World Surveillance Group Inc (fka WSGI)

[wsdomseker]

Does Manipulation REALLY Exist?

By: wsdomseker
July 29, 2006


For those of you that snub your nose at a good conspiracy theory, you may just want to move on. However, if you believe in the possibility of manipulation, then sit back, grab a cup of coffee and enjoy the twists and turns (or should I say ups and downs) of this little adventure.

Ok, now that the nay-sayers have gone, let's get started. We all know that the stock markets can be manipulated. Evidence of one form of manipulation (Naked Short Selling) is currently being debated before the U.S. Congress. Don't get me wrong, I'm not saying that all stocks are manipulated, I don't know about all stocks but, I do know about Globetel Communications (AMEX: GTE).

Globetel has recently been accused by the AMEX of being "overly promotional" in their Press Releases. Well, I would like to pull back the curtain on a chapter of the aforementioned PR's. Here we're going to take a look at the period between late August and Mid November, 2005.

When GTE was still trading over-the-counter as GTEL there was little press paid to Globetel. As a matter of fact, the first reference to Globetel by "The Motley Fool" was actually fair and realistic, pointing out both the pros and cons. The author also made it clear that this was a speculative endeavor without belittling the concept.
http://www.fool.com/News/mft/2005/mft05042123.htm

It wasn't until after Globetel's move to the AMEX that the real bashing began.
http://www.siliconinvestor.com/readmsg.aspx?msgid=21563544
To me it seemed that the author of this article rejected any actual facts that would interfere with his work of fiction. While implying that Globetel management was less than trustworthy, he completely ignored 4 of Globetel's 5 divisions and concentrated his attack on attempting to discredit the mere notion of a Stratellite(TM). Which, I might add, is contradictory to the position of the U.S. Government.
http://www.airpower.maxwell.af.mil/airchronicles/apj/apj05/win05/tomme.html

Now, the stage is set and the share price is in decline, along comes KCSA Worldwide. KCSA claims to "synchronize their brand messages across IR, PR and all other strategic marketing channels". How Globetel became aware of them or who recommended them, only management knows. But, from their first PR on Sep 1st to their last was a mere 11 weeks and yet they managed to pump out as many PR's. Thats right, 11 PR's in 11 weeks.


GlobeTel Communications Completes $4.5 Million Convertible Debenture Financing
September 01, 2005
http://www.globeinvestor.com/servlet/ArticleNews/print/BWIRE/20050901/20050901005692

GlobeTel Announces Letter of Intent with Solar, Battery, Fuel Cell Research Consortium
September 6, 2005
http://www.sanswire.com/press/20050906.html

GlobeTel Announces Letter of Intent with Kashiwabara Token Corporation of Japan
September 8, 2005
http://www.sanswire.com/press/20050908.html

GlobeTel Communications Appoints Sir Christopher Meyer, KCMG
Sep 16, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1126877714485.html

GlobeTel Communications Projects Record Revenue For 2005 Third
Sep 23, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1127496630175.html

Global Crossing to Power GlobeTel's VoIP Solution
Oct 06, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1128600391179.html

GlobeTel Communications Corp. to Unveil the Ultimate Turnkey VoIP Solution
Oct 07, 2005
http://www.freeforums.com/showthread.php?p=34567#post34567

Military Officials to Witness Flight of Sanswire's Military..
Oct 11, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1129038191846.html

GlobeTel Announces Formal Agreement with TAO-Technologies
Oct 12, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1129123818301.html

GlobelTel Communications to be Featured on Discovery's Science
Oct 20, 2005
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1129821560869.html

GlobeTel Communications Announces Alliance with Major Indian Financial Processor
Nov 09, 2005
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1131546658829.html

Now just wait one minute, you might say. Those were Globetel's PR's not KCSA's. True, however, KCSA's job is to "synchronize their brand messages across IR, PR and all other strategic marketing channels". So, how did KCSA come to render services to GTE? Could it have been through the Amex IR Alliance http://www.amex.com/?href=/equities/whyList/Eq_WLA_Serv_pg3.html in which KCSA is represented (Erika Levy of the Amex IR Alliance at [phone] or [e-mail].)? http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_14/ai_n12936200 KCSA proudly displays their association with AMEX on their clients page as well. http://www.kcsa.com/clients/index.shtml And, why did their service last less than 3 months?

According to my research, this is the most intensive PR blitz in Globetel's history. The resulting buzz continued the share price upward momentum and truly put Globetel in the spotlight. Would you believe that there are investors out there that actually look for this pattern? Investors that seek out small speculative companies with borderline fundamentals and a recent onslaught of Press Releases. Do you think its possible that these investors even follow the news for recently retained PR firms? Those investors that know, what goes up, must come down, wait for their opportunity to pounce and then short that stock into oblivion. Those investors that watch for the pump so that they can dump their short shares. Do you believe that Globetel is alone? Well, let's follow this one PR firm and the representatives assigned to Globetel.

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GlobeTel Communications Corporation (AMEX: GTE) announced Aug 22, 2005 it had "retained KCSA Worldwide to implement an integrated investor relations and public relations financial communications program." (Representatives Todd Fromer & Michael Cimini)
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1124715754557.html

A little more than one month later Globetel asked the AMEX to investigate market manipulation in the companies stock.
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1127824284072.html

Aug 22, 2005 SP = $1.89
Jan 3, 2006 SP = $3.92
Current SP = $0.58


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AuthentiDate Holding Corp. (NASDAQ: ADAT) retains KCSA Oct 20, 2005 (Todd Fromer)
http://askmerrill.ml.com/markets_news_story/1,2263,{4E43D5DF-5F4C-47E0-A572-C1441A86F11F},00.html

Oct. 20, 2005 SP = $2.34
Apr 3, 2006 SP = $3.96
Current SP = $1.78


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ADDvantage Technologies Group, Inc. (Amex: AEY), retains KCSA Nov. 14, 2005 (Michael Cimini)
http://www.amex.com/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1131975984602.html

Nov 14, 2005 SP = $4.15
Feb 1, 2006 SP = $8.90
Current SP = $4.66


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PFSweb Inc. (Nasdaq:PFSW), Retains KCSA May 9, 2005 (Todd Fromer / Michael Cimini)
http://www.equitygroups.com/nasd/adpt/messages/4580.html

May 9, 2005 SP = $2.11
Aug 12, 2005 SP = $2.84
Current SP = $0.92


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HiEnergy Technologies, Inc. (OTCBB: HIET) retains KCSA Jan 8, 2004 (Michael Cimini)
http://www.hienergyinc.com/press/press_releases/01-08-04.pdf#search='HiEnergy%20retains%20kcsa'

Jan 8, 2004 SP = $0.90
Apr 19, 2004 SP = $3.05
Current SP = $.027


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Diversified Security Solutions, Inc. (Amex: DVS) retains KCSA Jan 4, 2005 (Todd Fromer)
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1104841905701.html
Diversified Security Solutions, Inc. changes name to Henry Bros. Electronics, Inc. (AMEX: HBE)
http://biz.yahoo.com/e/050809/dvs8-k.html

Jan 4, 2005 SP = $4.90
Highly Volitile
Current SP = $4.54


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Nephros, Inc. (AMEX: NEP) in agreement with KCSA (Todd Fromer)

IPO Sep 23, 2004 SP = $5.80
Current SP = $1.14


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Millennium Biotechnologies, Inc. (OTCBB: MBTG.OB) retains KCSA Aug 16, 2004 (Todd Fromer)

Highly Volitile


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Path 1 Network Technologies Inc. (Amex: PNO) retains KCSA Nov 5, 2003 (Todd Fromer)
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=XpressFeed_NewsDetails_1068068930780.html

Nov 5, 2003 SP = $5.05
Jan 14, 2004 SP = $7.10
Path 1 is now delisted from AMEX - Current symbol PNOT.PK
Current SP = $0.30


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Comptek signs $3.6M contract with LMT and has IR agreement with Todd Fromer
http://www.cfonews.com/ctk/c092099.txt

Currently Comptek is out of business
http://www.comptek.com/
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Natural Golf Corporation (AMEX: NAX) in agreement with KCSA Jan 12, 2004 (Todd Fromer / Michael Cimini)
http://www.amex.com/?href=/newsDetails/CmnNewsDet.jsp?id=NAX_2.html
Natural Golf Corporation delisted from AMEX May 2005. Now Natural Golf Corp. (NAXG.PK)
http://finance.yahoo.com/q?s=NAXG.PK
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Opus360 Corporation, (Nasdaq:OPUS) in agreement with KCSA May 24, 2001 (Todd Fromer)
http://opus.unifynet.com/news/84
Opus360 Corporation delisted from Nasdaq
http://quotes.nasdaq.com/quote.dll?mode=stock&page=quick&symbol=opus&symbol=&symbol=...
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SunnComm Technologies (OTC: STEH) in agreement with KCSA 2003 (Todd Fromer)
http://search.yahoo.com/search?p=%22SunnComm+Technologies%22+kcsa&ei=UTF-8&fr=ush1-finance&a...

SunnComm Technologies has been delisted
http://finance.yahoo.com/q?s=STEH
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Other examples...

BLLD.OB now BLLDE.OB down 75% (Todd Fromer)
XNWK.OB now CTPS.OB down 45% after merger (Todd Fromer / Michael Cimini)
TMAM.OB 700% pump http://chart.finance.yahoo.com/c/5y/t/tmam.ob (Todd Fromer)
TCNH fell 59% in 2 monyths (Todd Fromer)
KDE highly volitile near 3 year low (Todd Fromer)
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Another little tidbit that I find interesting is that there were no "journalistic" hit pieces published during the PR blitz or during the resulting upward momentum. You may have noticed that the attacks began as the tide started to turn and have been relentless ever since.

http://pqasb.pqarchiver.com/nypost/results.html?QryTxt=globetel
http://www.fool.com/search/search.htm?query=globetel+seth+jayson&area=articles


I know, I know, Performance this and Russia that...yada, yada, yada. Do you actual believe that Globetel stands alone? It reminds me of one of my favorite quotes by author John Dunne...

"No man is an island, entire of itself; every man is a piece of the continent, a part of the main.
If a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thy friend's or of thine own were: any man's death diminishes me, because I am involved in mankind, and therefore never send to know for whom the bell tolls; it tolls for thee. "

Am I claiming any illegalities?...NO. I would never claim to have information about someones trading activities like one "journalist" I can think of. That is not my call to make. I am merely pulling back the curtain. I would no more claim conspiracy here than I would claim that sharks conspire with whale hunters. It may be that the sharks simply react to the blood in the water. Both the shark and the whalers get their share...the biggest loser is the whale.

Its also possible that not even sharks would conspire with other sharks, it becomes a free-for-all, a feeding frenzy. Short sellers, Message Board Bashers, Hit Piece "Journalists", Money-Grubbing Lawyers, they all want a piece of the pie or their 15 minutes of fame. Also, the mysterious "clerical error" by the Bank of New York (which shaved more than 50% off the share price in a matter of minutes) has yet to be explained. Even the exchange itself may have been influenced.

I also am not claiming that this is a definitive, end all, be all scenario. Like any adventure there are many twists and turns. There are many facets to any tale and they are all a part of the whole. And, when you find yourself surrounded by sharks, it makes little difference how you got there. What really matters is how you'll get out of that situation. You must act, you must perform, you must respond to your situation.