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Microcap & Penny Stocks : GKI - GK Intelligent systems -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (204)	3/16/1999 6:40:00 PM
From: Mad2	Read Replies (1) \| Respond to of 215

GKI Update Apparantly someone is spam faxing a recomendation around on GKI. I learned that WWW.stocktalknews.com (C. Scoggin and associates) has floated some sort of recomendation on GKI. Here's the "recomendation" off their web site. I have also printed their disclaimer that cites their recipt of 100,000 shares of GKI for work they did getting them their AMEX listing. >GK Intelligent Systems (GKI) - Last year when I first took a look at this company the share price was around $.28. After Rod Canion the Co-founder of COMPAQ joined the company as Chairman, the stock then surged to $19.75. Since That time Canion has left the company and the stock has plummeted. Few months ago I briefly revisited GKI as a stock to watch out for, largely due to concerns that tax selling would send the stock lower. It did, in fact the stock price was cut by over half. I also said at that time, that if the company looked like it was going to turn around, I would upgrade my opinion on the stock. Well, this stock can now consider itself upgraded. Here's why: 1) Shorts! This stock has been so overly shorted it's not even funny. I have rarely seen published numbers that made me laugh this hard. At this time close to 1/4 of the float is short. 2) AMEX Delisting- I do not see any way that this company will be delisted. It is my opinion that they have the contracts in hand to produce the revenue numbers to satisfy the AMEX requirements. 3) Bad press- This Company has seen more than its fair share of it. In fact I would have to say, in my opinion of course, that there have been those who have crossed the line. Bloomberg has been all over this stock consistently crushing any rally its had with negative press. So what's my take on this? Well, at this time I think there is a great upside play here, not because the company has a new product line, or a cure for cancer, but rather because raiders have not been wise enough to cover their outstanding shorts. My guess is that this stock just based on the short numbers and the misperception that the stock will be delisted is enough to push it higher. This is one of the reasons I have held onto my position in the security. At some point someone was bound to come along and squeeze this float. For more information call GKI @ 713-840-7722< Scoggins disclaimer >The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of Scoggin, Alexander & Associates, Inc., the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Scoggin, Alexander & Associates, Inc. from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this report and the opinions contained herein are based on sources believed to be reliable, Scoggin, Alexander & Associates, Inc. has not independently verified the facts, assumptions and estimates contained in this report. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. Scoggin, Alexander & Associates, Inc., its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. The information contained in this report is not intended to be, and shall not constitute, an offer to sell nor solicitation of any offer to buy any security. The user assumes the entire risk as to the accuracy and the use of this document. Scoggin, Alexander & Associates was paid a consulting fee by CAGI of $900,000 in restricted stock in July of 1998. They continue to hold in excess of 2,000,000 shares of CAGI. Mr. Scoggins also holds 100,000 shares of GKI attained as a bonus for listing the company on the American Stock Exchange.<