World Surveillance Group Inc (fka WSGI)

[No Fear No Greed]

Rocky, with regard to the March 15 letter to shareholders, it seems that you are trying to draw a bold distinction between a "lie" (i.e., intentionally misleading) and an "overly optimistic statement" (i.e., unintentionally misleading). To be honest, I am not sure which is worse. At least the intentionally misleading CEO has a plan which may or may not be in the shareholders' best interests; in the case of the unintentionally misleading CEO, he gives the appearance of not having a clue about what's going on in his own company.

I am not surprised by additional delays in the Stratellite program, and as a shareholder I would not have had a problem with them if I felt like management had been forthright, honest and REALISTIC with their previous guidance. But to read the March 15 letter again in the light of yesterday's events leaves me feeling like management was (or is) either dishonest, incompetent, and/or completely binded by unbridled optimism.

And let's face it, this is not the only instance. As recently as last Tuesday, they issued the following statement (bold emphasis mine):

Press Release Source: GlobeTel Communications Corp.

GlobeTel Confirms the Unveiling of Sanswire One
Tuesday April 5, 9:47 am ET

MIAMI--(BUSINESS WIRE)--April 5, 2005--GlobeTel Communications Corp. (OTCBB:GTEL - News) today announced that its wholly-owned subsidiary, Sanswire Networks, LLC (Sanswire), will be unveiling its prototype high altitude airship, Sanswire One, in California on April 12, 2005 as previously announced.

....

According to Timothy M. Huff, CEO of GTEL, "Sanswire One has undergone a significant construction program since February 22, when we held our Technology Summit in San Bernardino. Sanswire One marks the beginning of an exciting phase in the development of the Company's high altitude platform program. At the unveiling, we will answer questions concerning the airship construction and performance. We will also give an updated timeline to the future events of Sanswire One."

Soon after the unveiling, Sanswire One will be moved to Edwards Air Force Base where the actual launch will take place. Mr. Huff stated, "Our plans are to launch at Edwards AFB, under the direction of NASA and the Air Force. Each agency will have to approve the flight plan before the launch date. By launching it from Edwards, we will be using non-FAA regulated air space which should expedite the flight safety approval process. Until the launch date, we will be doing ground base test and begin the process on the construction of Sanswire 2, the 400-foot long commercial airship. Sanswire 2 will be constructed in our new facilities near Edwards AFB."

A public announcement will be made on April 13 to give an update for those who couldn't attend the unveiling which will include pictures of Sanswire One.

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Obviously, they knew last Tuesday that the original plans for the unveiling as stated on March 15 were going to be drastically changed. Why did they reiterate that the unveiling would take place "as previously announced", with no mention of the likely state of the airship at that time as compared to what was promised three weeks earlier? Why did they choose the wording "soon after the unveiling" for the move to Edwards, given that previous expectations set in their March 15 letter were for late April? Were these lies, in the strictest sense of the word? Perhaps not, but they were certainly grossly misleading.

And regarding the issue of getting the ship to Edwards prior to launch, note how management minimized the issue as if it were trivial. I brought this into focus at the time in the following post:

http://investorshub.com/boards/read_msg.asp?message_id=5779596

The sentiment at the time (which still remains, I think) was to avoid conjecture, and wait for management to clarify the issues. The sad thing is, management clarification has proven to be less reliable than the conjecture that preceded it.

I'm not saying the risk/reward here is no longer attractive, but I will say that in my opinion, management credibility has taken a major step backward. Mr. Huff, if you are listening, please refrain from any more overly optimistic projections and confine yourself to the realities of this grand project upon which your company has embarked. We are with you, but you need to meet us halfway. All we ask is that you level with us, give us realistic timelines (or none at all), disclose pertinent information on a timely basis, and stop treating us like bastard children.