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Microcap & Penny Stocks : otc:bb GARD GS Telecom, Ltd -- Ignore unavailable to you. Want to Upgrade?

To: michael john stout who wrote (115)	4/9/1999 11:59:00 AM
From: afrayem onigwecher	Respond to of 148

(OTC BB: GARD) doesn't have a penny in the bank (in fact, it's overdrawn), nor is there evidence it has sold a single unit of its "six key technologies," but that hasn't stopped the company from claiming that it will have more than $1 billion in sales by 2004. Another warning sign: GS Telecom has paid at least one stock promoter a minimum of 75,000 free trading shares to hype the company's outrageous predictions. What is the company selling? Pipe dreams, apparently. According to a prospectus posted on GS Telecom's website, it plans to develop and sell everything from the ultimate debit card to a computer that fits on a credit card. Of course, GS Telecom's pitch is a little glossier. For example: "ATTM Universal Card - unique hybrid debit card that has the capability to effect instantaneous financial transactions within 53 currencies anywhere in the world." Hmmm, isn't that called a credit card? Or how about, "CodeCard - the concept of the wallet-size personal computer that is conveniently compacted into an easy-to-use smart card - the size and weight a standard credit card - with all the advantages of a personal computer………………." OK, but where do you put the CD ROM? Nevermind, we don't really want to know. There's more, but you get the idea. GS Telecom reversed itself into a shell last fall, Masstech, Inc., issuing a ton of stock in the process. According to documents filed with the SEC, GS Telecom paid $150,000 for Masstech in the form of a note that was converted into 6.6 million shares of GS Telecom common stock. In addition to that, two Masstech principals, who were later named to GS Telecom's board of directors, were also given 48.4 million shares of common stock for their 15 percent interest in each of four companies that produce movie special effects. The value of any of those companies was not disclosed. Like we said, A LOT of stock. But there's more. Last fall, there were a modest 16 million shares outstanding. There are now more than 72 million shares outstanding, and the company is trying to raise another $25 million by selling bonds and warrants which, if they were fully converted and exercised, could pump another million-plus shares into the market. The next wave in the technological revolution? Guess again. To quote a savvy reader: "No patents, no products, no customers, no R & D, no earnings, no capital, no cash, no revenue, no employees, no office……….." Stock Detective says, "No way." As always, tread lightly…………………… ------------------------------------------------------------------------ For previous Red Light District colums, go to StockDetective stockdetective.com