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To: Sir Auric Goldfinger who wrote (352)	4/11/1999 9:36:00 PM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 10354

GS TELECOM LTD. IS A CLASSICAL EXAMPLE OF PURE “HYPE”. THE COMPANY HAS NO SALES, EARNINGS , ASSETS, PRODUCTS, EMPLOYEES , OFFICES , OR CASH.

To: Sir Auric Goldfinger who wrote (352)	4/11/1999 9:38:00 PM
From: afrayem onigwecher	Respond to of 10354

Sponsored by WallStreet Guru Thanks to the Stock Detective's vigilant readers and a bevy of stock promoters, we're flush with tips about stocks that most people should think twice about before investing. All them may not warrant full Stinky Stock status, although we're sure a few inevitably will come from this list. Until they reach that benchmark, Stock Detective wants to warn readers about stocks that should have you seeing "red." What sets them apart? Take your pick: volatility, high volume, wild price swings, outrageous claims, a stack of vacuous press releases, or maybe a share price that doesn't seem to add up from the sum of the company's parts. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- GS Telecom Ltd. (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 Archives.

To: Sir Auric Goldfinger who wrote (352)	4/11/1999 9:40:00 PM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 10354

USA Today GARD exposure. usatoday.com:80/life/cyber/tech/cte802.htm Companies stoop to name-dropping on Net By Tom Lowry, USA TODAY NEW YORK -- More fledgling firms are peppering press releases with the names and ticker symbols of established companies, with which they have no relationship, to get wider recognition on the Internet. Regulators are increasingly concerned that such "ticker spamming" is misleading investors. Spamming is the Internet version of mass mailing. Including names of technology heavyweights gets their company news wider distribution through Internet search engines and hyperlinks. "Investors need to look skeptically at these releases that hint that they will become the next great stock," says Cam Funkhouser of the National Association of Securities Dealers Regulation. Last week, GS Telecom's shares more than tripled after it issued a release saying it is "standing on the shoulders of such giants" as Microsoft, Intel, America Online and 14 others. That would have been picked up by anyone searching the Internet for those firms and by programs that search automatically for companies and any cross-references. "It was a descriptive statement, meant as a visionary idea," and not an attempt to exploit the names of those companies, says spokeswoman Lori Chittenden . "But the more people who see our release on the Internet, the merrier." GS also projected sales of $1 billion in 2004 based partly on a new currency "smart card" technology. The company had $32 in the bank and $1,378 in overdrafts on Dec. 31. PR Newswire, which distributes 1,300 press releases a day, says it turns down clients that want to use names and symbols of unrelated companies. "It stinks and contaminates the orderly flow of information," says John Williams, PR News wire senior vice president. Competitor Business Wire, which distributed GS Telecom's release, has no steadfast rule. "Our role is not to edit copy, but listings of multiple companies is becoming a red flag," says Cathy Baron Tamraz. Other examples: As it prepared to go public, adult entertainment Web site Efox.net last month put out a release referring to Amazon.com, Borders and Barnes & Noble. Efox, which has no relationship with those companies, agreed not to sell stock for 120 days after Maryland regulators said it "primed the market" ahead of its offering. Four days before regulators placed a two-week trading halt on Internet marketing company Citron in January, the company said in a press release it expects to reach as many Internet users as Amazon.com, Yahoo! and eBay and then listed their symbols.

To: Sir Auric Goldfinger who wrote (352)	4/11/1999 9:44:00 PM
From: afrayem onigwecher	Respond to of 10354

Wall Street Journal GARD exposure GS Telecom Retreats as SEC Eyes Firm's Revenue Forecast By CARRIE LEE THE WALL STREET JOURNAL INTERACTIVE EDITION When GS Telecom, a United Kingdom company with no commercially available products, made a $1 billion revenue projection last week, its stock tripled and online investors snapped to attention. But the euphoria quickly ended. Late Thursday, the company, which also has an office in San Francisco and whose shares are quoted on the OTC Bulletin Board service, issued a statement "retracting all references" to its revenue expectations because of concerns by the U.S. Securities and Exchange Commission. A spokesman for the SEC declined to comment on the matter. But he said that in general companies must have a factual basis to back up any forward looking statements they make. GS Telecom had no sales in the fourth quarter of 1998 and lost $70,000 for the period. It had just $20,200 in assets on Dec. 31, 1998. Its 10 employees are all members of the company's board or "advisory board." Stuart Ashmore, GS Telecom's vice president of marketing, said Friday that he still thinks the company could hit $1 billion by 2004, as it said in a series of press releases beginning March 31. But he said that in light of the SEC's concerns, that isn't an official company forecast just yet. "I'm not allowed to make any claims like that until I've got some sales figures to back it up," he said. GS Telecom's stock market value surged as high as $156.7 million after it issued the revenue forecasts. The stock, which traded between $2 and $3 most of March and changed hands just sporadically prior to that, shot as high as $9.312 on April 1. It retreated to $3.968 by Friday. The stock's gyrations and the company's press releases have caused a clamor online. More than 500 messages about the company were posted on the Raging Bull Web site (www.ragingbull.com) this week alone, and the Silicon Investor message board (techstocks.com) devoted to the stock was also active. Many were enthusiastic as the stock shot higher but, not surprisingly, grumbling picked up on the board late in the week. The activity in GS Telecom's shares is also important to several business associates, including Union Trading, a Geneva company it hired to help sell $25 million in bonds, and CompletePR, a Phoenix public relations firm that promoted the company. Both were paid in GS Telecom stock. Mr. Ashmore couldn't confirm how much stock Union Trading received. Lee McCaskill, a partner in CompletePR, which was hired and paid by Union Trading, wouldn't say how much the firm was paid. A spokesman for Union Trading couldn't immediately be reached. A message left at a phone number for the company that was provided by Mr. Ashmore wasn't returned late on Friday. Union Trading also used GS Telecom stock to pay NewTrend Holdings, a British Columbia company it hired to design two web pages that contained a research report about GS Telecom. NewTrend received 75,000 GS Telecom shares in March and will be paid an additional 25,000 shares a quarter for electronically disseminating information about GS Telecom, according to a disclaimer on the Web site. The research report was written by Barrington Financial Securities Analysts, which the site identifies as a Geneva-based company. A spokesman for Barrington couldn't be reached, and a U.S. telephone number for the firm included on the site was answered by a man who identified himself as Anthony Leone, who said the number was that of Corporate Profile. He said Corporate Profile does investor relations work for GS Telecom. GS Telecom says it aims to fuel much of its growth from its "ATTM Universal Card," something akin to a prepaid telephone-service card that it says will allow users to make transactions denominated in 53 currencies. The company says cardholders will be able to use cards as a credit card, a debit card and in making electronic payments on the Internet. The ATTM card doesn't exist yet. Ms. McCaskill says it is in a "prototype" stage. "We've got some projections that show the explosive growth in smart cards. If they take off in the U.S. as in other parts of the world [$1 billion] is tiny," Mr. Ashmore says. Ms. McCaskill says the company arrived at its $1 billion revenue projection by estimating that GS Telecom will capture a 1.5% to 2% market share of world-wide credit card, debit card and e-commerce transactions. These are lofty goals for GS Telecom, which only set its sights on electronic commerce and its other technology objectives in the fourth quarter of 1998. The company was formerly known as Teleconferencing Systems International, a business that was incorporated in Colorado in 1983 to make and sell audio teleconferencing systems, according to SEC filings.