The Fine Print for GDGI, GSTP, and CHTL

The story you heard may have been compelling, but the stuff you're not hearing may prompt you to reconsider. 

The buzz may be getting louder, but will it last? For a truly great company, it can. For a company that's paying someone to tout its stock though, the longevity of the rally can be tough to assess. Here's the rest of the story for three such names today... heavily promoted names that may or may not be worth it.

China Tel Group Inc. (CHTL) is a U.S.-based telco that provides a wireless broadband service in China. It's back on the pink sheets after spending some time as a bulletin board stock, but it's on the OTC Link platform, and remains a fully-reporting company. Kudos. In any case, this is a $100 million company. Not bad. Trouble is, this comply has only done about $1 million worth of business in the last twelve months. Granted, you have to start somewhere, but that's a really troubling P/S ratio so far for CHTL shares.

The stock's not having any trouble today despite the valuation, and it may well keep chugging through the early part of next week - someone has spent $80K to promote China Tel Group for one week, beginning today. While the underlying theme and table-pounding might be worth a quick free ride, it's tough to think the marker will remain in love once the PR starts and the due diligence begins.

Similarly, Gold Standard Mining Corp. (GSTP) is the beneficiary of a third party laying out $27K in cash to sing the stock's praises. It's not clear if this is a one day, one week, or one month campaign for GSTP, but given the size of the compensation, it's probably a one-day effort.

In any case - and as you might imagine - Gold Standard Mining Corp. hunts for and mines gold... and actually  finds it. Unlike so many other gold miners with a lot of sizzle but no steak, this little $111 million company sold $17 million worth of gold. That still seems a little rich (and perhaps is), but bear in mind the company also found and dug up about five times that amount. If it can just find buyers (the easier part of the game), it can justify some nice price appreciation.

Kinda' makes that $27K worth it, to tell the actual story.

And lastly, someone has paid handsomely for someone else to pound the table about Greenway Design Group, Inc. (GDGI). A whopping $500,000 (in cash) is supposed to be on its way to a promoter. It's not clear what's going to be done with that much loot exactly, but as veteran pump-watchers will tell you, that's a big ol' dose of promotion, and may materialize in print (direct mail) as well as online, and the effort may last for a few weeks. Ergo, even if you're only interested in riding the wave, GDGI could be serving up some trade-worthy gains over the next several days. [Be sure to keep any eye out for any specifics about how that $500k is being spent.]
Anyway, Greenway Design Group designs and installs high-efficiency HVAC systems. And, it's got some revenue momentum going. There are no profits yet, but that's the easy part - the challenge is in getting build contracts, which it is doing. the question here is can the company start doing more of it, which is worth a little DD to see. For perspective though, this is a $167 million company building a business almost from scratch around a relatively new energy concept (Cool-n-Save). It's going to take a lot of installs for a company of this size to bear fruit doing that. 

http://www.smallcapnetwork.com