-URBAN RESOURCE TECHNOLOGIES, INC. AND DAVID BAINES.....
>
> In today's Vancouver Sun, David Baines again positioned
>another Vancouver-based company, Urban Resource Technologies
>(Alberta:URT), with what is the media's typical bread and butter:
>violence and insinuation of criminality. This follows his Tuesday
>article on Trellis (VSE:TIS), a company which drew his attention
>because of the extraordinary trading volume of that day... and
>mystified Mr. Baines, as he confessed that he did not know what
>caused it. Well into the article, Mr. Baines guessed and wrote, "More
>likely there is an unseen hand at work...."
>
> As I reported in yesterday's feature of Trellis, yes there was a
>reason for such big volume: Insiders buying up stock. This was a
>signal that the play is nearing the end of the accumulation stage and
>Trellis (VSE:TIS) should be perceived as a company with shares on
>the brink of racing to higher prices -- say C$0.50, C$1 or higher.
>Today's volume of more than 3.4 million shares traded and a recent
>high of C$0.15/share demonstrates that the "world" has again not
>listened very carefully to Mr. Baines' investment advice or judgment
>about a company, in this instance TIS.
>
> What I learned about Trellis, and what I observed with
>Wednesday's trading in URT may go a long way in explaining the
>potential link between shortsellers and Mr. Baines. Although I was
>the first to observe this and publish my commentary about it (in the
>August and October, 1994 issues of Bull & Bear), I have since not
>been the only one to also note this link. Mr. Robert Flaherty, the
>distinguished and award-winning journalist at Forbes magazine for
>many years and now editor/publisher of Equities magazine, also
>commented on the potentiality of a perverse connection between Mr.
>Baines and shortsellers in the August 1995 issue of Equities
>Magazine. Mr. Baines, while persuading Southam newspapers to join
>him in litigating against myself, has not responded to Mr. Flaherty's
>accusations.
>
> I'm sure that many of you could care less about the libel action
>or my lawsuit, but are instead far more interested in the market
>action in Trellis and URT. Let me calm your fears. I have observed a
>correlation between Mr. Baines' articles and the company which he
>hammers. My theory has proven out where Mr. Baines and I crossed
>paths, i.e. whereupon he slammed the company and I subsequently
>wrote about the same company. Examples: ThermoTech
>(NASDAQ:TTRIF) and Mountain Province (VSE:MPV). A less pointed
>example was Arakis Energy (then VSE:AKS) which I predicted would
>double upon its opening and came very close to doing so.
>
> IT IS WELL-KNOWN ON THE TRADING FLOORS OF VANCOUVER
>THAT TRADERS COME INTO THE MARKET TO BUY A STOCK WHICH
>BAINES EARLIER HAMMERS AND THE STOCK SUBSEQUENTLY GOES UP.
>From this you will learn a lesson, as I did. The reason Mr. Baines'
>"stockpicks" go up after he hammers them and they come down, is
>because SHORTSELLERS cover their positions after the stock has gone
>down. That immediately creates a "long scenario." So, my stock-
>picking "genius" with regards to Mr. Baines had nothing really to do
>with "charts," or anything else. It had everything to do with a
>premise.
>
> The premise is this: Traders get advance information that Mr.
>Baines is going to write a negative article on a company. They then
>short the stock. The stock goes down as nervous retail (small)
>investors panic after reading deadly material about the company in
>which they have invested their hard earned money. At the bottom of
>the avalanche, after the market has been cleaned out, the shorts
>cover and the stock pops up in price. Now, please, before I get myself
>into yet another libel suit, let me point out that this is only MY
>premise. That the stocks go up must be entirely "coincidental."
>
> However, this "news" may be of interest. I had mentioned to
>someone in mid-December that I was thinking of writing about
>Trellis. This Howe Street character checked it out and came back,
>saying that the "VSE had plans to delist Trellis." Also, that there were
>some secret things going on with Trellis to bring the shares way
>down. Amazing, huh? Now, here's the kicker: The DAY BEFORE Mr.
>Baines' article came out, one of my subscribers had emailed me and
>said her broker told her that Baines was writing a piece on TIS. Now,
>if you were a professional trader, and you knew that a David Baines
>article would bring down a company's share values, you would
>nearly 100% be putting in a SELL order to short that stock. So, I have
>uncovered information whereas AT LEAST one broker knew about
>the David Baines article PRIOR to it being written. I got this
>information emailed to me on January 8th. I phoned a contact, close
>to the company, and NO ONE at the company had any clue
>whatsoever that Baines was writing an article on TIS. Yet, the
>brokerage community KNEW about this. It may also be possible that
>"someone" or "some others" knew about this, as early as mid-
>December!
>
> So, what does this have to do with Urban Resource
>Technologies? Simple. On January 10th, URT started running again
>and was up substantially at one point, to C$0.66/share. It came down
>mid-day for NO EXPLANATION whatsoever. Then, URT reached a low
>of C$0.49 on the day of the article, yesterday, and closed six cents
>down. Not a bad profit for shortsellers who might have shorted at 66
>cents! Quick pocket change in less than 24 hours!
>
> My question is this: How many professional traders did NOT
>know about the URT article the day before it was going to come out?
>Obviously, it was fairly quiet in that less than 400,000 shares traded
>on URT on Thursday. We'll see what happens on Friday. My guess is
>that Mr. Baines will again be ignored and the stock should run again...
>perhaps to C$0.75, as shorts realize that they had better quickly
>cover on their URT position.
>
>*******************************************************************
>
>--SIDENOTE:
>
>The above is all I have to say about URT and Trellis. You can read on,
>but only if you would like to read something interesting about how
>the Canadian press has begun to treat me, since there is clearly what
>comes to a near-monopoly by Southam of the "free press" in Canada.
>
> One sure-fire way to damage someone and to ultimately
>destroy their reputation is to generate propaganda by a "redefinition
>of terms." I can see this in the articles whereas Mr. Baines has
>deemed it "necessary" to mention me. The one thing which annoys
>both Southam and Mr. Baines, not to mention John Woods and Canada
>Stockwatch, is that I can easily call myself a "bestselling author" and
>"award-winning journalist." Mr. Baines, who has not published a
>single book, probably envies that I have published EIGHT books (or
>is it nine?) -- the last two were published respectively by Random
>House and Putnam/Berkeley. My 1992 book was chosen as the
>"alternate selection of the Quality Paperback Book Club" in August,
>1992. In all, my books have grossed approx US$30 million for their
>publishers! Far more than even the "average" best seller.
>
> There are also certain things that really can't be taken away
>from someone. For example, if one wished to do a quick due diligence
>of myself to see if I was telling the truth about my being an author,
>one could open a copy of US News and World Report (September 21,
>1992 issue) or a copy of Fortune Magazine (May 3, 1993 issue) and
>see that I exist... as an author. In the USN&WR issue, that magazine
>devoted a FULL page to an interview with myself. In the Fortune
>magazine article, my eighth book was pleasantly reviewed.
>
> Nonetheless, my "job description" by Mr. Baines and his good
>friend, John Woods, has drifted away from such remarkable
>achievements. I have been depicted in this sequence: (a) writing for
>a "tout sheet," (b) to being a "tipster," and (c) to now being called a
>"stock promoter." What a marvelous sequence of "character
>assassination!"
>
> In the January 11, 1996 edition of The Vancouver Sun, Mr.
>Baines wrote that I was a stock promoter. This is about as accurate as
>his September 1995 coverage of myself in his column whereupon he
>noted that I was "from Boca Raton, Florida." For the record, I have
>NEVER even been to Boca Raton, let alone actually live or work there.
>It is a good 5 hours from where I live. SO, either Mr. Baines is
>intentionally lying to discredit me or he assumes I commute 10
>hours every day to work. One could also conclude that he really
>doesn't know any better or doesn't know his geography. It is about
>as "Canadian-think" that Miami and Tampa are minutes apart as it is
>American-think that all Canadians live in igloos.
>
> I must assume that there is something more sinister in Mr.
>Baines' propaganda. You see, Boca Raton is the homebase for many
>scurrilous stock promoters. He may also be a bit concerned by
>upcoming depositions between himself and myself whereas he may
>be, for the first time, ever forced to disclose his sources to a Canadian
>Supreme Court judge. I wouldn't feel very comfortable about this, if I
>were Mr. Baines, for this will be the first time he, himself, will really
>be on trial... in front of jury.
>
> Now, the final tid-bit of "anti-Chelekis" propaganda. Beneath
>the notation that I was a "Florida stock promoter," The Sun layout
>crew decided to position a police composite sketch of the alleged
>assailant upon a former URT director. I have gotten NUMEROUS
>comments today, by fax, that this "sketch" looked LIKE ME! It had
>my trademark glasses and the police description FIT me exactly.
>Amazing!
>
> Unfortunately, for Mr. Baines, Southam and the RCMP, I have a
>passport stamped that I was IN the Bahamas on the date of the
>attack and had been there for several hours (making transportation
>betwixt Vancouver and Nassau completely impossible on such short
>notice). There are also witnesses and other documentation to this
>effect.
>
> A very insidious, but tawdry, personal attack upon myself....
>but, then again, reporting on shortsellers and their beguiling
>connection to the mainstream media isn't a game to play, for any but
>the bravest of souls. Hey, there's very big money in this game of
>shortselling. Well-played, using mainstream journalists, it can very
>much harm the small investor, to the benefit of the professional
>trader!
>
> Part of my job is to see that this comes to a halt. A lot of people
>don't like being exposed for their crimes.....
>
>*******************************************************************
>
>COPYRIGHT (c) 1996 by George Chelekis. ALL RIGHTS RESERVED.
>Copyright violation will be prosecuted to the fullest extent of the law.
>The information presented in George Chelekis' Hot Stocks Flash is not
>an offer to buy or sell securities referred to herein. This is an
>irregular financial gossip column, strictly for information purposes,
>possibly reliable but not guaranteed as to accuracy or completeness.
>Investors are urged to obtain complete financial and other
>information directly from the company as George Chelekis is not
>liable for any investment decision made. While he is not an
>investment advisor, George Chelekis, from time to time, invests in
>North American securities, and provides information about selected
>companies which catch his eye. Stocks featured in this column are
>extremely speculative investments, laden with considerable risk and
>plenty of volatility. Past performance does not guarantee future
>results. Investors should take profits to cover their initial
>investments because these stocks are extremely volatile. Annual
>Email Subscription: $195. Fax Subscription: 695/year.
>
>*******************************************************************
>
>
>URBAN RESOURCE TECHNOLOGIES UPDATE....
Gag order on URT issued by Alberta Stock Exchange to not
speak to press (that means me) and to not speak to you (the
shareholder). Penny Perfect has been OFFICIALLY barred from
answering shareholder questions. Doesn't work for the company --
she's actually Gordon Muir's wife (they were recently married).
What's this mean? URT should open like a lead balloon, before any
Indonesian deal is announced. (By the way, the stock was halted
because Gordon Muir hadn't filed insider trading reports for six
months -- BAD BOY! URT wasn't the one that halted the stock. The
ASE halted it.) Company was expecting to do a financing to complete
their Indonesian deal and for working capital -- at higher levels. Dud
opening and massive bloodbath should nix that notion. No help from
ASE officials. Called several times, left messages, no response. I guess
they don't want to talk about URT either. From what I understand,
Gordon Muir did sell paper to cover overhead while pursuing
Indonesian deal -- but not at C$1.00 or higher. Started somewhere in
the C$0.29 range. Probably averaged out around C$0.50.
What is URT's fate? If the halt trading and everything associated
with it doesn't kill this financing, and consequently the Indonesian
deal, then there may be light at the end of the tunnel. I suspect URT
may set a one-day trading record on the Alberta stock exchange with
loads of investors bailing out. One might do better to sit on their
hands or take a walk the day URT reopens trading. Could be major
gridlock at the exit sign. Bottom-fishing after that should send URT
into a rebound.
(Note: Please keep in mind that when a journalist like myself
writes about a stock, the fact that something was written indelibly
alters whatever course a stock was heading in, or modifies the pace
of its direction, accelerating or decreasing the momentum. One then
has to look at the fundamentals behind the company and reach their
own investment conclusion. I didn't think this up. Heraclitus did.
Also, George Soros. Dynamic versus static investing. Use this
commentary when sizing up other investments as well.)
*******************************************************************
COPYRIGHT (c) 1995 by George Chelekis. ALL RIGHTS RESERVED.
Copyright violation will be prosecuted to the fullest extent of the law.
The information presented in George Chelekis' Hot Stocks Flash is not
an offer to buy or sell securities referred to herein. This is an
irregular financial gossip column, strictly for information purposes,
possibly reliable but not guaranteed as to accuracy or completeness.
Investors are urged to obtain complete financial and other
information directly from the company as George Chelekis is not
liable for any investment decision made. While he is not an
investment advisor, George Chelekis, from time to time, invests in
North American securities, and provides information about selected
companies which catch his eye. Stocks featured in this column are
extremely speculative investments, laden with considerable risk and
plenty of volatility. Past performance does not guarantee future
results. Investors should take profits to cover their initial
investments because these stocks are extremely volatile. George
Chelekis is not responsible for the timing of anyone's investments
should information be delayed between the time it is written and
when it is actually received and/or acted upon. Hot Stocks Flash is
not subsidized by featured companies. No company is aware that it
has been featured in today's FLASH. Hot Stock Flash company.
Annual Email Subscription: $108.
*******************************************************************
************************************************************
HOT STOCKS WHISPERS
By George Chelekis * October 19, 1995
************************************************************
TEL: (813) 251-0030 * FAX: (813) 254-4677
EMAIL: hotstock@gate.net
WWW URL: gate.net
************************************************************
--JOHN KAISER AND GALLERY RESOURCES....
Today I read an email message, sent by John Kaiser to one of
his subscribers, inferring that Gallery Resources (Alberta:GYR) might,
perhaps, be avoided. Now he didn't blatantly come out and state that
GYR should be avoided or sold. He only inferred it, in his trademark
"Kaiserese" language. One would think that Kaiser would have
learned his lesson after Mountain Province (VSE:MPV). For it was on
February 14, 1995, that Kaiser faxed me a very long letter (typed
single-spaced), in which he declined to be interviewed by me about
MPV, but nevertheless explained in pain-staking detail why
Mountain Province maybe, perhaps, (who knows?) should NOT be
bought, but should instead be "watched." (This is what I mean by
"Kaiserese," which is tantamount to sitting on a fence and watching
the world pass you by.)
I responded publicly by announcing that MPV was a BUY and
have since "watched" MPV run from C$0.85 to a recent high of nearly
C$10. (Please note that Kaiser did put in his two cents in a David
Baines-authored slam against MPV in early May, which goes to show
that those who just "watch" can get bitter.) Odd that today GYR closed
at C$0.86 (up six cents on the day, despite the Kaiserese hex), about
the same place where MPV traded when Kaiser found his spot on the
fence. I think history is going to repeat itself in Gallery and it could
very well run into thin air where MPV once dwelled.
Personally, I am very happy with GYR's management and their
exploration team, especially their honesty, accuracy, candor and
camaraderie. Someday, even John Kaiser will be too. (One should also
reference Kaiser's January/February Bottom-Fishing Report when he
viciously attacked me for thinking Holmer Gold (Alberta:HGM) was a
fantastic buy at C$0.40 -- it ran to a high of C$4.75 less than 8
months later...)
One can be soooo discreet and cautious as to never really
answer anyone's questions, or one can take a stand, draw a line and
risk being wrong. It may sting a lot when one is wrong, but it also
brings tremendous joy in reading hundreds of subscriber letters
celebrating their successes. "Investing" in the world according to John
Kaiser is akin to a spectator sport, like watching television. It doesn't
hurt, but that's because one is probably also brain-dead. Yes, running
the football (instead of watching someone else do it) may get one
tackled and HURT a dozen times while marching toward the end
zone, but weigh, if you will, all that pain against the winning
touchdown you may score! And, as far as I'm concerned, Gallery
Resources is Super Bowl material! After all, why would they
"suddenly" embark on a C$375,000 drilling campaign.....
************************************************************
--GORDON MUIR'S INSIDER TRADING OF URT...
In a Hot Stock Flash, dated 18 October, I reported upon Gordon
Muir's insider trading, during the month of August, in his company,
Urban Resource Technologies (Alberta:URT). Those reports have since
been revised and accepted by the Alberta Stock Exchange and URT
should be trading today. Further investigation turns up that Mr. Muir
has put C$850,000 of his money into URT this year, 90% of those
funds were reportedly raised by selling stock. During the month of
August, Mr. Muir scored a profit of C$131,819 from the sale of his
URT shares.
What was known when I reported his insider trades is that
Gordon Muir put back into URT C$120,000 of that profit. The leftover
C$11,819 would partially cover his tax liability (in British Columbia
there is a punitive tax of 65.9% for which Mr. Muir is personally
liable.) In essence, despite his profits, Mr. Muir kicked his profits
BACK INTO the company and LOST money on his trading (after
commissions and the steep taxation).
Further, in reviewing his trades during August 17th and 18th,
Mr. Muir was frantically trying to support URT's share price with ten
trades of 46,000 shares. One deep throat whispered that Joan Moody
of the Alberta Stock Exchange was removed from monitoring the URT
file; this is unconfirmed by the ASE or Joan Moody. Also, the halt
trading was apparently ordered by the ASE, not URT, and this was
done entirely over Gordon Muir's insider trading activities and
reports, which hadn't been properly filed. But now they are. The halt
trading had nothing to do with the Indonesian deal.
What is more important, now that this is out of the way, is "the
Indonesian deal." One subscriber conversed with Mr. Sanderson of
Eton International about this deal. Sanderson is leaving for Indonesia
this coming Monday. The URT featured house is in a "contest" along
with other contenders and the Indonesians are quite pleased with its
durability. The Indonesian delegation is expected to arrive on or
about November 5th. Three engineers are being sent to examine
URT's plant facilities, which will act as the anticipated prototype of
the Indonesian plants.
Is the deal on? It's still in progress. That won't help the stock,
which is expected plummet at the opening. Early word on scores I've
been keeping track from subscribers who hold large positions in URT
is this: they will probably be the ones buying URT shares after the
massacre.... I don't think they'll be alone in the buying spree which
should follow.
************************************************************
*****************************************************************
GEORGE CHELEKIS'
HOT STOCKS FLASH
19 January 1996
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EMAIL: <hotstock@gate.net> NEW FAX #: 813-254-4677
NEW RECORDED HOTLINE #: 813-251-0030
*******************************************************************
COPYRIGHT (c) 1996 by George Chelekis. ALL RIGHTS RESERVED.
*******************************************************************
--GEORGE CHELEKIS' SPEAKING ENGAGEMENTS.
Meet George Chelekis IN PERSON. Two upcoming opportunities:
Orlando and Orlando. First, the ISI Orlando Money Show, held at the
Disney Contemporary Hotel on February 1-3. Phone Deborah Rossard
or Penny Livingston at 813-955-0323 for reservations. Second, the
Sound Money Investors's Orlando '96 Conference at the Clarion Plaza
Hotel in Orlando on March 13-16. Phone Karen Constantine at 800-
346-0092. Both shows may be sold out, so phone now and make your
advance reservations.
*******************************************************************
--STOCKS IN REVIEW....
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--TRELLIS TECHNOLOGY--
Trellis (VSE:TIS) is still halted, almost like the old Saturday
Night Live joke about the former President/General of Spain: "Franco
is still dead." While the stock remains halted, I would expect ace-
business report of the Vancouver Sun, David Baines, once compared
by a Vancouver magazine to a Rottweiler, will kick the company, its
past deals, past associates and so forth while it is down. Standard
practice from this reporter who once told me during a July 1994
telephone interview, "these are all sleazy companies." Obviously, he
hasn't changed his mind. General suggestion: Ignore Mr. Baines.
Vancouverites tell me his readership has sunk with each new
marketing survey. All eyes on the China deal and the new director,
who may soon become TIS' new president.
*******************************************************************
--URBAN RESOURCE TECHNOLOGIES...
Urban Resource (Alberta:URT) gave it their best shot and most
already in this stock will probably quietly exit it, either to take
profits or to break even. I have privately warned to email
subscribers that I have a hard time believing Gordon Muir after
several months of discussions. On the other hand, David Baines
doesn't like Gordon or the company... so that may be a positive
endorsement of sorts and not to be taken lightly. Perhaps, there is
hope to URT after all....
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