Zbyte,
Think about this, last week end we had 10 radio staions pumping, this week end and next week 50 radio stations... Hmmm... do the math.
In addition to the radio hype, someone seems to be hyping this company via SPAM e-mails. I have attached the unsolicited GGNC SPAM that appeared in my mail box. I was intrigued both by the liberal approach to spelling that the sender used, and was curious about the claims for this company, so I decided to kick the tires a bit to see what it was all about.
1) The chart looks rather interesting. bigcharts.com
Looks like a lot of buying below $1, and a lot more buying (or is that selling) at $3. I wonder what the public float is. The thread header states Shares 4.5M Issued &outstanding, Public float - Approx. 1.3M , the company's web page says there's 11.2M, and SuperStocks states, 14.2M, as their estimate for shares outstanding in 1999. Maybe that explains where all those shares are coming from that allow it to trade almost 8M shares in a single day. Message 6675373
2) The SPAM e-mail I received (supposedly from some investor who wants to make me rich, but more than likely from a promoter) contained statements such as With projected revenues over $100 million in 1999 and clientale of 50,000+ and growing for GGNC, is a buyout of $1 BILLION dollars PLUS out of the question? ABSOLUTELY NOT!!!! , which is clearly hype of the largest magnitude. The e-mail was full of hyperbole, which I have marked in bold for your convenience. BTW, this is what the SEC has this to say about e-mail solicitations: sec.gov Because "spam" – junk e-mail – is so cheap and easy to create, fraudsters increasingly use it to find investors for bogus investment schemes or to spread false information about a company. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing. Using a bulk e-mail program, spammers can send personalized messages to thousands and even millions of Internet users at a time.
3) The company's web site contains statements such as: GIC's first year projections for the combined gross revenues of the two internet sportsbook casino sites total U.S. $65 million, with first year projections for combined net profits totaling U.S. $6 million and estimated earnings of U.S.$1.15. per share. The SuperStocks site is calling for 1999 revenue of $75M, earnings of $4.9 and EPS of $0.43, growing to revenue of $905M, earnings of $64M and eps > $2 by 2003. Those numbers seem pretty fanciful to me.
The disclaimer on SuperStocks regarding payments received from featured companies, such as NNGC, states WALL STREET RESEARCH GROUP, A DIVISION OF WALL STREET FINANCIAL GROUP, INC., SERVES AS SPECIAL ADVISOR TO THE FEATURED COMPANY AND HAS RECEIVED FEES FOR SERVICES, INCLUDING A MONTHLY BASE FEE OF 45,000 SHARES OF STOCK FOR THREE MONTHS IN ADDITION TO EXPENSES FOR PREPARATION AND DISTRIBUTION OF MATERIALS INCLUDING THIS REPORT, PAID FOR IN FREE-TRADING COMMON STOCK. MORE DETAILED DISCLOSURE REGARDING FEES PAID IS AVAILABLE UPON REQUEST. The SEC states Think twice about newsletters that bury their disclosures or put them in tiny, hard-to-read typeface. Legitimate online newsletters that have been paid to tout stocks will clearly and specifically tell investors who paid them, the amount, and the type of payment. The disclosure by SuperStocks is better than most, but might fall short of the required rigour for such a disclaimer, since it doesn't completely disclose the amount of all compensation (i.e., "In addition to expenses ... paid for in free-trading common stocks")
For instance, if they had $5k in expenses paid at $0.10 per share, for instance, that would be another 50,000 shares.
Here's what the SEC has to say about internet newsletters: Hundreds of online investment newsletters have appeared on the Internet in recent years. Many offer investors seemingly unbiased information free of charge about featured companies or recommending "stock picks of the month." While legitimate online newsletters can help investors gather valuable information, some online newsletters are tools for fraud.
Some companies pay the people who write online newsletters cash or securities to "tout" or recommend their stocks. While this isn't illegal, the federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so. Instead, they'll lie about the payments they received, their independence, their so-called research, and their track records. Their newsletters masquerade as sources of unbiased information, when in fact they stand to profit handsomely if they convince investors to buy or sell particular stocks.
Some online newsletters falsely claim to independently research the stocks they profile. Others spread false information or promote worthless stocks. The most notorious sometimes "scalp" the stocks they hype, driving up the price of the stock with their baseless recommendations and then selling their own holdings at high prices and high profits. To learn how to separate the good from the bad, read our tips for checking out newsletters.
sec.gov
4) The header says that the company symbol is "GGNC:BB:NASD". The designation "NASD" is a misleading designation. The use of the term "NASD" is has been used on previous hype jobs here on SI and elsewhere to mislead investors into thinking that the stock trades on the NASDAQ, when, in fact, the stock really trades on the over-the-counter bulletin board. There is a big difference in the listing requirements for OTC and NASDAQ - the NASDAQ requirements are much more stringent. Here's the difference: otcbb.com .
If they were a reporting company, maybe some of these numbers could be confirmed by reading their filings, but it isn't, so my guess is as good as yours.
I'm sure that these items I have raised can all be easily explained. But it sure looks like a pump job to me so caveat emptor and carpe diem and all that jazz.
By the way, I also got some SPAM from one of their competitors in the casino business, which I have also attached below. Which one do you think I am going to put my money into?
Regards,
John Sladek
=====================================================================
Dear Investor:
Have you ever wanted to be the House when you gamble instead of the player?
Here is your oppurtunity. I have done my due dilligence on the OTC:BB stock
GGNC.
>>From my research, GGNC is SO FAR better positioned than
any of its competitors. See for yourself. It has the better website, More
aggressive PR, More aggressive Marketing Plans, Better Asian Connection, Best
stock
performance than its OTC-BB peers, Most popular sites than any of its
peers. As the traditional gaming industry watches (ie. Las Vegas, Atlantic
City), they are prepared to make the buyouts of successful companies like
GGNC. With projected revenues over $100 million in 1999 and clientale of
50,000+ and growing for GGNC, is a buyout of $1 BILLION dollars PLUS out of
the question? ABSOLUTELY NOT!!!! I love it...
Currently...
Current PRICE: ASK $2.96875 BID $2.84375
VOLUME as of 12/03/98 is 2,611,300
Based on the math this stock should hit on the low end $10 by year end and on
the high end $25 if not higher. Next year first quarter x 10 fold IMO THIS
IS THE NEXT EBAY, AMZN, YHOO, AOL.
THINK ABOUT IT
This is absouletly a BUY BUY BUY / WIN WIN WIN.
The stock is on to the second wave. About to explode out again. It has
settled and will not budge. My charts are showing another break out with good
news already buzzing.
New York is listening, waiting, committing for this gaming stock.
Hear for yourself. If you pick up these stations listen and do your due
dilligence on GGNC. I have been convinced.
WEVD RADIO
New York, New York Friday December 4 5:00 PM
Sunday December 6 9:00 AM
WERE RADIO
Cleveland, Ohio Saturday December 5 10:30 AM
Sunday December 6 5:00 PM
KSEV RADIO
Houston, Texas Saturday December 5 4:30 PM
Sunday December 6 4 PM
WSBR RADIO
Boca Raton, Florida Thursday December 3 5:00 PM
Monday December 7 1:00 PM
KCHL RADIO
San Antonio, Texas Thursday December 3 3:00 PM
Saturday December 5 4:00 PM
KCEO RADIO
Carlsbad, Cal Friday December 4 11:00 AM
KPNN RADIO
Phoenix, AZ Sunday December 6 7:30 AM
WDEL RADIO
Wilmington, Delaware Sunday, December 6 7:00 PM
In addition to the radio shows, GGNC will be featured in the
Investor's Business Daily, Investor's News Wire section on
Friday December 4, 1998.
Industry observers say that 1998 was a breakthrough year for
on-line gaming. Many operators are hoping to capture an early lead in
what looks to become a multi-billion dollar industry. The Cyberbetz
site is already off to a great start receiving a "FIVE STAR BEST OF
THE WEB" award from Gambler's Universe, in addition to the "CRITICAL
MASS AWARD" given to web sites that display mass consumer appeal.
Frost and Sullivan, a marketing consulting firm based in Mountain
View, California, estimates that by 2004, the Internet Gaming market
will pull $7.4 Billion in revenue through gambling operations and
related software sales.
Cyberbetz is legally licensed in the Commonwealth of Dominica and
has been once again voted the most popular Internet Casino and Sports
Book by www.gamblebrains.com and www.gambleland.com on December 2,
1998.
The Wall Street Research Group, a company that features
undervalued stocks in emerging growth markets, has now listed GGNC as
a recommended buy.
For additional information, see Wall Street Research Group's
"recommended buy" listing at www.superstocks.net/gicglobal or call 1-
800-943-2298.
In addition, you may want to check out the message boards of EBAY, AMZN, AOL,
YHOO and so forth. Investors in these sectors of the market see the next wave
of internet stocks. The site is so popular other sites choose to advertise
on it. 100,000 hits bi-weekly currently (Has Doubled every week). The
internet wave came in the retail business, selling books on line, on line
servers and so on. The combination of the high end technology of the internet
interwoven with gaming is what sold me. Why wait? This is the next wave of
internet stocks. Load on and be awarded.
I am in and still getting in. The current price is a steal. Get in now.
Coming weeks will drive the price up up up.
CONTACTS THAT MAY HELP YOU WITH Due Dilligence on GGNC.
current gaming site with sportsbook
www.cyberbetz.com
Corporate site
GIC Global Intertainment Corp. Chris Sargent, 877/GIC-WINS
Email: Ir@ggncwins.com Website: www.ggncwins.com
do your own DD and you will see what I mean...
Good luck...
investor
======================================================================
Here's the other unsoliced SPAM I got:
HELLO
YOU'VE BEEN LISTED BY AN INFORMATION BANK AS
SOMEBODY WHO MAY BE A GOOD CANDIDATE FOR
THE WINNERS ORGANIZATION. THE WINNERS IS A VERY
PRIVATE MEMBERSHIP AVAILABLE TO ONLY THOSE PEOPLE
WHO ARE QUALIFIED TO TAKE ADVANTAGE OF SOME
SPECIAL BENEFITS.
IF WE OFFER YOU A MEMBERSHIP AND YOU ACCEPT, YOU
WILL RECEIVE A VERY SPECIAL OPPORTUNITY TO ACTUALLY
OWN YOUR OWN CASINO OPERATION.
FURTHERMORE, THIS WILL NOT COST 10 MILLION DOLLARS
NOT 50 MILLION DOLLARS. BUT NOW, JUST ABOUT ANYBODY
CAN OWN AN OPERATING CASINO, IF WE ACCEPT
THEM INTO OUR ORGANIZATION.
WE'RE TALKING ABOUT A WORLD CLASS INTERNATIONAL CASINO
THAT HAS THOUSANDS OF VISITORS A DAY GENERATING
PERHAPS MILLIONS OF DOLLARS IN PROFITS TO YOU EVERY
YEAR WITHOUT ANY EFFORT ON YOUR PART. I KNOW THAT
SOUNDS TOO GOOD TO BE TRUE. BUT, WHAT'S HAPPENING
NOW IS THAT A FEW WELL INFORMED PEOPLE ARE SCRAMBLING
FOR POSITIONS IN THIS NEW INDUSTRY. IT'S A BRAND NEW
OPPORTUNITY IN THE HOME ENTERTAINMENT MARKET FOR
CASINO GAMING AND WAGERING ON THE INTERNET .
OUT OF ABOUT 100 ON-LINE CASINOS ON THE WORLD WIDE WEB
TODAY , THEY WILL TAKE IN NEARLY 10 BILLION DOLLARS
THIS YEAR .THAT'S ABOUT 100 MILLION IN REVENUES ON
AVERAGE FOR EACH CASINO.
WE SPECIALIZE IN CONSULTING TO THE GAMING INDUSTRY ON
THE NEWEST HI-TECH INTERNET GAMING SOFTWARE AND
HOSTING FACILITIES BUT OUR GOAL NOW IS ALSO TO PROVIDE
AN ENTRY LEVEL POSITION FOR A FEW SMART ENTREPRENEURS
TO GET INTO THEIR OWN, LICENSED, FULL BLOWN, 24 HOUR PER
DAY ON-LINE GAMING CENTER ON THE WORLD WIDE WEB.
IF YOU WOULD YOU LIKE TO RECEIVE SOME MORE DETAILED
INFORMATION ABOUT TURNING A SMALL NESTEGG INTO
PERHAPS A MILLION DOLLARS OR MORE FOR YOURSELF
THIS YEAR AND EVERY YEAR HEREAFTER, SIMPLY FOLLOW
THESE INSTRUCTIONS :
DO NOT RESPOND VIA E-MAIL
CALL 212 - 332 - 0228.
LEAVE YOUR NAME , NUMBER
AND THE BEST TIME TO CONTACT YOU |
