Seth, you have no credibility! Once again, Jayson cherry picks information, this time from the recent 10K and elsewhere, twists it around and presents a negative spin on GTE, ignoring all the good, and turning good into bad to attack his favorite small cap company.
For example, he's spouting the same nonsense about R & D spending he has done in previous articles (one of his favorite examples - note he can't come up with anything new), claiming GTE spent little on R & D.
But his analysis re R & D spending is full of holes: GTE purchased Hotzone Wireless in 2005 for a relatively small sum, and in exchange Uli Altvater received GTE stock and became head of the wireless division, an excellent deal for Altvater because he stands to make much more with his wireless system an integral part of a worldwide SuperHub.
If a company obtains valuable cutting-edge technology at a bargain price, technology which has the potential to earn that company hundreds of millions of dollars, it is a great R & D investment, and it is disingenuous to ignore that important fact when claiming little was expended on R & D.
Naturally, Jayson ignores the fact that Altvater spent millions of dollars and years developing the Hotzone wireless system and that GTE got it for a bargain, that it is worth much more than GTE paid for it, a brilliant move, good for the bottom line, and great for the future value of the company.
In addition, in 2005 GTE received technical assistance and expertise from NASA in exchange for NASA's future use of the stratellite system, another smart way to keep costs down and gain valuable technological support.
Jayson also mentions the $12 million in executive compensation to suggest that GTE spending is out of control. He must be taking his notes from hedge fund shorts or their hired bashers on this message board. If Jayson read the 10K, compensation for individual GTE executives did not increase one dime in 2005. The $6 million increase is due solely to the increased value of the stock in 2005, and the reporting of stock options as required by accounting rules, stock options which for the most part have not been exercised, and also to the addition of new key personnel. These non-cash, non-recurring charges have no affect on liquidity.
Jayson ignores all of the good in the 10K, e.g. zero debt, quadrupling of revenue, improving margins, and the many positive developments in all five GTE business divisions - notice how he leaves out his usual slam of the Colombia deal because it's addressed in the 10K and GTE indicates that proof of funding has been provided to GTE and Colombia is set to receive the first commercial stratellites in 2007.
Of course, Jayson slams the Russian JV, but he doesn't claim to have spoken to the banks or Internafta, so to express an opinion about its future is a perfect example of his usual hatchet-style, long-on-fiction, short on-facts-yellow journalism.
He sure spends an inordinate amount of time going after GTE. His actions have been and continue to be highly suspicious. Early in the day, the day after good news, GTE's pps was holding up quite well, despite a down market, but then it began to slide. Did his hedge fund buddies know his hatchet piece was coming?
I agree with the post below, from RB. The only shareholders Jayson appears eager to assist are the shorts (naked and otherwise). And remember, Jayson and his MF buddies, and their friends and relatives, can short the stocks MF writers write about, as long as they do not take a stock position 10 days before or after an article appears. They can make a lot of money attacking a particular stock they have shorted before an article appears and it is all perfectly legal. I note that it is 11 days since the 10K was filed. If you read their profiles, the MF writers don't even pretend to be serious business journalists.
By: bayou_guy0
11 Apr 2006, 05:10 PM EDT
Msg. 167281 of 167284
(This msg. is a reply to 167261 by john7777.)
john7777, I agree. The fool article is ripe with vindictiveness, and is very unbalanced. I have to question the motives behind who wrote that article. Why does the fool go after Globetel with such ferver and animosity? There are many companies that have $Billions in debt, and have no way of paying it off, why go after us? We are debt free, and at no serious risk of delisting or bankruptcy. Centerline generates over $80Million in revenues per year. We can always tighten our belt, the important thing is that we have no long term debt. That is so huge, and makes me wonder why the fool is going after us and not some of these debt ridden companies that are seriously at risk of hurting investors.
BTW, I am glad that GTE wrote the fool and told them in no uncertain terms to cease any contact with the company. The fool writers obviously have an axe to grind with our company, the only question is why? I have a few theories, and I would love to see someone investigate them. I have always considered the fool a bunch of quacks anyway. When are they right? lol! Based on their own financial situation (which is bad, many layoffs, etc), they should take a good look in the mirror.
Sincerely,
bayou_guy
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