Guangzhou Global Telecom (GZGT)

[ABDO]

About

Guangzhou Global Telecom offers wireless communications services to the more than one billion potential subscribers in China. With mobile phones, phone cards and value added services – powered by partnerships with the country’s leading carriers and handset manufacturers, as well as new strategies for retail outlets and lineless messaging – the company is well positioned to take advantage of the Chinese telecommunications boom.
Find out more about the emerging leader in wireless.

Some of Guangzhou's Major Partnerships
Nokia | Motorola | SonyEricsson | Philips | Siemens | UTstar | Samsung
Panasonic | LG | TCL | Gionee | Rowa | Dopod | Bird | Amoi | Lenovo


Market Background

China is the world’s largest mobile telecommunications market; 500 million Chinese (37% of the population) use mobile phones. By 2010, it is projected that half of China’s 1.3 billion people will be using mobile phones. The dollar value of the China mobile market is staggering. Academic models project a total value of $110 billion by 2013, rising to $250 billion by 2023 and $336 billion by 2030, with a subscriber base of 1.2 billion users.


Stock Overview

Stock Symbol: GZGT
Shares Issued and Outstanding: 53,290,000
Public Float: 13,072,500
CUSIP Number: 40066G101
Transfer Agent: First American Stock Transfer
Corporate Lawyer: Anslow & Jaclin, LLP
Investor Relations: Aero Financial
Financial Year End: December 31

[ABDO]

Has had a very nice couple of days..looking to test higher highs here. Breaking 2.25 will be nice. Should see 2.80 next and then cruise control to higher numbers imo.





I saw this post on some boards in regards to a short squeeze:

Buyins.net is issuing a SqueezeTrigger Alert on Guangzhou Global Telecom (GZGT). With over 3 million shares shorted since May 2007 and the stock already crossing above its first of several SqueezeTrigger Levels, a short squeeze is beginning. Over 593,000 shares have been shorted at average prices under $1.93 and the stock closed at $2.01 today. When the stock closes above $2.25, all 3.2 million shares that have been shorted on GZGT will be out-of-the-money.


That was written yesterday. Today GZGT closed at 2.20...tomorrow should be interesting and so should the next few weeks imo.

[JJ]

Wow, great post. How far do you think it could go?

[ABDO]

I'm holding long. First stop is $4 imo...then possibly higher.

[ABDO]

Guangzhou Global Telecom Signs LOI to Acquire 60% Equity Stake in Wangtian Electronic Technology, Ltd.
Thursday June 7, 9:00 am ET

GUANGZHOU, China, June 7 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, announced that it has signed a Letter of Intent ("LOI") with Zhengzhou Wangtian Electronic Technology Ltd. ("Wangtian") to acquire a 60% equity interest in Wangtian by issuing common stock to the shareholders of the company. The exact purchase price will be determined upon completion of the US GAAP audit of Wangtian.

Wangtian is a service provider which provides system integration services to telecom operators, government institutes, education organizations and enterprisers. Its un-audited revenue in 2006 is around US$1 million with net profit of $100,000. During the first 5 months of 2007, the un-audited revenue is around US$500,000 with $50,000 of net profit.

Within 2 weeks after setting up the branch in Zhengzhou, we successfully identified one local partner who is willing to work with us to expand our distribution business in Zhengzhou. The Company believes that this is a critical step in building a strong corporate infrastructure. With the established relationship of Wangtian with local telecom operators and enterprises, the Company will be able to co-operate with local telecom operators with more competitive edge and be able to set up more retail stores to facilitate our expansion objective in Zhengzhou.

As stated in an earlier press release, according to published statistics, the number of mobile phone users in Zhengzhou was approximately 4,527,000 at end of September 2006, roughly 63% of total population of the city. The mobile users increased by 1,010,000 during the nine months ended September 2006, which represents a 30% increase for year to year comparison if projected to the whole year of 2006. According to statistics, the coverage of mobile users in Zhengzhou is only 63%, compared to 93% in other major cities of China.

[Jim]

Guangzhou Global Telecom signs LOI to Acquire 100% Equity Stake in Guangzhou Hengwei Digital Ltd.


GUANGZHOU, China, June 14 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a wholesale distributor of mobile phone handsets, pre-paid calling cards and mobile handset value-added services in The People's Republic of China (PRC), announced that it has signed a Letter of Intent ("LOI") with Hengwei Digital Ltd. ("Hengwei") to acquire a 100% equity interest in Hengwei for the purchase price of 2,000,000 Renminbi ("RMB") (approximately $263,158 U.S.).


Hengwei Digital Ltd. (Hengwei), located in Guangzhou in The People's Republic of China, is a private company engaged in importing and exporting cell phones and cell phone spare parts. In 2006, Hengwei realized unaudited revenues of approximately $1,000,000 U.S. with a net profit of approximately $50,000 U.S.

Ms. Li Yankuan, the CEO of GZGT states, "We are accelerating the growth of our Company by acquiring small businesses that possess exceptional growth potential, in conjunction with opening additional branches in fast growing and developing markets. While the Acquisition of Hengwei will provide a direct increase in the Company's revenues, the major advantage will be obtaining access to new suppliers and an additional customer base. This acquisition will provide us an immediate export-import base for our product lines, and will enable us to be in direct touch with other foreign cell phone manufacturers. This continued acquisition strategy will bolster our ability to distribute more products beyond the PRC and introduce new products to our existing network. We can definitely see a synergy development forming which will give us new tools necessary to continue our corporate growth."

[Sharkster]

Wow! What a drop from $1.85 to $1.00

Recovering nicely though

[7Forever]

Ouch, another big multiday fall. good profits were made though. Always remember to exit at some point

[7Forever]

News

Guangzhou Global Telecom Signs Distribution Agreement with the Guangzhou Branch of China Unicom
Friday June 29, 8:30 am ET


GUANGZHOU, China, June 29 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom, Inc. (OTC Bulletin Board: GZGT - News), a wholesale distributor of mobile phone handsets, pre-paid calling cards and mobile handset value-added services in The People's Republic of China (PRC), announced today that the company signed a distribution agreement with China Unicom's Guangzhou Branch. Pursuant to the agreement, Global Telecom will become an agent to distribute the business of CDMA and GSM, phone cards and other value added services in Guangzhou.

As of April 2007, the numbers of users of GSM and CDMA phones are 110,298,000 and 38,207,000 respectively. New users of GSM and CDMA in April 2007 reached 1,140,000 and 483,000 respectively. According to published statistics, new GSM users increased by 25.7%, and new CDMA users increased by 30% during the first quarter of 2007, compared to the same period of 2006.

CEO Li Yankuan states, "This is a tremendous opportunity for GZGT. Our enhanced access to quality GSM and CDMA equipment will not only bring additional revenue into the company, but also build upon our positive corporate image to overseas companies and potential customers."

District General Manager Huang, of China Unicom's Guangzhou Branch, commented that "we believe that Guangzhou Global Telecom possesses superior management and a well thought business plan for expansion within their business model. We are pleased to see Guangzhou Global Telecom has successfully listed the company's common stock in the United States. This listing adds tremendous credibility and notoriety to the company. With the support from the US stock market and company management, we hope Guangzhou Global Telecom can continue to grow with our own business expansion. We are looking to introduce Guangzhou Global Telecom to become the agents in other cities of Guangdong if the terms of co-operation can be agreed upon by both parties."

[Jim]

Wow that was an amazing bounce from 0.67 to 1.28

This definitely moves

[JJ]

10Q out http://biz.yahoo.com/e/070820/gzgt.ob10qsb.html

[JJ]

Guangzhou Global Telecom Reports Q2 Result
Tuesday August 21, 8:30 am ET


GUANGZHOU, China, Aug. 21 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a mobile phone handset, pre-paid calling card distributor and mobile handset value-added services provider in the PRC, announces that the Company reports revenues of $4.8 million in the second quarter of 2007, representing a 44% increase compared to the same period in 2006. Revenue during the six months ended June 30, 2007 was 8.6 million, representing a 30% increase compared to the same period in 2006.


Gross profit dropped from $298,843 to $265,248 or during the quarter ended June 30, 2007 as compared to $564,091 during the same quarter ended June 30, 2006. The significant drop is mainly because one significant supplier changed its sales policy, which left less gross margin for its agents. It not only resulted in the decrease of gross profit, but also resulted in the decrease of sales and general administrative expenses. Additionally, the drop of gross profit was also due to the fact that the sales rebate in connection with the sales in the second quarter of 2007 will be recorded in the subsequent quarters. Sales and administrative expenses decreased by $261,974 as compared to the same period of 2006.

The Company said it had a net income of $16,122 during the first quarter of 2007 compared to $64,975 in the same period of 2006.

"The 44 percent increase in sales is a symbol of our aggressive development in our business. With $500,000 cash we raised at the beginning of April, we were able to expand our business into other provinces to achieve more aggressive targets. Recently, we closed another round of convertible debt financing which will enable the company expand into other cities and acquire more small companies" said Li Yankuan, President and CEO of Guangzhou Global Telecom

[JJ]

Guangzhou Global Telecom Signs Agreement with Travoo
Monday September 3, 8:30 am ET


GUANGZHOU, China, Sept. 3 /Xinhua-PRNewswire/ Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, has signed an agreement ("Agreement") with Travoo Technology Guangzhou Ltd. ("Travoo"). According to the Agreement, Guangzhou Global Telecom, Inc. will become the supplier of wireless products and equipment to Travoo (" http://www.travoo.com.cn "), which will become a distribution platform for Guangzhou Global Telecom, Inc.

Travoo is a joint venture between Guangdong China Travel Service (Holdings) Limited, one of the largest travel companies in China, and International Travel Systems Inc., a wholly owned subsidiary of Wing On Travel (Holdings) Limited, one of the largest listed travel companies in Hong Kong (HKSE: 1189). Travoo offers, both online and offline, bookings for hotels, airlines, attractions and other transportation ticketing. Travoo expects to expand its network greatly in 2007.

General Manager of Travoo, Wong Chi Tat said, "We are glad to have Guangzhou Global Telecom as our significant partner in this segment, and we hope we can explore and create opportunities together, in the e-business area."

Ms. Li Yankuan, the CEO of the Company states, "We are thrilled to be the suppliers of communications products and services for Travoo which will allow us to promote our products and develop our business throughout their network. We believe the cooperation with Travoo can enrich the product offering of Travoo as well as enlarge the sales network of Guangzhou Global Telecom."

[JJ]

wow, almost no news out today.... must be the holiday season.

GZGT had news though

Guangzhou Global Telecom Reports Q3 Result
Wednesday November 21, 8:30 am ET


GUANGZHOU, China, Nov. 21 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bullion Board: GZGT), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, announced that the company reported revenue of $6.4 million in the third quarter of 2007, representing a 1,728% increase compared to the same period of 2006. The revenue during the nine months ended September 30, 2007 was 15 million, representing 116% increase compared to the same period of 2006.


The gross profit increased from $125,473 during the three months ended September 30, 2006 to $403,156 in the same period of 2007. The increase of gross profit is mainly resulted from increase in revenue. Meanwhile, the gross margin dropped from 35% during the three months ended September 30, 2006 to 6% for the same period of 2007. The decrease is mainly due to the reason that China Mobile Guangzhou Branch changed its sales model which left thinner margin for agencies but took certain marketing function itself. In addition, certain rebate for the previous periods of 2006 was received and recorded in the three months ended September 30, 2006. Therefore, the gross margin in 2006 is comparatively high.

Selling, general and administrative expenses were $295,261 during the three month period ended September 30, 2007 as compared to $105,792 for the same period ended in 2006, an increase of $189,469 or 179%. This increase is mainly due to the interruption of two months' operation during the three months ended September 30, 2006.

Operating income recorded $165,792 during the nine months ended September 30, 2007, as compared to $164,603 during the same period of 2006. The slight increase in operating income is mainly due to the increase of revenue, while certain expenses related to expansion into other cities absorbed certain income from normal operations.

Other expenses were $487,556 during the nine months ended September 30, 2007, which mainly included the non-recurring financing cost of $376,000 related to the convertible debt and the continuing interest expenses of $110,607. The financing cost included investment banker fee, lawyer fee, due diligence fee, etc. The interest expenses of $110,607 included interest of convertible debt, amortization of discount on the convertible debt, amortization of the fair value of granting financial instruments.

Net loss recorded $400,982 during the nine months ended September 30, 2007, as compared to gain of $128,367 during the same period of 2006. The decrease of net profit is mainly due to the other expenses relating to the convertible debt.

"The 1,728 percent increase in sales is a symbol of our aggressive development in our business. With the fund we raised in the earlier of August, we were able to expand our business into other provinces to achieve more aggressive targets. As of September 30, 2007, we have successfully expanded our operations in Zhengzhou, Wuhan, Beijing and Macau. We will enhance the operation there and expand into other cities as more as possible," said Li Yankuan, President and CEO of Guangzhou Global Telecom.

[7Forever]

GZGTfiled their Form 8-k with the SEC.

check it out;

http://biz.yahoo.com/e/080228/gzgt.ob8-k.html

[SlyFox]

Nice news out today

http://biz.yahoo.com/prnews/080311/cntu014.html?.v=44

[StockACE]

GZGT annual report came out today. they earned $21,453,232 in 2007 compared to their 2006 earnings of $12,829,462. Nice increase of $8,623,770 (67%) over the year. not a lot of trade though...maybe once these number get out there might be more movement...

[7Forever]

hey guys. GZGT announced that they have signed an agreement to acquire 50% equity in Beijing Lihe Jiahua Technology and Trading Company. The equity interest will be in the form of 1,500,000 shares and 200,000 Renminbi ('RMB') as operating cash.

[Henry]

maybe the agreement will help. up 0.004 today. which is 2.21%. better than down.

[Sherry]

Guangzhou Global Telecom Commits to Helping Sichuan Earthquake Relief Efforts
Wednesday May 28, 11:14 am ET


GUANGZHOU, China, May 28 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT - News), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, has lent support to the victims of the Sichuan earthquake by organizing an internal fund-raising exercise to raise cash donations for the victims to help them rebuild their homes. The Company also contributed food and sundry supplies to the disaster-hit area.


The 8-magnitude earthquake on May 12 struck Sichuan Province in Southwest China and has killed more than 65,000 people and left more than 5 million homeless. Relief aid which rescued almost 83,000 people from the rubble of collapsed buildings, now concentrates on housing, food and preventing the spread of the disease. The earthquake which devastated buildings, homes, highways and roads is estimated to cost the government more than 60 billion yuan in rebuilding the disaster areas.

Ms. Li Yankuan, the CEO of the Company, who started the initiative by calling out to the various branches (Beijing, Wuhan, Zhengzhou, Macau, Singapore) and partners of the Company, said that she will match all employee contributions to help relief efforts. She added, ''We hope that our contributions will go a long way in helping the victims rebuild their homes and to help ease their emotional and physical scars.''