Enron Mail

From:bounce@corp.freerealtime.com
To:lcampbel@enron.com
Subject:GTEC - Undervalued and Overlooked?
Cc:
Bcc:
Date:Mon, 5 Nov 2001 22:10:44 -0800 (PST)


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SPECIAL ALERT: Genesis Technology Group, Inc (OTC BB: GTEC) November =
2001 [IMAGE] REASONS TO BUY GTEC [IMAGE] 1. Recently acquired 80 % =
ownership in Shanghai G-Choice Science and Technology Development Company,=
LTD.- anticipated annual revenues of $25- $30 million, this year (2001), =
and profitable. 2. G-Choice has exclusive distribution rights for Intel =
and AMD CPUs in the eastern part of China and for Cyrix's CPU in Shanghai.=
A population of over 300 million people. 3. G-Choice's sales in year 2000=
were $13.8 million, with $380,000 in pre-tax net income (audited). In the=
first 6 months of 2001, G-Choice generated approximately $11.7 million in=
sales. Management expects the company to generate $25-$30 million in ann=
ualized sales by the end of this calendar year (2001), and profitable. 4. =
Recently Acquired Propamedia, Inc., a streaming media company - anticipat=
ed annual revenues of about $3 million. 5. Profitable company with strong =
recurring revenue streams. Total annual revenues expected to be over $40 m=
illion by close of fiscal 2002. SYMBOL: GTEC SHARES OUTSTANDING: 23mm=
FLOAT (est.): 3mm 52 WEEK HIGH/LOW: .51 - .02 SHORT TERM PRICE PROJ.: =
$3.00 12 MONTH PRICE PROJ.: $8.00 [IMAGE] 6. Biotechnology subsidiary=
, Biosystems Technologies Inc., negotiating exclusive distribution rights =
for HIV/AIDS and Hepatitis products in China. 7. The Company is poised t=
o capitalize on the anticipated economic explosion from China?s entrance i=
nto the World Trade Organization. 8. New Interactive Direct Marketing sub=
sidiary, eSpectus Systems, Inc. entering multibillion dollar direct email =
market. 9. New management team with proven track record of business succes=
s. 10. Potential company spin-offs mean shareholders gain stock in additio=
nal companies. [IMAGE] INVESTMENT SUMMARY When we consider GTEC, we=
must understand the business model and huge potential in the Company?s va=
luation. GTEC develops, invests in, and operates high technology related c=
ompanies in the US, China, Taiwan, Hong Kong and Singapore. GTEC?s strateg=
y includes the internal development and operation of subsidiaries within t=
he Company's corporate family, as well as investment in other high technol=
ogy companies directly, and through other venture capital arrangements. Th=
e Company's strategy also envisions and promotes opportunities for synergis=
tic business relationships among all of the companies within its family. =
We believe the Company story will get a lot of attention in the investmen=
t community in the coming months, as China joins the WTO. GTEC is a brand-=
new publicly trading company via a reverse/merger with Newagecities.com, I=
nc. (NACT). The Company?s mission is to accelerate the success of technolo=
gy companies by acquisition and development as evidenced by GTEC?s 2 recen=
t acquisitions. GTEC has been growing at an exciting rate and the foundati=
on has been laid for spectacular growth in its earnings and sales in the c=
oming quarters. In a world in which ?tech companies are losing money? lurk=
s around every corner of the market, it?s refreshing to find a technology =
company that offers real success for growth in revenues and earnings. C=
hina's pending entry into the World Trade Organization (WTO) will generate=
enormous opportunities within the service sector and give impetus to the=
country's already robust economic growth. The agreement on China's WTO en=
try paves the way for China to join the world trade body and opens up Chin=
a's economy to more foreign trade and investment in sectors ranging from b=
anking and automobiles to telecommunications and IT services and products.=
A recent survey by the Ministry of the Information Industry showed China=
's IT industry is robust, in sharp contrast to the slowdown in the growth =
of the world's IT industry. Statistics show that the sales volume of IT pr=
oducts for the past six months has reached 356.1 billion yuan (US$43 billi=
on) nationwide, up 28.3 percent over the same period for the previous year=
. Registered Internet users have exceeded 26 million in the country, an av=
erage annual increase of 25 percent. It is estimated that China will spend=
one trillion yuan (US$120 billion) over the next five years to spur its i=
nformation industry, according to a meeting of Ministry of Information Ind=
ustry held in Beijing on October 6, 2001. China's information industry is=
to develop steadily, with its value added accounting for seven percent of=
the nation's gross domestic product by the year 2005, said sources from t=
he ministry. Through 2005, the information industry will become a major pi=
llar industry of the country. The Chinese government will make great effor=
ts to push forward and give priority to the application of information tec=
hnology as a way of boosting economic and social development. Recently=
, GTEC?s subsidiary, entered into a distribution agreement with Intel Cor=
poration (INTC), Cyrix and Advanced Micro Devices, Inc. (AMD). Under the t=
erms of the agreement, GTEC?s subsidiary has exclusive distribution rights=
for Intel CPU and AMD CPUs in the eastern part of China. GTEC has also be=
en awarded the exclusive distribution rights for Cyrix's CPU in Shanghai. =
The Eastern part of China is believed to have the most dynamic economy in=
the greater China marketplace. VALUATION A penny stock with mult=
i-dollar potential: trading today for about 50 cents per share, but in our=
opinion, has long-term potential for huge gains. The stock may be one of =
the year's BIG surprises, making its current status as an undiscovered sto=
ck a rare timing opportunity for investors. Don't overlook this one! We no=
t only consider GTEC an attractive "Emerging Growth Company," in our opin=
ion, but also a "Value Stock" in view of its revenues and earnings its cur=
rent price is about $0.50 per share. We believe that GTEC has targeted a c=
reative niche in a hot sector. One way to value a company is to look a=
t its peers in the industry. One public company listed on the OTCBB is pre=
tty much in the same line of business as GTEC. It is the Hartcourt Compani=
es, Inc. (OTCBB: HRCT) that has about $43.5 million market cap with only =
$10 million in annualized revenues and losing money. Even if GTEC were to =
trade at the same market cap as HRCT, GTEC would then be valued at $1.90 p=
er share. If the stock trades to its peer?s valuation ratios, such as PE a=
nd price to sales ratios, GTEC should be valued at about $6 per share. HRC=
T has a HUGE following on Raging Bull (over 165,000 messages). GTEC has v=
irtually NONE (slightly over 100 posts). In our opinion UNDERVALUED AND OV=
ERLOOKED. The GTEC acquisition/spin-off schedule in 2002 should add a c=
onsiderable number of technology companies. According to management, this =
will bring the projected revenue of GTEC by fiscal 2003 to $75 million and=
net income of $12.4 million or earnings per share of $0.41 on the basis o=
f 30 million shares outstanding GTEC intends to acquire other business?s b=
y issuing restricted stock). If GTEC were to trade in the marketplace at =
15 times earnings, then this would value GTEC at $6.15 per share. If GTEC =
were to trade in the marketplace at 3 times sales, this would value GTEC a=
t $7.50 per share. (HRCT trades today at about 4.5 times annualized sales)=
. SUMMARY We believe GTEC is well positioned to take advantage =
of the changes in the technology industry. We believe these changes are s=
till in their earliest stages, affecting primarily the small technology co=
mpanies to date. In other words, we believe GTEC is situated nicely to rid=
e out the slowing domestic economy. In our opinion, we don't see much down=
side for GTEC that is traded around $0.50 per share. [IMAGE] Disclaim=
er: [IMAGE] Marketwizardalerts (MWA) publishes reports providing informat=
ion on selected companies that MWA believes has investment potential. MWA =
is not a registered investment advisor or broker-dealer. This report is pr=
ovided as an information service only, and the statements and opinions in =
this report should not be construed as an offer or solicitation to buy or=
sell any security. MWA accepts no liability for any loss arising from an =
investor's reliance on or use of this report. An investment in GTEC is con=
sidered to be highly speculative and should not be considered unless a per=
son can afford a complete loss of investment. MWA has been hired by a thir=
d party consultant, and is contracted to receive 150,000 free trading shar=
es of common stock for the publication and circulation of this report. MWA=
intends to sell all or a portion of the of the GTEC stock at or about the=
time of publication of this report. Subsequently MWA may buy or sell sha=
res of GTEC stock in the open market. This report contains forward-looking=
statements, which involve risks, and uncertainties that may cause actual =
results to differ materially from those set forth in the forward-looking s=
tatements. For further details concerning these risks and uncertainties, s=
ee the SEC filings of GTEC including the company's most recent annual and =
quarterly reports. This is a paid advertisement from MWA. The material co=
ntained in this report is being furnished solely for informational purposes=
and is part of MWA's efforts in marketing its subscription service. This=
is not a solicitation for the purchase or sale of securities. Readers are=
encouraged to conduct their own research and due diligence, and/or obtain =
professional advice, prior to making any investment decision. The informat=
ion contained herein is based on sources which MWA believes to be reliable,=
but is not guaranteed to be accurate, and does not purport to be a complet=
e statement or summary of the available data. Any opinions expressed are s=
ubject to change without notice. The statements and opinions contained her=
ein are not the statements and opinions of FreeRealTime.com, and FreeRealTi=
me.com disclaims any liability for or arising from such statements and opin=
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