with corporate formalites.
4. When somebody (Crossy, I think) put the big kiss on this stock, he gurgled about how "cagey" the company was to plan not to license its technology. A lot is wrong with that statement -- mostly the company's job is to maximize profits, and doing that requires GTSM to license its tech for products it's not ready to manuracture. But the bigger problem is that GTSM obviously does NOT HAVE ANYTHING TO LICENSE -- it hasn't been able to reproduce its magic ampule of 1990, and is far off from being able to produce such ampules reliably.
5. GTSM says it needs to create 16 ampules for "phase 1" of its semiconductor testing, and then 8 more ampules to confirm it has a reliable reproduceable process. In May in completed 1 test, and indicated in July that a new test would begin "immediately". In December it released results of the test on the May ampule, but said the results are so "preliminary" as to be NOT "material". Let's look at this more closely:
- a whole year and only one ampule?
- after 7 months, even that ampule has not been tested (except in a "preliminary" and "not material" way)
- the lab that took the ampule said it had to delay testing because it didn't have the equipment capable of testing an ampule of that size (which is good if you focus on "big", and absurd if you focus on the fact the lab obviously was inappropriate)
- the lab is supposed a US government lab that doesn't want its name to be used. Ha!
- GTSM's promise to start a new ampule was absurd because it should want the results of testing the old ampule. Maybe that's why it apparently never did start another ampule.
Meanwhile, rumors abound that the company is about to look for customers, or start production.... where do those come from? Even the company's own SEC docs indicate that ampules take 3 to 4 weeks to heat and cool -- and 24 of those (the 16 and 8 schedule I mention above) plus testing --- and those need to get done before the company can start even PILOT production. This makes real production years away, and no closer today than it was a year ago when the company hyped "encouraging" progress.
Add to this brew that the company in 1996 issued a press relase about actually having not just the scrawny mostly not working test facility it has now, but claiming to have real major production facilities already in place -- enough for its needs until into the next millenium. Where are those facilities now?
Add to this the 1990 fire which somehow destroyed production facilities that way back then was actually creating and selling semi-conductors. The company hasn't been in commercial operation since. Why not?
The December 2000 press release and related SEC filing are what most bug me. They put in tons of words clearly designed to inspire the faithful -- implying results are wildly encouraging. This caused some posts on RB say things like "we know we have a product" -- somehow missing the cautious but butt-covering words that the tests are prelminary and not material.
I smell a rat. An OLD rat. I should have smelled it earlier.
- Charles |
