GlobeTel Communications GTE - is no longer valid. It has changed to GTEM.PK

[3puttssuck]

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.

[golfqtee]

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.

[3puttssuck]

Look at the move on this one today. 

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!

[setravis]

Things are looking up these last 2 days.

[setravis]

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."

[setravis]

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.

[3puttssuck]

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."

[ScottishTrader]

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...

[Melf Elf]

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. 

 

[Melf Elf]

Scotsman,

I found a GTE "Game Simulator" that we all can play with 

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? 

[Melf Elf]

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!      

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.

[ScottishTrader]

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 

[Melf Elf]

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!   

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!

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.

Agree with both.  "Possible" double bottom here, but I'm not ready to jump either.

[ScottishTrader]

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!

[Melf Elf]

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 

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!!

I still pass on this one.  Good luck!  Hope you make some $$$