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Microcap & Penny Stocks : Gourmet's Choice Coffee Co. - GMCH -- Ignore unavailable to you. Want to Upgrade?

To: Bob Davis who wrote (984)	2/16/1999 7:04:00 PM
From: Turn Around Picks	Read Replies (1) \| Respond to of 2161

T.A.P. would like to address some of the issues mentioned in the article below which Mr Davis includes in his slapstick commentary Blivit section. Gourmet's Choice Coffee Company (OTCBB:GMCH) Since this company does not report its financials to the SEC, the only source of information is its semi-slick web site and its large number of press releases. Unfortunately, the web site opens with ""Unconditionally guaranteed, the world's finest coffeee." Yeah...I know...this web site has typos too. But TNL hasn't put out six press releases in the last month... T.A.P.....what about calling the CEO for information!!! Find it hard to believe this simple step was overlooked by Mr. Davis whom would certainly talk to management of his many stock picks he touts! One of these press releases announces that "its water bottling plant in Vietnam has successfully begun production." Unfortunately, I guess GMCH failed to carry out an economic analysis of the Vietnamese bottled water market, which would have shown that there are a fairly large number of bottled water producers already marketing their products in the country. In fact, the market appears to be quite well developed, and may have reached saturation (no pun intended...) T.A.P.....Mr Davis fails to mention the part about contracts in prior GMCH news releases that total an estimated $12 million. Hardly seems like its saturated if GMCH can land these contracts!Also Mr Tilton has strong contacts in China and his wife speaks the language! My favorite press release is the one headlined "Gourmet's Choice Launches Nationwide Franchise Program", which announces that "Under the franchise program, franchisors will be allowed to operate Gourmet's Choice Coffee Houses at approved locations throughout the United States." Wow...sounds just like Starbucks! But then the release goes on to announce "Using the franchise concept in the United States will free up the Company's capital in order to launch Gourmet's Choice Coffee Houses in China. We hope to be one of the leading coffee houses in China by the end of the year 2000." Hey...I thought the Chinese normally drank tea. T.A.P.....Not only do they drink coffee but drink a lot of beer according to Forbes magazine 12/14/98 article, chif.net Mr Davis seems to stereotype an entire civilization much larger than our own, from what he has seen on TV watching Kung Fu. Well...I received a rebuttal on this one. I think that it makes some good points so I am adding it here. However, I'm still sure that I'm correct about the stock. Since this is a non-reporting company, it is impossible to determine whether it has the assets that it will need to launch this "invasion of China". And China seems to be rapidly weakening as a market for western products. T.A.P....How can Mr Davis be sure of anything if he has not even taken the time to call Mr Tilton and discuss these issues as he would with his stock picks. I will say this for Mr Davis, he did give equal time with the following rebuttal. Before returning home, I'd lived and traveled in Asia, including China, for several years and most recently (Jan. '99) I'd visited my sister who's presently working in Hong Kong. They're all very different countries with very different cultures but the one thing they have in common is that they crave a western lifestyle or at least the accroutrements of one. It's kind of a love/hate thing where they want what we've got but don't necessarily want to be us. I say this especially with regards to China. The Chinese by cultural nature, and despite enforced socialist ideology, are the ultimate capitalists - for better or for worse for the rest of the world. The clearest example is Hong Kong where money talks like nowhere else on this planet. And what do they do with all that money? They use it to buy Gucci shoes, eat PizzaHut pizzas, drive Mercedes cars and, yes, to hang out in coffeeshops. Coffeeshops proliferate themselves in Hong Kong because they're cool and trendy - same reasons as here in N.America. I noticed, though, that in Hong Kong, there were no big brand name coffeeshops. That's what GMCH will hopefully be astute nough to exploit when it opens up on the mainland. The Chinese love brand names. Forget the mom and pop shops, they want designer labels and fast food. They want what's "in" not what's quaint. Check out Shanghai where ten years ago the women were wearing nylons thick enough to insulate your hot water pipes with. Today they're wearing hundred dollar shears that you and I (well, me anyway) only get to see on t.v. runway models. I invested long in GMCH not because of their franchise possibilities in the U.S. That's great short term but it's peanuts compared to the long view. There are about 1.5 billion people in China - we're talking mainland now, not just Hong Kong. Let's take away the 80% who live a third world peasant lifestyle in the countryside. That still leaves 300,000,000 urban dwellers who right now still don't have access to much and who want access to everything. That's a relatively unexplored market bigger than the United States. They may not all have enough money to buy the most modern VCR's and cars but they can definitely afford a 2 dollar cup of coffee in a western style brand name coffeeshop and they'll dish out that 2 bucks because it'll make them feel like they just joined the first world club. That may be cynical and upsetting to some people but realistic. Coffeshops have been immensely successful in Japan, Taiwan, Hong Kong for years and years so I don't consider them a flash in the pan fad. The mainlanders will imitate the lifestyles of their more westernized neighbours by hanging out in coffeeshops because it's a stylin' thing to do, it's a cheap treat and, of course, to keep face. In this environment, GMCH will, hopefully, make millions for themselves and for us. T.A.P.....I would like to thank Mr Davis, I think he may have helped GMCH by posting here and including GMCH in his Blivit section. As now after reading the rebuttal and T.A.P. commentary those doing real D.D. on GMCH may take the all important step of calling Mr Tilton and getting the real story....not just some off the cuff, tip of the tongue, unsubstantiated comments that lacks real research but seems more designed to humor the readers.http://www.gmch.net members.xoom.com Join Free!