GTE (formerly GTEL.OB before move to AMEX)
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--June 20, 2005--GlobeTel Communications Corp. (AMEX:GTE - News) is set to join the new Russell Microcap(TM) Index as well as the small-cap Russell 2000® Index when Russell Investment Group reconstitutes its family of U.S. indexes on June 24, 2005. Russell recently posted a preliminary membership list for the Russell Microcap and a preliminary list of additions for the Russell 2000 at http://www.russell.com/US/Indexes.
Price just went from 2.97 to 3.18 on the news, then fell back to 3.10 range.
This is a preliminary list of companies which are expected to compose the Russell Microcap Index at the close of the market June 24. http://www.russell.com/US/Indexes/US/Reconstitution/microcap_adds.asp
For what it's worth, some of these stocks might be a good hit in my opinion. If they make the Russell Microcap index on the 24th, they will most likely rise. Might be a good watch list in any case.
Look at the move on this one today. :o
I've lost every time I bought this thing. I'm watching this and notice the RSI< 30 and say "No way, not for me this time."
They release 2 great news articles and the price climbs from 1.90 to 2.35 in a few hours.
There goes the damn bandwagon again! :'(
Things are looking up these last 2 days.
Press Release Source: GlobeTel Communications Corp.
GlobeTel Wireless Announces New Contract to Provide Wireless Networks for Three German Cities
Monday August 1, 1:00 pm ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 1, 2005--GlobeTel Communications Corp. (AMEX:GTE - News), today announced that GlobeTel Wireless, a division of GlobeTel Communications Corp., has been awarded a contract to install wireless networks in three German cities.
The contract will provide high-speed wireless networks for internet connectivity starting with the town of Kaiserslautern, and continuing with nearby communities. Kaiserslautern is a city of 100,000 people, located 100 miles South West of Frankfurt. Construction of the project is to begin in August 2005.
GlobeTel Wireless will install these first Wireless Networks in Germany as part of the roll out plan to deploy wireless communication networks to non-DSL communities, in identified geographic markets.
Mr. Leigh Coleman, co-president of GlobeTel Wireless stated: "We have had tremendous confidence in the radio technology that we developed for our Stratellites. This technology allows us to deliver a superior wireless product and thus has created an entirely new business unit for us. We are inundated with opportunities for this technology and see this first contract as just the tip of the iceberg for this new business unit."
Several more networks are expected to be installed over the coming months as part of the plan to roll out networks to approximately 140 non DSL Cities in Germany. Expansion plans call for development in other countries in Europe, Africa, Russia, and other geographic markets.
Further network testing is being carried out in other cities, like Russelsheim where advanced wireless networks including WIFI Phones and other mobile devices are currently being tested.
Timothy Huff, CEO of GlobeTel stated: "I am very pleased with this initial contract. This business unit is off and running at a very rapid pace and we look forward to many more business advancements in the near future. This radio technology has many applications and we are pleased that we can capitalize on this as an added revenue and profit center, in our consolidated business."
Press Release Source: GlobeTel Communications Corp.
GlobeTel Responds to Article in New York Post Dated August 1, 2005
Monday August 1, 10:49 am ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 1, 2005--GlobeTel Communications Corp. (AMEX:GTE - News), today responded to a "slanderous and defamatory" opinion piece by Mr. Christopher Bryon, a columnist from the New York Post.
Mr. Timothy Huff CEO stated: "It appears the NY Post is at it again. The New York tabloid is now trying to create controversy where there is none.
"In typical fashion, Mr. Bryon created a story without the verification of facts or even simple communication with management at the Company. Had Mr. Bryon actually performed the expected due diligence to prepare an article, he would have not made the preposterous statements that were made. However, this reporter was more concerned about fabrication to sell a story versus solid business reporting. GlobeTel management would like to publicly respond to various business issues that have been onerously reported in this article."
Business issues:
GlobeTel is a company that has generated over $37 million in revenues in the first half of 2005. GlobeTel has a strong cash position with cash on hand of approximately $3 million. GlobeTel has 59 full time employees based primarily in two facilities in Florida and California. The Florida office has 32 employees in 10,000 square feet of space and the company recently opened a facility in Palmdale, California that spans 66,000 square feet and has 27 employees.
GlobeTel has executed contracts with NASA (National Aeronautical Space Administration) to assist in the development of its Stratellite technology, and has already built the first airship and publicly displayed the technology. This technology is being built and tested at Edwards Air Force Base in California, under the watch of NASA, the Air Force, and other governmental agencies.
The Stratellite:
GlobeTel has assembled one of the leading technology teams with experience in: Design, Aerodynamics, systems, propulsion, battery technology, and other areas. Much of this team has come from NASA and other government contractors, some leaving careers of upwards of 30 years to lead this project. The team includes key leaders:
-- Mr. Robert A. Jones is the President of Sanswire Governmental
Services. As President, Mr. Jones is responsible for all
aspects of government businesses and relationships for
Sanswire.
Mr. Jones has over twenty-five years experience with NASA and
the Air Force in aerospace as an executive, director, program
manager, mission director, mission manager, flight test
engineer, and pilot. Bob has an extensive test background as
well as operational air, space and ballistic launch, and space
vehicle research, test and development. He was instrumental
and responsible for breaking 10 world records for the space
launch systems which resulted in three National Space and
Science awards.
-- Dr. Michael Matarrese serves as the Senior Aerodynamics
Engineer of Sanswire. Michael has over 17 years experience as
an aerospace engineer, including several years of close work
with famous airplane designer Burt Rutan as an aerodynamicist
and configuration designer. He has been involved with the
design, development, and flight test of six aircraft, and has
provided consulting services to the aerospace community in
aerodynamics, computational fluid dynamics, performance
analysis, vehicle preliminary design and optimization, and
software development. His formal education includes a Ph.D.
and B.S. (Summa cum Laude) in aerospace engineering from the
highly regarded programs at the University of Michigan and
Ohio State University, respectively. He brings to the Sanswire
team extensive knowledge of aerodynamics and conceptual
design, significant practical experience in flight vehicle
development, and exceptional analytical capabilities.
As mentioned above, the Stratellite facility is located in Palmdale, California and is comprised of over 66,000 square feet. There are 27 full time employees.
GlobeTel Stratellite customers:
Had Mr. Bryon done the simplest of searches he would have found information on the customer that he questions. The State of Florida official website, http://www.sunbiz.org provides a listing of names of Officers and Directors as well as addresses for each person.
Location of Stratellites:
Contrary to Mr. Bryon's assertion, the first Stratellites are slated to be delivered to military and capital partners interests.
Mr. Timothy Huff stated: "The importance of placing these Stratellites in the best location to maximize security for our armed forces is of paramount importance. The technology that we have developed with NASA, the Air Force and other agencies will help save lives and provide quality of life for those that will be the first users of the technology." Mr. Huff continued, "Our capital partners will be afforded initial units and follow on customers will be in line for available capacity."
Moreover, the Stratellite represents a last-mile solution to provide internet and telephone to those areas where conventional infrastructure is not in place.
Summary:
GlobeTel is a rapidly growing business. Evidenced by over 38,000 shareholders, a rapidly growing revenue base, adequate capital on hand, and a seasoned and talented management team. GlobeTel is a business that is far from the illustration that Mr. Bryon described.
"This is an unfortunate situation wherein a careless and reckless reporter tried to sell newspapers at the expense of a well run company with a bright future. GlobeTel intends to deal with Mr. Bryon and the New York Post in an appropriate manner and GlobeTel regrets having to respond to this, however, GlobeTel intends on keeping the record straight for its shareholders and not allowing the rogue efforts of this person to hinder the Company or its prospects. GlobeTel can only wonder the true motive behind Mr. Bryon's distortions," according to Mr. Huff.
Finally an up day. I was going to add more at $1.20 but thought it would continue lower. I'll add more on Monday.
For those that follow GTE, you know it really moves on news. News released at 1:30pm, notice the quick jump. Today's news:
Press Release Source: GlobeTel Communications Corp.
GlobeTel Communications Projects Record Revenue For 2005 Third Quarter
Friday September 23, 1:30 pm ET
Company Provides Update on Current Business Activities and Recent Developments
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sept. 23, 2005--GlobeTel Communications Corp. (AMEX:GTE - News) today announced it expects to achieve record revenue of approximately $22 million for the third quarter ending September 30, 2005, an expected 193% increase from the third quarter last year.
Timothy Huff, GlobeTel Chief Executive Officer, said, "Our anticipated record revenue for the 2005 third quarter reflects the significant progress management has made in the execution of our strategic business plan. We currently have record cash on hand, our top line is growing along with our margins, we are hiring key personnel around the globe as our five business units continue to expand, and we have had a prominent international figure recently sign on as our new Chairman of the Board. In addition, our technology in our SIP-based products, Magic Money, GlobeTel Wireless and Sanswire, continues to improve and stay ahead of the 'tech' curve, effectively strengthening our commercial prospects with various government and commercial entities.
"For the fiscal 2005 fourth quarter, we anticipate gross margins in the range of 3%-5%. The relocation of our new telecommunications facility in Los Angeles, completed in August, will significantly improve gross margins as we now handle carrier traffic through our own network as opposed to using a third party."
Mr. Huff concluded, "I would like to state clearly to our 35,000-plus shareholders that GlobeTel has never been in a better position to realize substantial long-term growth than it is right now. Many shareholders have asked why then has GlobeTel's recent stock performance been so inconsistent with the company's positive growth trends. While it is difficult to attribute stock movement to any one factor, the fact remains GlobeTel's short position has climbed to approximately 3.4 million shares. We believe we are the target of certain market makers that use our stock as a short-term instrument for profit at the expense of our long-term investors who believe in our company's vision. We are confident the activities of our company will enhance shareholder value, leading to less volatility and greater market appreciation. GlobeTel's fundamentals remain sound as the company continues to perform. We firmly believe our future is bright and look forward to reporting third quarter results toward the end of next month and providing future updates on our Stratellite program, as well as other corporate developments, as they become available."
GTE seems to be setting itself up to make a move here - fridays action was quite bullish - showing almost a 10% gain and closing near the high of the day - the day's chart shows that something really kicked off in the afternoon. Not sure what, but may be in anticipation of an announcement Monday.
The chart shows that we may have some signals for an ascending traingle breakout forming. There is strong resistance at 1.60, and while there have been a couple of gap up openings above this in septmber, it has been validated as resistance/support several times in recent months. The share price has been well below the 50SMA over the last several months, and they are finally converging - a break above the 50 MA (now right around 1.60) should confirm the recent bottom, and that a reversal is in effect. Also note the MACD - which has shown a strong positive divergence in the last few weeks and is now approaching a positive crossover. All of these signal that a reversal move is in process, and we may see a breakout very soon, at least as far as I can tell.
In the short term, we may see the price bounce off resistance at 1.60, and retrace back to test the ascending support, and it this happens, I would consider it quite bullish. But keep an eye out for a break of the 1.60 reisistance that holds, and preferably not on a gap up (though this could also happen decisicely). It should signal that GTE is gonna run hard - especially as there is significant short interest here that will need to be covered - they've had their way for too long, and recent covering may have already contributed to the big marubozus this week.
One to keep an eye on all...
Quote from: ScottishTrader on October 15, 2005, 04:13:54 PM
The chart shows that we may have some signals for an ascending traingle breakout forming. There is strong resistance at 1.60, and while there have been a couple of gap up openings above this in septmber, it has been validated as resistance/support several times in recent months.
Scotsman,
Applause to you and everyone on this thread for charts, news items, background information, etc.
The chart does look like it wants to pop to the upside out of the Ascending Triangle that you mention, but I'm asking myself, "How far can GTE get, running into a brick wall?" Here's why:
1. It's just below its 50DMA, trying to get above it for the first time since late May, as you mentioned. Great, if it can, but right now it's resistance.
2. The blue lines on the chart are the two trading days, August 5 and August 8, when there was news on the stock: contracts in Germany, the CEO defending the company against an article in the New York post, the naked short selling etc. that all of you guys posted above. Interesting stuff.
The stock ran from 1.56 to 2.40 on those two days (blue lines on chart), but as we can see, the low of 1.56 got taken down. All of the people who bought in that price area, thinking that maybe GTE had finally hit bottom, had to be terribly disappointed when the stock got cut by more than 50%
again from that 2.40 high, to a low of 1.14.
The Ascending Triangle that has been forming since the breakdown, essentially, has been below that 1.56 low of the August 5-8 rally. We closed at 1.56 on Friday. During this pattern formation, there were the gaps up that you mentioned (to 1.60...1.63...1.63 again...1.60), but all of those were met with immediate selling, which you also mentioned.
3. We're right at the bottom of the Kumo (Cloud), which is immediate overhead resistance. That doesn't mean that GTE can't bang its way through there, but do I want to buy a stock that's got to fight that, especially in the current market environment?
4. GTE has a chance here if it breaks out above the Ascending Triangle. The pattern measures to a little over 2.00, which is a nice gain if it makes. But, the pattern is only of three weeks duration. That's a pretty weak base from which to go up against alot of resistance.
Bottom line:
1. I "feel" like GTE is going to rally this week, and start to bang into that brick wall of resistance.
2. If I played it and lost money, I'd want to kick my own butt for playing a stock that is in a strong downtrend, and is headed into immediate overhead resistance.
I have to pass on this one. Now watch GTE rally to 2.00+ this week. ;D
Scotsman,
I found a GTE "Game Simulator" that we all can play with :D
This stock, as we can see, is positioned similarly to where GTE is today, as we head into Monday trading. The Game Simulator stock is "headed into a brick wall" (the Ichimoku Kinko Hyo Kumo, or "Cloud") as well as alot of overhead resistance.
GTE has a three week Ascending Triangle base. The Game Simulator stock has a seven week Symmetrical Triangle base, so it's a little bit stronger than GTE.
MACD in this one was similar to what GTE's is today. It had a positive divergence, it went above the signal line, it successfully back-tested the signal line, and it is headed higher towad zero.
Okay, let's make the call: if the Game Simulator breaks out above the Symmetrical Triangle, should we buy it, or not?
I'm going to disclose the results on the "Game Simulator" now since we don't have much time to decide on GTE before Monday's open.
If you're "playing along," NO CHEATING! >:D >:D >:D
Don't read any further, or scroll down and look at the chart. We aren't going to learn anything if we just read the answer. And, if we cheat an elf, we also get a lump of coal in our stockings at Christmas time.
Here's the GTE "Game Simulator" result:
1. It broke out above the Symmetrical Triangle the next day on a gap higher, giving us a buy signal on the pattern breakout, it went to within six cents of the bottom of the Kumo (Cloud), and that was it.
2. The stock tanked below the bottom of the Symmetrical Triangle (stopping us out) and it went to a new low, also stopping us out of the trade if we had used the prior low for our stop. In either case, we're stopped out for a loss.
>:( >:( >:(
Next chart, we'll look at what the "Game Simulator" stock did after that.
hmm...
very true what you say about an uphill struggle, but something has got to turn sometime, and they are expected to release what should be good Q3 results in the 2nd half of October, possibly even this week. Something happened friday afternoon to make GTE move, and I'm not sure waht it could be (plenty of guesses though).
You didn't get round to posting the rest of the chart on AKS, but I cheated and had a peak - sure enough, after the failed upside break it posted new lows and then RIPPED gaining more than 20%. But I understand that your point is that this only happened after BOTH our sensible stops were triggered, so may have missed this run anyway. Interestingly, AKS looks to have reversed its downtrend on Friday again, at basically the same level, posting a 7% gain - but I don't think I will jump on that.
I'll be interested to see what monday's action brings - at the moment I'm fully invested, so I would have to sell out of a position (or partial position) to go in. If 1.60 is dust or we get a pullback and bounce off support, I may be up for it ;)
Quote from: ScottishTrader on October 17, 2005, 03:28:28 AM
You didn't get round to posting the rest of the chart on AKS, but I cheated and had a peak - sure enough, after the failed upside break it posted new lows and then RIPPED gaining more than 20%.
CHEATED? You'll be sorry young man, come Christmas! >:D
Sorry that I'm late posting the final chart. Yeah, the Symmetrical Triangle "morphed" (changed) into a Falling Wedge,
then it ripped to the upside.
One of the many things that David has said that I really like is that he wants stocks that already are bullish. He wants other people to have bought it, showing that there's interest, and wants to see the stock moving higher. He doesn't want to buy at the lows and sit there holding the darned thing forever, hoping that someone will get interested in the stock.
It's fine if we had bought AKS in the Symmetrical Triangle and got stopped out, but what is alot easier is to buy a stock
after we know that that the stock has done something bullish. In this case, AKS was a really nice buy on the pullback to the Falling Wedge breakout, right before it ripped to 9.79.
The Falling Wedge Pattern target was 9.24, BTW.
What's difficult for us is that we want to 'buy it on the cheap." ;) Get in early and make more money. Problem is, the stock hasn't done anything bullish, so it might not go any higher at all!
QuoteInterestingly, AKS looks to have reversed its downtrend on Friday again, at basically the same level, posting a 7% gain - but I don't think I will jump on that.
Agree with both. "Possible" double bottom here, but I'm not ready to jump either.
Quote
Hey Melf Elf,
Well there it goes!! We have a solid break of the 1.60 resistance this morning, but lets see how it does in the cloud, currently pushing 1.68.
I just bought in at 1.67 - a little late, and I should have trusted myself and bought at the open, but c'est la vie!!
hope you're having a good one this morning, lots of things happening!
Quote from: ScottishTrader on October 17, 2005, 10:24:34 AM
Hey Melf Elf,
Well there it goes!! We have a solid break of the 1.60 resistance this morning, but lets see how it does in the cloud, currently pushing 1.68.
Scotsman,
If you use the two highs of 1.63 - the 1.14 low = 0.49 added to the breakout at 1.63, that measures to 2.12. The top of the cloud is 1.82. Often when stock have been in a bearish trend and then break out of a small pattern like this one, the target doesn't make.
Just a guess, but I'm thinking maybe the top of the cloud is doable, or a little higher ???
QuoteI just bought in at 1.67 - a little late, and I should have trusted myself and bought at the open, but c'est la vie!!
I still pass on this one. Good luck! Hope you make some $$$
Thanks ;D
Is hitting some resistance right around 1.67-1.68 right now, my close out is a pullback to below 1.60, but I do hope it can hold!!
Let's see if GTE has legs....
Well, it looks like you are right for now - GTE has hit some serious resistance and is bogged down at 1.66. Not sure if it will go any higher today.
However there is some news expected this week, and doing abit more research on thee story of GTE, it sounds like they are financially sound, very investor aware, and set to do some good things in the near future.
I will maintain my hold above 1.60 for now.
Great day for GTE today - nice break out above resistance at 1.60, which it held comfortably (in fact there was a little too little movement during the day for my liking??) but pushed up at the end to close at 1.72. As Melf Elf has noted, we are in the cloudy land of resistance, but if it can barrel on through this week and hold above 1.60, which is also the 50 MA, I think it should be in for a solid ride. There is a military demonstration of their airship technology at the end of this week that may raise some eyebrows, but as I mentioned before, I think GTE is set for takeoff, and there could even be a possible G-play in the offing, if volume holds up tomorrow.
Let's wait and see, I leave the chart, which I think is quite nice :)
Scotsman,
After the breakout, GTE immediately formed a H&S Top. The high was 1.74. Neckline was 1.65.
1.74-165 = 0.09 points
1.65 Neckline - 0.09 = Target: 1.56, which was just printed.
I'll say it for you: Pain in the butt!
http://chart.etrade.com/graphs/NOW.GTE.d07.gif
yep, you called it :-[
Well, I just sold out at 1.57 - knowing me it will make a pullback after reaching its target, but I think your original analysis may be bang on - GTE could see further pullback, just like AKS and then may give it another go. Man today has not been a good day >:(
Quote from: ScottishTrader on October 18, 2005, 03:06:39 PM
yep, you called it :-[
It was more a case of...
Quote2. If I played it and lost money, I'd want to kick my own butt for playing a stock that is in a strong downtrend, and is headed into immediate overhead resistance.
I have to pass on this one.
Sorry that it didn't work out for you, Scotsman, darn it. :(
Quote
Quote
Well After the failed breakout earlier in the week, Globetel confirmed it today after a very solid upside move yesterday. The bummer is that I had already sold out, as per our discussion melf elf.
So I got back in yesterday @ 1.78, and am looking to ride this up the new ascending trendline. It appears that GTE has some strong momentum, with big volume on the up days and small volume on the pullbacks - says to me that this is a solid reversal of the recent downtrend.
Resistance around 1.90 is holding it back for now, but a break through 2.00 should see it really start to move. ;D
GTE is on Fire this morning >:D >:D >:D
Up over 13% in the first 15 mins of trading - may pull back a bit but is continuing its strong breakout!!
Yee ha! ;D
Bought at the open today. I was waiting for this to pull back but it just wouldn't. Hope I don't regret it as I've always been burned when I chase a stock. :(
GTE recently filed a grievance with the SEC saying that it's stock was being manupulated. This could account for its recent stock price rise. Usually, when a company says that it's stock price is low because of manipulation or shorts, it is a red flag. This time, it actually could be valid. One of the big question marks about this stock was claims that the Stratalite was a hoax. Hopefully, the presentation to the DOD will finally put that rumor to rest.
well if you got in below 2.00, then I think it should be all good. 1.90-2.00 was the resistance zone, and should now provide support. Resistance now around 2.20 as far as I can tell. Here's to hoping it can consolidate today's gain and push on through. We now stand at 2.13. Glad you joined the party ;D
GTE is dropping today.. Is it trying to correct itself technically.
Any comments.
- Dhiraj
looks like some profit taking first thing as it didn't really push on from the last 3 days gains. But is holding right now around 2.03-2.04. Buy and sell volume look pretty even.
We shall see, but I think it should hold above 2.00 and push up again. I may sell if it looks like it will go below 2, for a better entry.
It has dropped to 1.89 and is going low.
- Dhiraj
yeah it dropped like a rock down there first thing, certainly nothing I could do about it, as I was slightly distracted by HEB this am. But I think it looks like a technical retracement from an overbought situation at present. I'm going to hold with this ascending trendline for now and see where GTE goes over coming days.
Hope this helps
Well GTE closed today at 1.87, and I'm gutted with myself, as I've got to learn to take profits. The signal was there when the RSI hit 70 and started to pull back. Was up over 20% on this and GIGA yesterday, and now am scraping profit Argh!! >:D
Anyway, the best thing to do is not get emotional, stick to my trading plan and hold for a close above 1.75, which is where I see the trendline on the linear chart tomorrow. Hopefully we'll hammer a bottom on the trendline like we have had before, and this will push it back up again.
Here's to hammers ;D
You are right scottish.. i didn't notice either RSI already at 70 :(
QuoteWell GTE closed today at 1.87, and I'm gutted with myself, as I've got to learn to take profits.
Yeah, isn't it a pain in the neck, deciding when to take profits? If we sell too soon...that just about guarantees that the stock is going much higher. If hang on for more...it goes down.
>:D
For what it's worth, one thing that helps me is to sell at least half the position, if not all, when a target is made, or approaching a target (sometimes they fall a little short).
Quote from: Melf Elf on October 17, 2005, 10:48:13 AM
If you use the two highs of 1.63 - the 1.14 low = 0.49 added to the breakout at 1.63, that measures to 2.12. The top of the cloud is 1.82.
Quote from: ScottishTrader on October 26, 2005, 10:49:40 PM
Anyway, the best thing to do is not get emotional, stick to my trading plan and hold for a close above 1.75
Scotsman,
Sounds like a plan. 1.76 - 1.775 "should be" support.
I'm holding b/c we should have news soon about the DOD viewing of the Stratalite. (Got in around 2.05)
My biggest problem with buying these breakouts is I can't tell what is a good buy and what is chasing. For example, David buys alot of stocks after they have gone up a significant percentage (and before they pullback). NVAX, USEY, AVII were all purchased in this manner. When I try to follow the safer plan of bying on the pullback from the initial breakout, I still end up off b/c I' wait too long for a bigger pullback and the stock starts rising again.
I also am reluctant to set a stop on GTE b/c I know it will pullback eventually and pretty big. Maybe the triick is what Michael says, to buy stocks whose fundamentals can support the breakout.
I had an order in for 1.78 this morning, hoping for a quick move down to support, then the Hammer that Scotsman mentioned. (I could do without the ugly dress though). No go. The low was only 1.85, well above support. GTE now is up 14% on the day. Good for you guys!
Quote from: logocovet on October 27, 2005, 09:26:24 AM
My biggest problem with buying these breakouts is I can't tell what is a good buy and what is chasing. For example, David buys alot of stocks after they have gone up a significant percentage (and before they pullback). NVAX, USEY, AVII were all purchased in this manner.
David likes stocks that have momentum, i.e. stocks that are "on fire." Almost by definition, they are well away from the point of the breakout, and many of them don't pull back. Everyone trades differently. If on certain stocks, you are uncomfortable, then you might require them to pull back a certain amount before you enter.
QuoteWhen I try to follow the safer plan of bying on the pullback from the initial breakout, I still end up off b/c I' wait too long for a bigger pullback and the stock starts rising again.
That's alright. Then you might just pass on those, and not chase them. I wanted GTE this morning for 1.78, for a risk of about 2% (close below 1.76). That's playing it pretty close, I realize, and I diidn't get it. That's fine.
In other words, decide what risk YOU want to take.
QuoteI also am reluctant to set a stop on GTE b/c I know it will pullback eventually and pretty big.
Just my opinion, but I wouldn't stay in if there is a pullback that is "pretty big." No reason to take big hits and suffer through stocks. There are plenty of others to play. GTE has QUADRUPLE support at 1.76-1.775. If I owned this stock and it broke that support, I'd sell it, and go and play something else. Again, just my opinion.
Quote
Maybe the triick is what Michael says, to buy stocks whose fundamentals can support the breakout.
I think that's an ideal situaltion, if there is such a thing as "ideal" in the stock market. If that KOMG chart looked as good as the fundamentals that Michael has helped us with, I'd be all over it on the long side.
IMO GTE has always been a pump and dump ever since it was a 2c stock in the OTCBB. Good luck to all here nut I believe this one is destined for under $1 soon.
Personally, having been burned several times recently chasing stocks after breakout, I think that I am going to have to adjust my trading style somewhat.
For me, GTE was a good play because I identified the breakout before it happened, when it was in the ascending triangle. Ideally, if I see an ascending or symmetrical triangle situation, I aim to buy as close to the ascending support as possible, and call that ascending line your absolute sell line. That way you have a guaranteed and diminishing level of risk. But sometimes it doesn't always work that way. With GTE, I bought on the breakout of 1.60 resistance (actually at 1.68). Unfortunatley this breakout was false and pulled back below this level. (see mine and Melf Elf's discussion of this earlier in the thread). I saw this as a failure and a sell sign and duly sold for about an 8% loss (and wasn't too happy about it). But the price did not breach ascending support, which should have been my sell line, and rebounded to make the full breakout. I then realised I had made a mistake, that the breakout was genuine, and bought back in at 1.75. So while I am sitting on a nice little profit right now, this has been negatively impacted by the loss I made on selling earlier for a loss. To protect this profit, I will sell on a break of the new ascending trendline, no matter what.
I am also working on trading peaks and dips (which to date I've had little success), identifying overbought situations in which to take profits. With GTE, I didn't like to see so much of my profit erased on the last pullback, but wasn't willing to sell, so just ate it. Fortunately for me, GTE seems to have bounced back from that and is still bullish, but using indicators to find good sell points on stocks like this, SVA, NVAX to name but a few recent ones, can really make all the difference. On NVAX, David let a 111% profit turn into a 36% profit in 3 days. Here, when the RSI hit 70 at the top of the last run, I should have immediately been looking for any sign of weakness or reversal to sell, and then considered a buy back after a couple days, closer to the ascending trendline. And if you sell at a high, only to see it race higher, don't worry about it, move on to the next one, or wait for it to set up for a buy-in where you have a smaller level of risk.
That is at least the idea, but it's easier said than done. I'm doing my best to stick to plans like this, but when I see something racing, I do keep making impulse buys to "chase a winner". These have been, without a doubt, my biggest losses, losing 75% on HYRF just recently, 30% on SVA, because I was doing just this, and when it pulls back and you are immediately in the red, you are loath to sell, and then it can get really ugly :P
So for GTE, I think we are still definitely in a bullish breakout trend. High volume on up days with lower volume on the pullbacks. There is some resistance at 2.16, and it could pull back again from that level. At present the trendline stands at about 1.90 for tomorrow, which puts it .23c above the trendline. This represents a potential risk of 10.8%, which is a bit more than I'd be comfortable with for an opening position. As Melf Elf said, you're comfort level with risk is your own, and it may cause you to miss some plays, as he just did. I can normally handle about 5% risk in a trading plan, so would look for a low print of 2.00 or below to buy. My feeling is that a breakout above 2.25 should run, but may be dangerous to buy into unless you are good at reading the sell signs and willing to execute whenever you see percieved weakness.
Here's the chart, hope this discussion of my trade helps.
good job scottish... :D
Quote from: ScottishTrader on October 30, 2005, 10:20:52 PM
Personally, having been burned several times recently chasing stocks after breakout, I think that I am going to have to adjust my trading style somewhat.
Scotsman,
Very nice post! Applause.
You're on the right track here. It took me a long time to recognize that analyzing a chart and actually trading the stock are two very different things.
I very much like your example about entering the stock and using the up trendline as your stop, knowing, for example, that you risk only will be a loss of, say, 5%. Not only does that limit your risk to a level with which you are comfortable (barring a gap down), it takes these emotions out it:
"Should I sell?"
"Should I hang on and "hope" that the stock doesn't sink any lower?" (I know that I'm in trouble when I start "hoping" that the market will bail me out of a losing position).
When we blindly jump into stocks without a trading plan, without knowing where our stop is, without having an idea about a profit-taking exit strategy, we can get to some big trouble.
Stay with this concept, Scotman, because I think that your results will improve noticeably if you employ the kind of strategy that you've discussed.
Thanks very much for your words of encouragement. ;)
Looking over my trades for the last month, it has been just horrific, and now I want to start to turn things around. Very often the difficult but right thing is to pass up what appears to be a rocket for exactly this reason. Too often I have not wanted to "miss out", but I have to keep reminding myself that there are stocks "ripping" every day. If you play it right, and identify a few stocks that yoou are happy with your entry level, and have a plan to stick to, things are so much safer.
Let's continue to keep our eyes peeled for nice set-ups that provide exactly this. :)
Here in 3SOF i'm learning everyday ..applause for both of you Scottish & Melf elf ;)
Hmmm... realised I hadn't posted on GTE in a few days, and reading over my previoous posts, it looks like I did not follow my plan as I stated it. :-X
Doh! Well, am still holding, and it has broken sideways out fo the ascending trendline, probably in expectation/waiting around for some news which is overdue this week. Not sure whether news being overdue is a bad sign (apparently due to their corporate offices being taken out by hurricane wilma), but at the moment there is strong support at 1.87 (have a look at stockTA.com for this). So I will hold for news and sell on a break of 1.87. I still see GTE as wanting to go much higher, we'll see ???
Thanks for everyone's comments. I had to sell my postition in GTE due to a margin call (mostly due to SVA and EYII's recent drops).
Although I enjoy this site greatly, I've not been doing very well with this breakout trading style. It is mostly due to my inexperience (and the bearish market didn't help). Anyway I'm down about $5000 this month. It is a good thing I was doing well the two months prior to Oct so I'm pretty much even for the past 3 months. I'm going to go back to a more LT trading style.
I also have to use stops more to limit losses. When I don't uses stops I always have the tendancy to just wait that day longer to see it the stock will rebound. The day tends to drag onto a week and my losses grow.
Logocovet,
you're not the only one. I have also lost a disgusting amount of money in October :P After a screaming September where I was up over 60% on my ini9tial investment (mostly due to HYRF) I lost everything I gained and more in October. Whiile I'm not happy about this, it has taught me some very important lessons - stops are certianly one of them (though I have to use mental stops, as my account will not let me put stop loss orders in). Also, I am not willing to chase stocks any more (or at least right now. I would much rather look for the opportunities when a breakout is developing or identify changes in trend where the loss potential is small. As for inexperience, we're all learning! I've only been actively trading since August!! And boy have I learned a lot in that time ;) I've paid for it too, but that's the way.
GTE where it is I would say is a good buying opportunity. While there is a bit of a sideways trading issue going on here, hopefully news arrriving very soon will remediate this situation. Support sits at 1.86-1.67, as tested friday, so a limit order below 1.90 gives a good risk/reward. I am a little concerned with this one that no news is not necessarily good news, so will be playing it carefully, but I would encourage you to consider some of these short term trades if you can.
Another option is to just follow David's picks for a while and see how that goes - i.e. buy and sell with him. I have been seriously considering doing this as I was very unhappy with my performance in October, but keep getting side-tracked by other plays. Also I don't have enough money to buy 15 (or even 10 right now) positions and make it worth my while, so it means making a choice. Still, I may do this for a bit, to relax a little and leave the buying and selling decisions in his experienced hands. Alternatively, you could also give yourself a 10% rule for a bit, locking in profits whenever you've made 10% on a trade. Sure you may miss some big gains doing this, but it will give you a feel for locking in short term profits more regularly, and it is much nicer to see more green trades than red ones.
Anyway, just a few thoughts that might help out ;)
ok having a bit more of a look at the candlesticks, I am getting more bearish on GTE, and seriously considering selling on Monday, although I don't want to as we're still waiting for news.
The problem is this...
After the runup that peaked at 2.30 on the 24th October, we saw a 2 day pullback, printing a low of 1.85 - presumably health profit taking. This analysis was confirmed by the nice marobuzo obtained on the 27th, pushing prices to the previous high close. However, then next day we saw a hanging man, and this was followed by 2 down days, pulling us back to recent support, which is holding at 1.85-1.87. My concern is that GTE could be forming an imperfect falling three methods http://www.candlesticker.com/Cs89.asp (http://www.candlesticker.com/Cs89.asp) and Monday could be down significantly, confirming that the hanging man was indeed a reversal.
So my plan is slightly revised, but still stands. Sell on any print below 1.85 on Monday, as I see this as absolute short term support. Volume has been low and everyone is expecting news, which everyone is also expecting to be good, i.e. http://biz.yahoo.com/bw/050923/235375.html?.v=1.
however, if things start to head south, it may well be because some insiders have heard things that aren't as good as everyone else wants to hear (this brings back memories of SFP, if anyone remembers that run-up before delayed results, and when results came out, it tanked).
Apologies, not having much luck with stockcharts today, will try to get a chart up when I can.
Quote from: ScottishTrader on November 06, 2005, 04:35:48 PM
ok having a bit more of a look at the candlesticks, I am getting more bearish on GTE, and seriously considering selling on Monday, although I don't want to as we're still waiting for news.
The problem is this...
After the runup that peaked at 2.30 on the 24th October, we saw a 2 day pullback, printing a low of 1.85 - presumably health profit taking. This analysis was confirmed by the nice marobuzo obtained on the 27th, pushing prices to the previous high close. However, then next day we saw a hanging man, and this was followed by 2 down days, pulling us back to recent support, which is holding at 1.85-1.87. My concern is that GTE could be forming an imperfect falling three methods http://www.candlesticker.com/Cs89.asp (http://www.candlesticker.com/Cs89.asp) and Monday could be down significantly, confirming that the hanging man was indeed a reversal.
Chart is talking on GTE...i had to get back into this position...just look what has happened to DESC it flew right after the confirmation of Cup with handle
here's the link: http://www.3stocksonfire.org/trading/index.php?topic=1833.105
Yup, me too - me being the fool that I am, sold out yesterday on my plan which was to sell a break of 1.85, and when it did that I was out. However, this was obviously a mistake, and I corrected this today, buying back in higher. Bit of a bummer really, a little sudden dip and I was out of a good piece of pie.
Oh well, Terlisa, I like your chart, I hadn't seen the cup n handle, was too focused on the breakdown of the run last week. And I agree, we should expect good things from GTE in the near future.
http://biz.yahoo.com/bw/051116/20051116005627.html?.v=2
GlobeTel's Wholly Owned Subsidiary Sanswire Networks LLC Announces Successful Demonstration of Military Prototype Airship
Wednesday November 16, 10:24 am ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Nov. 16, 2005--GlobeTel Communications Corp. (AMEX:GTE - News) today announced that its wholly-owned subsidiary, Sanswire Networks LLC, has successfully completed its planned demonstration flight of its military prototype airship. The flight consisted of two military prototypes of varied size, both of which were flown for the benefit of a number of approved senior military and national security officials. The flights took place at the Sanswire facility in Palmdale, California, on Nov. 15, 2005.
The design of the military version airship is of a unique and proprietary nature and has been designed to meet specific requirements of certain military and government needs. These airships complement and share much of the underlying technology of the suite of near-space vehicles currently being developed for commercial applications. The airships flown today have been designated "Sky Dragon."
The first flight took place Tuesday morning on November 15th at 10:30 am PST and the second flight occurred later in the day. The airships performed exactly as expected, with exceptional results. The controlled-access event was attended by 25 VIPs, U.S. Government guests representing, among others, the U.S. Air Force, Department of Homeland Security, NASA, the U.S. Navy, the U.S. Army, FEMA, and other distinguished invitees.
Sky Dragon was assembled at the Palmdale facility and test flown multiple times prior to the event. The Sanswire team, together with Sanswire's strategic partners, Dr. Bernd Kroeplin and Tao Technologies, in cooperation with University of Stuttgart in Germany, managed and hosted the demonstration.
Bob Jones, President of Sanswire Networks LLC, commented: "We are extremely pleased with the results of this event. The prototype performed flawlessly and our guests were very pleased with the significant progress that has been made since the platforms were initially presented. The visiting dignitaries also expressed great pleasure at the design and products available in the Sanswire High-Altitude Airship Program. The airships that were demonstrated today were designed specifically for specialized military and governmental applications. A number of senior-level decision makers within the government commented that these successful demonstrations represent mature steps in the evolution of Sanswire's overall airship program; and, I could not be more pleased with their enthusiasm. This event marks our commitment in providing performance and capability to our customers as promised."
Timothy Huff, CEO of GlobeTel, added: "We have made significant strides in our airship program and within our business units, in general. I am pleased that GlobeTel and our subsidiaries are performing as expected and I look forward to the continued acceleration of our business growth. The success of the military version of our high-altitude airship is another important milestone in the evolution of our Sanswire program. I am very pleased, but not surprised, by the successful outcome of this event."
Dr. Kroeplin confirmed as well: "It was an honor to present this technology to our distinguished guests. The response to the technology and the flight demonstration was exciting and very well received. We will continue to develop other types of `specialmission' air vehicles - in cooperation with our partner, Sanswire. I believe there is much we can do in the very near term, which can benefit our world."
Sanswire's military version airships can operate within an altitude range of between 5,000 and 70,000 feet AGL, with varying payloads. A Stratellite, by contrast, is similar to a satellite, but is stationed in the stratosphere rather than in orbit, and operates at an altitude of approximately 13 miles. At an altitude of 10 to 13 miles above the Earth, each Stratellite will have clear line-of-sight communications capability to an entire major metropolitan area, as well as being able to provide coverage across major rural areas. Sanswire 2 is currently under construction and is expected to be completed and operational, as planned. Several Stratellites linked together have the ability to cover many hundreds of thousands of square miles. The Stratellite will allow subscribers to easily communicate in "both directions" using readily available wireless devices. In addition to voice and data, other telecommunications uses include cellular, 3G/4G mobile, MMDS, paging, fixed wireless telephony, HDTV, real-time surveillance and others.
Whoaaa!!! I sold GTE early... well, i deserve it >:(.. no patience sometimes
Goodluck for those still holding..
GTE #1... "The $1000 contest" ;) :D
Hey, Terlisa.
I bought it this morning @2.03 after I saw your chart. ;D
Thanks but sorry to hear that you sold it. :(
Quote from: minkielover on November 17, 2005, 12:09:50 AM
Hey, Terlisa.
I bought it this morning @2.03 after I saw your chart. ;D
Thanks but sorry to hear that you sold it. :(
Applaud Minkie for making an entry... i think it's going to be good for GTE tomorrow, i might buy it back again.... WAKE UP!!!!! @ pre-market :-\ lol
I sold some shares I been holding long at $2.42, a nice gain. It stalled at resistance so I took some profits. :D
Cup with Handle is kicking in ;) :D ;D
GTE #1... "The $1000 contest" 40% so far ....see ya Happy Thanksgiving to all ;)
no chart posted here in a while, so here you go.
Nice breakout of 2.50 resistance today, RSI touching 70, but still more upside potential for sure. This may precipitate more news next week, pushing the pps higher, we'll see.
Review:
1. I didn't like the Ascending Triangle breakout on October 17 enough to play it. Weak pattern. After that breakout, GTE went back below the pattern (not unexpected, given the weak pattern), but then it rallied to the 2.12 target, and beyond (got to 2.30)
2. From 2.30, GTE formed another bullish pattern (Falling Wedge), and broke out on November 8. It came back to test the breakout on November 14, made a low of 1.83, and plenty of buyers stepped in.
3. November 16, GTE had a third bullish breakout...on nice volume, and the Falling Wedge target of 2.45 was MADE that day.
Current Picture:
GTE has had THREE bullish breakouts, and has MADE two upside targets.
While it could be driven higher toward the 3.53 target IN PLAY purely on fundamentals, technically, its "ahead of itself," with the 50DMA and 200DMA badly inverted.
GTE faces resistance at the 200DMA near 2.80, and further resistance at prior low support from February-May, at 3.00-3.045. That was strong support. "Former support "should" act as resistance."
The stock is acting bullish off the September low, no question. If, however, GTE rallies directly from here into 2.80-3.045 resistance, I would be inclined to "sell into strength," in anticipation of a pullback. Possibly a fairly sharp pullback, say to support at the last pattern breakout, near 2.25.
If GTE rallies from here to 3.00, that represents a rally of 163% in two months off the 1.14 September low. If the stock pulls back to the 2.25 area (former resistance "should" be support), that would be a correction of 25%, which wouldn't be unreasonable, given the nice two-month gains.
The weekly chart gives us a broader perspective on the 2.80....then 3.00-3.045 overhead resistance (also known as "overhead supply").
Looking at the area circled in blue, all off those people who haven't yet sold represent a "supply" of sellers. They all are holding GTE at a loss, at 3.00 on up to 5.53. As GTE appoaches 3.00, many of them will want to get out of the stock at a break even, a near break even, or at a smaller loss, especially with year end squaring of books approaching. Some will "sell their losers" (like GTE) to offset gains in other stocks, for tax purposes.
The bottom of the Ichimoku Kinko Hyo "Kumo" (Cloud) is at 2.82, just above 200DMA resistance at 2.80. We can see "at a glance" that the "cloud of resistance" is from 2.82 to 3.63, exerting downward pressure on the stock as it attempts to move higher toward its pattern target of 3.53.
Damn, I sold this under 2 a couple of week ago b/c of a margin call.
Do you guys think it is too late to jump in now (Melf)? I am trying to practice that rule where you buy back good stocks at hugher prices.
The military demonstration gave this Stratalite thing legitimacy. Alot of people think this was a scam. Now most believe it is real. Almost a different stock now.
Quote from: logocovet on November 25, 2005, 06:52:00 PM
Do you guys think it is too late to jump in now (Melf)?
logocovet,
GTE rallied 16% yesterday, directly into the second level of resistance that we discussed yesterday morning, 3.00-3.045. It closed at 3.01.
Quote from: Melf Elf on November 25, 2005, 07:32:10 AM
While it could be driven higher toward the 3.53 target IN PLAY purely on fundamentals, technically, its "ahead of itself," with the 50DMA and 200DMA badly inverted.
GTE still could rally from here, directly to the 3.53 target, but...
Quoteand further resistance at prior low support from February-May, at 3.00-3.045. That was strong support. "Former support "should" act as resistance."
After the initial morning rally, GTE traded right in that
3.00-3.045 resistance area from about 11:30AM until the close.
http://charts-d.quote.com:443/987073757410?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GTE&Interval=5&Ht=400&Wd=600&Display=2&Study=MACD&Param1=12&Param2=26&Param3=9&FontSize=9
Quote
I am trying to practice that rule where you buy back good stocks at hugher prices.
The difficulty that I see with doing that here, is that it is "buying at resistance." While the fundamentals on GTE could end up being strong enough to trump the technicals, in general, we want to "sell at resistance," which is why I said yesterday morning:
QuoteIf, however, GTE rallies directly from here into 2.80-3.045 resistance, I would be inclined to "sell into strength."
"You aren't going to get hurt taking a profit."
Spotted coming, maybe... Head & Shoulders Top... protect ur profit, goodluck ;)
Just 5 sessions left for the $1000 bucks... GTE is leading the money 83% so far ;D
Hi Terlisa - the H&S on your chart seems to me a bit of a reach because the left shoulder took a year to form and the right shoulder only two months. Either way I think today's move invalidates that particular H&S. Wow, what a tear GTE has been on!
QuoteJust 5 sessions left for the $1000 bucks... GTE is leading the money 83% so far
YEAH!! That's my pick!! I'm starting to feel like Secretariat at the Belmont.
Quote from: Melf Elf on November 25, 2005, 07:32:10 AM
While it could be driven higher toward the 3.53 target IN PLAY purely on fundamentals, technically, its "ahead of itself," with the 50DMA and 200DMA badly inverted.
I thought that GTE would have more trouble than it did at 3.00-3.045 resistance, but it was "on fire." The
3.53 pattern target MADE this morning. Congratulations to those long, and to LukeQ, who has GTE in the Stock contest. Nice pick...applause!
GTE currently is BID 3.28...ASK 3.30, down seven cents on profit-taking.
I sold today as RSI above 70 and candle above top B band and MACD too high for me and it hit target.
Now will see what it can pull back to ...
http://tinyurl.com/dgzmg
This is the best on on the contest - good timing...
I cashed in my trading shares of GTE at $3.50, still holding nice core. ;D Just looked way overbought to me and I think that massive resistance looms above 3.65. News may drive this well above $4 but I had to take my profit here. I'll definitely pick some shares up if it pulls back, hopefully in the $2.50 range. Lots of momo and emotion in this beast right now, news could really light it up.
Good luck to all !
Well GTE had its pullback, marking a recent low of 2.80, very close to the 38.2% fib retracement level of 2.75. Is now pushing back to the 3.30s. I still like GTE a lot, and have my holding from 1.96 (though I originally bought at the first 1.60 breakout - oh that I had held my original position :'()
Interestingly, the Fib extensions calculated from DDmachine.com give some pretty tidy targets - low target of 4.27, likely target of 5.18 for this run, now I like the sound of that ;D
In any case, I think it may retest recent highs this week, the only thing I am concerned about is how it will react to news (seen too many run-ups only to "sell the news", no matter how good).
Any other comments on recent action ar much appreciated ;)
OK, slight adjustment to my trading plan - have been working from a log chart, but the linear one fits much better. Also, the 10 Day EMA Looks to have provided support on several occasions lately, so I will use that and my revised (linear trendline) to protect profits.
RSI pulled back towards 70 today (may have crossed over) so I am watching carefully for a pullback - I don't want to see a close below 3.00, but GTE got a pretty strong bounce off its low of 3.06 today, and I think it should react positively if it comes down to the ascending trendline.
After selling into the rally at 3.00 for a quick 20% last time, I decided to get back into my position. I'm paying about a 10% premium to the shares I sold about a week ago, but I think the next move for GTE should be upward. Bought at 3.28 today.
I think it's ready to rock and roll any day.
well bjc, I hope you are smiling, as GTE keeps on trucking ;)
Another small but solid positive performance today, GTE broke through important resistance on Friday, and today's action showed continuation of that move. Once again, the trendline was confirmed on Friday.
While it was a little disconcerting to see the generally low volume (actually vol. wasn't that bad, over 1mil shares traded), and that it pulled back for most of the day, it closed strong and I think it is well set up for upwards continuation of this breakout tomorrow. Next serious resistance is just below $4.
ScottishTrader-
Smiling, indeed 8). Too bad it's finals week. I'd like to see us push through the high in late November on some high volume, I think 3.66 (stockcharts.com is down.) I'm hoping we break through tomorrow and I can unload my shares in the 3.80s or 3.90s...
BINGO Scot!
I'm thinking about dumping my shares here, but dont want to blow another 20% like I did last time (and like is happening right now in NVAX :'( )
What are your plans currently?
I know what you mean, and each person has to think about their own risk and when to lock in profits. Personally, I see GTE hitting key resistance right around here, but it is acting very strongly today, and I think we have a good shot at breaking $4 if not today, then later this week.
This is the key point, as you can see on the chart, and one of two things could happen - it could pull back and trade in range to form the handle of this cup formation, which would also be nice and bullish, or it could just push through, whic if it does, I don't see a lot of resistance below $5.
Personally, I'm sitting with a 94% gain here, and I would sure like to see a double, so I'm gonna hang on for now. I'm pretty confident that GTE can break $4 with this kind of momentum.
I had my finger on the trigger, but I'll continue to hold. A poster on Yahoo! spotted a second couple and handle, dating back to about June 05. The handle might be a little short, but I just want to see what this puppy has left to give.
Sold at 3.88. Didn't want to watch a quick 19% profit disappear.
Scot- did you take your 100% profit?
Sorry, haven't been able to post much lately - I ended up selling this week at 3.50, below where I would have liked, but I was waiting for a break off the trendline, and thought GTE had it in it to test 4 again. I guess I was wrong :P
The last couple of days have been pretty ugly with a lot of profit taking/panic selling - hey I sold out too! However, the chart right now looks ok, and if the low of 2.80 holds, this could be seen as healthy. 2.81 was the 50% fib retracement level, and the longer term ascending trendline and 200 MA both provide support just below this level, so this could well be a good time to get back in.
However, having seen so many stocks break down and break through perceived support lately, I am not sure if I'm willing to take my chances right now. Looking to get to cash, and safe investments for the christmas period so I can relax andd enjoy myself, esp as I won't be able to check things much. Not sure what I'm willing to hold right now, but GTE may be an attractive buy in the low 2.80s if it goes back there. See what today brings.
GTE at 62% retrace and 2.30 support bo point - will see if it can bounce near here
http://tinyurl.com/ckljr
(http://xs61.xs.to/pics/05524/gtebounce.jpg)
That was part lucky timing yesterday as today's news really shot it up
metro,
Applause for your alert yesterday, and a BIG thank you!
When the .618 retracement to 2.36 didn't hold yesterday, I put in an order to buy at 2.21, the "Parabolic Return" to the trendline breakout.
After yesterday's tank, it made me a bit nervous when GTE was halted for so long this morning. When it opened and rallied to yesterday's high (2.66), I was real happy to sell it there for a nice 20% profit.
It just traded at 4.00!! :o :o :o
I still THANK YOU for your alert yesterday afternoon. That's what's great about this forum. I wasn't watching it, and would have missed the trade.
You see what this sucker just did......... ;D :D ;)
"Happy New Year" ! :o
AP
GlobeTel Inks $600 Million Russian Pact
Friday December 30, 10:41 am ET
GlobeTel Signs $600 Million Contract to Wire 30 Russian Cities; Shares Soar on News
FORT LAUDERDALE, Fla. (AP) -- GlobeTel Communications Corp., a Pembroke Pines, Fla.-based broadband telephony service provider, said on Friday it signed a contract to install broadband phone services in 30 Russian cities.
Shares of the company spiked on the news, gaining $1.65, or 75.3 percent, to $3.84 in morning trading on the American Stock Exchange. Over the last year, the stock has traded between 45 cents and $5.55, and has more than doubled year-to-date.
Under the agreement with Internafta, GlobeTel will roll out the networks in three stages, with 10 cities in each stage, over the next 27 months. Work will begin in Moscow and St. Petersburg, the company said.
GlobeTel will be paid $600 million in four payments for its work, which includes the installation of Voice over Internet Protocol (VoIP) and DECt (Digital Enhanced Cordless Telecommunications) services.
GTE's news today is HUGE. I'm in big, and have to think that this stock is going to trend to at least the 52 week high. Good luck all - and Happy New Years!
News like this? gotta love it, Count me in next week :) unless my AH order of 3.75 goes through...
$600 mil contract on a 300 mil cap company. Theres some potential growth for ya ;)
Happy new years everyone! now go have some fun!
-fousc
GTE is trading higher in Germany today on the Frankfurt exchange:
http://finance.yahoo.com/q?s=GTCA.F
It is currently up 84% at 3,50 Euro
Todays Dollar/Euro rate is 1.18.
At 3,50 Euro, GTE would be trading at 4.13$US (3.50 x 1.18). Hope this is a sign of tomorrow's trading on the AMEX...
Moving in the pre-market....
GLOBETEL COMMS CORP (AMEX:GTE) Delayed quote data
Pre-Market (RT-ECN): 4.00 0.32 (+8.70%).......Volume @66,900
hi,
jumped in at 3.70 today. hoping the 3.60's will be the bottom on this one ;D
maxi
Can someone help me? Does GTE have a large cup and handle starting from APRIL 05? I'm not sure if it qualifies.... ???
Looking at the chart, IMHO.
This has to much of a V shape. Need more of a rounding bottom, read below.
Cup: The cup should be "U" shaped and resemble a bowl or rounding bottom. A "V" shaped bottom would be considered too sharp of a reversal to qualify. The softer "U" shape ensures that the cup is a consolidation pattern with valid support at the bottom of the "U". The perfect pattern would have equal highs on both sides of the cup, but this is not always the case.
Cup with Handle (Continuation)
The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks.
As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or "rounding bottom". As the cup is completed, a trading range develops on the right hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance.
In today near the close at 3.78. Lets see if this ones got legs.
-Support at the gap open of 3.68
-Resitence at 4.00
-Stop loss: close below 3.68 to fill the gap
-Todays candle: Inverted hammer | low reliability bullish reversal
Good luck,
-fousc
Quote from: fousc on January 05, 2006, 05:31:04 PM
In today near the close at 3.78. Lets see if this ones got legs.
-Support at the gap open of 3.68
-Resitence at 4.00
-Stop loss: close below 3.68 to fill the gap
-Todays candle: Inverted hammer | low reliability bullish reversal
I will try to buy some tomorrow @ the opening
Oliver
sold :-X
Closed below 3.68 to fill the gap
Hey, I walked away from the computer when GTE was 3.68 and just found out that there is a nasty Motley Fool article accusing the company of making up the story about the $600 million contract with Russia. Then GTE provided a SEC article showing that they have a contract. Meanwhile, the stock traded over 400,000 shares after hours as low as $2.68 or so. OUCH... not another bad one! Is anyone else holding this?
Quote from: brandyjoco on January 06, 2006, 07:27:44 PM
Hey, I walked away from the computer when GTE was 3.68 and just found out that there is a nasty Motley Fool article accusing the company of making up the story about the $600 million contract with Russia. Then GTE provided a SEC article showing that they have a contract.Meanwhile, the stock traded over 400,000 shares after hours as low as $2.68 or so. OUCH... not another bad one! Is anyone else holding this?
Ouch! wow im glad i got out today lol. Thanks for the update brandy. PPS is currently back up to 3.30 at the moment. It certainly isnt a very positive article concerning GTE's practices.
Though GTE certainly did file the agreement with the SEC:http://www.pinksheets.com/quote/filings.jsp?symbol=GTE
Snippet from the article:
Details were pretty slim on this Russian pact, including only a couple of names: Maxim Chernizov, "founding principle" of "Internafta," the company on the Russian end of this deal. "Internafta," by the way, translates to something more like "International Oil." Maybe I'm looking in the wrong places, but it doesn't appear in any Moscow directory I can find, and just about every entry with the word "nafta" is a gas station or oil services outfit.
- Maybe because Internafta is a Moscow-based oil and natural gas trading company Mr. motleyfool expert.
http://www.redherring.com/Article.aspx?a=15107&hed=GlobeTel+Gets+%24600M+Russia+Job§or=Industries&subsector=CommunicationsMore Hot Air From GlobeTel
By Seth Jayson (TMF Bent)
January 6, 2006
The big promise
If there's one thing hotter than solar and/or fuel-cell-powered, blimp-borne Internet communications, it's gotta be Russian WiMAX. At least that's what the folks at GlobeTel (AMEX: GTE) would like you to believe. And speculators have been buying it.
GlobeTel stock shot up 75% in a single day last month after the firm, which describes itself as a "diversified, global telecommunications and financial services company" announced a $600 million "WiMAX wireless network" deal for the "30 largest Russian cities."
If that excites you, then simmer down. Last summer, GlobeTel announced a deal to put Internet blimps over Colombia. (The GlobeTel faithful want us to call these "Stratellites," but hey, ol' Doc Magillicutty wanted us to call his castor oil "revitalizing tonic." Some things just are what they are.)
And GlobeTel also deals in other hot technologies. The firm has announced "turnkey VoIP products," deals for wireless networks in China, Japan, and Germany, and many other projects that so far seem to have produced nothing more than penny-stock froth.
The reality
Details were pretty slim on this Russian pact, including only a couple of names: Maxim Chernizov, "founding principle" of "Internafta," the company on the Russian end of this deal. "Internafta," by the way, translates to something more like "International Oil." Maybe I'm looking in the wrong places, but it doesn't appear in any Moscow directory I can find, and just about every entry with the word "nafta" is a gas station or oil services outfit.
Sounds like a natural partner for Russia's next big WiMAX network, right? No? Then you're already onto the usual tack that real investors need to take with GlobeTel: Hide that wallet.
Let's get something straight. GlobeTel is not the next Qualcomm (Nasdaq: QCOM), Cisco (Nasdaq: CSCO), Nokia (NYSE: NOK), Motorola (NYSE: MOT), or Skype -- now owned by eBay (Nasdaq: EBAY). It's pretty tough to be a WiMAX or VoIP powerhouse given the measly $1 million it spent for the year for research and development as of the latest reports for 2005 -- with much of that going to the blimps, it appears.
It's not even the next Qwest (NYSE: Q), though, in fact, it's closer to that company than any of the high-tech network folks that speculators might confuse it for.
That's because GlobeTel gets 100% of its revenue from the dirty old phone biz, something it's so good at -- and by good I mean bad -- that its margins are zero (when they're not negative) right after the cost of goods sold. And it only loses more money as you move down the income statement.
And this is how things go with GlobeTel. According to the information I've got from Capital IQ, GlobeTel has lost a grand total of $43.9 million since 2000, and it's also running cash-flow negative. It survives on loans and stock sales.
The challenge
GlobeTel has so far declined to provide me with the most basic contact information about the Russian partner (its PR contact explained to me that it would be highly unusual for a company to provide such information. I find that highly unusual.) She did promise to send my request further up the food chain. I'm not asking them to show me the money. Just show me the phone number.
I'd love to talk with these folks about their past accomplishments in the WiMAX world, hear about their expertise with these systems, their plans for the future, and why they chose a company like GlobeTel for this impressive-sounding deal. Finally, I'd like to know why, on the strength of the single, limited, in-building wireless network demo described in the press release, someone would decide to spend $600 million on an otherwise unproven wireless infrastructure. (Especially when the blimps that GlobeTel has been touting can supposedly spread broadband to an area the size of Texas for a cost of about $30 million each.)
Foolish bottom line
If I hear anything, I'll report it in this space. Until there's some real information that makes this announcement look the least bit likely, investors should assume that this deal, like the blimp announcements, is nothing but hot air.
At 5:31pm, after the Fools article, the company put out the 8k outlining the terms of the $600mil contract. Those who shorted late in the day and after hours may have gotten caught with their pants down.
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): December 29, 2005
GLOBETEL COMMUNICATIONS CORP.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 0-23532 88-0292161
- ---------------------------- ------------------------ ----------------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
9050 Pines Blvd., Suite 110, Pembroke Pines, FL 33024
----------------------------------------------- -----
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 954-241-0590
Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (See General Instruction A.2 below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d- 2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e- 4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
Globetel Wireless Corp. a wholly-owned subsidiary of GlobeTel Communications
Corp. has entered into an agreement with LLC Internafta, a Russian corporation,
whereby Internafta will pay Globetel $600 million to construct and install a
communications network in the 30 largest Russian cities. This communications
network will utilize Globetel's HotZone 4010 WiMax (802.16e) capable radio. It
is intended that this network will provide wireless broadband access, Voice over
IP capabilities, DECT functionality, and IPTV capabilities.
The networks will be installed in the cities over a 27-month period. Payments to
Globetel are pursuant to a schedule that includes certain milestones. Payments
will be made via a Letter of Credit confirmed by a US money center bank.
Globetel will not commence construction until the first payment has been made by
Internafta. Additionally, Globetel will help operate the Russian networks once
constructed and will be a 50/50 joint venture partner with Internafta in the
networks' operations.
Item. 7.01
On December 30, 2005 the Globetel issued a press release announcing its entering
into an agreement with LLC Internafta for the construction of a wireless
broadband network in Russia's 30 largest cities.
<PAGE>
Exhibits.
Exhibits included are set forth in the Exhibit Index pursuant to Item 601
of Regulation S-K.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Globetel Communications Corp.
Dated: January 6, 2006 By: /s/ Timothy M. Huff
------------------------
Timothy M. Huff,
Chief Executive Officer
EXHIBIT INDEX
Number Description
- ------ -----------
10.1 Agreement between GlobeTel Wireless Corp. and LLC Internafta
99.1 Press Release issued December 30, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v032913_ex10-1.txt
<TEXT>
JOINT VENTURE AGREEMENT
*** denotes information for which the issuer is requesting confidential
treatment
This JOINT VENTURE AGREEMENT (the "Agreement") is made and entered into as of
this 29th day of December 2005 by and between GLOBETEL WIRELESS CORP., a
Florida corporation, with offices located at 9050 Pines Blvd., Suite 110,
Pembroke Pines, Florida, United States of America ("GlobeTel"), and LLC
INTERNAFTA, a Russian limited liability company, with offices located at ***,
Nahabino, Moscow region, Russia ("RP").
RECITALS:
A. GlobeTel is in the business of providing systems and network wireless
telecommunications and broadband and has rights to certain intellectual
property in such regard.
B. RP has capital to provide for the construction of wireless networks
utilizing GlobeTel products and intellectual property.
C. The parties wish to enter into this Agreement to realize their mutual
goals and objectives.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the
parties agree as follows:
1. DEFINITIONS.
Capitalized terms used in this Agreement are defined throughout the
Agreement. Terms not defined herein shall be given their plain English
meaning; provided, however, that those terms, acronyms and phrases known in
the computer software industry which are not defined shall be interpreted in
accordance with their generally accepted industry meaning.
<PAGE>
2. THE PROJECT.
2.1 NETWORK DEPLOYMENT. GlobeTel shall use all commercially reasonably
endeavors to deploy and build wireless networks using its know-how in 30
cities located in the Russian Federation (as further described herein, the
"Project"). The wireless network is expected to be generally in keeping with
the description contained in Schedule 2.1.1, with appropriate adjustments.
The 30 cities are tentatively identified on Schedule 2.1.2 (the "Project
Cities") along with the publicly reported population of each city. The cities
shall be divided into 3 groups (each, a "City Group"). *** The list of
Project Cities on Schedule 2.1.2 is tentative and preliminary, and the parties
shall in good faith consider deployment in other Russian cities.
2.2 AGREED BUDGET AND RP'S FUNDING. (a) The agreed budget to deploy and
build wireless networks for each City Group is US$200,000,000 (TWO HUNDRED
MILLION US DOLLARS) for a total aggregate agreed budget for the Project of
US$600,000,000 (SIX HUNDRED MILLION US DOLLARS), which RP shall pay and fund
as provided below.
(b) RP agrees to make and fund payment to GlobeTel of the US$600,000,000
(SIX HUNDRED MILLION US DOLLARS) in accordance with the following schedule:
(i) US$150,000,000 (ONE HUNDRED FIFTY MILLION US DOLLARS) to be
paid on or before *** 2006 (the "Initial Payment"). The Initial Payment shall
be paid into the following account by wire transfer:
***
or to such other bank account as GlobeTel may notify to RP for such purpose.
The Initial Payment can be made under a letter of credit naming GlobeTel as
beneficiary drawn upon a bank approved in advance by GlobeTel. For the
avoidance of doubt, the Initial Payment can be used by Globetel immediately
for the purpose of the Project in its discretion (subject to Clause 3.3); and
2
<PAGE>
(ii) for each of the three City Groups:
(A) US$75,000,000 (SEVENTY FIVE MILLION US DOLLARS) to
be paid upon installation of 50% of the total radio transmitters planned for
such City Group whether or not any network for any particular city is
completed; and
(B) US$75,000,000 (SEVENTY FIVE MILLION US DOLLARS) to be paid
upon installation of at least 95% of the total radio transmitters planned for
such City Group.
With respect to the payments contemplated by this sub-clause (b)(ii)(A) and
(B), no later than the start of work to build the wireless network in each
City Group, RP shall either place in escrow US$150,000,000 in cash under
escrow arrangements approved in advance by GlobeTel or open a letter of credit
in a form approved in advance by GlobeTel naming GlobeTel as beneficiary in
the amount of US$150,000,000 drawn upon a bank approved in advance by GlobeTel
(or use a combination of such arrangements so as to provide in aggregate such
US$150,000,000 financing). The parties may agree to make payments under this
sub-clause (b)(ii) to GlobeTel via the JVCo.
(c) Should RP fail to timely make or fund payment as contemplated by
sub-clause (b) above, GlobeTel may elect to terminate this Agreement. Should
GlobeTel elect not to so terminate this Agreement, RP shall remain obligated
to perform hereunder but shall have no rights hereunder until it fully
performs its obligations under sub-clause (b) above (and upon such
performance, RP shall have rights hereunder as at and from the date of such
performance but, for the avoidance of doubt, RP shall have no rights hereunder
relating to or as otherwise may have arised with reference to the period prior
to such performance).
3
<PAGE>
(d) All payments due under this Agreement by RP are to be made in U.S.
dollars, free and clear of any set-off, claim or applicable taxes (with
appropriate gross-up for any taxes deducted or withheld so that GlobeTel
receives the full amount to be paid hereunder).
(e) GlobeTel may apply such financing as it sees fit in connection with
the Project. GlobeTel shall not be required to account to RP with respect to
the application of such funding. Such funding represents both financing for
the purchase of the networks contemplated hereby and consideration and
inducement for GlobeTel's entry into and performance under this Agreement,
including its making available GlobeTel's Intellectual Property hereunder.
For the avoidance of doubt, such payments do not constitute the purchase of
the networks (or any Intellectual Property of GlobeTel (or of its affiliates))
by RP.
(f) (i) If the Project fails solely due to the malfunction of the
equipment and Software provided by GlobeTel, then GlobeTel shall return to RP
an amount equal to the Initial Payment by SWIFT wire transfer to such bank
account as RP may notify to GlobeTel for such purpose. Upon working operation
of the wireless network in any Project City (in full or in part), RP shall
have no right to make any claim under this sub-clause (f)(i).
(ii) If the Project fails solely due to the inability of RP to
obtain the requisite Governmental Approvals for a material number of Project
Cities in connection with the initial deployment hereunder, having used all
best efforts to do so, then at any time after June 30, 2006 and before
December 1, 2006, RP may request GlobeTel to pay RP an amount equal to the
Initial Payment less an amount of all losses, liabilities, costs and expenses
incurred, or which may be incurred, by GlobeTel (or any of its affiliates),
including internal management time, in connection with the Project, as
GlobeTel shall calculate.
4
<PAGE>
2.3 GOVERNMENTAL APPROVALS. RP shall be solely responsible for the
receipt of all Governmental Approvals needed from time to time in connection
with the deployment, operation and maintenance of the Project. GlobeTel shall
render all reasonable assistance to RP so that such Governmental Approvals can
be obtained. For purposes hereof, "Governmental Approval" means any
authorization, consent, approval, license, ruling, permit, certification,
exemption or registration by or with any Governmental Authority, and
"Governmental Authority" means any executive, judicial, legislative,
administrative or other federal, national, state, municipal or local
governmental authority, ministry, department, agency, office, organization or
authority.
2.4 NON-COMPETE. During the term of this Agreement and for two years
following its termination, RP shall not, and shall ensure that none of its
affiliates, directly or indirectly, offers any product or services or engages
in any activity that competes in whole or part with the products offered or
the activities engaged in by the JV Entities currently or in the future.
2.5 SCOPE OF PROJECT. GlobeTel may deploy networks in other parts of the
world, and this Agreement only applies to the deployment of the networks in
the Project Cities. Nothing herein shall be construed to be giving RP rights
to deploy any products of GlobeTel or its affiliates.
3. JOINT VENTURE ARRANGEMENTS.
3.1 JOINT VENTURE COMPANY. (a) The parties expect to structure the
Joint Venture as follows. GlobeTel shall establish a company (the "JVCo") in
a jurisdiction outside Russia currently expected to be Luxembourg. The
jurisdiction and corporate form of JVCo is subject to further review by the
parties (including review by their tax and legal advisors). Upon both the
Initial Payment being made and the initial funding being made under Clause
2.2(b)(ii) (the "Funding Date"), GlobeTel shall promptly procure that RP
receive 50% of the share capital of JVCo entitling it to 50% of any dividends
declared by JVCo from time to time, which may take the form of non-voting
preferred shares of JVCo. RP shall pay as the purchase price or subscription
price of such shares the par value of such shares.
5
<PAGE>
(b) If following full payment to GlobeTel of the US$600,000,000 financing
contemplated by Clause 2.2 it proves to be the case that such financing is
insufficient for GlobeTel to provide the equipment and Software necessary to
complete the deployment of the wireless network in all the Project Cities
(where such deployment is otherwise reasonably practicable), then: (i)
GlobeTel (or its affiliate) shall provide or procure such further necessary
equipment and transfer such to OpCo (for the avoidance of doubt, without
GlobeTel receiving any equity of a JVCo Entity in return and not involving
significant expenditure by OpCo) or (ii) if GlobeTel is unable to comply with
its obligation under the preceding sub-clause (i), then RP shall fund the
purchase of such necessary equipment and Software by purchasing GlobeTel's
shares in the JVCo at the price of US$25,000,000 (TWENTY FIVE MILLION US
DOLLARS) for each 5% of total Shares transferred, subject to maximum aggregate
purchases under this sub-clause (B)(ii) of US$125,000,000 (ONE HUNDRED TWENTY
FIVE MILLION US DOLLARS) and 25% of total Shares, provided further that the
purpose of such share transfer shall only be to re-allocate dividends to RP
and arrangements shall be made so that GlobeTel retains all voting and other
rights associated with such transferred Shares other than the right to the
dividends declared thereon following transfer.
6
<PAGE>
3.2 OPERATING COMPANY. JVCo shall hold 100% of the share capital of a
Russian limited liability company ("OpCo", and together with JVCo, the "JV
Entities"). GlobeTel shall nominate (and may remove and replace) the general
director of OpCo from time to time. Following the Funding Date, RP may
nominate (and may remove and replace) the second principal officer of OpCo.
OpCo shall have no board of directors and the responsibilities otherwise to be
carried by the board shall be carried out by JVCo as the sole participant.
3.3 INITIAL FUNDING, EQUIPMENT, SOFTWARE. Following its receipt of the
Initial Payment, GlobeTel (or its affiliate) shall make a capital contribution
of US$50,000,000 (FIFTY MILLION US DOLLARS) either to JVCo or OpCo (in the
case of OpCo either directly or via JVCo), such funds to be applied to the
operating costs. Provided that RP timely complies with all its obligations
hereunder, GlobeTel (or its affiliate) shall transfer or procure the transfer
(by way of in-kind capital contribution or in other arrangements (not
involving significant expenditure by the JV Entities)) the equipment necessary
for the Project to OpCo (either directly or via the JVCo), the deemed value of
which equipment together with associated know-how and Intellectual Property,
the parties agree (and in no circumstances dispute), is at least US$***),
which equipment shall be transferred in connection with the deployment of the
network in particular Project Cities. Provided that RP timely complies with
all its obligations hereunder, GlobeTel (or an affiliate thereof) shall
transfer or procure the transfer (by way of in-kind capital contribution or in
other arrangements (not involving significant expenditure by the JV Entities))
the Software necessary for the Project to JVCo, which Software shall then be
made available for use by OpCo (in an arrangement not involving significant
expenditure by OpCo), the deemed value of which Software together with
associated know-how and Intellectual Property, the parties agree (and in no
circumstances dispute), is at least US$***). OpCo will enter into customer
contracts for use of the network. Costs associated with the operation of the
deployed networks will be the responsibility of OpCo as funded by its
operations.
7
<PAGE>
3.4 FINANCIAL STATEMENTS. The parties shall agree on the appointment of
an internationally recognised firm of accountants (being one of the "Big 4"
accounting firms (the "Independent Accountant")), which shall audit the
results of operations of the JV Entities in accordance with US GAAP and/or
IFRS starting with the fiscal year ending December 31, 2006 and, starting in
2007, shall review the quarterly accounts of the JV Entities in accordance
with US GAAP and/or IFRS.
3.5 PROFIT SHARING. Profits of the joint venture, in the form of
dividends declared by JVCo, shall be shared equally between GlobeTel and RP
provided that RP shall be entitled to no share of profit (and no such
dividends) if it has not fully complied with its obligations under Article 2.
Unless otherwise agreed by the parties, no dividends shall be declared prior
to the substantial completion of the deployment of the Project in all the
Project Cities. Distribution of profit shall be subject to maintenance of
cash appropriate for the ongoing operations of the Project and the use of
profit for capital expenditure (including upgrades and upkeep of the network)
in connection with the Project. Such profits may be distributed quarterly on
the basis and upon the preparation of the quarterly accounts of JVCo reviewed
by the Independent Accountant (or, in the case of the fourth quarter and full
financial year, on the basis and upon the preparation of the annual accounts
audited by the Independent Accountant).
the rest of the report can be found at Edgar, at 8
http://www.sec.gov/Archives/edgar/data/919742/000114420406000841/0001144204-06-000841.txt
GTE looks like a great prospect. Guess I will have to be patient on this one! Anyone else in GTE?
Yup, been in/out with core holdings for nearly 3 years now and have done well. I expect 2006 to be a great year for GTE (and maybe my last). I'm really overweight in this stock but I'm up big so I feel the risk is pretty low at this point.
2006 is a crunch year for GTE, if the Strat flies...zoom. If more wireless deals come in...zoom. My opinion on the strat is that ALOT more R&D will be necessary than what is being reported. Strat news will be a golden selling and trading opportunity. I do not believe that the strat will go into commercial operations for at least 2 years. I don't think all the hazards of flying around in the stratosphere will be known until one gets there and there will be some major technical hurdles to overcome. There is military potential but the bureacracy and politics of aviation will favor the big players. Also, IMHO GTE has to put up or shut up and generate some profits soon. Alot of potential here, though.
This stock is thriving on potential, stumbles and delays cause major SP havoc. Traders have field day with this stock.
12:36 GTE GlobeTel divests C.G.I assets (3.50 +0.10)
Co announces it has sold its holdings of Consolidated Global Investments, an Australian co, back to C.G.I. As part of the transaction the co will return all its shares and options in C.G.I and retain a $1.4 mln deposit that was held for C.G.I. Given the co's movement to the American Stock Exchange, the co has decided to not proceed with its goals to list a co on the Australian Stock Exchange. "...We are now in the strongest financial position that GlobeTel has ever been in. With the recent exercise of over $7 mln worth of warrants, GlobeTel's debt free status, and the recent contracts gained by GlobeTel, we are in a position to realize the opportunities before us..."
I have 3000 shares of GTE for long term. This company has some exciting future prospects. It is going up today hopefully will continue to go up especially when it starts showing some profits.
GlobeTel's Australian Odyssey
By Seth Jayson (TMF Bent)
January 23, 2006
Let's open on a high note
You have to hand one thing to the folks running GlobeTel (AMEX: GTE): They've got hustle.
Following my recent article questioning the reality of the impressive-sounding Russian WiMax deal that catapulted this penny stock onto the hot list at the beginning of the month, GlobeTel has been busy releasing reams of PR, as well as catching up on its regulatory filings.
An absolute pip was a multi-page Q&A, which seemed to address some of the important open questions out there. But in the end, it provided little more detail than the original PR. Of the 30 cities claimed for the rollout, only two are named. The real identity of GlobeTel's Russian investors remains a mystery, and there are those nagging questions about competition and feasibility.
How is it possible for this unheard-of Florida company, with little track record, to suddenly vault past established equipment makers like Qualcomm (Nasdaq: QCOM), Cisco (Nasdaq: CSCO), Nokia (NYSE: NOK), and Motorola (NYSE: MOT), not to mention powerful multinational telecoms? Especially since GlobeTel seems to have no technological advantage, as evidenced in its regulatory filings, where it explains that the equipment and software it uses are readily available from major suppliers on the open markets?
Step back
If you need a quick catch-up, GlobeTel is primarily a VoiP telephony provider that, until recently, was most notable for its years of heavy losses. Earlier this year, the stock made a splash with a pile of press releases (dozens, really) touting -- get this -- high-altitude blimps broadcasting wireless WiMax Internet. Never mind that these blimps have never been shown to operate in a manner that would make the service feasible. Never mind that the Internet-broadcast blimp is already a decade-old bad dream. (In the late '90s, the same scheme was being touted by a company called Skystation, whose public face was former Secretary of State Alexander Haig.) And finally, never mind that the first deal GlobeTel announced for these blimps involved anonymous Colombian investors operating via recently minted Florida companies.
Speculators responded by sending this stock through the roof anyway. But that was back then. The stock trickled from $5 a share back to well under $2 by the time the next big thing hit the PR wires and the Internet message boards.
The new new thing
The latest hubbub is a $600 million-plus Russian WiMax deal that claims to be able to offer wireless telephony, wireless Internet, and television, all over the same network. Investors have piled in again, despite the open skepticism displayed from Russian communications analysts in stories in the Russian media. (This is quite unlike the American press, which remains content to parrot GlobeTel's press releases under the guise of "news.") To take only one recent example, a Jan. 13 article in the St. Petersburg Times (the one in Russia) cited a minimal audience, maximum competition -- with 280 wireless access providers already in Russia, and more expected -- and the threat of major telecoms entering the fray.
Does anyone really think that established wireless giants like Mobil Telesys or VimpelCom (NYSE: VIP) -- which together account for some 90 million subscribers in the former Soviet states -- are simply going to let some upstart come in and eat their lunch?
For another point of reference, consider that Europe's largest broadband provider, France Telecom (NYSE: FTE), has only 10 million Internet customers -- the number GlobeTel says it aims to get in just three years in Russia. Yet France Telecom operates in the affluent regions of Spain, the U.K., the Netherlands, and France, where, according to World Bank figures, people have at least two or three times the purchasing power of Russians.
A cautionary tale
Folks out there who wonder why I'm critical of these announcements need look no further than another press release that GlobeTel released last week. It illustrates the problem precisely. GlobeTel's much-hyped foreign operating units, which are always trumpeted with promising PR, not only come under strange circumstances, but they also often do very strange things and meet with very strange ends.
In this latest press release, GlobeTel announced that it had shed a 70ish%-owned subsidiary called Consolidated Global Investments (CGI). GlobeTel's press release states that it "divests" itself of CGI assets. That piqued my interest, because according to GlobeTel filings over the past few quarters, CGI's only asset of note has been shares of GlobeTel stock. A subsidiary whose biggest asset is stock in its parent company? How does that work? It takes a bit of digging to get at the back story here, but it's well worth it. So let's begin.
The wayback machine
This Australian unit first appears in the GlobeTel saga under the name Advantage Telecommunications (ATC). In the most recent 10-Q, that subsidiary's latest iteration -- it's called Consolidated Global Investments (CGI) -- was described as being 73.15% owned by the parent. (I'll generally refer to the entity as ATC/CGI.) Although Globetel claimed as recently as that fall 2005 10-Q that it intended to make ATC/CGI into an operating company, ATC/CGI had little chance of becoming so, as the public record clearly shows.
The first reference to ATC/CGI comes in a 2003 10-Q, and curiously, it doesn't mention operations of any kind. In that filing, GlobeTel describes a "strategic investment," a $1.2 million convertible, 12% note transaction -- though the parties agreed that no interest would be paid, according to later filings. These non-interest-bearing 12% notes were convertible into "one share of $0.01 (Australian $0.01) of stock and one free attaching option exercisable at $0.01 (Australian $0.01)." The deal would let GlobeTel have up to 50% of ATC/CGI, as well as control of its board.
The PR blitz
In typical GlobeTel fashion, the press release heralding this venture was a bit more bold. The Sept. 22, 2003 press release claimed that this combination would create "a new force in global telecommunications." It also said that ATC had operations in the U.K., Hong Kong, China, Germany, Macau, Vietnam, Sri Lanka, Bangladesh, Mauritius, Cambodia, Indonesia, Pakistan, and Taiwan. It estimated the "replacement value" of ATC's network at $30 million and claimed that ATC had revenues of $10 million from 2001 to 2003, ramping at a 500% clip.
Sounds pretty impressive, eh? A million three for a half share of a $30 million network, and a partner growing revenues toward the sky? Keep in mind the context. Back in 2002 and 2003, GlobeTel's annual revenues were just more than $11 million. A claim on half of the reported revenues at ATC/GCI would have represented a nearly 50% increase for GlobeTel's top line. Unfortunately, the good folks at GlobeTel, including current CEO Tim Huff, neglected to mention a few facts.
For instance, they didn't disclose that until 2002, ATC was, according to the Australian Securities and Investments Commission's (ASIC) records, a publicly traded firm called "Nugold Hill Mining." (FYI, the new, Russian-Globetel WiMax joint venture is to be called "NuTel." Strange coincidence, eh?) GlobeTel also neglected to mention that this up-and-coming gold mine-cum-telecommunications powerhouse was actually burning through cash like crazy, selling its services for less than it cost to provide them -- as GlobeTel does, by the way. This major cash burn caused the Australian securities regulators to question, as early as 2002, whether ATC would continue as a going concern.
But if you think that would have been enough to keep GlobeTel from playing with this particular fire, you haven't seen anything yet.
The quiet scandal
Nugold/ATC/CGI was the key character in what some in the Australian press called one of the biggest embezzlements and securities frauds in Australian history. According to ASIC, from March 2001 until September, 2002, the company was the subject of a very complex stock manipulation by an Australian securities dealer named Upul Samantha Anthony, who worked for Cogent Securities. During that time, Anthony stole more than $16 million from his employers and funneled $10 million directly into ATC/CGI and affiliates. Additional details reported from police records by writers for the Australian Financial Review (FR) shed even more light on the scheme.
Anthony sent $7 million of the pilfered money in "loans" to ATC/CGI in order to shore up the cash-hemorrhaging company, and he sent another $3 million to Nugold -- via another telecom, Futurstel -- where it was used to finance the purchase the remainder of ATC/CGI. (The rest of the money went toward trying to manipulate the penny stock's share price on the Australian market via Nugold/ATC/CGI stock purchases through various fronts.)
When Anthony finally came clean in September of 2002, ATC/GCI claimed it knew nothing about the scam. That's pretty tough to swallow, given that, according to FR, Anthony actually lived with two of ATC's founders, Andrew Boyd and Hastings Singh, and it doesn't appear that the company would have survived long without the money Anthony stole.
Anthony, who cooperated extensively with Australian securities investors, said he was promised a job at ATC/CGI, as well as a large slug of shares, if he could secure capital injections needed for ever-increasing amounts of network equipment for ATC's Hong Kong wing. According to the FR article of September 2004, the stolen $7 million that was paid directly to ATC/CGI simply disappeared without a trace.
The other shoe drops, slowly and quietly
As far as I can see, Globetel didn't bother to inform investors about this particularly strange and serious sequence of concerning its new Australian partner, even though it would have been well aware. Remember, GlobeTel got into the ATC venture in September of 2003. Anthony, the embezzler, went to the Australian cops to confess back in September of 2002.
But GlobeTel did, in its own, quiet way, slowly make the real value of ATC/CGI known. Only six months after that promising press release, in GlobeTel's 2003 10-K, a bit more truth about ATC/CGI came out. It was subtle, but it wasn't pretty. Shareholders who bothered to read it would have been informed that ATC "had operations in England and Hong Kong and had points of presence in over 15 countries. [Note the use of the past tense. Emphasis is mine.] The agreement was subsequently modified to where our investment of $1.2 million would be for purchase of the ATC's [sic] telecommunication equipment and network operations in Hong Kong and England."
Had operations? Restructuring the deal to become a purchase of equipment? Sounds to me like those promising ATC/CGI operations had already ground to a halt.
By Dec. 31, 2003, only a few months after the press releases, GlobeTel had paid ATC/GCI $302,000 in cash and sent the remainder via shares valued at $897,000.
By June of 2004, another $50,000 in cash had arrived, and ATC/CGI agreed to value the 16.5 million shares (figures quoted before the more recent 15-to-1 reverse split) of GlobeTel stock at $1.37 million, although the shares during the acquisition period were very volatile and traded for as little as $0.02 a stub.
By August 2004, a bit more truth came out in GlobeTel's Q2 statement. At this point, GlobeTel finally admitted that ATC/CGI had no operating activities -- quite a change from the 500% grower of the press release only 11 months prior. GlobeTel also effectively admitted that ATC/CGI's assets weren't so amazing, certainly nothing like the $30 million network touted in the original press release. ATC/GCI's main asset was, according to that 2004 Q2 filing, nothing more than those shares of GlobeTel stock.
Who's on first?
You think it's strange that one of GlobeTel's big strategic investments would turn out to be in a non-operating, once-manipulated, formerly gold-mining, suspended, phone-flop stock? Find it odd that this strategic partner's once-flaunted assets actually amounted to little more than a pile of its parent company's shares? Just wait; it comes full circle.
More recent filings have made clear that, through July of fiscal year 2005, this non-operating subsidiary -- the one that had nothing to do with that stock manipulation back in Australia -- hasn't been completely stagnant. It has, in fact, been trading in the stock of its parent company, GlobeTel.
It's a pure coincidence -- I suppose we should assume -- that this trading came precisely during the period that saw the huge ramp-up in GlobeTel press releases touting its WiMax blimps and the coinciding rise in GlobeTel's share price. By selling 7.3 million of its own (pre-split) shares via the ATC/CGI subsidiary during this period, GlobeTel netted proceeds of $1.6 million, $1.46 million of which came back to GlobeTel by a nifty method.
GlobeTel engineered a $1.46 million prepayment from ATC/CGI to GlobeTel's own wholly owned subsidiary, Sanswire, ostensibly toward rights to the WiMax blimp business down under. Let's restate that, just for clarity: GlobeTel had one majority-owned subsidiary arrange to prepay its other, wholly owned, subsidiary for a license for technology that's still months, if not years, from being proved feasible, using money it obtained by trading in the parent company's stock, which was inflated following heavy PR regarding that same blimp technology. And now, GlobeTel is waving goodbye to that subsidiary and keeping the cash.
If this sounds to you like a pretty complex way to create funny money by selling your own shares and shuffling money from one pocket to the other, join the club. Maybe I'm missing something, but it sounds that way to me, too.
Foolish bottom line
I'm not surprised that the press release detailing the wrap-up of ATC/CGI didn't bother to tell the entire ATC/GCI tale. GlobeTel's PR machine is very good at, shall we say, accentuating the positive. As for the negative, well, that takes a bit of looking in the nooks and crannies. And who has time for that when there's all of those happy press releases to read?
The real problem is that this particular deal is only one of many strange and spooky delights in GlobeTel's convoluted partnership and financing schemes. There are so many foreign joint ventures, convertible offerings, private placements, semi-anonymous "government-connected" financiers, stock payments for services rendered, and asset writeoffs that it is difficult to imagine that anyone who's high on this stock -- and there are plenty; just ask my email inbox -- has looked past the technological hype at the financial machinery beneath. Companies this small don't need to be this complex. When they are, smart investors wonder why.
And this, in a nutshell, is why I have grave doubts about the reality of this big Russian announcement. The devil is always in the details, and they will be lot tougher to come by with a Russo-Luxembourgian joint venture. Absent hard facts, like the target cities, competitive price plans, costs of purchasing this network equipment, realistic subscriber goals, or, more generally, the identity and motive of these anonymous Russian investors, there's no way of guessing whether this latest venture will become a success, another ATC, or something even worse.
This looks like a nice shake to buy into. Anybody familiar with this stock care to comment.
I've got some GTE - OUCH at 3.90 from a month ago. It looks like it has great future possibilities. Too bad it is getting smashed from that Motley fool article. What do they have against the company?
IN THE MONEY:Forget Dan Brown;Try 'The GlobeTel Code'>GTE
Here is a more fair and balanced artical on gte reported by a dow jones columnist
[ 2006-01-26 ]
By Maxwell Murphy, A Dow Jones Newswires Column
NEW YORK (Dow Jones)--At first glance, the world of GlobeTel Communications Corp. (GTE) appears akin to Dan Brown's blockbuster thriller "The DaVinci Code".
GlobeTel's a Florida-based company that, until now, has largely gleaned revenue from selling bundled telephone minutes. Dig a little deeper into GlobeTel's world, however, and you'll find a cast of global characters including a former astronaut, diplomats, Colombian President Alvaro Uribe, a firm founded by Henry Kissinger and a former CIA employee. There's even a member of the Knights of Malta, a millennia-old charitable Roman Catholic order some claim is as shadowy as Brown's puppeteering Priory of Sion.
But putting all this intrigue aside, GlobeTel's worth a look from the far less conspiratorial aspect of pure fundamentals.
GlobeTel, a former Bulletin Board shell company, has racked up more than $55 million in losses over the past several years. But it has aspirations to usher in a global wireless revolution, using a technology called WiMax it bought last year for nextto nothing, that it someday soon hopes to combine with its high- tech, blimp-like Stratellites (GlobeTel says "rigid dirigible" is more accurate than blimp).
The company says it just inked a deal with a group of Russian investors it says will land it a $150 million payment this month. There's another $450 million on top of that when it completes its wireless rollout in 30 major Russian cities over the next nine quarters, but GlobeTel says it's even more excited about the recurring revenue streams the deal promises than it is about the initial payment.
Though details are scant, $600 million would help convince its investors that GlobeTel's for real and prove wrong a growing throng of short sellers betting the hope is no more than hype. Short interest rose more than 32% from mid- December through mid-January, to more than 5.3 million shares sold short.
Neither shorts nor true believers have to wait long; GlobeTel Chief Executive Tim Huff says the $150 million is due in the next five days. A press conference in Russia with LLC Internafta, the foreign investors, will in February set the stage for network building in Moscow and Saint Petersburg beginning in April, he said.
GlobeTel's stock traded up slightly at $3.02 on the American Stock Exchange in Thursday midmorning trading, following a sharp drop Wednesday on heavy volume with no apparent news. Though it's off 33% from an all-time high earlier this month, it's still prodigiously above the roughly 15 cents it fetched just over a year ago. With more than 121 million fully diluted shares outstanding, GlobeTel has a market value above $360 million.
A successful Russian deployment - along with revenue from deals it says are in place in countries like Mexico, Colombia, Japan, China and Brazil - would justify that and then some.
If successful, tiny, unheralded GlobeTel will go down as one of the shrewdest acquirers in recent memory. GlobeTel paid only $2 million in stock just seven months ago when it bought HotZone Wireless. That deal gave it WiMax and other wireless technologies which GlobeTel hopes will deliver wireless telephony and broadband to Russia and other nations.
Put another way, the Russian deal is worth 300 times what the core technology cost GlobeTel.
Huff says HotZone, formerly a GlobeTel partner, sold the technology because it ran out of money, and he sees its acquisition as no more unusual or improbable than Microsoft paying $50,000 for an early version of the MS-DOS computer operating system.
Cynics have plenty of ammunition on GlobeTel: a history of losses, related party deals and lofty aspirations touted by a raft of press releases.
In 2002, Paul Taboada, an analyst with Hornblower & Weeks, was suspended and fined by National Association of Securities Dealers for "issuing a research report containing material misrepresentations and omissions" about GlobeTel back when it was called American Diversified Group. (His firm and two principals were also penalized). According to GlobeTel filings, Taboada consulted with the company for many years and is now an investor in a class of its preferred stock.
If GlobeTel's as full of hot air as the fleets of dirigibles the company sees as a cheaper alternative to satellites, some pretty big reputations are going to take a bath. Officers, directors and partners of the company include a former astronaut, Rick Searfoss, and a couple other well-respected employees of National Aeronautics and Space Administration that a NASA spokesman concedes GlobeTel was able to poach.
In September, it named former U.K. ambassador to the U.S., Sir Christopher Meyer, as its chairman. The distinguished statesman is currently chairman of the U.K. Press Complaints Commission and serves on the boards of several U.K. companies.
Then there's J. Randolph Dumas, a successful global businessman, Wharton graduate and, several biographical notes on him say, former national briefing officer for the CIA. The CIA doesn't confirm or deny employment or discuss companies, a spokeswoman said. Dumas was until recently employed by Rubikon Partners, a private equity firm he co-founded with Henry Kissinger, Leo A. Daly III, a third-generation architectural success and self-proclaimed Knight of Malta, and GlobeTel's most recent director, Dorian Klein.
The Uribe connection stems from a meeting with the Colombian leader and his cabinet last year over a potential $50 million deal, made with another company organized in Florida early last year, to float five Stratellites and set up a wireless network in the South American country. GlobeTel in July said it " received strong support for the project from several high ranking government officials including Colombian President, Alvaro Uribe," who GlobeTel officials said they met at his palace in Bogota and who was "very gracious and told ( GlobeTel) that he would help (it) in any way that he could to bring this technology to his country." A call to the Colombian embassy to the U.S. went unreturned.
GlobeTel's Sanswire unit wants to put fleets of these so-called Stratellites in the stratosphere, 65,000 feet over the Earth's surface. The Stratellites look like blimps, but GlobeTel is quick to remind they're a different breed of dirigible that hovers above the weather and can eliminate some of the signal delays and other problems experienced when transmitting to and from satellites in outer space. Since acquiring Sanswire in early 2004, GlobeTel has been developing and showcasing prototypes, and CEO Huff says a demo model will have a test run at Edwards Air Force Base next month with a working product ready in six to 12 months.
It also says deals with an Indian company, Financial Software & Systems, will be a huge success when GlobeTel's stored-value cards - a MasterCard that can also be used as a calling card and secure money-wiring-and-receiving device - hit the market in the coming months. With its new initiatives and a focus on the margins of its current business, Huff says debt-free GlobeTel sees break-even results for the current quarter.
Today's sales, growing rapidly as they may be, are designed more to boost GlobeTel's top line than its bottom. Right now, GlobeTel gets the vast majority of its revenue from selling wholesale international telephone minutes on its networks to a select few major telecommunications providers, and that business has the slimmest of gross margins. Huff says GlobeTel hopes to double that business, to about $200 million a year, and make it profitable, but the focus in coming quarters will be its other ventures.
Even Dan Brown's fictional protagonist, Harvard symbology professor Robert Langdon, might not be able to figure out whether GlobeTel's Russian wireless network will succeed. Until the story climaxes, expect GlobeTel investors on both sides of the fence to feel like they're reading a frenetically paced novel full of excruciatingly short chapters that each end with a cliffhanger.
(Maxwell Murphy is one of four "In the Money" columnists who take a sophisticated look at the value of companies, and their securities, and explore unique trading strategies.)
By Maxwell Murphy; Dow Jones Newswires; 201-938-5173; maxwell.murphy@ dowjones.com
GTE responds to the MOTLEY FOOL ARTICLE as being 'misleading':
http://biz.yahoo.com/bw/060127/20060127005563.html?.v=1
I have never seen so much bashing against a stock! What gives?
Sounds like he is just following protocol in responding to the artical by MF. Monday will be a huge day for this stock whether it be up or down. They are suppose to have their first payment the 600mil deal with russia by feb 1.
GTE may be worth another look right now -
after consolidating in the 3.70-3.20 zone, it broke to the downside heading below 3.00. This looked pretty bearish, but pushed back into the flag Thursday, and held within the flag Friday. May signal a possible bear trap reversal in the making.
As we all know there is huge speculation about this Russian deal and the first payment of $150m is expected any day now - this could fuel some big things next week. I would look for a break of 3.70 for confirmation of the reversal. A measured move from the first major advance would put 5.20 in play.
GTE closed at 3.20 on Fri, and is sitting at 3.35AH, up almost 5%. Monday could be breakout day. I will certainly be watching.... 8)
Scotsman,
You wanna talk nervy?
Parabolic rally...Parabolic return...Parabolic rally...Ride 'Em Cowboy!!!
Quote from: ScottishTrader on January 28, 2006, 08:37:59 PM
This looked pretty bearish, but pushed back into the flag Thursday, and held within the flag Friday. May signal a possible bear trap reversal in the making.
It looks like your flag morphed into a falling wedge. The low of 2.87 wasn't far off the 2.95 .618 retracement, so this could get some more pop if 3.48 gets printed, a technical breakout of the wedge.
Good luck if you play it!
Melf Elf:
Thanks for the technical chart analysis. I am holding on to GTE based on speculation only (they promise big things including a possible breakeven on profit/loss this quarter). It helps to have some technicals also.
Ain't it just crazy when you see something and then someone shows you something totally different that you just completely missed - that's why I love 3SOF!!
Big applauds Melf Elf, the only thing I don't like is that the falling wedge could potentially fall a good bit further before breaking, as opposed to my bear trap, but you plays it how you sees it I suppose. For me I will take you advice and look for an upside break of the falling wedge as confirmation. If this one does break, I see it breaking hard - could get a solid secondary run well into $4+.
Thankis again for your insights ;)
Quote from: ScottishTrader on January 29, 2006, 05:54:36 PM
Ain't it just crazy when you see something and then someone shows you something totally different that you just completely missed - that's why I love 3SOF!!
Scotsman,
Great fun, isn't it?! That very thing just happened to me when calven put up his chart in the ASTM folder. I've been ignoring ASTM because it looks so weak on the daily chart, but the weekly chart still looks very bullish.
Quote
the only thing I don't like is that the falling wedge could potentially fall a good bit further before breaking, as opposed to my bear trap, but you plays it how you sees it I suppose. For me I will take you advice and look for an upside break of the falling wedge as confirmation. If this one does break, I see it breaking hard - could get a solid secondary run well into $4+.
I know what you mean. Those sharply falling wedges can be tricky.
brandyjoco,
You're very welcome, and good luck with your trade! Thanks for your note in the NVAX folder.
Did anyone else besides me get taken to the cleaners on this pos. :'( It might be a good buy now.
I got taken to the cleaners too!! I had 3000 shares - how about you? I sold out at about 2.80. I'm not sure what to do because there are alot of other good stocks I would like to buy - possibly TGB. I am waiting for Dave Randolph's analysis before making a decision.
Personally, I don't want to sit around on GTE for the next 30 days. I remember when SNTO got hit hard. It went down for a couple of days and then started to rebound. GTE may go down tomorrow too so if you decide to stay with the stock you may need to be patient. I think my patience ran out.
Well GTE made a BIG bounce yesterday afternoon on this story from the Dow Jones Newswires:
Pact Delay May Be Twice As Good For GlobeTel
http://webreprints.djreprints.com/1404921412584.html
and while I had been thinking the last couple days were probably a very good time to get back into GTE as the pps had floored and settled, of course I didn't and then completely missed this 25%+ move!!!
But I think this could really fuel another speculative ride. It also appears to corroborate both their story and suggests they may get half the money upfront :o The news wasn't officially released on the newswires (I don't know why) but when it does, maybe this morening, GTE should see another pop. Probably looking for a strong day today - may hopefully push into the high 3's, provided it doesn't just start walking its way back down. But I think this is a very strong story, confirming that this deal is going ahead, and investors certainty should reflect this.
I played it yesterday on the big volume and break out. Good to trade but another type that who knows if it is real. They intend to build a WiMax system in Russia but people here in Russia first wonder if it is real then why would a tiny company with no track record be selected and also no one knows the Russian company supposedly made up of some investors. Then there is the problem in obtaining the frequencys as the government of course controls who get the use of the "radio waves" and no one has yet applied and there may be huge bribes to pay even if accepted.
Maybe all could be real of course but just a very strange situation to not have any known company involved if it is real.
Well walk down it did, but I think GTE is about to start moving again. A recent touch on the long term ascending trendline confirms this as support, and I see (2 levels) of descending resistance coming into play, forming an ascending triangle with an upside target of 5.75ish. There was some funny pre-market action yesterday, popping the pps up a bit, but it pulled back during the day. Volume is currently fairly low (well still almost 1m shares per day), but there is real expectation of an announcement about the Russian deal in the coming days. As they say, the proof is in the pudding with this one. I am fairly (and I mean fairly) confident they will come up with the goods, and put the shorts to rest.
GTE is moving on this news! Looks like the Russian deal is going to come through ::)
GlobeTel Provides Update on Closing of Russian Transaction
March 03, 2006 09:42:01 (ET)
FORT LAUDERDALE, Fla., Mar 03, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade) today announced that it was notified today by LLC Internafta that the close of the transaction providing the funding for the installation of wireless networks in 30 cities throughout the Russian Federation, scheduled for March 2, 2006, has been delayed by the bank until next week due to internal bank scheduling. The transaction is being syndicated by several tier one European Banks.
Timothy Huff, CEO of GlobeTel stated, "Internafta has reassured GlobeTel that the transaction is in its final stages. This has been a suspenseful time for our shareholders, and for us, as we wait for the network to begin its deployment. Internafta and GlobeTel do not control the timing and events in this banking transaction."
LLC Internafta's Director General Maxim Chernizov added, "We are confident that all the issues will be resolved in the upcoming few days not weeks. We have been working together with the staff at GlobeTel Wireless for many months on this transaction and I feel that we are at the last few steps in a very complex banking process. We are committed to this transaction and still remain very excited about providing a state-of-the-art wireless network to the people of the Russian Federation."
Timothy Huff went on to say, "This transaction will not be allowed to be left hanging open with continuing delays. I believe it is in the best interest of GlobeTel to continue to work with Internafta as long as I believe that the transaction is moving forward and that both parties are working in good faith to finalize it."
The network will be operated by NuTel Wireless ("NuTel"), a Russian company 100% owned by a European Joint Venture company established by GlobeTel and Internafta. Each party will own 50% of the shares of the European JV company that owns NuTel.
About GlobeTel Communications Corporation
GlobeTel Communications Corp. develops and provides an integrated suite of telecommunications products and services, leveraging its advances in Stored Value, VOIP and Wireless Access technologies. Individually, each of GlobeTel's five business units function as distinct, strong stand-alone entities: Together they form a powerful alliance of human talent and technological innovation resulting in the SuperHub(TM) worldwide VOIP network, Sanswire Stratellite(TM) platform and products enabling simpler, cheaper transmission of voice, data and money. GlobeTel has historically focused its business development on markets outside of the United States. Current and pending operations exist in Asia, Europe, South America, Mexico and the Caribbean.
For more information, please visit: http://www.globetel.net.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect" "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. Sanswire Networks and the launch of the Company's high-altitude airship are subject to various risk factors and investors should construe any such investment as speculative. Additionally, there are certain unknown political and economic risks associated with doing business in the Russian Federation that may affect the Company's operations. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time. The above may be more fully discussed in the Company's SEC filings.
SOURCE: GlobeTel Communications Corporation
GlobeTel Communications Corporation, Fort Lauderdale
Robert Bleckman, 954-775-1427
Copyright Business Wire 2006
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Well, I've lost on GTE as many times as I have won (though fortunately I have won a lot more than I have lost), but this time I think GTE is set to rip. Am in heavy (for me) after friday's announcement and topped up a bit more today at 3.38.
GTE made a nice break out of the symmetric triangle today on solid volume, and with the announcement of the completion of the deal to happen any day, I would expect some slightly volatile but strong trading in the coming days. Any big dips should only be positions to add, and I think there are enough people out there thinking this way (and enough people who don't want to sell before the announcement) to keep the share price up in the meantime. The price seems to be held in check right now by capping resistance between 3.60 and 3.67, lets see if it pushes through this.
I know there is no such thing as a "sure thing" but right now GTE sure feels that way. Maybe that is when I should start getting worried ???
Oh and yeah, it's also my pick for the stock picking contest, so lets go GTE >:D >:D
I've been watching GTE for awhile now and lost some on it. I was wondering - I saw the symetrical triangle but GTE is at the top of the bollinger band. Will that hold it back from going up right now? I would like to buy some but not at the highest price.
brandyjoco,
I really don't think the BBs will come into consideration too much here. If anything, it will be a good thing as it starts to push the BB envelope upwards. If you look at the move in November when GTE moved up past 2.25, it broke the upper BB and continued to ride and exceed that top BB until it peaked for the move at 3.66, over a 50% move in a couple of weeks. I wouldn't be surprised to see a similar reaction here.
My suggestion is if you want to get in, just get in. Buy at the open if it is not gapping up, or if you want to aim for a price tarrget, I think anything below 3.50 will be a reasonable entry. There may even be a pullback tomorrow morning if it looks like there is no news tomorrow. The main thing here is that when the news hits, and it could be tomorrow or the day after, but they have virtually guaranteed it will be this week, GTE will start ripping, how high I have no idea, but I am fairly sure it will go solidly over $4.
Of course this is speculative, and it could blow up in our faces, but from the last PR they sounded pretty confident it was just a matter of a few days - they would have a lot of people screaming for blood if it fell through now.
GTE pulled back with the rest of the market yesterday (man it was an ugly day - I hate it when almost EVERYTHING oonmy monitor is red :'() Volume was moderate, and I think that it will continue to tradde this way until the announcement is made. It could quite conceivably continue to lose ground, possibly testing descending resistance/support that it broke out of on Monday, around 3.20 or so, though it would be nice to see it hold support at 3.30.
We're all waiting to see what they have to say about this russian deal. any day now.....
nice commentary on "trading the news" on GTE from upside surprise.
Worth a look if you're long
http://www.upsidesurprise.com/
Well if GTE broke out of its symmetrical triangle formation this week (which I believe it did) the last couple days action brought it back down to test descending support and the 50MA. There was quite a bit of selling at the end of the week, in anticipation of the news on the Russian deal that did not come last week. Of course it is now expected this week, and the specifics of the deal will likely have a huge impact on how the share price reacts.
The more I look at GTE, the more precarious a situation I think they are in. Everything rides on this deal and it will really determine the next long term direction for the share price (aside from the fact that a "no deal" will induce an enormous amount of selling :-[)
Looking at the long term weekly chart, it is clear that GTE recently completed its third serious run-up in share price. The last two resulted in a highly volatile congestion zone, followed by an extended downtrend. GTE looks to be in the midst of this volatile congestion zone right now, which bears a striking similarity to the beginning of 2005. MACD is also suggesting a repeat of the beginning of last year. We really don't want a repeat of this one, which pulled the share price down from a high of $5.50 all the way down to almost $1.
Short term I am lookig for descendig support and the 50MA to hold on Monday (I hope) and that they get their acto together with the PR. I'm sure a lotta people are getting real nervous right about now. Their last PR does still give me confidence that their deal will go through, but I'm getting nervous about risking as much as I am on what is ultimately a pretty high risk strategy.
It may be better to reduce my position to reduce my short term risk, and buy back in on the coat tails of a breakout if it should happen, accepting I will pay a higher price, but you have to pay a premium for confirmation.
I am right with you on this one Scottish Trader. I am way overweight in GTE due to selling a bunch of my big winners last year. I kept virtually all of my GTE and have been waiting for Strat news to unload about half of it. Then the Russian deal popped and I have been waiting for that to finalize. I am hoping to unload in the low to mid 4's and if lucky, 5's. Honestly, I don't see a huge pop on the news since we are just waiting for confirmation. Should build a nice healthy base for other wireless deals and the Strat.
Personally, I do not hold great promise for an operational Strat this year. It may indeed take the SP above 10 though if launch, etc... is really good. Although I do believe it will eventually be a winner, I don't believe that it will be commerical within a year. I'll say three. I have been in R&D all of my life and nobody knows exactly what will happen to this aircraft when it parks at 65,000 feet. Alot of chemistry goes on in the upper atmosphere that may not be a real happy place for extended operations. Just my 2 cents anyway.
Amazingly I found something on the GTE Yahoo MB that was actually worth reading!!!
GTE presented its stratellite concept at a European Military satellite conference last week - interesting!
ply to: None
Date:3/13/2006 12:06:03 AM
Post #of 21787
GTE speaks European Military Space conf.3/8-9/06
Bob Jones and GTE's strategic partner, the good Dr. Bernd Kroeplin, spoke at a military space conference held in Brussels Belgium 3/8-9/06. It should be obvious to the reader, based on the individual speakers presenting and the particulars of topics covered, that the Stratellite and it's various "versions" have arrived.
This is not an event for frivality or dreams, but reality. Serious topics by serious people, and we are among them. Notice any other high altitude airship reps present, like Lockheed or JAXA/CAPININA (Europe's own answer to HAA), or Aeros whatever....?
Nope, just us.
[click OVERVIEW LINK to see speakers]
http://www.smi-online.co.uk/events/programme.asp?is=1&ref=2317&day=2
MilSpace: Challenges and Changes
8th to 9th March 2006, Royal Windsor Hotel, Brussels, Belgium.
Overview:
Following the huge success of Global MilSatCom – the largest independent military satellite communications conference in Europe, we are proud to present the latest in our military space series...MilSpace 2006 Challenges and Changes
SMi's inaugural MilSpace 2006 conference will explore recent developments in space systems and the growing importance of space applications for the military in the 21st Century. Bringing together a dynamic mix of high level government and military officials and leading suppliers and industry experts, the conference will examine SatCom capabilities, space surveillance, navigation, defence, intelligence and the importance of space agencies. MilSpace 2006 will provide a platform for discussion, giving a clear picture of the current issues surrounding military space.
MilSpace 2006 will also address challenges and solutions for the future of military space, technological developments within space-based systems and lessons learned through operational experiences to aid future battlespace operations
Day 2
3:10PM
STRATELLITE FOR TELECOMMUNICATIONS AND MILITARY USE
Sanswire family of Airships - Uses for the Airship
Homeland security support capabilities
mobile communications relay for surface and air troops
battlefield tactical communications relay
Real-time immediate orthorectification image processing
command and control uplinks and downlinks for time critical ISR data
GPS and SATCOM data/communications relay
data relay to or from AWACS or JSTARS assets to other air or ground assets
extensive electronic warfare (EW) system platform to aid "blue force" operations
Bob Jones, President, Sanswire Networks, LLC.
Professor Dr Bernd Kroeplin, Project Co-ordinator, University Of Stuttgart Institute Of Sanitary Engineering.
GTE's in Freefall :( :( :( :'( :'( :'( :'( >:D >:D >:D
They made a PR alright:
http://biz.yahoo.com/bw/060313/20060313005793.html?.v=1
I know this was a high risk play but man!! as I watch it is down almost over 25% and all hell is breaking loose.
As I said in a previous post - if it seems like a sure thing then its probably too good to be true!!
Having said that, I'm sure glad that I took my oown advice and halved my position first thing this morning - at least I broke even on that lot - took a bit of a loss on the other half but we'll see what happens.
I knew I'd have to watch this one like a hawk toay, so any other holders out there, I hope you were too and got out in time.
Man oh Man this sucks!!!
No, I did not sell...yet. The shares I have are mostly from a couple years back, I have plenty of wiggle room.
Man o'man, still playing OTC games...what a pathetic state of affairs. Pardon my absolute ignorance of the real world but it seems as though this company issues PRs they have no business releasing. I guess I just don't understand why you would announce a $600M deal if it wasn't IN THE BANK !!! (notice I didn't mention the strat but same story there too).
The amount of $ that have been gained and lost on this stock since Dec. 30 is truly amazing. I have never been much of a trader but this stock makes we want to start.
Looks like I'll be waiting a bit longer to dump my shares above $4.
JKN - I know you are a long termer, but I would be very careful on that one as the long term chart shows. If this deal is a bust, and Huff basically gave himself an open door to walk through in that PR, GTE is gonna get taken to the cleaners, and it could be a VERY long time before you see $4. I was amazed at the amount of buying that kicked in though - nearly bought a couple thousand shares a few times to play the rebound but didn't in the end, just didn't feel I could trust it. :-[
I wouldn't be surprised to see GTE tack down the rest of this week as people wait to find out what is really going on - the problem is that this stock is so reliant on news and hype that investor confidence gets shaken out in a second. I really couldn't tell you what is real and what is hype with this one any more - news like this really does add legitimacy to the bears and the motley fools circling around GTE now.
From 4 bucks to 0.40 cents... what the ****!...
An extended downtrend.....
Bullish engulfing today...let's watch.
52wk Range: 0.40 - 4.49
Volume: 1,959,600
Avg Vol (3m): 788,615
Technicals
Last Price Quote is:
-7.17%below 13-day EMA
-34.54%below 50-day EMA
RS Rating: 1
Amex Rings GlobeTel Again
By Seth Jayson (TMF Bent)
August 28, 2006
We already knew that GlobeTel (AMEX: GTE) was under the gun. Its home exchange, after all, sent it a notice of intention to delist the stock, saying GlobeTel had "engaged in a pattern of issuing overly promotional press releases" at the same time that "its management has engaged in operations, which, in the opinion of the Exchange, are contrary to the public interest."
Thursday, the firm -- whose loyal fans believe it can outcompete or make obsolete companies as powerful as Lockheed Martin (NYSE: LMT), Cisco (Nasdaq: CSCO), Motorola (NYSE: MOT), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA), and AT&T (NYSE: T) -- released an 8-K detailing another note from the American Stock Exchange.
To put it mildly, the Amex does not seem pleased. GlobeTel reveals that the exchange now accuses the company of (emphasis mine):
(1) Failure to make timely, accurate, and compete disclosure of material corporate developments, as well as engaging in a pattern of issuing materially misleading and overly promotional public disclosures;
(2) Failure to comply with Securities and Exchange Commission reporting obligations by filing incomplete, misleading, and/or inaccurate information in its public filings;
(3) Failure to provide information to the exchange;
(4) Providing materially false and misleading information and statements to the Amex staff, hindering its investigation of the company's compliance with Amex listing requirements;
(5) Acting to interfere with the operation of a fair and orderly market by issuing public statements not warranted by the company's affairs that were intended to affect the price of its common stock;
(6) Association with an individual with a history of regulatory misconduct that rises to the level of a public interest concern;
(7) Serious internal control weaknesses that rise to a level of a public interest concern.
Quite a list, no? And I'd say the latter allegations are by far the most interesting. No. 5, well, that sounds like stock manipulation to me. I wonder if the SEC is paying attention to this. Hello? SEC?
Nos. 3 and 4 are even more curious. What is it the Amex wants to know? Why would GlobeTel fail to provide information? And why would GlobeTel provide materially false and misleading information and statements to the Amex?
Maybe, like me, Amex would like to see proof that GlobeTel's claims about various worldwide entities were warranted. For instance, I'm still waiting to see proof that Internafta -- the Russian outfit with the "binding" contract that didn't bind -- ever existed, let alone had assets sufficient to warrant the "contract" and the PR blitz.
(I was suspicious of that deal from day one, especially because CEO Tim Huff couldn't give me a single shred of contact information on those foreign partners when we spoke in the days after the deal. But GlobeTel has long since stopped responding to my calls and emails.)
I doubt those of us who are following the drama will ever see enough evidence to satisfy our curiosity. And as for GlobeTel, I'm not sure it's long for this world. The latest 10-Q showed less than $2 million in cash, versus payroll and taxes of more than $1 million a quarter, in addition to $441,000 for travel and $635,000 in officer compensation. I'd say it's just about out of money.
And on that last bit, management agrees. Here's what it had to say, "The Company anticipates increased cash flows from 2006 sales activities; however, additional cash will still be needed to support operations."
Hmm. And if it can't find anyone to loan or invest?
"... If budgeted sales levels are not achieved, or if significant unanticipated expenditures occur, or if the Company is unable to obtain the necessary funding, the Company may have to modify its business plan, reduce or discontinue some of its operations or seek a buyer for all or part of its assets to continue as a going concern through December 31, 2006."
There's not a whole lot more that needs to be said.
Other Headline News ......
http://finance.yahoo.com/q/h?s=GTE
Update...
52wk Range: 0.40 - 4.49
Volume: 1,851,700
Avg Vol (3m): 809,683
Technicals
Last Price Quote is:
14.41%above 13-day EMA
-18.87%below 50-day EMA
RS Rating: 2
Fundamentals
Key Data:
Market Cap (M): N/A
P/E Ratio: N/A
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: N/A
Hi, Travis, it's been a while since I've visited 3sof. Hope you and the rest are getting disgustingly rich. ;D
There was a piece on GTE's strat on CNBC yesterday afternoon. I believe the show was "Street Signs". They showed the 1/5 scale test blimp in the hanger, and Jones touted the benefits of a strat over tower technology. There was no mention of GTE's problems.
D'Wheeze
??? ?????
Has anyone heard or seen anything on the delisting by the exchange.
Did the company get flushed.... ;D
While typing this post,
Futher searching found this...
I suppose this will answer my questions !
FORT LAUDERDALE, Fla., Oct 06, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTE, Trade) today announced that it has learned that the Securities and Exchange Commission has issued a formal order of investigation concerning, among other things, certain accounting issues, including the treatment of certain acquisitions and the valuation of certain intangible assets.
Additionally, the Company's Audit Committee has authorized an internal investigation into the same matters. The Company and its management intend to fully cooperate in both investigations. The outcome of the investigations cannot be predicted at this time.
The American Stock Exchange has notified the Company that the Listing Qualifications Panel upheld the Amex Staff's determination to delist the securities of the Company. The shares will trade on the American Stock Exchange through October 10, 2006 and then will begin trading on the Pink Sheets on October 11, 2006. The Company will be taking steps to move to the OTC Bulletin Board as soon as practicable.
The Company will inform its shareholder and institutional base of its new trading symbol once assigned, and will keep its interested constituencies informed of developments associated with its migration to the over the counter market, and other developments.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.
SOURCE: GlobeTel Communications Corp.
GlobeTel Communications Corp., Fort Lauderdale
Robert Bleckman, Director of Investor Relations,
954-775-1427
Copyright Business Wire 2006
i was fortunate to have owned this twice with the privledge of getting out without a loss, but ive followed this stock since the otb and split days in the beginning, and its truely disgusting that corporate scandals like this can still go on after the enrons and worldcoms. i was one of those firm believers in this company as there were many more, but thankfully i got out quick enough, but its very sad for those that didnt. this PR stock is a joke.
Gotta keep an eye on those long dead forgotten stocks. GTE (now GTEM.PK) finally left the launch pad (again?) quite literally this time as they successfully test flew (admittedly a tethered flight) their Sanswire II:
Sanswire Networks LLC to Float Equipped 2A Technology Demonstrator Stratellite(TM)
http://biz.yahoo.com/bw/061212/20061212005649.html?.v=1 (http://biz.yahoo.com/bw/061212/20061212005649.html?.v=1)
Sanswire Networks' 2A Technology Demonstrator Stratellite(TM) Floated Successfully, Proving Feasibility of Unique Integration Model
http://biz.yahoo.com/bw/061214/20061214005724.html?.v=1 (http://biz.yahoo.com/bw/061214/20061214005724.html?.v=1)
The stock hit lift off too, more than doubling in the last 3 days... I thought this co. was totally toast, and haven't looked in on it in a while, and then all of a sudden, well there you go. I seriously doubt this will turn around all their fortunes, but it does seem they have been working hard at turning the company around. We'll see. It looks a bit dangerous for an entry now....
http://tinyurl.com/29o679
Press Release Source: GlobeTel Communications Corp.
CWID Teams Conclude Favorably On GlobeTel's HotZone Wireless Technology
Wednesday November 7, 11:37 am ET
FORT LAUDERDALE, Fla., Nov. 7 /PRNewswire-FirstCall/-- GlobeTel Communications Corp. (Pink Sheets: GTEM - News) has been informed that the 2007 Coalition Warrior Interoperability Demonstration (CWID) has yielded a summary of conclusions in its Final Report regarding GlobeTel's proprietary HotZone wireless communications technology.
CWID's Warfighter Operator team's conclusions indicated that "HotZone met its Integrated Communication CWID Objective by using VoIP DECT phones and providing a new technology that streamlined operational decision processes and enhanced the commander's command and control. HotZone's network easily handled broadband data, voice, and video."
The Technical Interoperability team at CWID concluded, "HZ4010 successfully provided an ad hoc network infrastructure for voice, video, and data applications and overall worked as advertised." It also went on to say, "If the government sponsor and/or vendor plan to interoperate the HZ4010 with Department of Defense systems, recommend the government sponsor and/or HotZone 4010/4020 vendor pursue Interoperability Certification in accordance with Chairman, Joint Chiefs of Staff Instruction 6212.01D, "Interoperability and Supportability of Information Technology and National Security Systems," 8 March 2006."
There was some taking off the table today but didn't effect the price . I'm still thinking this thing is going to go higher to break thru resistance.
If you decide to enter be sure and do it based on your own DD
I have no position
GTEM : seems to be setting up for something. First chart I posted traded over 500,000 shares which is not to bad but not that good. and been some selling since but it continues to be consolidating which tells me the price is stabilized and waiting for something.
I have no position
After breaking out of ascending triangle it now has formed a small descending triangle and MACD is now at a bull kiss or stock will continue to go down. I wouldn't enter this stock untill MACD indicator points to which way it will go. JMO
Changed Ticker Symbol
GTE is no longer valid. It has changed to GTEM.PK
updated chart look.......