OT STOCKS -- July 4, 1995

I apologize for the length of the article, but I tried to include all relevant data. "OT STOCKS" is crossposted to the same newsgroups where "HOT STOCKS" is posted to, and one more :-)

This article analyses his activities in the LUMINART stock, and also tells that he is a scientologist.

Scientology is an evil, satanic, greedy, dangerous and... tax-exempt cult that recently has declared war against the internet (go to my personal web page and follow the links, especially Ron Newman's, to know more).

Two weeks ago, a lurker whispered in my ear:

[schnip]

Tilman,

Here is another location you may wish to add to the "Companies owned or managed by Scientologists" section of your web page:

<a href="http://www.gate.net/hotstocks-review/">http://www.gate.net/hotstocks-review/</a>

George Chelekis, editor of Hot Stocks Review, is a Scientologist (listed, for example, in Source #63 as having completed OT IV).

Here is some information from "Online Investing" by Gary Weiss, cover story in the June 5, 1995 issue of Business Week magazine:

I had several enjoyable phone conversations with George Chelekis, editor of Hot Stocks. Chelekis is based in Clearwater, Fla., but he focuses his stock-picking on Canada. In his varied career, the 43-year-old Chelekis has worked as journalist, author, and publicist. "I don't sell. I provide information," says Chelekis, a voluble sort who cheerfully punctuates telephone conversations with four-letter words.

Nevertheless, Chelekis told me that the money is pouring in - from subscribers, who get an extra-fast, E-mailed look at his dispatches for a fee. And above all, the dough is rolling in from the companies he writes about. As duly noted in an on-line "disclaimer", some companies pay a "research and promotional fee" to be mentioned in Hot Stocks Review. Chelekis says the average fee paid by the companies is $10,000.

He wouldn't tell me how many of the companies promoted in the Review pay for the privilege, or which ones they are, saying they are handled by his "business staff." "I've never counted as to whether it's 60% or 50% or 40% or whatever," he said. But he insisted that the payments have no bearing on his objectivity. By way of illustration, Chelekis told me that he once was offered $100,000 to rate a stock favorably and says he suggested the company engage in an anatomically impossible act of intimacy. He wouldn't identify the company.

Chelekis aggressively promotes risky Canadian over-the-counter issues, including lots of mining outfits. And he can be enthusiastic. Maybe too enthusiastic. Take one of his recent picks, an Ottawa company that makes luminescent material for signs, Luminart Inc. Chelekis has been so unstinting in his support for Luminart that on Mar. 28, the company took the unusual step of publicly disavowing the Mar. 20 newsletter, saying: "Investors are cautioned against relying on Chelekis' column as an accurate source of information concerning the company's affairs." Chelekis says he hewed to the straight and narrow in his analysis of Luminart. He wouldn't tell me, incidentally, if he was paid to pitch Luminart in Hot Stocks.

[...]

I wasn't alone in being drawn to Hot Stocks Review's multihued Web page.

One Net browser who did likewise was a computer consultant named Stephen H. Dimond from Vancouver, B.C. George Chelekis' enthusiasm for Luminart was so infectious, Dimond told me, that he bought 900 shares of the stock at 9 1/4, late in January. It was not a propitious decision.

In just a few weeks, the stock lost nearly half its value, falling to 5 1/4 on the Canadian over-the-counter market. Chelekis blames rapacious short-sellers, whom he says are in league with certain members of the Canadian press.

[schnip]

(I don't know about the [...] part. Post it if you feel something has been left out).

George wasn't amused about the Business Week article. Here is what he wrote in his biweekly newsletter:

[schnip]

<a href="http://www.gate.net/hotstocks-review/fax94_html/fax060595.html">http://www.gate.net/hotstocks-review/fax94_html/fax060595.html</a>

Vol. 2, No. 11 * June 5, 1995 [funny: same day !]

I won't include Luminart (Cdn:LUMN) on any "Best Bets" list until I see their current earnings officially released. I won't write about LUMN or even talk about LUMN. Two points on the June 5th Business Week article, which the reporter omitted: I recommended, in late January, that investors take their profits at C$9.75 as LUMN had run too high, too fast AND that LUMN never paid me to write about the company in Hot Stocks Whispers. No company pays me to feature them in Hot Stocks Whispers.

[schnip]

(Tilman speaking) My *personal* experience with (other) stock newsletters is that their editors usually say all sort of things, and when the facts come out, they grab one of their allegations and then say that they correctly predicted the fact. Now let's see how this worked for George, by taking small excerpts ("fair use") from his newsletters. It is somewhat long, my comment is at the end of this post.

[schnip]

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.012095.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.012095.html</a>

HOT STOCKS WHISPERS January 20, 1995

--BUY--Luminart, Inc.. (COATS:LUMN)

OPPENHEIMER VISITING LUMINART

Sources close to Luminart Inc. (COATS:LUMN) whispered that Oppenheimer honchos are flying in from NYC to meet with Luminart officials at their Mississauga headquarters on Friday, January 20th. Oppenheimer isn't alone as other NYC brokerage firms, such as Ladenburg Thalmann & Co., are beating a path to LUMN's door to sponsor the company on NASDAQ or the American Stock Exchange... possibly as early as March 31st.

Ongoing events at Luminart should be viewed as positive for an increase in LUMN's stock price. For instance, LUMN will be exhibiting at the ISI Money Show in Orlando, a conference at which I will be speaking. Also attending/speaking, on February 2-4, are practically every U.S. newsletter guru, including Louis Rukeyser. These boys aren't familiar with LUMN yet, but they will be when the conference ends. Investors will be calling their stockbrokers from Disney Contemporary Hotel pay phones to buy LUMN stock. March newsletters should contain a flurry of BUY recommendations on LUMN.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.012595.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.012595.html</a>

HOT STOCKS WHISPERS January 25, 1995

--NERVOUSNESS COMING...

The folks following Luminart Inc. (CDN-OTC: LUMN, LMTRF-L) are getting a little nervous over high-flying LUMN since last week's bolt from C$7 to today's closing at C$9.50. Information I've recently gathered from LUMN aficionados indicate more than a little discussion over just how high this stock can go. At least four major players, whom I've spoken to recently, are scratching their heads over the C$25/share target price for LUMN.

Is LUMN going higher than C$9.50? Absolutely, but I think the company's stock is in for a correction over the next few days... It's risen too much, too quickly.

At this price, it's worthwhile to evaluate the overall exposure of your portfolio in speculative investments.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.020295.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.020295.html</a>

HOT STOCKS WHISPERS February 2, 1995

WATCH DEVELOPMENTS ON LUMINART...

(CDN:LUMN) Luminart trades on the Canadian OTC. Lots of investor interest expected from investor presentations in Orlando, Florida this week. More news next week: February 6-10.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.020695.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.020695.html</a>

HOT STOCKS WHISPERS February 6, 1995

LUMINART TO SIGN SOFT DRINK COMPANY ORDER?

Luminart (CDN:LUMN) should soon announce yet another major overseas contract for its luminite-based gel. This time it's a soft drink company (household name) whose signmaker will be ordering twelve Multi-system 4 sign-making machines from Luminart. My calculations make this a 250,000 sign order, which would require a minimum of 125,000 tubes. Based on Luminart's profit margin estimates per tube, this order could mean another $3 million to LUMN's bottomline, earnings of about $0.25/share. What else do you need to know? The country is Japan and the soft drink ain't Pepsi.

As an aside, Luminart exhibited Thursday through Saturday at the ISI Orlando Money Show and was swamped with investors wanting to find out how to buy the company's stock. This new blood should overcome any short selling that may come out of Yorkton Securities (Toronto), led by John Bickerton. Figure on another two weeks of U.S. investors buying into Luminart and add another C$2 to LUMN's closing stock price of February 6th. Also, Louis Rukeyser (Wall Street Week) visited Luminart's exhibition booth and I heard HE may be recommending the stock. Didn't hurt that Luminart was next to Charles Allmon (Growth Stock Outlook), who I believe will also come out with a BUY recommendation on Luminart.

Finally, to conclude all speculation, I own no shares of Luminart, will never purchase any shares in this company and am not being paid by Luminart (or anyone else) to write about Luminart (or any other company) in Hot Stocks Whispers or Hot Stocks Review Email/Fax Alert.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.020795.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.020795.html</a>

HOT STOCKS WHISPERS February 7, 1995

UPCOMING BIG ANNOUNCEMENTS

I expect the following companies to release big news, which will materially affect their share price, between today and February 17th. Luminart (CDN:LUMN) should announce another large sign- making contract--one which I have written about previously and which will give their earnings/share a substantial boost. Watch out though as Luminart has yet to release earnings and has twice changed the ending of their fiscal year.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.021595.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.021595.html</a>

HOT STOCKS WHISPERS February 14, 1995 [it's the 15th, he has the wrong date]

LUMINART GETTING SHORT-SELLER'S HEAT.: _UPDATE_

One prominent Bay Street trader has been reportedly telephoning the Toronto Stock Exchange surveillance almost every hour trying to convince them that Luminart (Cdn:LUMN) is a stock promotion scam. Stock has been looking like a classic commodity futures trade. Lots of trading for a stock listed on the Canadian Dealer's Network. Stock could be in for a rocky road until it comes up with a solid deal and decent earnings.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.021695.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.021695.html</a>

HOT STOCKS WHISPERS February 16, 1995

LUMINART CURRENTLY A MEDIA/SHORT-SELLER'S TARGET: _UPDATE_

Hot Stocks Whispers discovered that the "Financial Post" has currently targeted Luminart (Cdn:LUMN) for a serious, probably negative article in the very near future. I recently interviewed Keith Damsell at the "Post", who is currently investigating Luminart and visited the operation on Wednesday to ask some hard-ball questions. Apparently, there may be a lawsuit against Luminart and/or company officials in the works, possibly two suits. Mr. Damsell has been receiving lots of anonymous telephone calls making strange and unusual claims about the company's product and future and the past of its principals. Seems like Mr. Damsell is being played every which way and sounded confused, looking for my help in explaining what the heck is going on. All of this smells like someone is running a "short campaign" against Luminart and that others have signed up for a while. Expect negative press to hit any day now. a good time to buy might be a day after the bad news hits.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.021795.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.021795.html</a>

HOT STOCKS WHISPERS February 17, 1995

LUMINART GETTING PLENTY OF ATTENTION: _UPDATE_

Keith Damsell, "Financial Post" reporter, called me to whine about seeing his comments in print. Brokers called him to complain about his planning to write a nasty article. As a result, Keith backtracked and repeatedly said he was going to write "a fair and balanced piece." Really? Now he's painting me as the bad buy who is making Luminart (Cdn:LUMN) go down, after featuring me as the person who made Luminart go up. I have repeatedly stated I like the company, I like the product and I like many of the people I've met and talked to. I thing the company may have a wonderful future ahead of it. I wish the short-sellers would stop playing Keith Damsell like a yo-yo and cover their positions. I would like to stop writing about Luminart for a while so that I could buy some shares in this company. Regards to Luc Marcil, from the Internet, who I hope is handsomely profiting from his Luminart investment.

<a href="http://www.gate.net/hotstocks-review/whispers_html/hsw.022095.html">http://www.gate.net/hotstocks-review/whispers_html/hsw.022095.html</a>

HOT STOCKS WHISPERS February 20, 1995

I BOUGHT SHARES IN LUMINART: _UPDATE_

I have decided to stop writing about Luminart (Cdn:LUMN) because Keith Damsell, reporting for the "Financial Post" and others, especially browsers on the Internet and stockbrokers with Bloomberg or Star Data terminals, have misinterpreted my brief items on the company. Mr. Damsell and others suspected that I have been leading the parade of short-selling on Luminart. In order to put this bizarre and unspeakable rumor to rest, I am making it a matter of public record that, as of today, I have become a Luminart shareholder, effective February 20, 1995, by purchasing a substantial number of Luminart shares for my own account.

Earlier, I had warned investors to wait and see what the earnings would be, but Mr. Damsell has challenged me to buy Luminart stock. My earliest recommendations on Luminart, which appeared in "Bull & Bear's HOT STOCKS REVIEW" shortly before Thanksgiving (Nov. 1994), suggested surprisingly good earnings for such a start-up company. Consider that I am putting my own money where my mouth is. I expect this will demonstrate to the media, stockbrokers, Luminart shareholders and other investors exactly how I feel about Luminart and its future.

[schnip]

(Tilman speaking) George has "lied by omission" in the "response" to Business Week. Not only his article on Jan 25th was not really clear, but later some articles pushed the stock, although others did the opposite. One time (Feb 20) he even said that he has told in the past to "wait and see". Notice he said "I will never buy LUMN stocks" Feb 6th, and did it Feb 20. There he said that he would stop writing about about LUMN, then wrote about it on Feb 27th (not included).

I don't know if there is more about LUMN. Read the articles yourself (including numerous disclaimers) at

<a href="http://www.gate.net/hotstocks-review/xwhispers.html">http://www.gate.net/hotstocks-review/xwhispers.html</a>

Legal note & comment: I am somewhat careful with this kind of e-mail, and wanted to confirm "Source #63". I got a confirmation in e-mail from a reliable source that George Chelekis is listed in Impact #53, 1994 as "Patron". He was also confirmed to be "New OT4" (this is currently worth about $150,000) by another lurker. The status "Patron" means that he has donated at least $40,000 extra to the cult. The cult's money is used to harass, sue and destroy critics.

Draw your own conclusions about him being a scientologist and what is told about him in the Business Week article, and about his contradicting texts. Even if he was not a scientologist, I would still say that his newsletter is worthless.

Tilman (I don't own any LUMN stocks)

[Threatening e/snail-mail will be posted without delay]

--- Tilman Hausherr 

biz:  tilman@sietec.de                 <a href="http://www.sietec.de/">http://www.sietec.de/</a>(company page)
home: tilman@berlin.snafu.de           <a href="http://www.snafu.de/~tilman/">http://www.snafu.de/~tilman/</a>


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