ADV: China to Get NASDAQ-Style Stock Market!
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info at super-stock.com
Sun Nov 8 08:08:07 PST 1998
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What if you were given the opportunity to buy a piece of the NASDAQ stock
market? Would you jump at the chance? Created as a high-tech competitor to
the entrenched New York Stock Exchange, the NASDAQ electronic order execution
system now lists nearly twice the number of companies as the NYSE and trades
more volume than any other exchange. For 1997, NASDAQ traded 163.9 billion
shares and dollar volume reached $4.4 trillion.
A company called Brighton Technologies (OTC BB: BGHT) an American information
technology company that has been doing business in China for nearly two
decades. The company boasts a history of over $160 million in completed
contracts. Now, in a joint venture with the Chinese government, Brighton is
developing a NASDAQ-type securities trading system called STAQ Online.
Recent history seems to indicate that the STAQ system will be a huge success.
When China originally allowed a handful of companies to publicly trade their
stock, riot police were needed to restrain the throngs of would-be Chinese
investors. An online order and execution system is the next logical step to
modernize the Chinese securities industry and improve access to capital
markets world wide. Can you imagine how such a system will be received by
this nation of over 1 billion people? And at the end of the newsletter we
discuss the mechanics of undeclared short selling.
Visit http://www.super-stock.com for full details.
Financial Highlights: Brighton Technologies Corp. (OTC BB: BGHT)
Shares Outstanding (October 19, 1998) : 4,530,379 Shares
Current Stock Price: $5.00
52-Week High / Low: $10.825 / $2.00
Profitability: 16 cents per share profit for the first half of 1998
Many modern services that we take for granted in America simply dont exist
in China- but thanks to innovative information technology companies like
Brighton, they will. Brighton has already built a successful business by
helping China on the fast track to modernization. They have installed the
countrys busiest telex system in the city of Guangzhou, built cargo-tracking
systems for over half the railway ministries in China, and developed an
image processing system for real-time visualization of Chinas flood-prone
rivers. This history of achievement has laid the groundwork for direct
involvement in the financial future of China.
Brighton's STAQ Online securities trading project warrants international
attention. So far, four major cities are linked through STAQ and trading
terminals are being marketed to brokerage firms in those cities. The company
receives $1,000 per month for each terminal in use. There are about 100
terminals active now and the current network will support about 3,000
terminals. The company projects a national demand for 45,000 terminals.
Over the next few years, Brighton intends to expand into 65 cities across
China to capture a significant portion of the market. Demonstration projects
have already been done in Hong Kong and Taiwan. The STAQ system will
modernize the Chinese securities industry and allow hundreds of millions of
Chinese to invest in their nations growth.
Other applications of STAQ technology may augment revenues from the securities
trading function. STAQ's secure multi-point order entry and execution system
can be used for credit card clearing, ATM transactions, airline reservations
systems and any other type of information transaction where security and
confirmation are primary considerations. Furthermore, the STAQ backbone may
also spur the growth of the Internet in China.
At a price of $5.00 per share, we feel this stock represents a superb value.
There are only 4.5 million shares outstanding, with a market capitalization
of just $15 million. For the six-month period ending June 30, 1998, Brighton
reported revenues of $8.9 million, up 95% from the same period last year.
They also showed profits of $.16 a share for the first half of 98.
After exhaustive research, the Brighton Technologies investor relations team
has determined that there are between 170,000 and 180,000 shares of BGHT that
have been sold short in the market. (Please read the article on undeclared
short selling that we have included near the end of our newsletter.) This is
fifteen percent of all stock available for trading, which may contribute to
the uncommonly low share price. Luckily, the market makers that sell stock in
this fashion must "balance" the books at some point. This means that they must
repurchase all those shares. Imagine what 175,000 shares of volume will do to
this stock, if the shorters get "squeezed" into buying to cover their positions.
During the week of April 13, 1998 the company traded 143,000 shares total.
Allowing for double-printing, only 71,500 shares changed hands but the stock
nearly reached $9.
Remember, this stock rose from $3.00 to as high as nearly $11.00 per share, on
a weekly volume of 109,600 shares. (March 16, 1998-March 20, 1998). Since then
the company has executed a three for one forward split, filed to become fully
reporting, announced new contracts and reported a profitable first half. With
all these positive announcements, we believe that any increase in volume will
have a strong effect on the share price.
Asia will have a great impact on the global economy. It is important for
investors to evaluate companies in light of the emergence of China as a global
superpower. Brighton Technologies Corp has an extensive operating history and
a strong reputation for information technology applications. Having proven the
company over the past twenty years, the period of greatest growth lies ahead.
Brighton deserves a close look as a means to participate in the modernization
of the most populous nation on Earth.
Again, please visit http://www.super-stock.com for full details on Brighton
About Undeclared Short Selling:
This is an excerpt from an article published by investor relations firm
Copley-Pacific. It explains the negative effects of undeclared short sellers
and outlines a program to help eradicate them. Should you decide to invest in
Brighton Technologies Group, please do yourself and your fellow investors a
favor and register your shares. Read the following article for more information,
and contact your broker for assistance.
Understanding Undeclared Short Selling and How It May Be Impacting Your Company's
Does it sometimes seem that no matter what you do your stock has trouble climbing
in price? If this is the case, your company's stock may be facing downward
pressure as a result of undeclared short selling.
Short selling can be divided into two categories, declared and undeclared. Many
dynamic growth companies have been damaged by undeclared short selling.
Created by market professionals, the practice consists of creating stock that
doesn't exist. It isn't borrowed but created and it creates enormous negative
pressure on a stock price.
The mechanics of undeclared short selling are as follows:
Nonexistent stock is sold short. This nonexistent stock increases a company's
float. The nonexistent stock makes it difficult for investors to profit from
their risk capital speculations. The short sellers make the profit. The
practice hurts the public companies, themselves. It adds massive costs to
maintaining a market in a stock and it reduces a company's business options.
The basis of declared short selling is borrowed stock. A short seller provides
50% or more of the value of the stock to his or her broker. This is done in a
margin account. The margin protects the broker against any increase in the
share price. The broker borrows the stock from a depository trust company. He
then sells the stock and adds the money to his client's margin account. Later,
the client buys stock (covers) to replace this borrowed stock. The difference
between the price the client sold the borrowed stock and the price the client
paid to replace the borrowed stock (covered) is the profit or loss from the
Most declared short players are institutional money managers and fringe group
market professionals, not small capital public investors who seldom participate.
Declared short positions risk being squeezed. If the company can double its
share price, the short seller will be forced to increase his margin collateral
in order to maintain the short position. At such time, the short seller may
elect to buy (cover) the stock instead of adding to his margin. This adds to
the upward movement of the share price.
Undeclared short sellers don't borrow stock. They don't margin the sale of
their short position. Because they are market insiders they can use various
techniques to sell stock short that doesn't exist.
Is there money to be made by undeclared short sellers? Estimates are that
undeclared short sellers make multi- millions of dollars annually.
Complaints to regulatory agencies haven't stopped the practice of undeclared
short selling. However, one way companies can protect themselves is to
recommend to shareholders that they take physical delivery of their stock
certificates. When physical delivery of stock certificates is demanded by a
significant number of shareholders, the creators of non-existent stock can be
squeezed. The short sellers won't have stock certificates to deliver and thus
they will be forced to go into the open market to buy the stock. This will
cause losses for them and will cause them to move their undeclared short
****** DISCLOSURE ******
This material is being provided by Super-Stock, an electronic newsletter
paid by the issuer for publishing the information contained in this report.
Net Services Marketing, Inc. has paid a consideration of 5,000 shares of
common stock of Brighton Technologies Corp. to Super-Stock as payment for
the publication of the information contained in this report. Super-Stock
and its affiliates have agreed not to sell the common stock received as
payment for its services until November 1, 1998, which date is 15 days
|from the initial dissemination of this report. After such date, Super-Stock
may sell such shares. Because Super-Stock is paid for its services, there
is an inherent conflict of interest in Super-Stocks statements and opinions
and such statements and opinions cannot be considered independent.
The information contained in this publication is for informational purposes
only, and not to be construed as an offer to sell or solicitation of an
offer to buy any security. Super-Stock makes no representation or warrant
relating to the validity of the facts presented nor does Super-Stock represent
or warrant that all material facts necessary to make an investment decision
are presented above. All statements of opinions are those of Super-Stock.
Super-Stock relies exclusively on information gathered from public filings
on featured companies, as well as, in certain circumstances, interviews
conducted by Super-Stock of management of featured companies. Investors should
not rely solely on the information contained in this publication. Rather,
investors should use the information contained in this publication as a
starting point for conducting additional research on the featured companies in
order to allow the investor to form his or her own opinion regarding the
featured companies. Factual statements contained in this publication are
made as of the date stated and they are subject to change without notice.
Super-Stock is not a registered investment adviser, broker or a dealer.
Investment in the companies reviewed is speculative and extremely high-risk
and may result in the loss of some or all of any investment made in
Brighton Technologies Corp. This publication contains forward-looking
statements that are subject to risk and uncertainties that could cause
results to differ materially from those set forth in the forward-looking
statements. These forward-looking statements represent the judgment of
Brighton Technologies Corp. as of the date of this publication. The Company
disclaims any intent or obligation to update these forward-looking statements.
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