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vkoenig
"Huff knows how to 'operate' a company."
REALLY? :):):):):):):)
nerd
I wouldn't rely on that info until an audit is conducted by a disinterested party.
At this point, I believe everything is suspect. I'm not bashing......just being prudent. I'll be the first guy in line to cheer this company if it survives.
msturgeo
Do you really think Huff resigned voluntarily? I doubt it.
There's also a question in my mind as to whether Huff will remain with the company after a new permanent CEO is chosen. In the PR excerpt below, the phrase, " through the transition period" seems to suggest a limited stay. Otherwise, why did the company include that phrase? It would be unnecessary if his employment was open ended.
"FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--GlobeTel Communications Corp. (OTC:GTEM - News) today announced that Peter Khoury has been named interim Chief Executive Officer and a director, succeeding Timothy Huff, who resigned from both positions but remains with the Company through the transition period. Mr. Huff's talents will be focused on deploying the technology of GlobeTel in key deployments."
Of course
he was forced to resign. Many of us believed it was inevitable. How could he have survived, considering the horrible sequence of events under his leadership? As COB, Dumas was also out on the edge of the plank..
The following excerpt from the PR is a bit confusing though:
"In addition, the Company announced that Przemyslaw L. Kostro, former Chairman of GlobeTel Communications, returns to that position in the interim, succeeding J. Randolph Dumas. Independent directors Dorian Klein and Ambassador Ferdinando Salleo have also agreed to resign; their seats on the Board will be filled by Mr. Khoury and Mr. Kostro."
This suggests Kostro will replace Dumas and replace one of the seats vacated by Klein and Salleo.
Am I reading this wrong? Of course if Dumas remains as a board member it does make sense except it would have read better if they said Dumas replaced one of the two who resigned.
showme
I realized that after going to the source and posted it, but my post was deleted immediately. I don't know why.
Thanks anyway.
Interesting
"The Company will keep its shareholders informed of the date on which trading will commence on the Over The Counter Bulletin Board." (bold mine)
That statement implies that the move is definite.
"ADVERTISEMENT"
Where did that word come from? Is that part of the PR?
griff
Thanks for giving me the benefit of your experience.
griff
I was well aware that shareholders were last but that's after a 7 liquidation.
I'm not sure I understand your explanation about buying "AFTER they file.
In this statement, you seem to advocate buying after the 11 is filed:
".....I learned the hard way, but now have found a niche in playing bankrupt stocks AFTER they file (most file ch 11). I've never seen one that didn't at a minimum double off it's low after filing (finding that bottom is the problem, though.)"
In the following statement, you seem to contradict yourself:
"Ive had this discussion many times with people that think the co will emerge, they can hold their shares (or buy after filing) and everything will be lovely in time. Not true at all...ask former KMart investors...among many more.
Let's hope we don't have to experience that with GTE, though..."
I'm confused. Are you implying that it might be OK to hold the stock long enough for a quick profit during the 11 period but don't hold it till the company emerges from the 11?
Our discussion is probably considered moot by most on this board but who knows? You can't rule out anything on this adventure.
griff
It's important to make a clear distinction between a bankruptcy proceeding and a DIP ( Chap. 7 and Chap. 11, respectively ). It would be wrong to call an 11 a "bankruptcy". It is not. Of course many 11s are ultimately converted into 7s when it becomes obvious to the court trustee that the company is no longer viable. He will petition the court to convert to the 7. Sometimes the pressure comes from the creditors ( especially those who hold senior secured debt ). If there are sufficient assets to sell which would satisfy their claims, they'd just as soon not wait. The decision lies solely with the court though, and they are (at least were) loathe to break up a business.
I assume your phrase regarding "emerge from a BK" means emerging from an 11. I have no experience with the situation you describe although I'm puzzled as to why the existing shares would be worthless. Of course each case is unique.
duke
"...it's probably too late to sell now, imo...but, I believe Chap. 11 is a distinct possibility..."
Chapter 11 (Debtor in Possession) isn't necessarily a bad thing. However, the major useful provision in that procedure is prohibiting the creditors from bugging you. A "Plan of Arrangement" (payment schedule to the uninitiated) is designed to pay the creditors over a period of time. The other important thing is that the company is not supposed to incur any post-petition liability. There's a bunch of other stuff like secured vs unsecured creditors....but that's not the point I want to make. Actually, it's more like a rhetorical question.
With all GTE's problems, it doesn't appear that it has much debt. If that's the case, why would it petition for Chap. 11?
See what 2 nights at a Holiday Inn Express gets you? :):)
I'd appreciate some input from those on this board who are more up to date on the Bankruptcy Laws. Although I was quite familiar with them at one time, I retired in 1993. I'm sure there have been changes since then.
Don
If Huff isn't removed as CEO, this company isn't likely to survive. It most likely won't be limited to him, either. That's only one part of the solution. The question is who will replace him/ them? I'm of the opinion that the problems GTE has is systemic and not just solely a product of Huff's gaffs. The Board's oversight was obviously flawed.... and the shareholders would have to rely on them to select the replacements?
The Keystone Cops comes to mind. :)
Dollar
With an SEC investigation waiting in the wings, don't expect the company to discuss the particulars, especially if there are some mea culpas included. Bottom line.....we won't get much till after the SEC has had its way with us.
The best we can hope for is some good unimpeachable news. Those unrealistic timelines ain't gonna cut it anymore. If the company does ultimately survive this onslaught, I expect it to be more viable than it is now.
jfburk
".......It could be that the assets are undervalued"
In keeping with my prior post, if the assets are undervalued it would appear it was an honest error by the company, which would be detrimental to their perceived worth. Why would they be called to the carpet for something like that?
Intangibles
Isn't it likely that the value of the intangibles claimed by GTE is seen as being overstated rather than understated?:
Why would a company deliberately understate its intangible assets....unless it's attempting to keep something secret?
I need help from some of you CPA types.
coast
"Why did Globetel even release the news of the SEC Investigation?
My understanding is that the SEC does not make their investigations public."
Because of my of ignorance, I have no comment on the latter statement but, if an investigation by the SEC ain't a material event, I don't know what is. I believe GTE has an obligation to publish it whether or not the SEC does.
I'm not a lawyer but last night I slept at a Holiday Inn Ex............
state
If that PR were released next Tuesday rather than last June, I'd feel a lot more secure about it's veracity. As it now stands, who knows how much of it you can believe...if anything?
I'd like to see them release an update on Hotzone right now...wouldn't you? Unfortunately, virtually everything GTE has published is suspect at this moment.
My guess is PR's will be few and far between.
jfburk
"Although SEC investigations are slow and time consuming, finally there is at least some action"
It might be slow and time consuming but you can bet your bippy that anything GTE publishes in the interim will be completely factual and believable. Now that ain't all bad is it? ....unless we never hear from them again. :):)
fburk
Let's be realistic. None of us knows, with any degree of certainty, exactly how much of GTE's public announcements are true or whether or not they're really producing revenue. What we do know is that the AMEX is sufficiently convinced that GTE is NOT what it purports to be. We also know that the SEC is going to conduct a formal investigation into their business practices which, I assume, will expose every little rat hole in it's structure (all companies have them....some worse than others) and possibly some you could drive a truck through.
At this point I sincerely welcome an investigation of GTE by a neutral party. I think the SEC is as good an institution as any to conduct it. I know the conspiracy theorists will include the SEC in their silly attempts to rationalize the problems in which GTE now finds itself . The simple fact is they have brought it upon themselves....knowingly or unwittingly. I want some disinterested party to untangle this mess and tell me what I really have....don't you? Up till recently, I trusted what GTE was telling me. Now I want to know if I'm looking at a house of cards or the real thing.
That being said, I'm holding on to my shares. Why? Because there's not much more downside risk and, more importantly, my lifestyle won't change either way it goes. I feel sorry for those who bet the ranch on this company but, before they make an emotionally rash judgment, they should consider all the options and how those decisions would materially effect their lives.
Which picture
are you guys talking about.....that little snippet on the upper right of the home page?
Don't get me wrong
but it looks like this is a start-up company with little or no established business. Partnering with GTE looks to be more advantageous to them than it is to GTE.
I welcome any replies. Maybe I'm reading this wrong.
Keep your eyes
on the AMEX chimney later today. If the smoke is black, GTE is delisted. If it's white we have a second chance.
:)
starboy
Nothing to wonder about.
The "better known companies" have extensive lobbying programs and very deep pockets. It's all about bribes....commonly described as campaign contributions.....and a variety of other goodies. :)
It ain't rocket science.
Bear
Yeah...it's something like the way the candidates for political office are selected in Iran. :):)
The deck will be stacked.
vkoenig
Latin America might become the next Socialist/Marxist stronghold. Chavez is attempting to preside over it. The man is dangerous and has to be dealt with. Forget about us doing the right thing......just do the smart thing.
The Mexican Leftist is less the problem. If he creates too much trouble, we'll ship back a few million illegals and really turn the screws on border security. He can take care of them in his Leftist paradise and it will fold all the quicker. :)
eqmx
Makes sense! I don't think I would have seen it either......it being dark and all. :)
wingshot
What a trip to yesteryear. I didn't think there was anyone left who remembered. Some think I live in the past. I plead guilty. I'm more comfortable there...although, if it weren't for the advances in medicine, I'd have been dead long ago. Even a blind squirrel......
American culture has deteriorated. The art forms have become vulgar and worthless. Today's kids have chosen to make heroes out of those who emanate from the dregs of society. It's ironic that the culture who gave us a wonderful gift called " Jazz", with all it's musical virtues, is now responsible for producing the scourge they call, "Rap" and "Hip Hop"....back to the stone age.
What do you expect from someone whose heroes are all dead?
That is all for now. :)
doc
No bet. Can't bet against myself now...can I? We both want the same thing. We just happen to represent different halves of the same glass. :)
Besides, the vodka would compromise my next INR test( triple by- pass plus a new tissue type aortic valve...6 months ago). Worked out great! Hopefully, I'll go off the coumadin soon. THEN I'll be able to undergo a double knee replacement procedure. I'm really looking forward to it. The thought of waking again witout pain seems like a fantasy.
If you're a real doc, you'll understand. If not, I'll have to kill you. :):)
doc
"By the way, is "squirt" somehow a reference describing your central nervous system or cognitive abilities?"
Actually it's a commentary on a 73 year old bodily function. Bring on the cranberry juice. :)
Yep...new ball game after the hearing. I plan to be around till the the last out is made but, to be realistic, GTE's gotta produce the mother of all rallies if it hopes to survive.
risk
"could someone please define what that statement means. Does it mean materially higher than the day the objectives were released or materially higher than the lowest pps since the release or materially higher than what it will be on Dec. 30th ????????????"
Doesn't matter....at this juncture, his statement is moot. He'll be long gone before then. The company might survive but he's toast. Someone has to be thrown to the Gods. He's the most logical one.
Tell me doc
What color is the sky in that little world of yours. :)
I think you have a great future in fiction writing.
mad
If Huff had sold, he might have become Ken Lay's cell mate. Don't you see a similarity? :)
holter
I don't believe that AMEX arbitrarily notified the company of it's intent to delist without first having requested certain documentation from the company which would have laid outstanding issues to rest. I believe this process was going on well before the notice. Apparently, the material was either insufficient or not forthcoming.
Contrary to what many on this board think, the company was not blind sided. They were either sloppy in their response or couldn't back up their PRs to AMEX's satisfaction.
The hearing will flush all of this out. This could be a blessing in disguise. I want to know if the company has been duplicitous....don't you? As bad as it is, it's better than hiding your head in the sand...isn't it?
cabvineyard
With the delisting hearing pending, it's best that the company remain mute on personal emails. At this point they're forming a battle plan and there's not much sense in muddying the waters with possible contradictions. It's no different than when a defense lawyer tells his client to keep his mouth shut before and throughout the trial.
In the meantime, get used to a dearth of PR's other than those which are absolutely incontrovertible or compulsory. Huff is muzzled....and for good reason.
Just like most of us here, I'm still invested but I'm looking forward to a shakeup. I truly think it's necessary.
pokestake
Maybe GTE hired David Copperfield to produce an illusion for the reporter.
Forgive me....just a little gallows humor.
msturgeo
Maybe he said it....maybe he didn't....who knows? If he did, it was probably some CEO trash talkin' and not meant literally. Otherwise, how could you account for his failure to miss the obvious implications of a depressed PPS, particularly since GTE's preferred method of raising capital seems to be issuing stock? It just doesn't make sense.
Insofar as his future as CEO, I believe that will be decided shortly and will hinge primarily upon the delisting decision. I think he needs a miracle to remain the CEO. Although there have been small successes under his leadership, there have been too many gaffs....most of them due to his propensity for exaggeration and unrealistic forecasts. The AMEX hearing committee is going to hold his feet to the fire and we're probably going to learn some troubling facts. I just hope the company is truthful in presenting it's evidence. Remember.....there's another possible shoe waiting to drop....the SEC.
I hope the company can weather all this and eventually emerge as viable and, more importantly, recover it's reputation. Without both, it's survival is doubtful.
msturgeo
"Tim has been saying all along he doesn't care about the PPS"
If he really said that, it qualifies as either the most disingenuous or most stupid statement ever uttered by a CEO. Of course the PPS is important....especially for a company who wants to raise capital by issuing stock. Duuuuhhhh!!!!
mide
"Something else is and I have queried Rob this AM as to whether or not we shareholders will ever know the specific AMEX allegations in detail.
This shareholder would really like to see them ASAP."
Don't hold your breath. If the allegations have merit, the company won't make them public. I'm not sure they'll ever disclose them......maybe if they're forced to. You'd think this would constitute a material event(s) wouldn't you?
On second thought, this would most likely fall into the category of "public venue"....after the proceedings are concluded. This stuff's not classified......and that's a definite maybe. :>)
Warp
"I wouldn't call it hearsay when the CEO publicly states it in a room full of company officers and investors."
I would. This CEO has a history of making rash statements. We have absolutely no proof of the veracity of this statement. Simply put, we aren't privy to the facts. That makes it hearsay in my book.
rocket man
Slow down. You're gonna get a hernia juggling all those conspiracies. :>)
It is what it is.
Warp
Why limit it to Dumas? I'm sure there are plenty of competent choices out there. It wouldn't be the first time a company secured a replacement CEO from outside.