Monday, April 10, 2006

GTXC Gatelinx GTX Global

a rose by any other name.... Clearly, basic 1+1 math is escaping people. SO, let's review...
1. They have no sales and marketing. Ever hear of a technology that was a "licenseable" suite but has no actual installations, beyond some (that would only qualify as proof-of-concept) from 2 years ago... and even those aren't active anymore?
2. A search of Heelstrike, Govalin and Yadio yield NOTHING. So let's say that this technology is all that the claims are.. trust me, it isn't.. but lets say it is. You can't find anything about these "customers", the due diligence period for their (Govalin, et al) continues to be "extended" (What? Either it works and you can prove it, or it doesn't and you have a roadmap for development, or it doesn't and this is a scam... it can only be one of the three)
And finally, since no one can tell what these guys (Yadio, etc) actually do, it's impossible to figure out how it fits with GTXC's stated channel strategy. Which one of the 5 channels do they fit in?
3. Remember the shareholders meeting in January? NO reports, re-caps, announcments etc.
4. The sign on the building in Southern Pines still says GATELINX
5. Read page 4. "
five co-locations in Los Angeles, California; Chicago, Illinois; Boston, Massachusetts; and Charlotte, North Carolina, in the United States and London, England"
The co-lo facilities were (emphasize WERE, past tense) soft-switch locations of 2 servers for the GNE (a global softswitch and routing network). They're not "co-lo" like everyone would think (i.e. data centers, racks of gear, etc).
"20 employees" HUH? no way.. not even at the height was it 20. "also an office in Sofia Bulgaria". Ivan Ivanov, listed as CTO, was a contractor in a co-lo facility in Charlotte, after the facility in Raliegh kicked them out for non-payment in mid-04, that Gatelinx used. Ivan was responsible for the turn-up and maintenance of the servers after Rick Stefanik (original CTO) "moved on to better opportunities".
The 6 "employees" listed in Sofia, were Ivan's guys (he's Bulgarian) but were never employees and did no work on anything Gatelinx/GTXC/GTX Global related.
They say they have "business development, marketing and operations in San Francisco" NOPE.. no way. No employees, no operations and certainly no facilities. Don't believe me? ASK THEM? (I did, 3 times... with offers of business and wanting to meet with them in SF and got NO RESPONSE)
6. Look at the documents... they buy and license back their own technology and yet everyone of their documents on the web site(s) use old naming conventions (simply global search and replace for GTX Global versus Gatelinx) and aren't even updated.
Folks, if it quacks like a duck, etc. Annette is driving around in a new Porsche Carerra GT, David in a new Bentley. Their kids, one in school in San Diego, were on the payroll of Gatelinx for years (hiding income and taxes). They've ducked out of numerous obligations, signed the same promosory notes (against the same assets) to stay afloat in 04 and early 05 (after the Prime TV debacle) and haven't yet been able to quantify what it is they actually do, who's bought it, how much revenue they have, and what are their prospects. Now that the restricted period has passed, they've dumped shares all over the place and are preparing to ride off into the sunset (David and Annette established residency in Bermuda so guess where they'd like to run off to?) with investors money, and former employees, vendors and investors left high and dry.


Anonymous Anonymous said...

Sure wish I had found this blog item before I bought $10,000 worth of their stock.

Very useful info.

I had several analysts recommend this stock with an expected 2006 year high of around $40.

Also, I am a system engineer at a big defense company so I was intrigued that someone was making a product for what I see as a very lucrative VVOIP market.

Seeing an SDK sealed my opinion.

I see I was wrong.

I bought in at $5/share and it is down to ~ $3/share.

When it gets back to $5/share, I am going to dump or give it 3 months and bite the bullet.


12:54 PM  

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