GBT Technologies Inc (GTCH)

[OnceBurned]

I hope they don’t RS again unless and until there are sustained positive income numbers. The $2.2M “earnings” GTCH shows thru first 3Q 2002 is largely paper (change in fair value of derivative liability), but it has had some dollars coming in and it has reduced debt substantially. If dollars characterized as earnings keep coming in on a sustainable basis going forward (not followed by another massive write down if one of its recent goofy joint ventures), a RS might actually make sense. For instance, $2.2M in earnings divided by 1.5B outstanding shares is a tiny, negligible faction reported as earnings of $0.00/share. But, after a 100 to 1 RS, $2.2M in earnings divided by 15M outstanding shares is reported as earnings of $0.147/Share. So, no reverse split if no meaningful sustained earnings, because stock will just find a new horrible bottom diluting all existing shareholders (scam?). But RS once there are sustained earnings? I’m good with that.