OTC BB Stock Picks

[greatday8]

GETC - DD inside -- undervalued

I consider GETC to be a multi-year hold and trading part of my position with the intent to increase my position.

I am a shareholder who believes Geotec has merit as an investment with a tremendous future and its shareholders will be rewarded.

Company: Geotec Thermal Generators
Symbol: GETC (OTCBB)
W. Richard Lueck, CEO [phone] [e-mail]

GETC has a trading range of 2 5/32 to 7 3/4
9/06/00 GETC closed at 2 7/32

Geotec offers the most effective, inexpensive and safe technology to restore and increase the output capacities of oil and gas wells, which is a very large market in North America alone. This makes the Company's financial outlook extremely promising. Over 30,000 wells have been treated with a 70% success rate for oil wells, and a 90+% success rate for gas wells. The technology produces incremental oil yields averaging over 6000 barrels of oil per well, per year. Some wells average increases that exceeds 45,000 barrels of oil per well, per year.

Geotec has moved from being a development company to being an operating company.
a)2500 oil wells under contract
b) Up through June 2000, 20 oil wells treated with 100% success
c) First 10 wells went from zero to an initial output of 700 to 1200 barrels per well, per day
d) These 10 wells have leveled off to about 200 to 300 barrels per well, per day
f) Revenue split of increased output will be 50% to Geotec after overhead which may be about 20% to 25%
g) A 24 million-dollar equity finance done with Jesup and Lamont

Company website:
Website has links to all press releases and SEC filings. (Full reporting company)
http://www.geo-tec.net/

Websites that have already profiled/picked or listed GETC:
http://www.otclive.com/getc.htm
http://www.eprofiler.homepage.com/ernprofiles.html
http://www.promotion-alert.com/
http://www.millenniumpicks.com/
http://www.tipreporter.com/

OTCBBnewsletter report posted on RagingBull:
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=GETC&read=116

The following estimates are taken from OTCBBnewsletter. These indicate the performance of the Russian oil companies with this technology. Currently annual production, in Russia, utilizing this technology exceeds $10 Billion per year according to the government data. So the question goes to how much Geotec can produce and scale up to this Russian standard.

OTCBBnewsletter used current OS shares of 21.5 million for EPS. Geotec recently announced a six million share equity financing. I have kept their estimates and adjusted EPS to reflect the addition 6 million shares, give 27.5 million OS shares.

Fiscal Year Revenues Earnings EPS
2001 est. $ 32,088,000 $ 19,312,723 $ 0.70
2002 est. $155,568,800 $118,191,909 $ 4.30
2003 est. $407,568,000 $326,591,720 $ 11.88

Referring to press release of Aug. 21, the company made this statement to me:
"When we stated that we had proven the technology such that we could meet our business model. What does that tell you? Certainly it says that we can meet our sales and profit numbers." That is the company's statement. Actual sales and profits will come from well treatments.

I have recently learned that the Canadians have shorted shares of GETC since January and the market makers have jumped on. Shareholders are converting shares into certificate form. Tradable float is a little over 2 million shares and possibly more than half of these are being converted into certificate form. Will a short squeeze develop?

I am very pleased with Geotec’s progress, and I expect them to do very well with their technology. Thank you very much for your interest in Geotec.

Remember to do your DD and wish you successful investing.

Greatday