THE SHARES ARE UNSAFE AT ANY PRICE AND IT IS A GREAT SALE.
BURNSTEINE & LINDSAY SEC. CORP INITIATES COVERAGE ON GS TELCOM LTD. WITH IMMEDIATE SELL RECOMMENDATIONS
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ZURICH , SWITZERLAND (MAY 7) BURNSTEINE & LINDSAY SEC. CORP TODAY RELEASED ITS RESEARCH REPORT ON GS TELECOM (OTC BB GARD) WITH AN IMMEDIATE SELL RECOMMENDATION IN A 2 PAGE RESEARCH REPORT ENTITLED " FUNDAMENTALS DO NOT SUPPORT CURRENT VALUATION; BUYERS BEWARE."
PRICE OBJECTIVE: UNSAFE AT ANY PRICE CAPITALIZATION: MARCH 30,1999
OTC BB: GARD
COMMON STOCK: 72,800,000 SHARES aprox.
RECOMMENDATION: IMMEDIATE SELL
FUNDAMENTALS DO MARKET CAP: $200,000,000 aprox.
NOT SUPPORT CURRENT
. EVALUATION.. PRICE: $2.50 PER SHARE
RISK RATING: EXTREMELY SPECULATIVE 52 WEEK RANGE: 9 5/16 TO 3/32
NINE MONTHS ENDING MARCH 30, 1999
NET SALES: $0 MILLION
NET EARNINGS: $0
SUMMARY AND CONCLUSION:
GS TELECOM LTD. IS CLASSICAL EXAMPLE OF PURE "HYPE". THE COMPANY HAS NO SALES EARNINGS, ASSETS, PRODUCTS , EMPLOYEES, OFFICES, OR CASH.
YET BASED UPON
PROMOTION AND SPAM, MANAGEMENT HAS THE UNMITIGATED GOAL TO PROJECT REVENUES OF $1 BILLION IN REVENUES BY 2004. THIS WAS BASED UPON QUSTIONABLE NEW PRODUCTS SUCH AS A WORLDWIDE ATTM CARD AND A COMPUTER THE SIZE OF A CREDIT CARD AMONG OTHER DEVICES. IT CURRENTLY DOES NOT OWN THESE PRODUCTS AND IS RELYING UPON A "BEST EFFORTS: $25 MILLION CONVERTIBLE BOND OFFERING WITH WARRANTS TO PROVIDE CAPITAL FROM A FIRM CALLED UNION TRADING FINANCIAL LTD. OF GENEVA, SWITZERLAND. OPERATIONS, PRODUCT DEVELOPMENT AND ACQUISITIONS ARE CONTINGENT UPON COMPLETION OF THIS BEST EFFORTS DEAL, AS NO FIRM COMMITMENT OF CAPITAL HAS BEEN PROFERRED BY ANYONE ELSE TO DATE.
UNTIL REIGNED IN BY A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION REGARDING CONCERNS ABOUT THE COMPANY'S LACK OF FUNDAMENTALS TO SUPPORT SUCH OUTLANDISH PROJECTIONS AS WELL AS MISLEADING INVESTORS BY INCLUDING THE TICKER SYMBOLS SUCH PRESTIGIOUS NAMES OF INTEL, MICROSOFT, AOL, IBM, AT&T. DELL MCI, COMPAQ, ETC.. IN ITS PRESS RELEASES DESPITE NO KNOWN RELATIONSHIPS WITH ANY OF THESE INDUSTRY HEAVYWEIGHTS, THE SHARES CLIMBED TO OVER $9 FROM $2 PER SHARE IN A FEW DAYS AFTER ITS INFAMOUS PRESS RELEASE ONLY TO FALL BACK TO UNDER $4 PER SHARE AFTER IT RESCINDED ITS PREPOSTEROUS $1 BILLION SALES FORECAST UNDER PRESSURE FROM FEDERAL AUTHORITIES. NEEDLESS TO SAY THEIR ARE GROUNDS FOR CLASS ACTION LITIGATION IF ONLY THERE WAS ANY MONEY TO COLLECT. THE $300 MILLION MARKET CAP ON THE 72.8 MILLION SHARES OUTSTANDING APPEARS DELUSIONAL. IF BY SOME CHANCE, THE UNDERWRITING WERE TO BE COMPLETED FULLY DILUTED COMMON STOCK WOULD EXCEED OVER 100 MILLION SHARES.
CONTRIBUTING TO THE FOLLY WAS A SO CALLED INVESTMENT RESEARCH REPORT IN THE FIRST QUARTER OF 1999 BY A FIRM CALLED BARRINGTON FINANCIAL SECURITIES ANALYSTS OF GENEVA, SWITZERLAND THAT RAMBLED ON FOR 13 PAGES EXTOLLING GARD'S VIRTUES OF ITS FUTURE PRODUCTS NEVER MENTIONING ITS FINANCIAL OR OPERATING STATUS. BARRINGTON SAID GS TELECOM WAS THE HIGHEST RECOMMENDED "BUY" IT EVER PUBLISHED MAKING A PROJECTION OF OVER $500 MILLION IN BUSINESS BY 2004 WITH A STOCK PRICE OBJECTIVE OF $75 PER SHARE. NO COMMENT ON THIS REPORT WAS HEARD FROM BY GARD'S MANAGEMENT UNTIL IT WAS LEARNED THAT BARRINGTON WAS AN AFFILIATE OF THE COMPANY'S UNDERWRITER, UNION TRADING FINANCIAL AND NOW DISAVOWS THIS QUESTIONABLE RESEARCH REPORT.
ACCORDING TO ITS RECENT SEC FILING. THE COMPANY'S DECEMBER 31, 1998 BALANCE SHEET DISCLOSED A NET WORKING CAPITAL DEFICIT OF $1.7 MILLION $212,400 OF DEMAND NOTES IN TECHNICAL DEFAULT AN $32 IN CASH. THE COMPANY WAS FORMERLY KNOWN AS TELECONFERENCING SYSTEMS FAILED. IT ISSUED 55 MILLION SHARES IN OCTOBER, 1998 TO ACQUIRE A SHELL AND PAID ONE PROMOTER 75,000 FREE TRADING SHARES. ON APRIL 8 ,1999, COMPANY MANAGEMENT ISSUED A STATEMENT RETRACING ALL PROJECTIONS AS ITS CASTLE IN THE SKY SORELY LACKS FOUNDATION AND THE PRICE OF THE SHARES WILL COLLAPSE UNDER THE SELLING WAVE PROJECTED BY REALITY. THE SHARES ARE UNSAFE AT ANY PRICE AND IT IS A GREAT SALE.
ALL INVESTMENTS INVOLVE RISK. THE RISK INHERENT IN A PARTICULAR SECURITY MAY NOT BE APPROPRIATE FOR YOU. PLEASE CONSULT WITH YOUR BURNSTEINE & LINDSAY SEC. CORP EXECUTIVE TO OBTAIN ASSISTANCE IN SELECTING APPROPRIATE INVESTMENTS.
THIS REPORT IS PUBLISHED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS AN OFFER OR THE SOLICITATION OF AN OFFER TO SELL OR BUY THE SECURITY. THE INFORMATION CONTAINED HEREIN IS BASED ON SOURCES THAT WE BELIEVE TO BE RELIABLE, BUT WE MAKE NO GUARANTEE OR REPRESENTATION ABOUT THE COMPLETENESS OF THE STATEMENTS OR SUMMARIES OF AVAILABLE DATA CONTAINED HEREIN. THIS INFORMATION IS PROVIDED AS OF THE DATE OF THIS REPORT, IS SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THE INFORMATION IN THIS REPORT SHOULD BE CONSIDERED OUTDATED 90 DAYS AFTER PUBLICATION, OR SUCH EARLIER DATE AS CIRCUMSTANCES MAY REQUIRE, AND SHOULD NOT BE RELIED UPON THEREAFTER TO DEVELOP INVESTMENT STRATEGIES BURNSTEINE & LINDSAY SEC. CORP DOES NOT MAKE A MARKET IN THE SECURITIES OF G.S.TELECOM.
ADDITIONAL INFORMATION MAY BE OBTAINED AT:
CONTACT: BURNSTEINE & LINDSAY SEC. CORP fax 01-4510946
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