ADV: China to Get NASDAQ-Style Stock Market!

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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 for full details.

Financial Highlights: Brighton Technologies Corp. (OTC BB: BGHT)

Shares Outstanding (October 19, 1998) : 4,530,379 Shares
Float: 1,152,491
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 don’t 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 
country’s 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 China’s 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 for full details on Brighton 
Technologies Corp.

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 
activities elsewhere. 

****** 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-Stock’s 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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