Stocklemon Reports on Amerityre (AMTY)
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One of the largest movers on the Over The Counter market this past month has been Amerityre. Stocklemon is “tired” of stock promotions that give investors re-treaded promises. Amerityre is nothing more than a second tier manufacturer of urethane tires used on wheelbarrows and hand trucks.
Who is In Charge Here?
The Chairman of Amerityre is Richard Steinke. In 2003, Mr. Steinke’s salary was $424,000.. OVER 40% OF TOTAL SALES.
Mr. Steinke is no stranger to public companies
Steinke was Chairman of Lew Corporation which was public and eventually went bankrupt.
Steinke was Chairman of Urethane Technologies which was public and eventually went bankrupt.
Steinke is the Chairman of Amerityre which is public and (reader must fill in the blank)
MUST READ!!! STEINKE UP TO HIS OLD TRICKS
The following article was taken from Rubber and Plastics News, a division of Crain Communication. This is one of the foremost trade journals of the rubber and tire business.
Read Here
Executive Vice President Elliott Taylor
The second in command at Amerityre is Ellitott Taylor. Mr. Taylor’s background is in the public markets, not tires. Here is a sampling of some of the companies in which he as been involved with, along with their current trading price. All information has been retrieved by 10k Wizard.
Lifesmart Nutrition (LFNU)
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.01 |
| Wasatch Pharma. (WSHP) | .001 |
| Encore Wireless (ENCW) | .0001 |
| Lexon Technologies (LEXO) | .08 |
| Diatect Intl. (DTCT) | .24 |
| Cyntech Technologies (CYNT) | .60 (the blue chip of the group) |
It has not been a “Goodyear” for Amerityre
In 2001, Amerityre singed an agreement with Goodyear to jointly develop polyurethane automobile tires. It has been this glitter of hope for the future that has kept the stock trading over the past few years. Well, in March of 2003, the company entered into a mutual release from Goodyear as the project had been dropped. Why would Goodyear drop the project if it had any hope?
What has changed in the past year? Maybe if the company miraculously improved the tire, they could make a claim that Goodyear missed out.
While reading the filings of AMTY, we found one item that was noticeably absent:
Research and Development
The company is obviously not trading at the current price because of their financials. We thought maybe it was an oversight on our part until we called the company and confirmed our worst suspicion.
Research and Development is so marginal that it is not on the balance sheet because it is not even material to the company’s earnings or lack thereof.
These Below Quotes Come Direct From the Corporate Filings.
“The Company does not anticipate expending any substantial sums for new research
and development during the fiscal year ended June 30, 2000.”
“The Company does not anticipate expending any substantial
sums for new research and development during the fiscal year ending June 30,
2001.”
“We do not have any existing commitments and we do not anticipate expending any
substantial sums for new research and development during the remainder of our
fiscal year ending June 30, 2002.”
“We do not anticipate expending any substantial sums for new research and development during the
fiscal year ending June 30, 2003.”
What Is Wrong With This Picture?
The following is a comparison of the last quarter between Amerityre and Kik Technology. Kik is in the polyurethane tire business, the same business as Amerityre.
www.kiktire.com www.amerityre.com
The only difference between the two companies is their stock price. Both stocks trade on the OTCBB.
| AMTY | KKTI | |
| Stock Price | $12.50 | $.03 |
| Market Cap | $214 million | $750,000 |
| Trailing 3 Month Revs. | $348,945 | $990,843 |
| Loss From Operations | $786,482 | $50,956 |
| SG&A Expenses | $310,555 | $167,418 |
| Loss Per Share | 4 cents | less than a penny |
Amerityre Product Not Necessary
Tire companies have already found a way to deal with the problems of flat tires and the elimination of the spare tire.
Polyurethane is being used by some tire companies on the interior of the tires. Michelin has the Pax System which allows a car to run for over 100 miles on a flat tire. This was done in conjunction with Dow Chemical. Goodyear has a similar tire in the EMT tire line.
http://www.goodyear.com.jm/auto/about/new_technology.html
Unlike a wheelbarrow or a hand truck, the most important feature to consumers in an automobile tire is safety over durability. Therefore, the major tire companies have halted research on tires made completely of polyurethane.
Cheap Stock..look at the prices at which money was recently raised
“During the three month period ended June 30, 2003, we sold an aggregate of
157,660 shares at $2.00 per share for $315,320 cash; and 2,170,000 shares at
$1.50 per share for $3,255,000 cash.”
Coup De Gras
For all readers who are new to this stock, look at all of the hype press releases the company has put out over the past 4 years.
http://www.amerityre.com/Press.htm
Does this story sound familiar?
American Tire Corporation Announces Flat Free Automobile Tire - October 24, 2000
Conclusion
It is the opinion of Stocklemon that Amerityre will catch a flat in the near future. Its sales do not justify even having a public company and their lack of R&D shows a no dedication to any progress on future products. Cautious Investing To All.
Stocklemon Reports Part 3 on Immtech International (IMM)
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The great American Poet Adrienne Rich once wrote, “Lying is done with words and also with silence.” It seems as if the silence that is spoken by Immtech speaks louder than any of the words put forth in their press releases.
During the past month there have been numerous attempts by Stocklemon and other investors to contact Immtech for clarity on a few matters. Immtech has not returned any investor phone calls or emails. This report will show another mysterious relationship held by the company that seems to have more mysteries than Sir Arthur Conan Doyle.
Another Mysterious Shareholder!!!
According to the Company’s 10k and the amended 10k, the second largest shareholder is a man named Donald Fitzgerald. Mr. Fitzgerald owns 522,800 shares (over 5%) of Immtech. This is more stock than even the CEO owns, yet has never filed a 13d. This is a Securities Violation. A Serious Violation of Rule 13D-3 Under the Securities Act of 1934. The address given for Donald Fitzgerald on these filings belongs to The Shamrock Restaurant. It seems as if Mr. Ftizgerald owns this Irish Restaurant in the hills of Maryland.
http://frederickcounty.com/dining/shamrock.htm
Stocklemon called Mr. Fitzgerald, and he abruptly hung up the phone on us when we mentioned the word “Immtech”. He asked us how we got his name. Amazing how some people forget this is a public company. It is the belief of Stocklemon that Ftizgerald is a front for the true beneficial owner of the stock and therefore has no knowledge of the company. Interestingly enough, Fitzgerald in not in the subsequent 14A filing that was filed in December. What happened to his stock? Is Immtech in Violation? Is Immtech covering up for someone?
These shareholders can be added to the list of those who received free stock in Immtech along with:
Gerald Sklar- The Notorious Stock Promoter in Canada
http://www.bcsc.bc.ca/Enforcement/eol/sklar_gerald.asp
Cheung Ming Tak- The Rogue Stockbroker in Hong Kong
http://www.hksfc.org.hk/eng/press_releases/html/enforcement/00/00pr79.htm
It is the responsibility of intellectuals to speak the truth and expose lies.” That is the work of Stocklemon.
Conclusion
Stocklemon calls on management to address these issues to their shareholders and to the regulatory agencies. In the next installment on Immtech, Stocklemon will expose who is really pulling the strings at Immtech and how the stock promotion is being perpetrated. Cautious Investing To All.
Stocklemon Reports on WORLD INFORMATION TECHNOLOGIES (WRLT.OB).
CEO DOES SPIRAL CONVERTIBLE WITH HIMSELF.
PRICE TARGET- .25 CENTS
CEO DOES SPIRAL CONVERTIBLE WITH HIMSELF.
PRICE TARGET- .25 CENTS
Just when you think you have seen it all, a stock like World Information Technologies comes along. When stock promoter Gary Morgan makes himself the CEO of a deal that is located in China but based out of Boca Raton, you have to just laugh. When it attains a market cap of $200 million, you have to cry at the lack of respect some promoters have for the public marketplace. Stocklemon will show why WRLT is worth nothing more than the worthless checks passed by its CEO.
After reading all of the filings on WRLT and listening to the interview on CEOCAST.com, we still do not know where or how this company generates any revenue.
The company claims that they run the website www.24hh.com. This is supposed to be a leader in the Taiwan and China market in the e-commerce space. When we go to Google and type in “24hh.com” we only get responses back that deal with the stock WRLT. It is as if the website does not exist except in their imagination and press releases. Compare this to typing in “Stocklemon”, in which we get hundreds of pages of links. HMMM.maybe we should launch a Chinese version of Stocklemon and go public.
Actually, the only response we see on Google beyond corporate PR, is the relationship between WRLT and another OTC company, AngelCiti, (AGEL).currently trades at .05
http://www.angelciti.com/pr_confirm-relation-technology.asp
CEO CAST
The CEO of the company, Gary Morgan gave an interview with www.ceocast.com This might be the worst imitation of a CEO. We encourage everyone to listen to this interview and try to understand one thing he is saying. What does this company do?
Some of the better quotes of the interview were
“China has 3 billion people” (in reality China has 1.3 billion people)
“China is in the internet now where we were 10 to 15 years ago”
Boy is this guy clueless or what? (Obviously he has never seen Netease, Sina, or Sohu.)
Gary Morgan is no more qualified to run a public company than he would be to be to run the Federal Reserve. Although Gary Morgan can give out stock..CEO cast received $120,000 and 100,00 free trading shares. CEO also received.
1 MILLION OPTIONS AT ONE DOLLAR
The only thing worse than a company having a spiral convertible is when the spiral convertible is being done by the CEO of the company.
(Morgan is the below Company)
On July 1, 2003 the Company obtained a line of credit loan not to exceed
$500,000.00 (five hundred thousand dollars), approved by the board of
directors, from Pacific Commercial Group LLC (”Pacific”). For each draw,
the borrower will issue a convertible promissory note. The convertible
promissory notes will bear a 6% interest rate per year through its maturity
date of December 1, 2004. The promissory note is convertible into shares of
common stock of the Company at $4.00 per share or 50% of the closing bid
price on the conversion date, whichever is least price yielding the most
shares, subject to adjustment (including the stock split described above).
As of September 30, 2003, the Company had borrowed $414,000 from this Note.
On October 24, 2003, Pacific sent notice to the Company to convert the Note to
common stock.
If the company is making money, then why do they need to borrow $500,000 from Gary Morgan in a convertible debenture?
Something is Fishy Here.
Here is another funding done by Morgan for Himself
“On June 23, 2003, the Company entered into an Equity-For-Debt Exchange
Agreement with Vantage for the exchange of $250,000 principal amount of the
Line of Credit Promissory note for warrants to purchase 1,000,000 shares
(adjusted for the August 14, 2003 two for one stock split) of common stock
of the Company at $0.25 (adjusted for the August 14, 2003 two for one stock
split) per share.”
As of last quarter the company did not even have enough cash to meet its tax liability. According to the SEC filings they had
Cash and equivalents $ 2,059,000
Income tax payable 2,126,500
The company states that the cash is in a bank account in Taiwan.
Gary Morgan and His Phony Funding Scheme.
One day either the SEC or FBI will catch up to CEO Gary Morgan and his phony funding scheme. WRLT announced in their filings,
“On November 6, 2003, the Company entered into a Regulation S Purchase Agreement with Aurora Two, LTD for a major funding transaction. The closing and the valuation of the transaction is expected to be complete in early December 2003.”
It is now January, and still not funding. Should this surprise you? Gary Morgan has been pulling this scam with many companies over the years. He promises funding and never comes through, as he steals the commission. Stocklemon has contacted a few of these companies but will not release their names yet as they told us that they still might seek legal action…you know who they are Gary Morgan. Has Aurora ever come through on any funding? Not that we know of.
This Doesn’t Make Sense
Knowgen Systems Inc., to whom WRLT issued $1.5million in common stock, in August, is an inactive corporation as of July 2003. It is (was) located in Clinton Michigan, as the PR states, and the Agent is Raghu Rao: http://www.cis.state.mi.us/bcs_corp/dt_corp.asp?id_nbr=196434&name_entity=KNOWGEN%20SYSTEMS%20INC
They last filed an annual report in 2000. Their only web presence is
the press releases with WRLT. Strange that an inactive company suddenly
is in the business of selling software!
These are websites that WRLT claims it purchased in a press release dated August 26, 2003
http://www.shtw.com/www.shtw.cn currently consists of one page
http://www.china-taiwan.com/www.china-taiwan.cn is not currently working
The Infamous Bad Checks (Notice the Date)
Just in case you did not know, Gary Morgan, the Chairman and CEO, likes to pay his consultants with rubber checks. Look at the attached link and laugh at how Morgan bounces checks to the people that help consult on his companies. UNREAL.
Click here to view document.
Conclusion
It is the opinion of Stocklemon that this stock will have the life expectancy warm milk in the hot sun. The company seems to make no logical sense to Stocklemon and the individual behind the company is notorious and shady. And the beat goes on. Cautious Investing To All.
Stocklemon Responds to Allegations Made by YP.NET Inc.
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CHECKMATE
On January 8, 2004, Stocklemon released a report on YP.Net. YP.Net has gone through much effort to defend itself. Stocklemon would now like to go on record as saying the company is not as bad as reported in the first article.
IT IS MUCH WORSE
Mea CulpaStocklemon.com did have some oversights in its first report and would like to take this opportunity to clarify statements made.
In the first report Stocklemon claimed that Angelo Tullo had 2 personal bankruptcies. Correction- Mr. Tullo does not have two personal bankruptcies. Actually, Tullo has not filed Federal Income Tax Returns Since 1995. Please reference in the below link item 21 page 9. Bankrupcy Case
Stocklemon Reported that Greg Crane is the president of YP.NetCorrection- Mr. Crane is Executive Vice-President and Board Member, which is important for Sarbanes Oxley regulations.
Stocklemon Reports on YP.net (OTCBB:YPNT)
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YP.NET (OTCBB:YPNT) TIED TO
MONEY LAUNDERING AND FRAUD
Largest Shareholder Wanted By the US GOVERNMENT
Stocklemon.com has been reporting on companies for over 2 ½ years. We now believe that we have found the dirtiest company to date in YP.NET (YPNT) In part One of this story, we will detail the players involved and show how the company is in a deteriorating financial state, even if revenues might be up for the year.
Largest Shareholder
The largest shareholders of YPNT are two companies that are domiciled in Antigua. One of them is Morris and Miller and the other company is Matthew and Markson. Each one of these companies owns over 10 million shares of stock. Furthermore, each one receives regular payments by the company in a loan agreement.
According to the filings,
Management negotiated a loan agreement with M&M in exchange for the termination of “put” agreement rights whereby M&M can each borrow up to $10 million dollars from the Company collateralized by M&M’s YP.Net stock valued at a floor of $1.00 per share or 80% of the last trade of the stockprior to the advance request, whichever is greater.
YPNT COMMITTED TO LOAN $20 MIL TO THEIR LARGEST SHAREHOLDER IN ANTGIUA
Furthermore, the company has paid $5,000,000 to one of these companies for the right to use the url yellow-page.net.
The signer for these companies is William C Cooper. Mr. Cooper faced
EXTRADITION TO THE UNITED STATES FOR FRAUD, MONEY LAUNDERING, and TAX EVASION.
According to a May 21, 1999 article in the Wall Street Journal
“People familiar with the matter say William W. Cooper, a real-estate developer and former banker, was arrested in the Caribbean nation Tuesday after an indictment naming him was unsealed in U.S. District Court in Gainesville, Fla. The indictment accuses Mr. Cooper and others of conspiring to launder money stemming from wire fraud.
The charges are part of a four-year investigation into a venture-capital scheme in which more than 400 victims lost more than $60 million, say U.S. Customs Service officials, who call the matter the largest nondrug money-laundering case ever uncovered by the agency.”
http://www.russianlaw.org/wsj020501.htm
Here is a Senate Sub-Committee on Money Laundering that Discusses Mr. Cooper.
http://www.senate.gov/~gov_affairs/020501_psi_minority_report.htm
Here is some more reading on Cooper
http://archives.tcm.ie/businesspost/2001/02/25/story297382.asp
GREAT SITUATION- Send money to Antigua.never file to sell and never pay taxes. Just take the loan for 80% of your stock value.
Now under best case scenario, Cooper does not own these companies, rather he just signs for them. We spoke to investor relations and when we asked who controls the companies we were told Cooper. We believe that it might not be Cooper but rather an unknown entity that is controlled under the veil of Cooper.
More on this in Part 2
GREG CRANE
Greg Crane is the president of YPNT. He is a master of direct mail. We can write volumes on Mr. Crane but we think this article speaks for itself on the background of Mr. Crane.