CirTran Corporation (CIRX)

[mike306oh]

Contax,

1. "Based on your post on the MOBL board, I decided to take a peek at the CIRT chart and was intrigued enough to dig a little deeper...

First some background...I manage a very public and transparent "Fund" here on iHub which mostly invests in microcap companies. I initially purchased MOBL for my Fund when it was priced at 3.4¢, exactly the same price as CIRT's closing price yesterday!"

It looks like I'm a bigger risk taker than you are. I bought most of my MOBL shares (that I still have most of them, at around 0.018) imediately after I read about Jay Wright taking over. I liked his business strategy (at that time he didn't realy have a true business plan).

2. http://www.investorshub.com/boards/read_msg.asp?message_id=2073085

I'll check it out over the weekend.


3. Since CIRT's chart looks very similar to MOBL's chart of January 2004, I decided to do a little dd and noticed a few things that are of concern to me...

a) "The 3 major shareholders, the Hawatmeh Brothers, since the beginning of the year have registered to sell, and they may have already sold, approximately 26 million shares!

http://finance.yahoo.com/q/it?s=CIRT.OB

And that is just in 2005. Now, I do not normally have a problem with insiders selling a small percentage of their holdings...but in the case of CIRT, which seems to show such great potential, selling their shares for a meagre 4¢ and less, seems to this potential investor at least, that they are, to borrow your own words, "the biggest fools around!"

http://www.investorshub.com/boards/read_msg.asp?message_id=6635568"

I agree with you on this one, and I openly expressed my disatisfaction here with their selling those shares to pay for their salaries. But then I realized that although they are very good in negociating and geting new contracts, they are still poor managers of the stock. Luckily with Trevor (that seem to be the one that should be, and probably behind the scenes is, in charge).

4. "To me at least, this is obviously a very stark difference between MOBL and CIRT. In the case of MOBL, the CEO keeps buying his company's shares from the open market, with not one sell! While the Big Boys at CIRT can't seem to hold back from getting rid of their shares in their company. Now how could this incessant selling instill confidence in a prospective investor?

I strongly believe that the reason the stock is having trouble breaking out is because of insider selling by the Hawatmeh Brothers..."

Well, let's not be fooled with Jay buying several thousand shares each time. As a former Wall Street guy, he knows very well how his "buying" affects the investor phychic. Big difference indeed between Jay, and the brothers. Jay is a well seasoned finacier, with some knowhow of the Telecom sector (w/o being a proffesional, of course), while the Hawatmeh brothers appear to be good professionals in their field, but with rather poor business knowhow. But, it looks like they are willing to learn.

5. "b) In an earlier post, you had supplied a link which showed that CIRT, as of March 31st. 2005 had approximately 488 million shares outstanding. Today, according to Yahoo, the OS stands at 564 million, an increase of 76 million shares. Could this increase in OS be attributable to the previous financing arrangement that they had initially inked with Cornell, but which now has been scrapped?

http://finance.yahoo.com/q/ks?s=CIRT.OB"

Yes dilution was what was keeping this down. I bet however, by now the brothers already learned this is not good, and my hope is that with increase net revenue (which the chance is very good it will come due especially to the Asia division) they won't need to dilute us any further.

6. Look forward to your input...

The main reason I'm still buying is because the line of business CIRT is in is not a high tech(*), hence the chance that the big guys will canibalize their business (my main concern with MOBL). The brothers" (if you noticed one of the initial 4 is out) start listening more to Trevor (as they seem to as of late). Plus, one can expect them (the brothers) to hire some additional business knowleageable guys. See for instance the new announced 4 sales offices which are planned to be in place through next year. Because of this and other reasons (see my previous posts here) I'm quite optimistic this is going to be a success. So much so that I continue buying small amounts in the deeps. After I bought over 500K @0.035, I bought today 100K @ 0.034 (see below), and have (just in case) a larger order @0.033.

--------------------------
(*) I shouldn't say that, as my own R@D business is in high tech (optoelectronics, photonics).

------------------------
"For your order to buy 100000 shares of CIRT at 0.034 limit, good through the end of next month:

You bought 95000 shares of CIRT at $0.034 on 06/16/2005.

This is a notification of a partial fill."

Got the other 5K, and now I have an order at 0.033. Don't miss the chance.