GTE Telecom Trading Alert

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October 13, 2000
Volume III, Issue 87
Email :

To OTC Journal Members:

Market Comment

In our opinion (guess might be the right word) yesterday was total capitulation day. The market looked like it had finally put in a good bottom on Tuesday, and stocks were beginning to rebound with the NASDAQ opening 80 points higher than Wednesday's close.

Then the news came out on the terrorist attack on our Navy ship, and the market was torpedoed. The NASDAQ turned around more than 180 points to the downside. Simultaneously small stocks experienced total capitulation. The Trading Alert we issued Wednesday night had started up nicely and was looking good. When the the sell off began the stock dropped like a rock on big volume. This is why we always set a stop loss on Trading Alerts. If you followed our advice you should only have lost a little money.

The lower we go the harder we will bounce. There are boatloads of cash on the sidelines just waiting for the bottom. The Fed is almost certain to start lowering interest rates after the Election. Consumer spending has been fueling our economic expansion, but the market is telling us retail spending is over. Even powerhouse Home Depot (NYSE: HD) issued an earnings warning yesterday. Stocks trade based on expectations over the next six months, and nearly all retail stocks are trading at 52 week lows, most cut in half this year.

If we are right Thursday should have been the climactic sell-off with margin calls hurting stocks everywhere. Next week we will publish a list of larger cap stocks we believe will rebound, and it should start now.

Today's edition has two great ideas for our valued members: If you choose to act we will save you money on your long distance service and hopefully make you money in the market. If you decide to invest please set a tight stop loss in the event of another down draft in the NASDAQ.

GTC Telecom (OTC BB: GTCC)

Our mission is to find unique values on behalf of our members. Today's edition offers a two-for-one opportunity. When we first looked at GTC Telecom we were only interested in the stock side of the opportunity. When we started discussing their business model we couldn't believe the low rates they offered on long distance service with no hidden charges or strings attached.

We suggested to the company putting together a special offer for our valued members, and have come up with a very compelling two pronged approach. Invest in the stock to make money, use their long distance service to save money, or do both.

GTC Telecom is a long distance company located in Costa Mesa, California. The company recently announced year end results. Revenues were up 1600% from the previous year.74 million minutes of long distance time were sold, up from 1.7 million minutes of usage in fiscal 1999.

Their growth has been fueled by a great deal of high profile publicity on their very low long distance rates. GTC Telecom sells long distance service for $.05 per minute, the lowest price we know of anywhere!!!!!!!!!

This year GTC Telecom received a great deal of positive publicity due to these very low rates. Here is a list of publications that have been favorable on their long distance service:

  • Consumer Reports,  February's Edition: Compared GTC Telecom to AT&T, MCI, and Sprint. Said the company had the best long distance plan.
  • Smart Money: A long-distance plan consumers “can’t afford NOT to grab”  It’s Your Nickel
  • The Kiplinger Letter: “The real nickel-a-minute plan is with GTC Telecom….”
  • CBS MarketWatch:  “And the Winner Is…. GTC Telecom”
  • Playboy- Current Issue: Mentioned on page 41 for those members that happen to get this periodical because you love the articles.
Special Offer For OTC Journal Members Only

OTC Journal Members choosing to convert their long distance service to GTC Telecom will receive a rate of $.05 per minute,
and the first 300 minutes (for most people about one month) will be Free!!!!!!!.

This is a fantastic offer, and of course we have made it easy for you. We love these kinds of benefits for our members.

Simply Click Here To Take Advantage of the Offer
or copy and past the following Web Address into your Browser:

GTE Telecom Trading Alert

On October 4th and 5th GTC Telecom issued several press release concerning the company's recent outstanding growth. Revenues were up 1600% from the previous fiscal year, and long distance usage had exceeded 74 million minutes (up from 1.7 million the previous fiscal year). The CEO held a conference call on October 3rd to discuss these positive developments.

The 52 week trading range on the stock has been $4.0625 at the high, and the low has been $.43. The stock responded by trading 268,000 shares and hitting a high of $1.03 on October 5th. Then the NASDAQ began its free fall leading to yesterday's capitulation, and the stock gave back all its gains to end up back at its all time low of $.44.

Today, after the market closed, GTC Telecom announced new record long distance usage figures for their first fiscal quarter of 44 million minutes. Furthermore, management informs us that due to their prolific growth, the company is on the verge of turning cash flow positive for the first time in their history. The company is also trading at about 1x Annual Revenues, which is 1/2 the industry average. As evidenced by the press release below, the company's growth is prolific. On that basis, and assuming the NASDAQ will continue to due for a bounce, here is your Trading Alert on GTC Telecom:

  • Buy up to $7/8
  • Set Your Stop at $.44 (all time low)
  • Look for the stock to rebound to $1.04 (October's high and a double from closing price). If the stock can break through $1.04, it could go on to $1.50 (300% from today's close).
Here is the complete text of today's press release which clearly demonstrates the company is growing dramatically:

Contact: Investor Relations
 GTC Telecom
 (714) 549-7700


Company Reports Over 44 Million Minutes of Usage 

COSTA MESA, CA – October 13, 2000 - GTC Telecom (OTCBB:GTCC) today announced that the Company has provided over 44 million minutes of long distance and international usage in the 1st quarter ended September 30, 2000 as compared to usage of less than 2.1 million minutes for the same quarter last year. 

Paul Sandhu, CEO of GTC Telecom commented, “This growth in usage continues to show the strong demand for GTC’s products.  As the Company reaches the point of being cash-flow positive, we will be looking to spur that growth rate even more significantly. In addition, we will also be looking to leverage our cash-flow into more high growth and high margin areas.  This means that GTC will be investigating further areas of expansion similar to our venture into the wireless arena in 2000.  GTC continually searches for ways to leverage profitability while simultaneously rounding out our product bundles to meet the consumer’s telecom needs and demands.”

Sandhu continued, “As we approach the level of being cash flow positive, we are very excited about the future of not only GTC Telecom as a company but in seeking out and providing new technologies as a whole.  With our revenue and minute projections, we believe that GTC is on track for a record 2nd quarter.”

Interested parties may sign-up or receive more information via the company's Web site,

About GTC Telecom 

Founded in 1997, GTC Telecom is a Telecom/Internet company, providing long distance service to over 80,000 residential customers throughout the United States. GTC Telecom has some of the lowest long distance rates in the industry today to compete with AT&T (NYSE:T), Sprint (NYSE:FON), Qwest Communications (NYSE: Q) and IDT Corp. among others. Named by the Kiplinger Letter, as the "real nickel-a-minute plan", GTC Telecom offers a five-cent per minute anytime, anyday long distance rate plan with no monthly fee. Consumers that choose not to be billed on a credit card will be charged a $1.95 per month processing fee. GTC Telecom offers basic Internet and long distance bundled and non-bundled plans. For basic unlimited 56K dial up Internet access, GTC offers a plan for $9.95 per month, which competes with other Internet service providers like Earthlink and MSN Internet.  In addition, GTC offers a portal site,, which competes with other portal sites like Lycos and Yahoo. The Company also offers long distance calling cards via the Internet on its site, For further information visit GTC's web site at

Included in this release are ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors. 

Please review the section on our home page on Trading Alerts. The track record on our previous alerts can be obtained by clicking here.

The Newsletter is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward  maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features.  Likewise, this newsletter is owned by MarketByte, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication.

Click Here to view our compensation on every company we have ever covered, or visit the following web address: for our full profiles and for Trading Alerts. MarketByte LLC, the owner and publisher of the OTC Journal has been paid a fee of $52,500 by GTC Telecom for the dissemination of this report.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with  which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication.

The profiles, critiques, and other editorial content of the may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.


We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.

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The OTC Journal Newsletter is an electronic publication committed to providing our readers with useful information on publicly traded companies. The Newsletter contracts with publicly traded companies and receives compensation from them or third parties as payment for publishing information and opinions about the company and the trading market for their securities. Principals of the Newsletter may also purchase or sell securities of the companies in the open market from time to time. The positions, if any, that the Newsletter or its principals presently maintain in the securities of the companies are disclosed here (click here) and should be considered in making an investment decision regarding these companies securities. The Newsletter and its principals reserve the right to acquire additional shares or liquidate some or all of the positions they may hold in the issuer’s securities at any time in the future without further notice. These publications should not be considered to be independent publications concerning the company.

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We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at and/or the National Association of Securities Dealers ("NASD") at We also recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.

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