HOUSTON, May 27, 2004 (PRIMEZONE) -- GK Intelligent Systems, Inc. (OTCBB:GKIG) today released the results of a report on their company, recently initiated by GK Intelligent Systems, and prepared by analyst Howard N. Stillman on May 26, 2004 with a speculative buy rating. The complete, unedited text of that report is as follows.
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Symbol: GKIG SPECULATIVE BUY Price Objective $0.25 -- $0.50 Current Price: $0.03 52 Week Price Range: High $0.23 Low $0.022 Capitalization: Common Stock: 68,966,498 outstanding Float: 15,000,000 approximate
CORPORATE STRATEGY:
The evolution of world economies and improving living standards in many areas has stimulated interest in leisure time activities which has been amplified by the growth of the Internet. The company is striving to participate in these momentous trends in the areas of sports; the musical arts; consumer shopping and related activities. Using its basic and accepted software teaching programs, it has launched an aggressive program of joint ventures and has begun to implement acquisitions and merger strategies that can both augment and expand its operating base. These efforts are nearing short term completion from which it can establish a sound revenue base wherein it can foster operating and earnings growth in the future.
In late 2003, the company launched its new subsidiary, Recording Artists Worldwide. RAWW was to become a one-stop incubator of musical talent offering tomorrow's future stars the necessary resources and training to become the next best thing in the $40 billion music industry internationally. It subsequently created "Your True Voice Studios", a music education and vocal training subsidiary. Training the students will be some of top vocal and musical instructors in the industry. Negotiations are underway to acquire a music studio and a sound lab. The latter provides teaching and education in the management and operation in recording and other aspects of the music field. Other potential acquisitions include a placement agency for Information Technology personnel and a firm specializing in merger and acquisition services. The latter can be used in house or generating fees from outside the parent company. Successful completion of these deals will result in $6.5 million in revenues added to operations.
Complementing these activities is the recently announced joint venture with DigiCast Interactive Media, a developer and manager of turn-key multilingual websites in the U.S. and Latin markets. The first program will be designed to enhance the consumer's Internet and "in-store" shopping experience as well as increase traffic both to web merchandising sites and the brick and mortar stores of retailers. The second program will be the roll out of The Baseball Club. Prominent baseball stars will be featured and personalized technologies to establish bonds with fans both at home and abroad where the sport is cherished. In addition, purveyors of baseball goods and services will be presented with new opportunities to expand their markets.
Financial requirements will be provided by note financing of $500,000 and expected revenues for the balance of this year. The creation of new corporate credit lines is expected shortly.
Outlook:
The shares at current levels are suitable for risk-oriented investors seeking speculative capital gains.
Howard N. Stillman
Security Analyst
(This report is read at your own risk. It was prepared for a fee of $3,000. It is based upon information believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.)
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For more information on GK Intelligent Systems please visit the corporate website, http://www.gkis.com, and its exciting music entertainment subsidiary's website, http://www.RAWW.com.
Safe Harbor
Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.