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Strategies & Market Trends : Fatty's Donut Shop -- Ignore unavailable to you. Want to Upgrade?

To: ShugNite who wrote (1697)	6/11/1999 1:43:00 AM
From: Louis Sohn	Read Replies (2) \| Respond to of 5041

Club Fatters, Couple weeks back I went and visited QTTK's main office and spoke with Don Beck. Sorry about the delay, but I thought Matt was gonna e-mail all the group members first. Anyways I don't think anything major is gonna happen until the Broker-Dealer (BD) is up and running, which I understand to be in early July. I know you and the rest of the group are interested in what the place actually looks like since that is the one thing you can't do(see it), not being in LA. Basically it looks like a nice (posh furniture, pentium II's with 21" screens etc.) office in a good location in which the tenants haven't quite moved in. The Malibu office is located along PCH across from the Malibu Pier. If you're not too familiar with the area let me assure you that this is prime real estate. The office itself is definiteley Class "A" space on the first floor of a two-story suburban type office building. The company recently moved into the office and per Don QTTK is expanding their offices at this location. The office has a large open area in the center with about ten computer terminals. Looks a lot like a few daytrading firms I've seen. There were 4 other people in the office, non of them were trading per say, mostly gathering data, testing that sort of thing. Don has the only private office from what I could see. There is no administrative staff, in fact Don was the one that answered the phone the first time I called. Personally the overall impression I got from the visit was that this isn't some sort of Tom Vuu, William McCorkle type Ponzi scheme (I could be wrong). Don struck me as an intelligent man who understands the technical side of investing and has been trading for some time now. As for his background, this gets me. He's a real estate guy, he's not >a trader by profession. This technique that he developed came over 16 >years of his personal investing in the market. According to Don his >system takes into account many factors, such as changes in spread, how >fast people are buying/selling, size of orders etc. to determine which >way a stock is going, up or down and simply ride the stock. HOWEVER there is one thing that bothers me and has from the beginning - If you got this wonderful system that makes XX % per month then why would you share this with anybody? Why not just get rich off of it yourself, there is no real need to share this with the public. I addressed this concern with Don and he told me that a year back he had a choice 1) do what he is doing with QTTK 2) partner up with a large trading organization back East. He told me he thought he could make more money with QTTK and maintain better control. Don plans to margin off of the shares that he owns in QTTK to invest more money into the trading system. Thus creating a system of perpetual wealth. Good answer, but I'm still not 100% convinced. I read thru the actual hard copy of the KPMG report, nothing in depth, just a 6 page summary of the results. (can get you a copy if you want) Average monthly return was 67%. Test done under the AIMR (Assoc for Investment and Management and Research) standards. But there is a disclaimer stating that the AIMR was not involved with the test in any way. Looks astounding to good to be true even, but it does have KPMG's blessing and I think KPMG would have a lot to lose if these results were proven false. I have weighed the risks and rewards in this case and come to this conclusion - - I am going to buy this stock. I am only going to use that money which I expect to lose. A very small portion (2% of my portfolio). I only say "expect to lose" because I've seen too many of those infomercial that promise this and that and in my most negative opinion I think QTTK is just the next generation of these scam artists. HOWEVER, if this is for real and Don implements his business model successfully then the sky truly is the limit for this stock. With QTTK I'm not trying to achieve a healthy return - - I'M TRYING TO GET RICH - - and in my opinion that reward justifies the risk of losing my entire investment. LOU