MORE GUNNALLEN FINANCIAL ROPE-A-DOPE BED TIME STORIES
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Hey Tony, do you fancy spending £30,000 on Amex?
Tony Levene
Saturday June 21, 2003
The Guardian
"Hey Tony," rasped the American voice at the other end of the phone in early May. "Are you interested in money and investing?"
"Yes to both but in a small way," I told the caller, who identified himself as John Psillis. I told him I had shares in BA, BAA, BG, BP, and BT. He failed to see the pattern and asked me whether I would be "comfortable with investing £100,000."
Psillis said he worked for Gunnallen Financial in New York and would contact me again three weeks later. Gunnallen is actually based in Tampa, Florida.
He phoned again with a "Hey, Tony" three weeks later. Now he had permission to phone, it was no longer a cold call. He soon got down to business. He wanted me to buy 1,000 shares in American Express at $42 each - a total $42,000 (about £30,000).
"Tony, these shares are going to be amazing. They're going to $60 and northwards in the short term - just hold on for six to eight weeks. We're positioning on Amex. So, fill in the forms on our website and send the money," he said.
I asked why Amex was such a good idea.
"Citigroup is buying the whole of Amex's credit division. It'll make the shares shoot. Amex will get a fortune for selling off its card operation," he said.
When I expressed some reservations about this, Psillis said: "I can make you money with my eyes closed. If the Citigroup deal doesn't happen, my research people are anticipating there's a deal set to be announced in China. Amex will be huge there."
Psillis then cut his aim "The size of the transaction is irrelevant. And even if the bid doesn't happen, it's a great stock to own. I want you to open an account. Buy 100 shares for $4,200. "This is to establish a track record. Give me two months and if I do not out-perform on everything fire me as your broker," he said.
When I protested that I wanted time to think, he sneered "good luck if you think you can do it" and put down the phone.
This was four weeks ago. Citigroup has not bid for Amex and I have found no one else who has ever heard this story. Amex shares, up from $26 earlier this year, now stand at $44 - a gain but still far from the promised 30% plus in two months.
Gunnallen brings tiny high tech companies to Nasdaq. |
