Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
From today's issue of Upside Surprise:
GTE Fires Back at Critics
You have to take a moment and chuckle at yesterday's press release by GlobeTel Communications (Amex: GTE). Good for a pennies on the share price, GTE huffs and puffs about the 'libelous' press release put out by Sarraf Gentile, part of a 'poisonous cabal including some members of the legal profession, stock manipulators and tabloid journalists'.
Now I never met the good 'ol boys at Sarraf Gentile, though I must admit that much of what passes for class action lawsuit in general are nothing more than a thinly disguised hold up by white shoe professions with law degrees. The onus should be on Sarraf Gentile to prove the merits of the case before issuing shrill press releases designed to affect the outcome rather than bring justice. Still, in this case, it seems to me that the level of abuse of the public's faith and trust in the officers and directors that run GlobeTel is high enough that the private sector should step in, even if they seem to act only in order to grab a scrap of the pie. At the very least it generated some good copy from GTE that seemed more suited for the funny pages than the business section.
If I'd be a betting man on GTE, I'd say this is the short term bottom. We're more likely, in my opinion, to see $2 before $1. You can be sure team GTE has quite a few tricks up their sleeves - unlike Sarraf Gentile they really DO know how play things out in the press - and dollars to donuts more murky multi-million dollar deals with mysterious men in emerging markets is in the works. Still that doesn't mean I'd be a buy-and-hold buyer of GTE right here. If you want to speculate to the upside, I think the next few weeks, barring any SEC or state AG investigations, such make you a few nickels. Insider selling has slowed down and the momentum feels right. Put on tight stops and be ready to ring the register quickly.
Until the next downward spiral kicks in for this lumbering sham of a business - oops, I mean, unproven development stage company with a legacy business doing 1% margins.
Because there would be hell to pay from GTE if their attorneys allowed this to go into default.
where is the counter suit...?
The countersuit will be contained in the answer to the suit GTE's attorneys file.
I would advise holding off communicating with the SEC and the various AGs. Let GTE and the management we elected to manage the company represent the corporate and shareholder voice. I know that everyone wants to storm the barricades and have S&G's heads on their pikes, but think it through: one plan, carefully executed, one voice clearly presenting our case, will be more effective than an unorchestrated band in achieving our ends.
If you want to complain about S&G, write the State Bar of New York. Nothing chills the blood like a letter from the bar association saying a complaint against you has been filed.
By the way, there isn't much point in the stockholders filing a suit against S&G until after GTE prevails in the suit filed against them. Let GTE pick up the expense of creating a basis for your lawsuit.
There is a mole at GTE leaking info to Seth or someone connected with this series of events would be my guess.
I don't think GTE ever had an enforceable contract with Internafta. There was no consideration that I recall, the details were fuzzy and the performance date was blank in the copy furnished us. When Internafta failed to come forward with the first payment, we would have been within our rights just leave the field and go somewhere else. Our attorney in Moscow should have been signed up before this thing turned sour rather than after it was in trouble. He would probably have insisted on some money being placed in escrow by Internafta as liquidated damages if Internafta couldn't come up with the rest of the money.
In order to appear as an attorney in the federal court other than the one you are admitted to, the applicant attorney must provide a letter from the clerk of the federal court that he is a member of attesting that he is a member of the court in good standing. Then an attorney in the federal court in which he wishes to practice can file a motion to permit the out of state attorney to appear in that particular case, and pay a fee, usually $50. That's all there is to it.
Our legal team in Moscow can clear this up by filing an answer with an affidavit showing what has happened so far, and of course, a counterclaim for damages, business interference, libel, and a dozen other causes of action. That is, assuming our legal team in Moscow is able to refute the allegations.
Any of you who bought after December 30,2006 need to get in line. But first, tell us how you did it.
Selling like mad AH.
Good advice. I'll remember that in the future.
There's a hurricane season in Russia?
Transat: Brilliant!! A plot worthy of John Grisham. I like it.
Transat: Are yyou sure you posted the right message number? I don't get the connection?
From RB: Could it be?
By: wingshot
22 Apr 2006, 01:32 PM EDT
Msg. 171289 of 171293
Jump to msg. #
Got the volume of the big daily AH trade right (156,000), but missed the price by 4 cents. This gets curiouser and curiouser. I don't think it's shorts covering. I think the Russians are buying in a systematic fashion in accordance with an agreement with a broker. This keeps the reported volume down and therefore puts no upward pressure on the share price. If this is true, it bodes well for the longs, because whoever is buying those shares during happy hour every day knows something we do not. Of course, I may be paranoid, but I don't think so. JMHO. Wing
Google Travelex Currency Services and read all about our partner. They are everywhere.
Design: I don't think Huff is likely to give projections on anything in the future. He should have developed a bunker mentality by now.
The ah trade Thursday is not reflected in today's volume so far. Does that mean it was overlooked or did it never happen? A mysterious event.
Perhaps an institution unloading all or most of its position?
If wishes were horses, beggars would ride. Expectations regarding GTE are probably doomed to fail. The company will release news when it determines that something newsworthy happened. Until then, slog on.
Sirius: The PRs and the 10K are about GTE's products. But has anyone ever seen one, or tried one out, or in any way come in contact with one except through company publications? Please don't tell me to sell my stock if I don't approve of the way the company is run. I don't give or take stock market advice. I do cast my vote for or against management at the annual meeting, and I think Huff is doing a whale of a job, but even Napoleon eventually stretched himself too thin. Tempus fugit, except when you are following GTE's price activity. Cheers.
The price will go north. The price will go south. The price will not go east or west. Once you put your money in the pot, you can't get it back unless you play your cards, and even then you might lose. The winners tell jokes and the losers holler "deal".
By the way, "hault" means lofty or proud, not stopped, which is halt.
Does Huff really fear you?
Cab: Because we can.
Mide: Other than in the Duma, do you know if anyone outside GTE has ever seen Hotzone in action? I think the reason our little company has never received much press is the product cannot be shown to prospects. Do you think the military is going to buy a Strat until one flies to 65,000 feet and phones home? I would be ecstatic if Monterey blossoms into the live working example of what GTE can do. Then, the PRs will gush, orders will flood in, and the world of 37,000 or so stockholders will finally be happy. We'll see.
Don, I believe you are correct. Meyer is no longer on the BOD, and therefore he is not a director. I think he'll be helping out with non-USA deals. I'm pretty sure he is feeding at the GTE trough still.
I tried to send a copy of GTE's e-mail as of last Friday, but the the e-mail I copied was not the e-mail I pasted for some reason. Tried to cancel it and that hasn't worked yet, I suppose due to timer. The shares to former employee could be Vernon Koenig, Leigh Coleman, old Sanswire business; I don't know. Maybe it's buried somewhere in the 10-K.
This is a much easier to read GTE Annual results:
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the 12 months Ended December 31, 2005 2004
----------------------------------------------------------------------
REVENUES EARNED $ 81,143,838 $ 28,996,213
COST OF REVENUES EARNED 80,730,141 29,187,414
----------------------------------------------------------------------
GROSS MARGIN (LOSS) 413,697 (191,201)
----------------------------------------------------------------------
EXPENSES
Payroll and related taxes 3,118,676 1,248,562
Consulting and professional fees 6,200,054 2,206,237
Officers' and directors' compensation 12,082,809 6,520,206
Bad debts 1,373,458 1,141,534
Investment banking and financing fees 2,018,985 172,106
Investor and public relations 550,460 117,856
Commissions expense - related party
Carrier Services, Inc. 848,880 404,747
Research and development - Sanswire 2,364,673 260,085
Other operating expenses 826,101 156,011
Telephone and communications 200,129 75,390
Travel and related expenses 882,557 240,862
Rents 480,995 126,424
Insurance and employee benefits 672,700 126,644
Depreciation and amortization 236,018 53,586
----------------------------------------------------------------------
TOTAL EXPENSES 31,856,495 12,850,250
----------------------------------------------------------------------
LOSS BEFORE OTHER INCOME (EXPENSE) AND
INCOME TAXES (31,442,798) (13,041,451)
----------------------------------------------------------------------
OTHER INCOME (EXPENSE)
Net gains on settlement of liabilities - 268,397
Loss on disposition of property and
equipment - (56,804)
Loss on settlement (1,256,873) -
Loss on disposition of unconsolidated
foreign subsidiary - CGI (352,300) -
Loss on equipment deposit (149,558)
Loss on discontinued operations - -
Loss on write-off of receivables and
non-readily marketable securities - -
Interest income 44,368 2,067
Interest expense (175,792) (189,520)
----------------------------------------------------------------------
NET OTHER EXPENSE (1,740,597) (125,418)
----------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (33,183,395) (13,166,869)
INCOME TAXES
Provision for income taxes - -
Tax benefit from utilization of net
operating loss carryforward - -
----------------------------------------------------------------------
TOTAL INCOME TAXES - -
----------------------------------------------------------------------
NET LOSS ($33,183,395) ($13,166,869)
======================================================================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
BASIC 75,072,487 49,892,551
DILUTED 75,072,487 49,892,551
======================================================================
NET LOSS PER SHARE
BASIC ($0.442) ($0.264)
DILUTED ($0.442) ($0.264)
======================================================================
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 2005
December 31, 2005 December 31, 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,228,180 $ 601,559
Restricted cash 1,122,000 -
Accounts receivable, less
allowance for doubtful
accounts of $409,100 and
$1,505,731 371,618 1,740,883
Loans to employees 46,068 6,885
Prepaid expenses 370,394 58,900
Inventory 67,525 63,976
Deposits on equipment purchase 124,993 88,994
Deferred tax asset, less
valuation allowance of
$9,828,700 and $5,163,407 - -
TOTAL CURRENT ASSETS 3,330,778 2,561,197
PROPERTY AND EQUIPMENT, net 7,028,422 445,756
OTHER ASSETS
Investment in unconsolidated
foreign subsidiary -
Consolidated Global
Investments, Ltd. - 352,300
Intangible assets 9,907,550 2,778,000
Deposits 52,322 50,712
Prepaid expenses - 8,012
TOTAL OTHER ASSETS 9,959,872 3,189,024
TOTAL ASSETS 20,319,072 6,195,977
LIABILITIES AND STOCKHOLDERS'
EQUITY
COMMITMENTS AND CONTINGENCIES
(NOTES 6, 7, 17, AND 18) - -
LIABILITIES
CURRENT LIABILITIES
Accounts payable 907,211 456,248
Current portion of long-term
debt - 2,846
Due to related party - Carrier
Services, Inc. 901,606 -
Due to former employee payable
in GTEL stock 237,600 -
Due to related party payable in
GTEL Stock - Hotzone Wireless,
Inc. - short-term portion 2,451,834 -
Accrued officers' and
directors' compensation 97,382 198,333
Accrued expenses and other
liabilities 545,636 93,436
Deferred revenues - 46,319
Related party payables 57,500 117,500
TOTAL CURRENT LIABILITIES 5,198,769 914,682
LONG-TERM LIABILITIES
Due to related party payable in
GTEL Stock - Hotzone Wireless,
Inc. 4,708,167 -
Capital lease obligations - 4,718
TOTAL LONG-TERM LIABILITIES 4,708,167 4,718
TOTAL LIABILITIES 9,906,934 919,400
CONTACT: GlobeTel Communications Corp., Fort Lauderdale
Robert Bleckman, 954-775-1427
SOURCE: GlobeTel Communications Corp.
I wish I could understand your last post. And why do you post your picture at the bottom of every post?
"this once ugly duck become a swan."
That's a nice analogy. The swan should become the mascot of GTE: serene and graceful as he glides across the pond, but if you look beneath the water's surface, you will see he is paddling like mad.
Timothy Huff, CEO of GlobeTel Communications Corp., stated, "Overall, 2005 was a remarkable year for GTE. While our net loss is significant, the advancement of the business has likewise been significant,"
Indeed. 2005 has been significant for those who bought on margin and lost their money. It has been significant for those who shorted the stock. It has been significant for GTE's officers who drew fat salaries and produced skinny results. It is significant that with revenues of 81MM, 22% was expended on non-recurring expenses. I'm assuming that part of these expenses was the costs of airline tickets, vodka, first class hotels and whatever else it cost to get conned by the Bolsheviks. The stratellites are soaking up money faster than Iraq and just as secret.
Dumas writes a good letter. He can put a positive spin on lung cancer, but he is good. I wouldn't be surprised to see him take over the CEO job the first of the year so that Huff can be freed up to do his entreprenurial thing.
Not selling, but sure as hell not buying. Waiting to see how it plays out. No need to respond to this rant, for it will not be acknowledged. Fact is, no need to read it.
Shouldn't have any trouble buying cheap shares Monday. Opportunity lurks? Thanks, but I'll play the hand I hold.
Dumas' letter is the best part of today's posts from the company. Mush on!
Kevin, I hear what you say. I started buying this stock seven years ago and continued through Huff's second year on the job. I have never sold one share even though, like the shorts, I don't understand what the "revolutionary product" is because, to the best of my knowledge, no one has ever seen or used the product. I lack the technical background to understand everything I read here about GTE's operation, but I believe I do have a bit of talent spotting a winner, which Huff can be. I, too, doubt the shorts are covering, because they expect the year-end results to be disappointing.
I think this little operation has potential and will eventually be bought out by a company which can use whatever product(s) evolve, and that's when I expect to make money. I hope you are right and I'm wrong. We'll see.
I fear we are a long way from making a profit. Without revenues from heretofore unreported sources, we are doomed to whistling past graveyards.
Ryan: The GTE account is small potatoes for Cleary, Gottlieb et al. Their revenue dwarfs the GNP of many third world countries. The GTE deal is equivalent to a real estate closing for them and not worthy of publicising.
"Everything else in Germany is doing very well."
Does that mean that everything not connected with GTE is doing very well or everything else that GTE is involved in with Germany is doing very well? If it's the latter, how did you find out? The silence from GTE is deafening on all fronts.
Three years ago, I thought this was a decent stock; two years ago, I thought it was a promising stock; today, I think it's a stock, just another stock that may or may not morph into a winner. My euphoria keeps me in the stock; I just hope it's not a permanent condition.
Hear! Hear! You speak for the silent ones on this board. Huff is a lot busier than George Bush and Huff should not be distracted from his mission of selling the company's products.
Are you seeing this stock going to a quarter? That would be the mid $.20s.
A new site opened today.
http//finance.google.com
the GTE info is outstanding.