3SOF

http://www.investorshub.com/boards/board.asp?board_id=9397

This is a new china stock, and the company is making money with fantastic annual growth. IMO china is going to be the big money player for a long time.  Looks like shorts jumped on this at an average of 2.25, should b easy to bust that and squeeze them

Ya I been watching this one for a bit. Bought in at higher levels before it went down a bit. But this stock is building momentum every day. Once it hits the 2.25 squeeze trigger price this will get very interesting. As it stands right now it only needs to hit .09 more to hit it. China is the new market as everyone knows. Do your own DD and make your own decisions.

http://www.guangzhouglobaltelecom.com/index.htm

Got some GZGT after reading their PR yesterday on the licence they acquired to expand their business. Frankly, this was intended to be a 1-3 day trade but after doing more research and finding out that the price of this stock was manipulated on its way up, I decided to hold perhaps 3-4 weeks and see where price lands then. I also plan on holding a quarter of my position longer term. I added shares this morning and kept another bid in. I do plan on moving my bids up and adding on any feasible dips, although I doubt there will be any. This stock was obviously heavily shorted and from what I've researched, LONGS are not giving up their shares cheaply. They will make them pay up, hence, significantly advancing the stock price. http://biz.yahoo.com/prnews/070605/cntu013.html?.v=25

IPO's that have been introduced with these kind of numbers have surged in the past. This company is putting maximum effort in getting their name out to large private investors and funds. IMO, there are big buyers lurking and watching for opportunities to accumulate shares before this makes a run. There is no better place to be invested in than China and I like my chances to triple if not quadruple my investment in this company as long as the growth prospects are in line.  GL.

 
this company has huge potential..
china is a booming telecomunications market.,..
and this bussiness seems to be expanding.
off course , bashers and shortsellers had to ruin it.. but once people realize the real value of this we will see a huge short squeeze, ...
as someone said above, im holding some over a long term.

Holding strong into next week. IMO, price will continue to grind higher. I will be adding on any dips this week.  If no dips occur, I will likely add on the break of 2.80 before we test the highs.

Guangzhou Global Telecom: Mountain of Hype, Small Anthill
Full-page ads promoting this small retailer's shares are running in major business magazines. Investors beware.
By Thomas M. Anderson
Kiplinger's Personal Finance
June 1, 2007

Guangzhou Global Telecom has made a big splash in its brief life as a U.S.-traded stock. Shares of the small Chinese retailer started trading here on May 15 with an opening share price of $1.75. In little more than two weeks, Guangzhou soared 51% to close at $2.65 on May 31. Is it the latest hot company from China? Or is its rapid rise just due to hot air? While you decide, we suggest you hold on to your wallet.

Full-page advertisements that appeared in BusinessWeek, Forbes and Fortune make Guangzhou Global Telecom (symbol GZGT, quoted on the OTC Bulletin Board) sound like a major player in the world's most populous country. They say that Guangzhou has partnered with China Mobile, China Unicom and China Telecom, and that its "major carrier partnerships account for nearly $50 billion in revenues." Readers are encouraged to buy Guangzhou's stock because it will "fuel your portfolio for explosive growth."

Expect to see a lot more Guangzhou Global Telecom ads. Its advertising firm says similar ads are scheduled to run in upcoming issues of The Economist, Institutional Investor, Money and SmartMoney magazines, as well as other issues of BusinessWeek, Forbes and Fortune. We turned down insertion orders to run the ad in Kiplinger's Personal Finance and on Kiplinger.com because the claims made in the ad could not be substantiated and because our inquiries raised more questions than they answered. In fact, the more we looked at this new stock, the more our eyes burned.

How to hype a stock: As the promoter, you first order up the advertisements. In the ads, you refer people to a so-called third party to attest to the company's virtues. To be that neutral party, you create an online newsletter. As its editor, you install someone whose existence as an actual person cannot be verified. Then you begin trading the stock, accompanied by almost daily press releases that create a drumbeat of optimism.

Many other penny-stock promoters have trod this path. It's the audacity and intensity of the promotion of Guangzhou Global Telecom that sets it apart. John Pentony, publisher of StockGuru.com, says he has never seen stock promoters advertise in major national business magazines. The promotion also seems unusual to Cromwell Coulson, chief executive of the Pink Sheets, a quotation service that lists thousands of penny stocks. "Business magazine ad selling must be pretty soft if they are taking those ads," he says.

NASD, which runs the OTC Bulletin Board, would not comment on the Guangzhou promotion, but says investors should be wary of stock promotion in general. "Investors have to use exceptional caution when investing in stocks advertised in magazines and fliers because they might not disclose all the material facts that would be important to the decision," says Cameron Funkhouser, NASD's senior vice-president of market regulation.

What we noticed in particular about the advertisement was that it refers readers to a Web site called GrowthStockGuru.com. And it quotes the publisher of Growth Stock Guru, Aharon Bronfman, as saying "Companies like GZGT will be discovered and their valuations will skyrocket." Go to that Web site, however, and you discover that Guangzhou Global Telecom is the only stock it promotes -- one reason being that the site went online only days before the stock began trading. The timing can make you suspicious about Bronfman's claim that three other penny stocks had soared after being discovered by the Web site. (By the way, we searched numerous public and private databases for his name and came up with a blank, meaning that Bronfman has been invisible during the 15 years he claims to have been in the investment business.)

Then we come to learn that the buyer of this small fortune in advertising was not Guangzhou Global Telecom. Richard Yan, a Shanghai consultant who claims to speak for the company, denies it has any involvement in this ad offensive. Rather, the ad agency placing the ads, Mediabids, says the ads were paid for in advance by Growth Stock Guru. In addition to the magazine ads, Growth Stock Guru mailed an expensive glossy eight-page brochure prospecting for Guangzhou investors. Growth Stock Guru, in turn, says it was paid to promote the stock and place the ads by Eminiar VII LLC, which describes itself as a non-controlling shareholder of Guangzhou Global Telecom.

Aggressive promotion aside, is the company worth $2.65 a share? Guangzhou's filings with the Securities and Exchange Commission show a small company that sells cell phones and accessories -- not a national telecom titan as implied by Growth Stock Guru. Guangzhou earned less than half a penny per diluted share last year -- $220,373 on $12.8 million in sales. What about those billions in sales from carrier partners? Well, the company apparently does sell China Mobile, China Unicom and China Telecom cell phones and accessories in its stores, and those companies do have billions in sales. But there are no billion-dollar deals between those big China telecom companies and Guangzhou mentioned in SEC filings or on the company's own Web site.

Guangzhou Global Telecom has eight stores in the city of Guangzhou and 40 employees. Guangzhou plans to grow by expanding to other parts of China and offering more services, such as games and ring tones, Yan says.

Guangzhou Global Telecom stock is wildly expensive, and yet the hype behind this tiny company is creating a tsunami of trading. Of those 53 million shares, all but 13 million were held by insiders at last word. Yet on May 31, more than 9 million shares, or 70% of the "float," changed hands, as the stock advanced 10.4%, to $2.65 a share, putting its price-earnings ratio based on 2006 earnings at more than 500. The company has the chutzpah to forecast its own profits for 2007, 2008 and 2009. Even if you took its 2009 forecast at face value, you're still looking at a P/E of 90 two and a half years from now, based on those fully diluted shares.

We keep bringing up all 53 million shares for a reason. After all, why spend all this money to advertise in business publications? What's in it for the advertiser, Growth Stock Guru, or Eminiar VII LLC? If this promotion plays out in the classic manner, more and more of those 40 million shares that are sitting on the sidelines will be parceled out to naive investors at higher and higher prices. The trading volume on May 31 suggests that this process is well under way. When all shares owned by the promoter have been sold, the stock will have no support, and then it's bye-bye bubble. (See The Truth Behind Penny Stock Spam.)

In sum, this is a small company with a scant financial record, a massive advertising campaign and an expensive stock. For any serious investor, Guangzhou Global Telecom raises more red flags than a Communist Party parade.
   

some more great news

Guangzhou Global Telecom Issues Letter to Shareholders
Jun 11, 2007 8:30:00 AM

GUANGZHOU, China, June 11 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT), a wholesale distributor of mobile phone handsets, pre-paid calling cards and mobile handset value-added service provider in the PRC, has issued an open letter to shareholders. This letter is intended to provide a factual account of the Company's current line of business and address certain shareholder questions.

Guangzhou Global Telecom is a wholesale distributor of wireless products and services. Operating in Guangzhou, the heart of one of China's leading commercial and manufacturing regions, Guangzhou Global Telecom has established itself as a leading distributor, having formed distribution agreements with top Chinese telecom providers China Telecom, China Unicom and China Mobile as well as handset manufacturers Nokia, Rowa, Gionee, and Konka. The Company also currently owns and operates ten distribution and retail locations in Guangzhou.

Guangzhou Global Telecom's mobile telecommunications products and services include cell phones, phone calling cards and value-added services. To strengthen its position in the marketplace, the Company is opening additional locations as well as launching a next-generation Mobile Messaging Service (MMS). In addition to dissemination of information, the GZGT MMS(TM) will facilitate critical Company management functions such as meeting reminders, location changes, field reports, etc.

Within 2 weeks after setting up the branch in Zhengzhou, the Company signed a LOI with Zhengzhou Wangtian Electronic Technology Ltd. ("Wangtian") to acquire a 60% equity interest in Wangtian by issuing approximately 300,000 restricted common stocks to the shareholders of the Company. Please see Company PR June 7th, 2007 for more information on this transaction. In addition, the Company has set up two branches in Zhengzhou and Wuhan respectively within the recent 2 weeks. The movement can show our aggressive motivation to expand our network into new cities and provinces other than Guangzhou. With the expanding network, we can persuade more handset manufacturers to deliver products through our network. Furthermore, by developing a larger infrastructure, the Company will be able to sell more value-added services, which will increase Company margins and give us a competitive advantage over smaller companies in our market.

China has become the world's largest mobile telecommunications market. By the end of 2006, nearly 500 million Chinese citizens used mobile phones. This represents 37 percent of the population. In 2006 alone, more than 48 million people purchased their first mobile phones and projections indicate another 50 million more first time users will purchase in 2007.

China's urban markets are currently saturated with mobile phones, and by 2010 almost half of China's 1.3 billion people are expected to be using mobile phones, according to China Mobile. In addition to the size of the overall opportunity, marketers should note that 25 percent of mobile subscribers in China are between 20 to 24 years old. With the new 3G technology adopted, most of the mobile phone users will buy new phones to adapt the new 3G system. Ever changing technologies and features in handsets and related products, constantly create new opportunities with Company's current customer base.

Most Chinese mobile phone users buy their phones outright and pay by the call, and handset makers have more flexibility than in the West when adding functions to their handsets instead of reselling products configured by the carriers. Even customers, who can't afford a landline, including China's middle class, are excited about becoming mobile customers.

As evidenced by financials submitted to the SEC, The Company has seen revenue growth since its inception in 2004. In 2005, the Company's first full year in existence, Guangzhou Global Telecom had revenues of $6.7 million. Then in 2006 revenues rose by 91%, to $12.8 million. In 2007, the Company expects an increase in revenues by 44%, to 18.4 million, driven by increased sales in existing stores, as well as sales from additional regional retail centers.

During the three months ended March 31, 2007, revenues increased by 14.8% compared to the same period ended in 2006. The increase of revenue has mainly contributed to more acceptances of our products and services.

The gross margin dropped from 16% during the three months ended March 31, 2006 to 3% for the same period of 2007. The decrease is mainly due to China Mobile Guangzhou Branch changing its sales model, which left a thinner margin for agencies but took certain marketing functions itself. As a result, the decrease of the gross margin resulted in the decrease of selling expenses in the meantime.

As mentioned above, selling, general and administrative expenses decreased by 79% compare to the same period ended in 2006. This decrease is primarily due to the sharp decrease of advertising and marketing expenses.

Further, the Company received $500,000 in funding in April 2007 and the Company is confident it will raise the gross margins and bottom line.

Yankuan Li, CEO of Guangzhou Global Telecom states, "The Company is aware of the massive media campaign surrounding our company and our stock, good and bad. Much of what is being said is out of our control and the Company would like to distance itself from much of what is being circulated. One thing that we suggest to all potential investors is to speak to a registered investment advisor before making any investment. That being said, the fact is that we are a growing company inside one of the greatest growing wireless markets in the world. We are open and available to talk to our shareholders, brokers, and media to address any questions, comments, or concerns that they might have."

looks ready to fly glta....................

Quote from: penny2 on June 12, 2007, 10:05:22 AM
looks ready to fly glta....................

yes to the ground ...ha..ha.

time to load the boat again imo....this should be rock bottom .70s, as selling pressure subsides i will be accumulating on way up.

Quote from: hawk on June 05, 2007, 03:28:21 PM

this company has huge potential..
china is a booming telecomunications market.,..
and this bussiness seems to be expanding.
off course , bashers and shortsellers had to ruin it.. but once people realize the real value of this we will see a huge short squeeze, ...
as someone said above, im holding some over a long term.

I agree......once people realize the value of this we will see an awesome short squeeze.  I'm accumulating for long position.  .70's are an awesome entry!!!!

GLTA

-Ken-

Press Release   Source: Guangzhou Global Telecom, Inc.

Guangzhou Global Telecom Review 2008 2Q Results
Tuesday August 19, 8:30 am ET

GUANGZHOU, China, Aug. 19 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a mobile phone handset, pre-paid calling card distributor and provider of value-added mobile services in the PRC, reported $8,745,541 in 2nd Quarter revenues as compared to $4,789,850 during the same period ended in 2007, representing an increase of $3,955,691 or 83%. Revenues for this year were $16,417,968 as compared to $8,552,268 for the same period in 2007, a jump of almost 100% and a clear indicator of the company's ongoing market expansion.

ADVERTISEMENT
Gross profit increased from $265,248 during the three months ended June 30 2007 to $848,458 in the same period of 2008. The increase of gross profit is mainly generated from the increased revenue. Meanwhile, the gross margin saw a marked improvement from 6% during the quarter ended June 30, 2007 to 10%. Continued focus and initiatives on sales expansion, together with certain rebates, contributed to the higher margins.

General and administrative expenses were $254,091 as compared to $223,105 for the same period ended in 2007, an increase of 15%. The increase is consistent with the expansion in operations.

Operating profit of $594,367 was recorded during the three months ended March 31, 2008, as compared to a gain of $42,143 during the same period in 2007. The steep increase was the result of improved revenues, gross margins, management policies and programmes put in place.

Interest expenses of $59,320 during the three months ended June 30, 2008, which mainly included the interest payment of convertible debt.

Net gain of $502,355 was recorded during the three months ended June 30, 2008, as compared to a profit of $16,122 during the same period in 2007. The year-on-year performance saw an increase of $57,062 from $28,536 to $85,598. The strong profit gain for Q2 helped offset losses in Q1.

The company's rapid expansion in different regions of China benefited the quarter's data revenue and profit growth and this growth will stay for the year. The focus will not only be on expansion, but also measures such as cost reduction and retaining market presence. The company is constantly seeking to enlarge its customer base and network, placing extra importance on the growing affluence of the middle class in China. The six months of 2008 added more than 45 million mobile subscribers, based on government data. This growth figure continues to be the main driver behind the company's rapid expansion in China.

''Considering this more challenging operating environment, we have fulfilled expectations with our improved financial figures in Q2. We will continue to see strong growth across the set of financial data for the year and our management has developed strategic plans for the mid-long term in facing with rising costs. As 3G technology begins to enter the market, we will experience a new trend in mobile phones usage. This is a new market segment which we are looking at and the recent acquisition of Guangzhou Ren Wo Xing not only provides an equipped platform, it also enlarges our mobile communications market presence in the Guangdong province. Our outlook for the mobile industry remains positive and Guangzhou Global Telecom will look to continue and improve on this quarter's performance,'' commented CEO Li Yankuan.

About Guangzhou Global Telecom

Guangzhou Global Telecom, Inc. is a national mobile phone handset and pre- paid calling card distributor and provider of mobile handset value-added services. Maintaining cooperative relationships with China Telecom, China Mobile and China Unicom, the Company seeks to become the largest sales and distribution center of mobile phones, mobile phone parts and prepaid mobile phone cards in China. GTL plans to introduce new software and services through an expanded network of regional and neighborhood service centers, shops and virtual stores. For details, please visit our website at http://www.guangzhouglobaltelecom.com .

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

    For more information, please contact:

     Glenn Yang
     Tel:   +86-139-2224-7039 or +65-9847-4716
     Email: [email protected]


Source: Guangzhou Global Telecom, Inc.