Mr. Yang......
I didn't mean you a discourtesy with my choice of words.
But let me further define for you what is the problem when
words are purposely vague.
If WSRG said that GTCI "is" the AOL of China, such a statement would be a false one. Since WSRG in one of their email updates said that
GTCI "may be" the AOL of China, there words in the PRESENT tense is possibly intended to mislead and deceive. For certainly, at this time, if there were a "AOL" of China, that ISP would be ChinaNet.
Now in the latest press release, again wording was vague and left a lot of room for interpretation. Whether the intent of this vagueness was to mislead to generate share holder enthusiasm or to inform begets questions about whether the company is simply promoting a stock or building a business. If claims get too outrageous, the adverse reaction to those claims that can't be verified, can be counterproductive as to generate new share holder interest. Note that upon the revised second press release of yesterday, GTCi again advised people to peruse the WSRG "report". Asking readers to do so, is disconcerting because not one of you still has provided a basis for the earnings projections contained in that WSRG report, which projects earnings for this year and not some time in the future. Exaggerations by paid for stock promoters is something that the SEC is looking into very seriously, so this isn't an issue you should take lightly.
With that aside said. I'll toss you some bones in fairness.
1). Yes China is embracing the Internet as a means of "getting up to speed" in technology. Whether this will mean access to the world wide web or access to a Chinese Intranet has yet to be determined. For every three steps forward China takes, China also seems to take two steps back meaning the one-party system is still going to do what it can do to retain control. Though it appears that the best way to open up China is to "get them connected" so to speak, and bombard the Chinese with information.
2). Since China is embracing the Internet or a Chinese Intranet with walls constructed (though also evaded) to keep out a lot of content, Chinese are joining ISP's at a very fast rate percentage wise relative to the rest of the world. However, these numbers still need a context. Percent growth is always the greatest when there is small use. The projections for Internet usage by the year 2000 in China that I've read have been from 4 to 10 mil. The projections for Internet use in the rest of the world are much much higher. The Dean of Communication at MIT, Negroponte projects Internet use of 1 billion by the year y2k, more realistic projections project about 771 mil by the yr 2001.
3). Chinese projections may improve due to three factors.
a). Lowering costs of Internet access and online use.
b). Lowering costs of telephone service.
c). Lowering costs of personal computers.
Per factors a & b which have been discussed, the current costs of
online access and telephone service preclude all but a small minority of Chinese from using the Internet with any regularity. With lowering costs, this will increase access to many more people thus the volume of use will offset the lost higher fees. As China progresses and evolves technologically, wages should also rise if corruption is confronted head on so as to undermine foreign confidence in investing in China. this is a BIG "if". Now regarding personal computers (pc's), the costs of these are also coming down. There is actually a site on the Internet I believe www.freecomputers that is actually giving away pc's. Thus the cost of a pc's may shortly be no longer a barrier since, like with cell phones, service providers may eventually give away inexpensive pc's as a way to get customers to join "their plans".
4).China already has a number of well established ISPs and companies providing and intending to provide services comparable to what GTCI's jv partner intends to provide. Many of these companies have alliances with the likes of Yahoo, Lycos, and AOL. Most of these
companies are private. Thus a reason to invest in GTCI, which hitherto no one on this board has provided with such qualifications and GCTI has undermined with their use of WSRG, is that GTCI may be about the only way to participate in the Chinese Internet and IT arena (which is now small but has tremendous potential) at this time for the individual investor since most, if not all, of GTCI's jv partner's better positioned competitors are private.
5).GTCI, if it is a worthwhile investment, it is a very long term investment with a lot of risks factors concerning China that are intrinsically different from risk factors in the States. the long term nature of this investment is not typically congruent of the short term mentality associated with investing in OTC-bb stocks.
6). To build investor confidence for the long term GTCI must drop their stock promoter and become fully reporting. The SEC is requiring that OTC-bb companies become reporting. If they fail to do so in the near future, they will become delisted from this quoting service. Unless GTCI circumvented OTC requirements through the market cap circumvention routine, GTCI should have generated a 15c211 which contains a balance sheet and history as to the origination of the shares. Hitherto no one has told me if they have seen the 15c211.
7). Gtci should also invest in their web site, since this is where many investors first go for 'dd' regarding GTCI. GTCI's web site
looks like some house wife put it together using her step by step instructions to HTML along the way. The current web site makes the company appear to be fraudulent.
Now this is an objective overview with points for and against, thus I ask you just a few more questions.
1). is there a 15c211 and have you read it?
2). What is GTCI's schedule for reporting and who is their accountant?
3). Does GTCI intend to put up a more professional web site more befitting of what they claim there company to be? And don't you believe this would add more creditability then retaining WSRG?
Thanks in advance to your responses to these questions and the earlier response which you gave.
Sincerely,
ztect
cc. enforcement@sec.gov |
