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Microcap & Penny Stocks : GLOW - Global Games, Inc. - Great Profit Potential ! -- Ignore unavailable to you. Want to Upgrade?

To: Freddie Forte who wrote (4570)	7/13/1998 9:56:00 AM
From: Thomas George Warner	Read Replies (3) \| Respond to of 8879

Who says the situations are DIFFERENT! Financials are financials period!!!!! Boy have you been brainwashed if you think that financials are not available on small unlisted companies. You mean that you have invested in this company long term without ever seeing a financial statement or a management plan? You probably don't even know what your rights as a stockholders are??? Who their competition is or their main core business? At least I bought the stock as a speculator riding the volume and later sold when I preliminarily determined that the company had no financials. If you are purely a speculator on this basis I have no problem with it, but don't try to hype this stock and induce others to buy it on the fundamentals. That is the problem I have. Don't misrepresent this stock....its pure speculation, period! Financials and disclosures should have been distributed to all stockholders during the previous years and quarters. Listing has nothing to do with this, and quit clouding the issue. This was taken partially from another site. Explain to me WHY financials are not available on this company????? ---------------------------------------------------------------------- Why would some companies choose to be quoted on the "Pink Sheets," or the OTC Bulletin Board? Actually, many fledgling firms don't have a choice, since they are unable to satisfy the minimum listing standards for the Nasdaq National Market or even The Nasdaq SmallCap Market. But promotional literature sometimes inaccurately lists the stock as "Nasdaq Bulletin Board." Nasdaq would want you to know that there is no such thing, that these stocks are not authorized for quotation in the Nasdaq system and are not part of any major national securities market. Often that obfuscation of a basic fact is deliberate. And if a company or its promoter will lie about such a small matter, what else will they lie about? Try this: Unspecified claims of "major" developments, such as a "pending" acquisition or an "imminent" distribution agreement with a well-known company, are common distortions featured in scam stock promotions. Maybe an announcement is truly forthcoming, or maybe somebody made one phone call. But it makes a more exciting story to tell, and that's all that really concerns the unscrupulous promoter or broker. Or this: Dramatic increases in projected sales or earnings. For example, Havana Republic (OTC Bulletin Board: HVAR), a cigar manufacturer which began operating only in 1996, says it expects to sell five million cigars in 1997. Toppers Brick Oven Pizza (OTC Bulletin Board: TBOP), a company with no reported income in 1996, forecasts $27 million in 1997 revenues and $165 million by 1999. These firms may actually believe their pie-in-the-sky projections, but you shouldn't. Even projections from the biggest and most established companies should be viewed with caution. Outlandish projections from small, unproven companies are hardly worth the paper they're printed on. Fundamental analysis is not unique to the larger-cap stocks on the New York Stock Exchange or the Nasdaq National Market System. One may analyze the financial statements of their small-cap brethren as well to gather clues of investment worthiness. It's all in the financials. Firms with a strong track record of three to five years of sales and earnings growth of 20-30 percent per year, for example, may offer promising investment opportunities regardless of where the stock is listed. Companies with little debt, preferably no more than 25 percent of total capital, can better bankroll their expansion. On the flip side, young companies often have very high profit margins and high returns on equity but, when competition starts to make an impact, profit margins and revenue growth likely will decline. Beware these situations when evaluating a small-cap stock: The stock sells at a much higher price-to-earnings multiple than its recent sales growth rate. The stock sells at a valuation of more than three times total revenues. The company's total market capitalization exceeds the size of the total market its products will serve. The company's income statement reveals unusually excessive general and administrative expenses The company's cash flow statement shows losses from operations in contrast to net earnings The company has nothing but a concept and generates no revenues. Cheap stocks aren't always cheap because they're second-rate companies. Plenty of small-cap companies truly possess a promising product or service that has yet to hit the market. In the absence of sales or profit-generating assets, you must attempt to quantitatively judge the value of future products -- an extremely difficult task unless it's a business you thoroughly understand. It is equally critical to judge the quality of the people running the business, and there are some effective warnings to consider: