| Trading Alert: Genesis Technology
Group (GTEC)
The economic expansion that has been
occurring in China has drawn foreign investment into the billions.
China reported last week that its economy grew an above target 7.9%
in the first nine months of this year, thanks to strong exports and state
spending. Compare this to a report Friday by the United States
Commerce Department that the US economy increased at a 1.3%
annual rate in the second quarter.
The money is starting to flow into
China. According to Reuters:
| "Foreign direct investment also
has been a boon to the Chinese economy. Drawn by a vast pool of cheap labour,
and by hopes that China’s entry into the World Trade Organisation last
December will make it easier to do business, foreign firms have poured
nearly US$40bil into the country so far this year.
The statistics bureau said China
could attract US$55bil in actual foreign direct investment this
year, raising its previous estimate by 10%." |
Multinational American corporations
such as Disney, Motorola, IBM, AT&T, Ford
Motor Co. and General Motors have already invested large sums
of capital in China. Unfortunately for individual investors, finding
a way to benefit off of China's growth is not that easy due to government
regulations and the lack of expertise on the part of American investors.
That is why we are very bullish on today's trading alert.
 Genesis
Technology Group (OTC BB:GTEC)
is
a business development firm that fosters bilateral commerce between companies
in the United States and China. Genesis has created successful profit centers
in product development, manufacturing, distribution, joint ventures and
operational services. Genesis has established effective working relationships
with various governmental agencies, public institutes, and private industries
in China at both national and provincial levels. The Company also aims
to play a key role in assisting small to mid-size Chinese private companies
that desire growth, to expand their business with the financial and operational
support of the Genesis.
With a market capitalization of $3.3
million dollars the company is trading at less than .17 times
sales of the company's fiscal 2002 revenue estimate of $20 million.
Genesis Technology is also profitable, reporting net earnings of $0.02
per share for the quarter ending June 30th, 2002. For the
nine
months ended June 30, 2002, consolidated revenues of
$11,629,99
and according to the company is estimated to report earnings of $0.10
per share this fiscal year ending September 30th.
Our short term target for this stock
is $0.25-$0.30 per share which would represent a gain of
over 92%-130% from Monday's closing
price of $0.13 per share. There is no reason why long term
the company will not receive a valuation of to 10-15 times earnings.
A stop loss should be set at $0.08 per share to limit downside
risk.
At Monday's close of $0.13
per share Genesis Technology Group trades at $0.03
cents less than what the company's estimated earnings per share will be
for fiscal 2002. The stock price is disconnected to the company's
performance and management has certainly taken notice.
After the market close today the
management team at Genesis Technology Group has launched an initiative
to collectively purchase up to one million shares, representing
about 4% of the common shares outstanding.. This is
not a company buyback but rather, the buyback is being conducted by senior
management with personal funds for their own accounts. Wall Street
professionals have long known that insider selling is not necessarily always
bad but
insider buying is always good. Once these shares
are purchased they become restricted shares which mean management must
hold the shares for a minimum of six months.
If the management team feels that
their stock is undervalued that is one thing but buying shares in the open
market is the true litmus test. Would you feel comfortable owning
shares of Genesis Technology knowing that management is buying and can't
sell for six months?
Genesis Technology group represents
a unique opportunity to invest in the fastest growing economy in the world
today and most likely for this century. The company has a market
valuation of $3.3 million despite 2002 estimates of $20
million in revenues and $0.10 per share in earnings for
fiscal year ending September 30th. Management is buying shares for
their own accounts knowing full well the shares become restricted and cannot
be sold for six months.
In addition there may be some possible
new developments in the works. Genesis Technology Group is also the
only U.S. representative of the Shanghai Technology Stock (Property
Rights) Exchange ("STSE"). In 2000 and 2001, the STSE facilitated over
2,500 transactions with over $12 billion in transaction volume through
its 363 members that control over $24 billion in capital. STSE is
a technology transfer exchange sponsored by the Shanghai Municipal Government.
As a representative of the STSE, Genesis can introduce American companies
and individuals who would like to sell or license intellectual property
to a Chinese partner or use technology to form a joint venture in China
to the STSE. Companies wishing to enter the exchange pay Genesis consulting
fees and success fees based on any completed transaction.
Here is the compete text of today's
press release for your review:
| Management Of Genesis Technology Group, Inc. Purchasing
Company's Common Stock On The Open Market
Monday October 21, 4:10 pm ET
WEST PALM BEACH, FL--(INTERNET WIRE)--Oct 21, 2002 -- Genesis
Technology Group, Inc. (OTC BB:GTEC.OB - News),
a leading Sino-American business development firm and the first and only
U.S. Trust Member of the Shanghai Technology Stock Exchange, today announced
that members of its management team have expressed their intent to begin
personally buying, from time to time, the Company's common stock on the
open market, consistent with normal regulatory requirements. Specifically,
Genesis' management has launched an initiative to collectively purchase
up to one million shares, representing about 4% of the common shares outstanding.
Company officials believe the buyback sends a strong and
positive message regarding management's confidence in the Company's fundamental
underlying value and its prospects for the future.
"Our board of directors and senior management believe there is no fundamental
reason that our stock price has not mirrored our strong growth potential.
Based on recent corporate developments, major new customer wins and continued
growth of our Chinese subsidiaries, Genesis Technology Group is clearly
stronger than it has ever been," said Dr. James Wang, Chairman and President
of GTEC. "The purchase program is a good investment of our personal resources,
and is one of several management initiatives aimed at increasing shareholder
value."
"This initiative underscores the tremendous confidence our team has
in the current strength and future success of GTEC," added Gary Wolfson,
CEO of GTEC. "Our management team has worked hard to deliver on our promise
to build a Sino-centric business development firm. As we continue to gain
notable traction with our global sales and marketing efforts, we are beginning
to witness the validation of our business model in the marketplace and
believe that we are indeed on pace to achieve our aggressive growth objectives.
Our mission is simple and clear: to add value to GTEC."
About Genesis Technology Group, Inc.
Genesis Technology Group is a business development firm that fosters
bilateral commerce between companies in the United States and China. Genesis
has created successful profit centers in product development, manufacturing,
distribution, joint ventures and operational services. Genesis has established
effective working relationships with various governmental agencies, public
institutes, and private industries in China at both national and provincial
levels. The Company also aims to play a key role in assisting small to
mid-size Chinese private companies that desire growth, to expand their
business with the financial and operational support of the Genesis. For
more information, please visit www.genesis-technology.net.
This announcement contains forward-looking statements that involve
risks and uncertainties, including those relating to the Company's ability
to grow its business and management's ability to purchase securities and
effectively communicate the company's growth strategy to its shareholders
and other potential investors.. Actual results may differ materially from
the results predicted and reported results should not be considered as
an indication of future performance. The potential risks and uncertainties
include, among others, the company's limited operating history, the limited
financial resources, domestic or global economic conditions - especially
those relating to China, activities of competitors and the presence of
new or additional competition, and changes in Federal or State laws, restrictions
and regulations on doing business in a foreign country, in particular China,
and conditions of equity markets. More information about the potential
factors that could affect the Company's business and financial results
is included in the Company's filings, available via the United States Securities
& Exchange Commission.
Contact:
Contact: Kenneth Clinton
Company: Genesis Technology Group, Inc., West Palm Beach
Voice: 561-835-6600
Email: kclinton@genesis-technology.net
Contact: Stephanie Noiseux
Company: Elite Financial Communications Group
Title: Investor/Broker/Media Relations
Voice: 407-585-1080
Email: steph@efcg.net
Source: Genesis Technology Group, Inc. |
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