Post by JJSeabrook on Apr 5, 2006 10:32:54 GMT -5
April 4, 2006
Stocklemon Reports on Smart-Tek Solutions
Stocklemon Reports on Smart-Tek Solutions, Inc. (OTCBB:STTK)
The avian bird flu has created a new kind of epidemic that is widespread throughout North America. But it’s not a medical epidemic -- rather it is a financial epidemic. As Stocklemon focuses on Smart-Tek Solutions (STTK), we believe that investors should not give their wallet the flu, but rather flip this company a bird.
Apparent outstanding shares: 73,253,016 shares
Stock price today: 1.74
Market cap at today’s price: $130 million
Stock price two weeks ago: 30c
Stock price six weeks ago: 16c
Cash in Bank- Overdraft of $136,136 (yes that means negative)
What the Company Really Does
Smart-Tek Solutions Inc. purports to be a provider of security services and systems in the Vancouver area. Its website shows many lovely photos of the glass-enclosed high-rises that grace the Vancouver skyline, where it claims to be “a major provider of goods and services in the security technology” sector.
Yet, its most recently filed quarterly report shows gross revenues of just $756,811. Its balance sheet tells the tale of a company with many problems. The company currently has only $800k in assets and $1.66 million in liabilities including a Bank Overdraft of $136,136. Needless to say they have a going concern from their auditor.
Now all of a sudden, one brilliant day last November, the company hatched the idea of going into the avian flu business. Not just the regular old ho-hum avian flu business, mind you, but the avian flu business in China !
Never before have we heard of this business from the company. Neither did they spend ONE DOLLAR on research and development. Now a company with a $136,000 bank overdraft is going to put an RFID tag on every chicken in China.
This should come as no surprise -- before the company was called Smart-Tek, it was called Royce Biomedical, Inc. (OTCBB:RYBO) who used spam to promote selling drug diagnostic kits in China (needless to say nothing came of that claim either.) www.aegis.com/news/Lt/1996/LT961003.html
This is where it gets interesting
On November 14, the company signs a deal with SES Investments of China to distribute this “mystery technology”. The deals calls for a revenue split between the two companies.
www.primezone.com/newsroom/news.html?d=89717
Mr. Goodwin Wang is the managing director of SES and he is quoted in the next 10 press releases and seems to be the human gateway to China.
Who is Goodwin Wang?
Last we heard of Mr. Wang he was a defendant in a class action suit against MTC Electronic Technologies.
www.gilardi.com/pdf/mtc2not.pdf
He seemed to have been the “point man” for that deal as his name was on the bottom of the press releases. MTC Electronics was sued by investors as well as the SEC. Guess what MTC got in trouble for???
A PUMP AND DUMP WHERE THE COMPANY LIED ABOUT DEALS WITH CHINA. THE FOLLOWING PARAGRAPH IS DIRECTLY FROM THE SEC.
Between 1990 and 1993, MTC claimed that it had developed a new telecommunications business in the People's Republic of China ("PRC") including agreements that made it the exclusive supplier of fax machines to the PRC, and joint venture projects to provide telecommunications services in various cities in the PRC. For each of its fiscal years 1991 through 1993, MTC falsely claimed that it had received millions of dollars in revenues from the fax machine sales, accounting for from 31 to 46 percent of its total revenues. In fact, MTC sold no fax machines in the PRC, and Miko deceived MTC's independent accountants by providing them with false documentation to support the fictitious sales. In 1991, at Miko's direction, MTC similarly began misrepresenting that it had concluded joint venture agreements that would make it the "exclusive" supplier of cellular telephone service to Shanghai and other major cities in the PRC.
www.sec.gov/litigation/litreleases/lr15631.txt
NASD Warns the Public about “Bird Flu Containment Story”
The National Association of Securites Dealers knew that bird flu story would be an easy mark for stock promoters … so much so that they took the extraordinary step of issuing the attached warning:
www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_015780
Amazingly, in its warning, the NASD singles out, but doesn’t name, a certain company:
One example includes a fax stating a company "has the solution for tracking and containing the Bird Flu virus."
Smart-Tek has issued no less than 7 separate “bird flu containment” PR’s within the last two weeks, each and every one touting its “containment solution”. Nearly all of them have the identical language cut and pasted from one to the next, substituting locales like “China”, “Singapore”, “Vietnam” and “Hong Kong” to essentially the sane verbiage.
April 4, 2006 biz.yahoo.com/pz/060404/96758.html
April 3, 2006 biz.yahoo.com/pz/060403/96634.html
March 31, 2006 biz.yahoo.com/pz/060331/96536.html
March 30, 2006 biz.yahoo.com/pz/060330/96460.html
March 28, 2006 biz.yahoo.com/pz/060328/96303.html
March 22, 2006 biz.yahoo.com/pz/060322/96027.html
March 21, 2006 biz.yahoo.com/pz/060321/95973.html
Conclusion
We could catalog how all the Vancouver-based directors involved in this scheme have been associated with other previous penny stock deals, or we could detail the numerous mammoth obstacles standing between this fantasy of a “business idea” and any actual business, but does it really matter? In this case, it is the opinion of Stocklemon that the epidemic of stock promotion has nested itself in the drama of the bird flu virus story.
Cautious investing to all.
Disclaimer:
Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market.
www.stocklemon.com/04_04_06.html
JJ
Stocklemon Reports on Smart-Tek Solutions
Stocklemon Reports on Smart-Tek Solutions, Inc. (OTCBB:STTK)
The avian bird flu has created a new kind of epidemic that is widespread throughout North America. But it’s not a medical epidemic -- rather it is a financial epidemic. As Stocklemon focuses on Smart-Tek Solutions (STTK), we believe that investors should not give their wallet the flu, but rather flip this company a bird.
Apparent outstanding shares: 73,253,016 shares
Stock price today: 1.74
Market cap at today’s price: $130 million
Stock price two weeks ago: 30c
Stock price six weeks ago: 16c
Cash in Bank- Overdraft of $136,136 (yes that means negative)
What the Company Really Does
Smart-Tek Solutions Inc. purports to be a provider of security services and systems in the Vancouver area. Its website shows many lovely photos of the glass-enclosed high-rises that grace the Vancouver skyline, where it claims to be “a major provider of goods and services in the security technology” sector.
Yet, its most recently filed quarterly report shows gross revenues of just $756,811. Its balance sheet tells the tale of a company with many problems. The company currently has only $800k in assets and $1.66 million in liabilities including a Bank Overdraft of $136,136. Needless to say they have a going concern from their auditor.
Now all of a sudden, one brilliant day last November, the company hatched the idea of going into the avian flu business. Not just the regular old ho-hum avian flu business, mind you, but the avian flu business in China !
Never before have we heard of this business from the company. Neither did they spend ONE DOLLAR on research and development. Now a company with a $136,000 bank overdraft is going to put an RFID tag on every chicken in China.
This should come as no surprise -- before the company was called Smart-Tek, it was called Royce Biomedical, Inc. (OTCBB:RYBO) who used spam to promote selling drug diagnostic kits in China (needless to say nothing came of that claim either.) www.aegis.com/news/Lt/1996/LT961003.html
This is where it gets interesting
On November 14, the company signs a deal with SES Investments of China to distribute this “mystery technology”. The deals calls for a revenue split between the two companies.
www.primezone.com/newsroom/news.html?d=89717
Mr. Goodwin Wang is the managing director of SES and he is quoted in the next 10 press releases and seems to be the human gateway to China.
Who is Goodwin Wang?
Last we heard of Mr. Wang he was a defendant in a class action suit against MTC Electronic Technologies.
www.gilardi.com/pdf/mtc2not.pdf
He seemed to have been the “point man” for that deal as his name was on the bottom of the press releases. MTC Electronics was sued by investors as well as the SEC. Guess what MTC got in trouble for???
A PUMP AND DUMP WHERE THE COMPANY LIED ABOUT DEALS WITH CHINA. THE FOLLOWING PARAGRAPH IS DIRECTLY FROM THE SEC.
Between 1990 and 1993, MTC claimed that it had developed a new telecommunications business in the People's Republic of China ("PRC") including agreements that made it the exclusive supplier of fax machines to the PRC, and joint venture projects to provide telecommunications services in various cities in the PRC. For each of its fiscal years 1991 through 1993, MTC falsely claimed that it had received millions of dollars in revenues from the fax machine sales, accounting for from 31 to 46 percent of its total revenues. In fact, MTC sold no fax machines in the PRC, and Miko deceived MTC's independent accountants by providing them with false documentation to support the fictitious sales. In 1991, at Miko's direction, MTC similarly began misrepresenting that it had concluded joint venture agreements that would make it the "exclusive" supplier of cellular telephone service to Shanghai and other major cities in the PRC.
www.sec.gov/litigation/litreleases/lr15631.txt
NASD Warns the Public about “Bird Flu Containment Story”
The National Association of Securites Dealers knew that bird flu story would be an easy mark for stock promoters … so much so that they took the extraordinary step of issuing the attached warning:
www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_015780
Amazingly, in its warning, the NASD singles out, but doesn’t name, a certain company:
One example includes a fax stating a company "has the solution for tracking and containing the Bird Flu virus."
Smart-Tek has issued no less than 7 separate “bird flu containment” PR’s within the last two weeks, each and every one touting its “containment solution”. Nearly all of them have the identical language cut and pasted from one to the next, substituting locales like “China”, “Singapore”, “Vietnam” and “Hong Kong” to essentially the sane verbiage.
April 4, 2006 biz.yahoo.com/pz/060404/96758.html
April 3, 2006 biz.yahoo.com/pz/060403/96634.html
March 31, 2006 biz.yahoo.com/pz/060331/96536.html
March 30, 2006 biz.yahoo.com/pz/060330/96460.html
March 28, 2006 biz.yahoo.com/pz/060328/96303.html
March 22, 2006 biz.yahoo.com/pz/060322/96027.html
March 21, 2006 biz.yahoo.com/pz/060321/95973.html
Conclusion
We could catalog how all the Vancouver-based directors involved in this scheme have been associated with other previous penny stock deals, or we could detail the numerous mammoth obstacles standing between this fantasy of a “business idea” and any actual business, but does it really matter? In this case, it is the opinion of Stocklemon that the epidemic of stock promotion has nested itself in the drama of the bird flu virus story.
Cautious investing to all.
Disclaimer:
Stocklemon.com does not guarantee in any way that it is providing all of the information that may be available. We recommend that you do your own due diligence before buying or selling any security. At any times the principals of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market.
www.stocklemon.com/04_04_06.html
JJ