WOW! what an unbelievable scam.
For what it's worth, I've been reading message boards on SI for almost 2 years now but have never joined. I just now put up my sixty bucks just so I could contribute here and maybe save some people from losing money.
1) News releases are "contrived" BS. Read them critically and think about it. They are "bullshit" and have no concrete details or substance. All fluff.
2) Bogus analyst website. barringtonreport.com. Try going there and kick the tires. Try subscribing, try the chat, try the investor's club, try getting to the "Real audio interview", try the quotes (sends you to yahoo quotes). NOTHING WORKS, and there are even typos in the text. This thing is a joke.. No "real" address or name for the analyst. Isn't it curious that the only stock analysis link there is for GS Telecom.
3) Investor relations number. doesn't work.
4) Company webpage. "URL error", doesn't work
5) most recent 10KSB filed 3/23/99. This is the real joke, as previous posts have mentioned. Read it before acting sec.gov
6) The most disturbing and most "incriminating" thing I noticed; take a look at the intraday chart from today.(you can get this at quote.com under live charts, click on 5 min chart. As soon as it touched $8, it made it to 8 1/16 before there was a big selloff and drop in price. Now read this tidbit from the 10K:
Notwithstanding the foregoing, if, after the effectiveness of the Registration Statement or if an exemption is available from registration, the closing bid price of the Company's Common Stock reaches four dollars for the five (5) consecutive trading days ending on the trading day immediately preceding the date thereof, the Company shall have the option of forcing conversion up to Fifty Percent (50%) of the original principal amount of the Notes originally issued to the Holder, and, if, after such effectiveness, the closing bid price of the Company's Common Stock reaches eight dollars, the Company shall thereafter have the option of forcing conversion up to One Hundred Percent (100%) of the original principal amount of the Notes issued to the Holder. The notes were called in default in August 1998, but on December 16, 1998, a written extension was agreed between noteholders and the Company.
Read the rest of the 10K and the only tangible thing you find there is "DEBT". It's really quite amusing reading.
Also, I first heard of this Co. today from a news release which included the following:
"GS Telecom, Ltd., is ''standing on the shoulders of such giants'' in global-telecommunications as IBM (NYSE:IBM - news), Microsoft (Nasdaq:MSFT - news), Intel (Nasdaq:INTC - news), Dell (Nasdaq:DELL - news), America Online (NYSE:AOL -news), AT&T (NYSE:T - news), MCI/Worldcom (Nasdaq:WCOM - news), Compaq (NYSE:CPQ - news),
Hewlett-Packard (NYSE:HWP - news), Sun Microsystems (Nasdaq:SUNW - news), Lucent (NYSE:LU - news), Cisco Systems (Nasdaq:CSCO - news), Advanced Micro Devices (NYSE:AMD - news), Applied Material Nasdaq:AMAT -news), Yahoo (Nasdaq:YHOO - news), Lycos (Nasdaq:LCOS - news), Excite (Nasdaq:XCIT - news) and many others to change the landscape of computing, communications, entertainment ,and e-commerce.
Thus saying absolutely nothing about having any business relationship with any of the mentioned companies, however conveniently provides "news links" to millions of people who follow 17 of the most closely watched stocks on the street.
I've heard about these scams before, but hadn't seen one for real yet. My question to some of you more seasoned investors;
Is this the most no-brainer short I've ever seen (if you can find the shares) or is there a chance to get burned with this garbage somehow?
I never trust anything that seems as sure a thing as this stock being worthless (ultimately). The question is, could millions of clueless investors drive this thing up on hype alone even after the scamsters have dumped all their shares at $8. ie I gues you could get called on margin etc if the price really was driven up on hype.
Would appreciate any input.
(Except anyone trying to pump this stock, c'mon guys, we're on to ya here OK) Buyer beware on this one.
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