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You are right Sirius. Mexico is not the US, very good job with your research. This fact makes it LESS (note, not MORE) likely that there are people who are willing/able to pay for the wireless service since it is basically US pricing.
No, unfortunately the more likely possibility is that GTEM is fitting the horse to the shoe. They have a specific revenue number in mind which they need to sound significant to shareholders and so they fit the projected revenues to that. Hence the 'per share' projections just in case all the longs can't do the math and decipher the 'buy' signal from the FAQ.
Hmm sounds like something that happened before...
Isn't that an interesting figure, especially given that companies have trouble getting subscribers in the US to pay equivalent per month fees? So basically Mexican subscribers are going to be paying US level fees? Interesting business model.
Perhaps we might say that GTEM is being, hmmmm, overly optimistic? Especially given that they are going to be running a pay as you go service...
Another feature I love is that GTEM is so specific in their 'per share' estimations. They're basically providing a 'hint' to retail buyers of what they want the price to be. It's absolutely hilarious.
It'll be interesting to see how long these guys last.
Also this should end speculation here that 'the internal audit was finished' or 'the sec must be done and GTEM got rid of the auditors for cash burn reasons'. Clearly GTEM still needed an auditor and they have now hired another one.
Let's see when the financials and internal audit figures come out. Hopefully they can get these guys to do some work and hang on to them for longer than 3 months?
You got that right. After a year or two of hibernation mode it'll be time for a name change, reverse split, and a whole new revolutionary technology to excite people with!
Huff being out is one step toward earning the title of 'new mgmt'. I still consider it old management though as Johnny Leinwand is still there. As legal counsel to Globetel he has his hands in everything they have done. He is as responsible as anyone other officer and certainly knows where the 'bodies' are buried as he wrote all the legal documents.
If anyone could tell you about all the shadiness that goes on there it would be him. He is the one who crafted all those documents with fun loopholes and liability protections.
My theory is that after the judge didn't drop Huff from the class action, the Kboys+Leiny talked with Huff and asked him to leave in order to save the few remaining shreds of public goodwill for the company. After GTEM and Huff are slapped on the wrist by the judge, and if the SEC clears GTEM I believe they will hire Huff back as a 'consultant' or something else.
Again, unfortunately for you, as I said, the requirement for registration of those shares is not required by the SEC but by the investors. I.e. GTEM is not violating laws by not registering the shares.
The fact that this registration does not exist does not mean that the bonds do not exist, it just means they are violating their agreement with the bondholders to register. You can be sure that GTEM is paying penalties because of this. So basically you have no argument against the existence of the bonds.
Perhaps you should read the agreements and bonds filed before you continue on with this topic?
Play again? Last quarter yet?
Danielle, the closing of a financing is not a required item to be filed with the SEC only the beginning, and that was duly filed by GTEM. Unless the investors require the company to file an announcement of the closing it is not required.
http://www.sec.gov/Archives/edgar/data/919742/000114420406038107/v052648.txt
The bonds/debt from September are private bonds, they are not bonds which are publicly tradeable. Aka they are not required to be registered with the SEC.
But you would know that if you had actually read the bonds, which you clearly have not. Seems they didn't really cover this in b-school huh?
Sorry! Play Again?
>>if there are no bondholders,
Sorry Danielle. Would you like to play again? There are bond holders, the company has at least $1.5mm of them from the September 2006 financing.
>>..........whatever it takes to make them rich..........that's what it's all about.
You have never been more correct. Unfortunately you are not part of 'them'.
>>Tim is now free, by mutual agreement, to move about the telecommunications field to do his thing to other companies.
I would hope for the sake of the telecommunications industry that he is not planning on 'materially increasing shareholder value' at any other companies. He has added enough 'value' at GTEM as it is.
The beginning of the end.
As I said before. When Huffy and Johnny Leinwand leave it's only a matter of time.
>>They may have bad credit, but who cares if there isn't any bad debt?
Uhh....maybe you want to look at this sentence again? How do you get bad credit without bad debt...
Seeing as there is (so far...maybe you'll be lenient and give them 4 days instead of 3?) no followup 8-k it seems pretty clear that the PR of last wednesday contained no new, material information. Just another piece of fluff trying to get the stock price moving.
I love how they say that the JV is "Featured on Newly Introduced Web Site"....lol I would hope that it would be featured on a website that they control. It would be pretty bad if it was a side story.
Man they'll take any inch they can get...Anything to not say "We put up a webpage".
Can someone please post the link to the shiny new presentation? I'm sure it's very entertaining :)
Does anyone ever question why GTEM is so quick to ensure that they have shiny pictures and websites up long before anything has actually happened? They must really love to keep their shareholders up to date huh.
"It's not a trick! It's 'Illoooosion' Michael."
>>Really? Every pr?
No not every PR. But they're not exactly batting .300 for that matter are they (maybe .100)? They certainly got the PRs about the board departures correct.
>>no other aerospace company nor pharma has ever released projections of new product developments which have, then subsequently been proven to be off track?
Unfortunately for you there are precious few other companies whose record for failed promises and PR predictions rivals that of Globetel. As I said before, one wrong PR would probably be an indication to any regular company that their review process should be looked at, and investors would forgive it as a blip. GTEM however went ahead and continued to issue an entire string of PRs which were eventually proved to be facetious.
Corporate governance would involve a CEO properly communicating with his staff as well as deciding what should and should not be released as an official PR. I would think you would know that supposedly having an MBA and all.
Sorry Danielle, proper corporate governance and DD is not 'micro-managing' staff. Why is it that so many other companies that deal in equally and even more complex fields (like biotech for example)are able to release PRs and updates without getting into equivalent trouble?
Being ignorant is no excuse when you are the CEO. If you do not understand or do not have the capacity to understand even the basics which are required to verify what your employees are telling you, you should not be CEO. Simple as that.
Are you suggesting that the Sanswire division was responsible for deceiving Huff into PRing false progress?
Sure sounds like it. That seems like quite an exoneration of Huff given the number of times he was wrong in his 'estimates' and PRs. Perhaps you can forgive him one or two, but by the tenth one you would think that he would understand the estimates of his engineers were completely useless and he should be investigating it himself or just shut up.
That of course assumes that the engineers were giving him those faulty estimates and he wasn't just making it up.
>>maybe leinwand isn't with the company anymore?
Highly doubtful. As I have theorized all along, this show belongs to Huff and Leinwand. When they leave, you know it's over.
In the past cases available on that site when Leinwand has represented them he has been listed as the AT (attorney) representing the defendant. I believe a blank or omission of attorney implies that GTEM has not nominated any counsel.
Search for 'Globetel Communications Corp' in the organization name and 'Civil Division - Circuit Court'. You will see the previous cases I am talking about.
http://www.clerk-17th-flcourts.org/bccoc2/pubsearch/case_search_results.asp?hidSearchType=party_publ...
http://www.clerk-17th-flcourts.org/bccoc2/pubsearch/case_summary.asp?COCE05012447=CIV&CACE050040...
Or just search by the Case# he gave at the site.
Cost PLUS doesn't change the fact that you have no idea how MUCH equipment and capital is being contributed.
>>GTEM has fully funded its share of the deal.
Unfortunately we do not know what that share consisted of. It could have been $10k in radios for all we know.
>>I swear, I've never in my life seen so many people defend bad things a company does.
That's the 'vigorous resistance'. Soon the truth will be accepted as self evident.
The fact that GTEM is unable to pay even small bills should be a pretty clear indicator to investors.
How much clearer does it need to be?
That's what I was wondering as well. I'll believe that they actually formed the legal entity 'No Mas' but I am curious to know how much capital it was 'infused' with.
But of course GTEM strategically omits this small detail from their PR.
Nevermind. I found it, the link just got chopped off.
http://www.clerk-17th-flcourts.org/bccoc2/pubsearch/case_summary.asp?hidCaseNumber=CACE07005322&....
If it still doesn't work just go to the site and search for Case# CACE07005322
I don't see anything at the link?
I'm sure they have some very 'exciting' news stored up for you.
>>they would also have publicly released it.
Or GTEM might just have agreements with them not to talk about the company after their departure. As I recall hearing from people on this board and elsewhere, GTEM has these agreements with many of their ex-exmployees/contractors.
>>Please tell the group what satisfaction you will get if you are right and a lot of people lose their investment?
I will have the satisfaction of knowing that I served as a realistic counterweight to the cultlike touting of this company and that my analysis produced the proper conclusions that told me not to buy this stock.
I do not revel in the mistakes of others. I revel in their inability to learn from them, especially when presented with everything they need to do so.
As I have always said, I am here for my amusement. So yes perhaps you're right on your last comment. That doesn't change the facts which Nerd chooses to mistate and twist on a regular basis.
Excuse me Nerd. Allow me to tell you:
1) You have absolutely no proof that Centerline has turned into a profitable business. There is NO PROOF of Centerline producing positive Net Income for GTEM.
2) ALL of GTEM has only $22mm in assets by their own admission as of 6/30/06...$10mm of which is comprised of intangibles. Assuming that 90% of the $12mm remaining tangible assets are attributable to Centerline you're saying that GTEM somehow added $10mm in assets to the Centerline division in the past 9 months? That's pretty impressive for a company that has admitted to having problems with 'working capital'.
3) For Sanswire, in a liquidation you have the schematics, any proprietary knowledge, and a non-revenue generating blimp and a concept. That is all. So far it is a radio strapped onto a blimp.
4) What you do have is a company that has lost 4 independent directors and two independent accounting firms in the past 3 months. The uncertainty of whether you are actually getting what you might pay for any of these goldmine divisions because of possible accounting shenanigans and a partridge in a pear tree.
5) Again let's not forget the recently confirmed 'working capital' problem. Right on schedule.
Again, GTEM sure looks like a screaming buy all right. I wonder when the first private equity firm is going to come courting?
http://www.sec.gov/Archives/edgar/data/919742/000114420406033471/v050060_10q.htm
>>One positive, if the company was going under, why bother to isue negative PRs?
Because they are still required by law to disclose events such as this.
>>Being even more conservative say we only get a few mil. for our strat program, maybe 50 mil. for centerline. And sell hotzone and everything else to the peralta's for 50 mil. We all get out with about buck a share. I would sure take that right now.
You people are deluding yourselves. $1.00 / share? $1.50 / share??? Stop kidding yourselves.
GTEM has no patents so you can forget about getting any premiums for intangibles. Sanswire/Strat is worth little more than its materials, $1mm tops. Hotzone has no regular contracts and customers besides GTEM itself, so you can forget about sale prices which are multipliers of future revenue. Its sale price is going to come from the liquidation of its equipment (radios etc.). Max $5mm, seeing as Hotzone had $7mm in intangibles on the books a/o 6/30/06....unless of course you're going to debate with me that GTEM found more than $5mm to dump into Hotzone equipment.
Centerline is the only interesting one as it does have existing contracts and revenues. Keep in mind though that when GTEM acquired this 'business' they just bought the rights to operate existing contracts...for $125,000. There is a catch in there somewhere. Let's be optimistic though and say that a low margin business like centerline would go for the price you said it would $50mm.
That's a total of about $56mm for the whole bag / last known shares outstanding of 108,062,660 = $0.51 / share. And that is incredibly optimistic. Especially in regards to Centerline.
>>As much as we would like to see what is going on under the hood, Khoury may have made the decision that this GTEM is not for public viewing.
I am sure they would certainly like it that way at this point.
>>I thought the independent auditor that was brought in 1/2007 would have been doing something between then and now....but now we find out that they did nothing. Could it be that there was nothing for them to do?
Come now...what is the possibility of that. Even if the internal audit was finished i'm sure they could find SOMETHING to work on given that current financial data is backlogged for almost two full quarters now.
It seems quite clear that they were unwilling to do work for GTEM for whatever reason. Whether it's no confidence in being paid, not wanting to open themselves to liability, who knows.
>>Globetel saved money not paying them and can just leave the job to the SEC, they will do the audit for free.
LOL. That's the best spin i've heard yet.
All companies should just save money and let the SEC do the accounting for them!
Oh look. Their new accountants didn't take the job. I wonder why...
I suppose this is a good thing?
I'm not surprised about the rumors Axel posted turning out to be untrue, tney are somewhat fantastical. I took them with a large grain of salt anyway.
I do find it interesting that Rob chooses to use qualifying language in talking about the possibility of the German wireless bankruptcy rather than flat out saying "globetel wireless europe is not bankrupt".
This 'if' carries more weight for me because JimProfit's DD has usually been excellent.
Now you're advising to hold onto the shares through a bankruptcy????? lol
Please tell me how you come to the conclusion of that being a smart move given the below:
1. Not having seen a balance sheet for the company dating beyond 6/30/06.
2. Arguably the largest recoverable asset of ~$5mm (aka not composed mainly of goodwill and intangibles) being 'sold' (term used loosely) to Gotham Financial.
3. $1.1mm Debt taken on in the recent financing of Sept 06.
Yeah seems like a screaming buy there....