By: tak2asprin
Reply To #40 by mulla711 Thursday, 24 Dec 1998 at 8:06 PM EST
Post # of 42
Due diligence is the name of the game. If anyone gets into a stock without due diligence, it is there own fault and nobody elses. For those of you who thought that you didnt want to miss the ride from 4 cents to $3, lets get real.
I have been following this company for a yr now and made my first purchase just this Oct. I personally know this company inside and out that is why and only why I was holding 55,000 shares, at an average price of 11 cents. Was I pissed when we were at 4? you bet I was. I was calling GSIC on a weekly basis and talking to Kyle and sometimes Easthope, and one one occasion there CFO. Just to hear updates on there seattle and there financing. Anyone else on this board could have done the same. I probably drove Easthope and Kyle Crazy with my weekly calls. But as a share holder one has a right to ask questions and learn about the company. As a person that truly did there true due diligence, they would have know, what this person MoneyMade a Silicon Investor Poster and a Penny stock daytrader, was a stock pumper. And in some of his posts on SI he was stretching the truth, or quoting misinformation on purpose. His board on SI is called the Last Don for god sakes and has disclaimer that reads longer than the ones on a car rental agreement.
For you to take pot shots at the company now is ludicrous, because you didnt do your due diligence. Had anyone called GSIC they would have know what the float in this company was. Had anyone called, they would have realized that this company is not a true internet play, and they would have realized that the company was running low on cash, why else would they have gotten addlt financing.
This character moneymade is a true market manipulator. He was able to follow a stock and see it slowly trend downward to 10, and the get hammered in Nov and December by tax loss sellers. So basically all the sellers were out, come December 22, especially inview of the coming holiday. I thought the drop we saw from 10-4 was primarily tax loss selling and I was actually thinking of picking up 50-100,000 shares prior to the new year. But then 12/22 happened.
So it became a supply-demand issue. Demand hit unwarranted levels, and all the sellers were gone, and those that werent gone left on the 22. Before we hit 10 cents, and we did 1.8 million shares. So basically 20-30% of the float was bought that day by new holders. Meanwhile the other 70% of the float was locked up by people like me who believed in the companies concept. If anyone had talked to kyle over the past 2 months he would have told you that 2-3 million shares had changed hands from weak share holders to stronger ones like myself.
As for my opinion on the company--Just as a note I sold my entire position on the 12/23, I was happy with the outcome, but I sold too early at an ave price of 23.2 cents. Though I prob could have easily got out at 43.2, it wasnt meant to be, and i was happy with my unexpected xmas present:
I think the vision that Easthope shows is excellent, technically he is also a master, and is a hard worker. His business model though I think it does have some areas that could be improved is pretty solid. It has 6-9 sources of revenue that can be drawn upon. Easthope has also been able to recruit a pretty talented board, former franchise CEO's as advisors. I think easthope's position is analgous to a coach or an owner of a football team.
What I think GSIC lacks is market saavy. Kyle is a good piece there from the IR side. But the company needs a quarterback. Someone who knows how to run the day to day business. They have made a number of Rookie errors.
They split the stock for some unknown reason.
They were touted by the FSS. GSIC has always declosed they paid for this email blast, as does FSS.
They made an attempted to run before they walked by trying to expand into 6-8 cities when they didnt have one running in the US.
Some of their financiers, didnt hold up there end of the bargain.
In there defense the company has regained some focus on seattle, and has secured some financing to making seattle operations a reality.
Part 2: As I was saying earlier, they do have a strong business model, and if you do ur due diligence you will find out what it consists of. I have expressed a couple reservations that I had in there business model to the CEO, and I will do it again now.
I thinking the monthly pricing of CARAT should be restructure to half what it is now, and prospective users should be given the first 3 months free. At present users get rebates on carat, based on there purchases, I think something should be done to simplify this process, maybe even only allowing people who meet certain criteria be given the machine, a monthly charge serves as a inhibitor to trying it out.
I think some analogies of my pt can be drawn from satellite TV ie DSS, which, has an initial $200 cost involved, which prevents many people from trying though it is superior to cable and in the long run costs less than cable.
I think that GSIC should concentrate much more on selling Master Licences at least in the initial stage of the growth of this company, as opposed to 500-1500 home franchises. This enable broader exposer and tighter adherance to goals and standards. Plus it allow lump sum infusions of capital.
As far as to answer some charges that I have heard on the boards, I will attempt to address them, though the best source is the company itself.
1. why is the co incorporated in MN, this was done to tax benefit reasons, just as many financial institutions are incorporated in Delaware.
2. Some moron is on SI professing that a big announcement is coming. Though I am not positive, this sounds like a lie from another stock pumper. Though one never knows, as a knowledgable investor i dont believe anything is going to happen until there UFOC paperwork is done.
3. Who is moneymade and was he payed by the co? From my angle moneymade is a pump and dump scammer, he probably has many aliases and he has a following of some people who trade on his advice. He is out for one thing, to make himself money, at the cost of others. To my knowledge he contacted the company on 12/22, and found out some of the positives of the Co and blurted them all over the internet, without mentioning any of the hurdles the company faced. He posted to my knowledge on SI on the GSIC amd another board that he hosts called the Last Don. He then went over to the yahoo boards and posted there too. Meanwhile all of his followers pumped the stock on 100's of other stock boards. GSIC denies seeking him out or giving him any payment. To be honest no company wants there share price to go up 1500% in 2 days only have it fall 75% in less than 24hrs.
4. A huge gap up is coming on Mon morning. Ya, and can I sell you the Brookln Bridge. These are desperate investors, who got burned trying to catch a hot potato. The only bounce we are going to see is refered to as a dead man's bounce, and it may have already happened.
I hope all this helps in ur due diligence of GSIC, I still like this company. But im going to sit on the sidelines and let the dust settle. Please note these are just my opinions and assumptions, based on my own due diligence. I encourage all of you to research the company. Please note I dont have a SI acct, so I would appreciate it if someone could post this on the SI board.
Thanks Tak2asprin.
Please note do not email me. Please place any comments good or bad on the ragin bull board.
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