Yes, it was - it's always good to see positive momentum heading into a new week.

Memo to mod: When the Princess comes aboard, good things usually happen.

Slow and steady wins the race!

Very nice. This recent activity is quite encouraging.

Its recent progress has been very solid, and I'm looking forward to a nice run here.

That it is, and when you stop by, it is usually about to look a whole lot better.

Very nice - looking good at $.085 x $.09.

Everything seems to be shaping up well for a nice run. Why doesn't the stock price show up at the top of the screen anymore? They have some totally different stock quoted and it is now necessary to go to another site to get the price. It's a real pain in the xxx.

In all our discussions of various options, bankrupting the current GSI entity has never been discussed.

Gene,

The loan you made to GSI is recorded as a liability on its books, and I will do everything I can to ensure that your loan is repaid.

We will trade again - of that I am fairly certain. I do not know which of the options that we have to do so will eventuate, but I am confident that one will. The negotiations concerning the various options are fluid, and for Gil to provide any update before one has been consummated would be potentially confusing for the shareholders, as I think Gil would prefer to wait until one is set in stone to provide such an update.

I will address your situation with him the next time I talk with him, as I agree that you deserve an update for all you have invested in the company.

GSI does not have $300.00. The only money GSI has, as an entity, is whatever Gil funds it with to cover its operating expenses. The joint venture, which is participated in evenly by GSI and its partner, has a good deal of money. It is funded by the JV partner, and all expenditures of funds must be approved by both partners. As the JV partner had to do all the funding and GSI did none, one of the JV agreement's stipulations is that all funds in excess of the JV's expenses generated by operations must be plowed back into buying more receivables, which obviously increases the operating strength and results of the JV, but doesn't benefit GSI in the sense of having discretionary cash to spend, which is why I've never received one red cent for the work that I've done over the past three years. I fully expect that to change after the merger has been consummated.

Yes, it is - 2009 has already been completed.

Gil told me today that he expected the merger to be done by the end of August and that it's proceeding well.

I'm supposed to get the raw data from January 1 through June 30 today, and will then start working on preparing them.

I certainly like this morning's action. I think we are going to have a very good week here.

Nice close to the week on solid volume and good activity. Let's hope for further improvement next week.

.065 x .075 - something's going on here, and the return of Princess Doji is always a good sign.

.058 x .063 - I like the way it looks today so far!

Nice, solid action. I like what I'm seeing.

Very, very solid activity. This is quite encouraging.

I like today's activity and price action, too. Maybe we will finally have a sustained rise in both.

I like the way it's trading and the activity I'm seeing today. It seems very encouraging.

Hopefully whatever's going down will be beneficial for us. There's been too much recent movement for something not to be happening, and it doesn't make much sense for large volumes to be being dumped just to raise a paltry amount of money at these low prices. I feel that there's something going on in terms of blocks of shares crossing and accumulation before a move or announcement, but I have no way of knowing.

Something's happening here, what it is ain't exactly clear.

You underestimate him. He may not have total command of every detail involved in a given situation, but he understands his business and how to grow it very well.

No - I talk with Gil more frequently than does Shuley. Gil is still the best source for what is going on up to the minute.

There's a lot of volume here recently, but the price just seems to go down. Maybe someone's setting something up so they'll either pump it or put something meaningful into the shell, and we'll all get our reward for holding so patiently.

Quite frequently.

Grant,

I appreciate your sentiments. So far, this situation has replicated what I have found to be the case in life in general, because as you put it, it has "demanded a further investment of his time with an uncertain promise of a return." Some of them have worked out for me (my kids, my current girlfriend, my current job, some of my investments) and some haven't (my marriage, certain jobs early in my career, and many, unfortunately, of my investments). I'll be sticking with this one until its resolution, which I believe will work out, albeit as long as it has taken and as frustrating as it has frequently been.

Walker/Ski,

It's definitely the way they're going, and Gil constantly seems to be getting them information or on conference calls with them, so I think the probability of it getting done is fairly high, but the timeline escapes me because I'm far removed from the negotiations and can't get a good feel for what the acquisitor wants in terms of further information, what kind of evaluation they're doing, and how much more information they'll need. My sense is that it could be done by the end of the third quarter (September 30), but that's only a guess. It is all quite frustrating - I could really use some money out of this thing.

From what I'm told, there continues to be solid progress. I'm not directly involved in this phase, so I'm not certain at what stage the negotiations are, but I'm told there is progress, albeit at a lot slower pace than what Gil (and we all) would like to have it be. There is apparently a lot of information being provided to the shell owner, as they are very thorough and want to have everything they need to be able to do a proper filing when the acquisition has been completed.

With all due respect, you just don't understand why the company exists or how it runs. At this point, if Gil were to be terminated before a viable succession plan were to be put in place, the company's growth would be severely curtailed. I agree that Gene should be paid back as soon as is practicable. My compensation, when it occurs, will be a separate issue from the repayment of liabilities to any creditor. Keep in mind that without my efforts, creating value for Gene and his associates' 4 1/2 million shares and those of all other shareholders would certainly be proceeding at a slower pace than it is right now.

Ski,

I am optimistic, because I know that the operations are sequentially growing quarter over quarter. Make no mistake, this operation isn't going to grow revenues 200% quarter over quarter into the future for years on end. What it will do, in my opinion, is show nice sequential revenue growth and generate steady and growing profits, for the spread between what we pay for the receivables and what we collect is considerable, and there is minimal overhead and no fixed costs, as very little compensation expense is being paid out to anyone involved (let's see, so far it's zero for me), as Gil and Sally are taking minor amounts of compensation for their services, and there is comparatively little other expense being incurred.

The question isn't whether there is value being generated for the shareholders. There is. It's how we monetize the value, and the acquisition of the shell is the best way, because to do otherwise would involve far more filings and catch-up work with the SEC than the shell route, even though we now have audited statements for 2007 through 2009.

Snow,

I totally agree with you.

I have heard rumblings of how the R/M will be structured, but as negotiations are about to begin, I don't think it's appropriate for me to hazard a guess as to how the structure will end up.

The GSI shareholders will receive the lion's share of the combined entity, with the exact percentage to be received dependent on what the owners of the shell are willing to bring to the table, which has yet to be determined.

It won't be a 1 for 1 exchange, as the outstanding shares of the shell are far less in number at this point than the outstanding shares of GSI. The exact exchange ratio will be determined based upon what percentage of the shell goes to GSI and what the resultant number of shares outstanding based upon the combination is to be.

I can't speak to when Gene will be repaid for his loans, but I can tell you that if he owns, among himself, his friends and family, over 4 1/2 million shares, as I recall to be the case, he will have something of significant value when (and admittedly, if, as there are no certainties that this will get done, although I consider the likelihood to be fairly high) this is consummated, and now that we have solid operational results that are improving each quarter, the share price should theoretically compare favorably to most of our acquisition prices, considering we bought the shares during a period in which there were very little revenues being generated.

Did anyone pick up on my previous post, or has everyone just given up? I thought this was pretty good news!

I've heard, although not confirmed through direct examination since I've been home and away from my office, that the 2007, 2008 and 2009 basic audited financial statements have been received, and that finishing touches are being put on the footnotes. Face-to-face negotations will commence in the near future for the purchase of the shell, which I am told now has all of its requisite filings up to date.

Last Thursday night, prior to going in for surgery on Friday morning, I drafted the confirmations that the auditor requested and sent them to Sally for final preparation and circularization. I've been recuperating at home since then, and believe that Sally has sent them out. I haven't heard that there are any problems with the audit, and am assuming that the auditor will sign off after he receives the confirmation replies.

Ski,

I don't even want to talk about the Red Sox. I don't have PM, but I can tell you that I can't even begin to project where we will trade when we begin to trade again. It will depend somewhat on the terms of the deal for the fully-trading shell which is in the works but is by no means assured of getting done, although I am optimistic, and somewhat on what the market perceives the value of the combined company to be when it begins to trade based on the financial statements to which it will have access and its expectations of what we can achieve in the future.

The first quarter hasn't been done yet, but the real value of these statements are that they will enable the company to proceed with its prospective combination with a fully-reporting and trading shell, which is a much faster way to get back to trading than trying to get totally caught up on the requisite filings, which frankly would be almost impossible. The best alternative, if this combination for some reason isn't consummated, would be to try to strike a deal with the regulatory agencies to file only a certain number of years of statements to get current, which now that we will have 2007 through 2009's audited statements once they have been completed would hopefully be a possibility.