stock ticker: GTXC

GTX Global (GTXC) – You Can’t Sue The Truth.

On November 14, 2005 Stocklemon issued a report on GTX Global Corp. In our report we stated that the current stock promotion of GTX Global seems similar to those of AHFI and BHLL (which both got halted by the SEC). Furthermore, we stated that the former CEO of GTX Global and the man behind the scenes is convicted felon David Hagen. Stocklemon also commented on the many press releases that we believed to have taken place with “phantom companies”.

Since then, the company went on the offensive stating in its PR that Stocklemon was referring to “allegations regarding Mr. Hagen as found on Google search” and “Reports were circulated on Google referring to a personal situation of Mr. Hagen.”

http://biz.yahoo.com/prnews/051114/clm543.html?.v=3

http://biz.yahoo.com/prnews/051115/cltu055.html?.v=28

These are not allegations and this was not a personal situation.

David Hagen used to go by the name of David Defusco, and David Defusco was sentenced to 5 years in a Federal Penitentiary for Mail Fraud and Money Laundering.

His scam stole millions of dollars from unsuspecting consumers. Mr. Hagen’s mail scam was so widespread that US Attorney Henry Hudson said that the Defuscos were, “defrauding every consumer they possibly could”.

GTX lists Curtis Garth as the CEO. It is the opinion of Stocklemon that Curtis Garth is nothing more than a mouthpiece for David Hagen. Mr. Garth, until his recent promotion, was a salesman in the company’s PrimeTV division, which has since gone bankrupt.

At the writing of this report, GTX has just announced a new president by the name of Len Green. Does it really make a difference?

Mr. Hagen hiding his identity and corporate identity are nothing new. As written in the Washington Post:

“Holding up a copy of a book entitled “How to Create a New Identity,” which was taken from the DeFuscos, Hudson said: “This became their bible.” He described how the couple since 1985 used a variety of names, transferred funds among 40 accounts in more than 25 area banks, wrote “several million dollars” in bad checks and created phantom corporations to hide profits from their many registered companies. “

The Promotion

Stocklemon initially published that the stock promotion of GTXC looks similar to that of AHFI, CNDD, and BHLL. We never stated that the companies were related, just that the stock promotions are similar.

The promoters behind AHFI, CNDD and BHLL have all been indicted by the SEC and have had their assets frozen.

GTXC, in a quick rebuttal, stated it had never even heard of the above companies. Yet, simultaneously, one of the first people we heard from was a “cease and desist letter” from an attorney who represents Brian Kos, one of the ringleaders of the AHFI and BHLL promotion.

Stocklemon regrets that we cannot show links to the AHFI and BHLL stock promotions that were once on the internet, as they have since been removed. Yet, we do have copy of a promotion for AHFI as was on a site called Hot Stock Finder: http://www.junkfax.org/fax/broadcasters/fdc/HotStockFinder.pdf

These are the two current sites that are carrying the promotion of GTXC. It should be noted that both reports are FILLED WITH LIES. There are so many untruths in these reports, that we don’t have enough time and space to detail them all. They are filled with the same type of totally unsubstantiated revenue projections, the same unwarranted buy recommendations, the same unsupported price targets, and the same illegal absence of disclaimer/disclosure regarding the identity of the campaign’s funding source. It is in fact, a crystal clear example of a laundry list of practices the SEC typically finds to be illegal in stock promotion materials.

http://www.urgentstockpicks.com – (registered in Caracas)

http://www.leadingstockpicks.com – (registered in Zagreb)

Stocklemon observes many key phrases, charts, and layouts that are similar within all three sites. Similarly, both promotions used the tool of paid-for Google keywords. Look at the advertisment for GTXC that appears when searching for the word “stock”. This method was also used in the promotion of BHLL and AHFI.

http://www.google.com/search?hl=en&lr=&q=stocks

Below are two links that show what happened to those involved with the AHFI and BHLL promotions.

http://www.sec.gov/litigation/litreleases/lr19085.htm

http://www.businessweek.com/magazine/content/05_12/b3925104_mz020.htm

 

The Business – When all else fails- Go Public

GTX Global until last month was known as Gatelinx. Gatelinx has been trumpeting their VOIP software for over 3 years, yet no one seems to care.

http://www.speechtechmag.com/pub/industry/518-1.html

In the company’s most recent financial filing, we cannot find any revenue coming from outside of the company, to its GTX Global Unit.

https://www.otcstockinfo.com/repository/631458/631458_FR1.pdf

On December 2, the company put out a press release announcing that they have developed the first artificial intelligence.

http://biz.yahoo.com/prnews/051202/clf017.html?.v=33

 Is this news? LOL. A little research shows us that the company tried to sell this “artificial intelligence” last year for $1.6 million (I guess they had no takers)

http://www.mergerplace.com/partner/bizjournals/view/25398

The other part of the business is the Direct TV business. This is what the local press had to say about the Direct TV business.

http://www.wral.com/news/2965245/detail.html

It’s predecessor business Prime TV, owned by Gatelinx, filed for bankruptcy two months ago after having numerous run ins with the Attorney General of North Carolina and a trail of debts.

http://sl.stocklemon.com/ProdImages/primetv.rtf

 

The PR campaign

In its November 14 report, Stocklemon observed the company that GTX had just announced, on November 7th, the purchase of Vizual Corp., but could find no evidence that the company existed.

http://biz.yahoo.com/prnews/051114/clm060.html?.v=25

 

Strangely, just three weeks later, the deal was “terminated” and “restructured . into an agreement to purchase “Intellectual Property” . despite the fact that the company took the trouble to explain that the same “Intellectual Property fell short of expectations”. Stocklemon can’t wait to find out the story behind this story.
http://biz.yahoo.com/prnews/051128/clm037.html?.v=33

 Then, on November 10, 2005, GTXC announced licensing for Canadian Territories:

http://biz.yahoo.com/prnews/051110/clth044.html?.v=32

 The licensee, “Heel Strike Corp of Toronto Canada”, seems to have been doing a similarly terrific job of flying below the radar.

Stocklemon can’t even find a phone number for the company, let alone any evidence of business activity.

Then on November14, 2005, the company announced licensing for European Distribution:

http://biz.yahoo.com/prnews/051114/clm060.html?.v=28

Again, no contact info is provided, and again, the licensee Govalin Corp., of Lugano Switzerland seems to be similarly shy about appearing in public. In fact, the only thing these three companies seem to have in common is that there seems to be absolutely no trace of any of them in the public domain. Gee, do you think there is a pattern here ?

And here is the best, on December 8, GTX Global puts out a press release reccomending their own stock.  As they state that the recent dip in stock price, “creates an excellent investment opportunity in the company’s stock.”

http://biz.yahoo.com/prnews/051208/clth056.html?.v=30

The company does not have current financials, we know nothing about the companies they have licensing deals with, we do not know how much cash is in company, but we are to believe that it is a great investment opportunity- so says the company.

Conclusion

It is the opinion of Stocklemon, that there is no viable business in GTX Global or Gatelinx that could ever justify even a fraction of the current $350 million market cap.

You can sue us, and you can put out press releases about us. The truth speaks louder than any team of lawyers or stock promoters out there, and the truth will soon catch up with GTX Global.