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Re: lowtrade post# 6778

Thursday, 07/05/2007 8:40:38 PM

Thursday, July 05, 2007 8:40:38 PM

Post# of 47295
OK, thanks lowtrade.

BTW, they are reverse merging into a shell and are supposed to be on OTCBB in a few weeks.

This is quite a story that might be worth reading .

from "investwise4858" concerning GSIEF .............

"Pinksheets:GSIEF

Last weeks alert was centered around the fact that GSIEF was in the process of reverse merging with shell OTCBB:CMHS. We felt that this fact alone warranted an immediate alert to our interested parties.

At that time, I felt that the Company was implementing their business plan and was proceeding at a gradual rate to build revenues within their accounts receivable financing model. In addition, the investigation of the subject company revealed that the Silar Group NYC/Rob Leeds et al was the financer of said model.

The alert focused mostly on the fact that just a simple uplisting and the known associated reporting requirements for a OTCBB would cause the release of certain vital proprietary and audited financial information about the Company.

When I discovered that Rob Leeds, former Goldman Sachs/Nomura Securities/Fortress Fund fame was connected to this venture, and considering the price of the subject security under review, I knew that a immediate microscopic examination of the subject Company was required.

Folks, whether you know it or not, when Leeds is involved, the numbers of zeros changes from hundreds of thousands, to millions, even billions. The players suddenly change from high school to the Major League. This is simple historical fact.

Knowing Leeds would never participate in or otherwise associate with a small operation or any unethical practices, (less than 100-500 million at minimum for starters), I pulled out all the stops on this one folks.

I immediately put into action the following plan to ascertain by unconventional and traditional means just what was going on here.

Principally, I asked three close personal friends with global reach and knowledge in business to look into this matter, and report to me thier opinions and findings.

I have enough information gathered now for you to put everything else aside and take it in:

Incorporated in this report are the entire contents of what I know as of 09:30 EDT July 3.

Of important note: After regular trading session hours on Monday July 2, GSIEF placed on the wire, two very revealing press releases that indeed confirm a few parts of the investigation. Take a look when you have time, but for the moment, kindly read on:

The content of the press releases mentioned, now public information, coupled with the time sensitive data collected during the all encompassing investigation during the past few hours and days, demands your immediate and undivided attention.

After examining said data examining the principals, funding sources, and other important details, the following is a compacted version for your review and consideration:

1. The Company will uplist to the OTCBB upon completion of audited finanial statements as required for exchange listing.
Time frame: 10-14 business days. (Once considered the most important, this now is the least important fact by comparison to the other details outlined below)


2. The Company is much further along in their business plan that previously believed. They have clients currently utilizing the accounts receivable financing model created by GSI. Silar has funded several packages to date. These facts must be revealed to the public in the upcoming SEC filings (required under exchange rules) as they will eventually cover business activities up to June 30, 2007.

3. The executive officers of the Company have much more experience depth than previously believed. CEO and founder Slaton was the head of the JELLO division of General Foods prior to it being absorbed by Kraft Foods, Inc. EVP Engel, has associations with American Home Products, and Carnation. Fortune 500 firms.

4. The Company business model has been developed over a period of three years, the public is just getting a glimpse now. You are getting a First Call look.

a. Company officials consulted with and retained a Big 10 attorney firm to advise them on the legal aspects of the proprietary accounts receivable financing business model. Officials left with a detailed and concise financial and operational plan.

b. Company officials, within the last 18 months, presented their business plan, financing theories and operational model to the Standard & Poors Corporation, Moody's, Duff & Phelps, A.M. Best, and Fitch Ratings. In addition, it is now known that they consulted with representatives of investment banking giant Stephens, Inc. The Stephens connection and its related political associations I believe are tied in some powerful way to the Company's future. Officials left with guidelines and operational requirements that included (but are not limited to) required due diligence regarding proposed receivable financing, lockbox payment requirements and other important details as they relate to the possibility of use of public financing vehicles eg. bond market offering and related financing instuments.

c. After the above excercises were completed, they presented the entire business plan to Rob Leeds. Leeds immediatley locked GSIEF up in a right of first refusal deal and provided them with immediate financial backing to fund these accounts receivable purchases.

d. CEO Slaton without fanfare, immediately closed several deals utilizing Silar as the arranged financing vehicle. GSI did tell the public about a few of the transactions, but no one could understand the gravity of the situation, no dots connected at this point. The stock continued to languish in obscurity.

e. The Company gave the public a hint of another operation that has been planned and implemented in the dark, the Joint Venture with Medicredit, Inc. The investigation revealed that 3 former Lasalle bank executives that have formed a fund of late, have contacted GSI with a proposal to finance the purchases of no fault insurance claims from medical practices, hospitals, and other firms. This business plan is unfolding and will be implemented eventually in all of the 12 states that require no fault coverage for their residents. It is my understanding that GSI/Medicredit are 50/50 in this JV and they have intersted parties at the door ready to sign. This is a very profitable plan, with this service, Doctors and/or medical facilities need not wait for payment after they treat accident victims, GSI/Medicredit steps in and advances 50% of the claim immediately, then takes over the claim in a legal and operational sense.

f. The Company divulged yesterday after close that Dr. Steve Phillips was elected to the board and is a GSI shareholder. Now folks, this just about blew me away. GSI now has a international name in the medical field on the board of directors and is a GSI shareholder. Phillips, is associated with DaBakey, and with Bob Jarvik, the inventor of the artificial heart. If that wasn't enough, Phillips is a close confidant of Bill and Hillary Clinton, in fact, Clinton at one time asked Phillips to head the FDA. This is only one of the murky connections Phillips has with the former and possible future residents at 1600. Of note, the Clintons are very close to the Stephens folks in Arkansas, one of the many firms that GSI consulted with prior to implementing their now unfolding business plan. If you have ever visited Aspen, you know that the Phillip's residence (a masterpiece that is worth at least 10 m) is locally known to be the Clinton hideout during their trips to the mountain resort.

g. GSI has under contract, the two largest and most effective processors for the receivables purchased. All of the paperwork and electronic filings are handled by these firms, who are adding additional staff, anticipating GSI's increased market presence. The firms combined employ 250 at this time.

h. All of the receivables purchased by GSI are subject to intense due diligence and are included in a UCC filing protecting GSI/Silar from all exposure. In practice, the participating facility legally transfers all rights to the money and it is not subject to any outside interference. This means that GSI/Silar have complete and total control over the funds, from start to finish. This is why the receivables may be eventually rated by S&P or another rating service, this would be triggered in the event that GSI's demand on Silar exceeds Silars ability to accomodate the growing numbers.

Translation: GSI is positioned to access the bond markets when it becomes strategically neccesary.

The numbers involved here are simply mind boggling, using a very low known market potential of 400 b, and applying very conservative 1% penetration figures, here is what GSI can do on just the medical financing end with the institutional receivables: (keep in mind this does not account for any success the Company may enjoy in the no-fault business they are developing)

These numbers are per 12 month period:

Estimated:

400 b (low figure, could be as high as 600 b)
4 b GSI 1% penetration
400 m GSI net (10% average of gross financed)
costs:
130 m Financing cost to Silar/Leeds/Bond Markets
130 m Cost of processing claims and legal counsel
25 m GSI consolidated internal (costs of marketing/offices)
140 m net net to GSI

Apply your own PE to the estimate.

If you don't think the numbers are valid or reasonable using the 1% penetration, cut them by 90%.

Thank you for your time, good luck and health to all."



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