GLKCE - Reference DD and comments.
First to put something behind us that has not been a big deal tonight, but has popped up once or twice. I'm referring to the website of what seems to be an over-angry bad investor who lists companies he has a problem with and tried being cute naming an award for them.
I'll only touch on three, and it's funny how GLKCE only trading it's 3rd day with this new symbol is somehow on this webpage. However if he wishes to put GLKCE in the same breath as USGA, UGHO and MRK, we who got in after thr R/S and in on Thursday's trading will be smiling big. USGA has a modest O/S (95 million), generates revenues, has a decent chart and closed at .179 today. UGHO has a modest O/S (35 million), a nice chart, a product that is BETTER than TASR's and closed at $2.02 today.
Merck (MRK) has been a historical Dow giant, generated 5.5 billion dollars in revenue just this most recent quarter and a net income for the same quarter over $1.3 billion. Yep, they had trouble with one of their drugs in October 04, but look close...since November 04 they are up ~15%.
He may want to rethink his list.
Anyway, GLKCE is scary good from many different angles, obviously one of the reasons is the confirmed O/S today over 1.1 million shares! There's good beyond this incredible point however...
If you multiple the o/s (1,158,209) times today's close (.0119), the market cap totals $13,782!
Let's just say there is a hell of a lot more upside from today..lol. In fact let's look at value...
GLKCE has over $4 million in assets. These assets are poised to grow in book value and revenue for the company. They own land with a book value 1.8 million dollars which is land for development. They are curently working on a 40,000 square foot office complex, plus other commercial development to be sold upon completion. In Kingman, Az they are involved in building a 1000 unit senior housing complex. To facilitate and manage this work, the company merged with Quality Construction Corporation late last year.
Also in Decemeber of 04 they sold their Global Links Card Service division to PTSN, with the terms being as follows.
PTSN paid them $55,000 up front, then $40,000 each month for 5 months ($200,000 on top of the $55,000 up front). Plus any debt of the card service company was assumed by PTSN.
Not bad huh?
Let's look at one more thing...October of 2004. It was in this month, specifically on October 7th that a reverse split was done. Look at the chart after October 7th, ranging from .10-.30 with 5-6 days closing at or well over .10/share. This was before the value from the sale of the card service, and before the merger with Quality Construction Corp. Now I can't pinpoint what the exact O/S was during that October period but I would bet a bottom dollar it was higher than 1,158,209!
On November 1st it was 22,856,687. Two things about November 1st I want to mention.
First, the only reason the 'E' is there is NOT because of any wrong-doing or lack of value at all. It was simply that Mr. Costello (who is a CPA practicing in California) was not registered with the PCOAB (public accounting oversight board). Lynda Keeton is and is now serving for them. The 'E' will disappear soon.
Second, with this info I can only assume at some point in October or November of last year did Mr. Costello's status come up which would explain the fall in price then, which doesn't relate to company's value at all.
So, on Nov. 1st the O/S was 22 times bigger than it is now! The company's value is more transparent today than it was then. They also now have a registered accountant with the PCOAB to remove the 'E'. On November 1st it looked like the stock was trading around .005-.01 (the historical chart didn't give me exact pricing). At the very least we could see prices 22 times higher than November 1st. Going further, based on value alone (discussed above) and the current O/S a market cap of $5 million - $10 million is not unreasonable here.
However, add on the fact that Terin himself owns more shares than the O/S it is sensational for anyone that bought after the R/S date thru today (Thursday)!
If there is a flood of shares for whatever reason, those who bought after the R/S and through the close today did so in good faith and will (and should) be rewarded.
The only remedy that makes sense is for MM's to be required to buy back shares at whatever price (meaning as high as it takes to sell :) to be retired, reducing shares until the market has balanced and equalled what the true O/S is now.
Whether it is the MM's or the T/A who have to pay for this buyback to balance the market with the o/s matters not. It is not the fault or concern of the company or the shareholders who acted in good faith during this period.
Let the bidding begin!!! Hold your shares Terin. : )
Bo
