GMC Holding Corp
			Symbol			GMCC

GMC Holding stock registration yanked by the SEC

2006-04-07 16:25 ET - Street Wire

Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission

by Lee M. Webb

GMC Holding Corp., a retooled perpetual motion promotion headquartered in Florida, has had its stock registration revoked by the U.S. Securities and Exchange Commission (SEC) after the non-reporting pink sheet company submitted a settlement offer in an administrative proceeding launched by the U.S. regulator on March 8.

As previously reported by Stockwatch, while GMC touted an over-unity or perpetual motion device in 2005, in February of this year the company spun out a tale about the pending sale of its ballyhooed "cold motor" technology.

According to a nebulous Feb. 8 news release, GMC said that it was negotiating with "multiple corporate entities who wish to acquire the exclusive rights of its REMAT (TM) 'cold motor' technology."

"REMAT" is an acronym for the company's esoteric Rare Earth Magnetic Amplification Technology.

GMC did not identify any of the purported corporate entities, but teasingly reported that "the entities included S&P 500 corporations."

"Preliminary negotiations indicate a transaction in the $350-$500 million range," the obscure Florida-based pinky proclaimed. (All amounts are in U.S. dollars.)

GMC, which had been sporadically changing hands on modest volumes for less than 40 cents per share, said that it planned to distribute 96 per cent of the money from the pending sale to its shareholders.

Given that GMC claimed to have 60 million shares outstanding, that would have resulted in a rather handsome windfall of between $5.60 and $8 per share.

While at least some of GMC's shareholders were quite excited by the promotional puffery of the pending sale announcement, as indicated by the rather feeble price rally, the wider market clearly did not lend a great deal of credibility to the Feb. 8 news release.

Stockwatch contacted GMC's president Bruce McKenzie on Feb. 13 to ask some questions about the pending sale and purported valuation of as much as $500-million, among other things.

Mr. McKenzie did not add much, if anything, in the way of specific information about the touted deal or its purported value. GMC's president did say that he felt confident that the company could close the deal within two months.

Among other things, when asked about the status of an audit that had been announced last August, Mr. McKenzie suggested that the company would have all of its auditing completed within three or four weeks.

Evidently the SEC had some concerns about the accuracy of GMC's assertions to investors in company press releases and the lack of periodic reports including quarterly financial reports and audited annual reports.

On March 8, exactly one month after GMC announced the pending potential $500-million sale, the U.S. regulator issued a 10-day temporary trading suspension against the company.

On the same day, the SEC also instituted an administrative proceeding against GMC to determine whether the company's stock registration should be revoked, something that would render the pink sheet promotion's securities untradeable.

In the immediate wake of the announcement of the regulatory action, some of GMC's Internet followers proclaimed that the company would quickly be vindicated in the administrative proceeding.

Interestingly, early in April some of those same GMC Internet cheerleaders began suggesting that perhaps the company would not trade again under its present ticker symbol, but would transfer its assets to another public shell and carry on from there.

At least part of that speculation, if that is what it was, came to pass on April 5 when the SEC issued an order revoking the registration of GMC's securities, ensuring that the stock will not trade.

According to the U.S. regulator, GMC submitted an offer of settlement in response to the administrative proceedings and consented to the entry of the revocation order "without admitting or denying the findings."

As part of its findings and as previously reported by Stockwatch, the SEC noted that GMC had not filed any periodic reports since 1998.

The U.S. regulator determined that it was "necessary and appropriate for the protection of investors" to revoke the company's stock registration.

"No member of a national securities exchange, broker, or dealer shall make use of the mails or any means of instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked pursuant to the preceding sentence," the April 5 SEC order notes.

It remains to be seen whether GMC will attempt some sort of REMAT reincarnation with another shell and just what response, if any, that might bring from regulators.

GMC shares, which traded for as much as $2.30 per share in February, now have no market value.

GMC last traded on April 3 when 1,500 shares changed hands in a matched trade for $1.75 per share.

Comments regarding this article may be sent to lwebb@stockwatch.com. (More information regarding GMC Holding Corp. is available in a Stockwatch article published on Feb. 14; and March 8, 2006.)

Reader Comments - Comments are open and unmoderated, although libelous remarks, including names, may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
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A couple questions Lee.

First, are you familiar at all with Florida's blue sky laws? I wonder if Florida has a cap on the number of investors a private company can have, and which side of it GMCH is on.

Second, what's your take on today's shareholder update? It doesn't seem to have been sent to a newswire. Just as well. I can't quote it here since they are using some symbols that your validator hates, you will have to read it over at http://www.gmcholdings.com/. Does it sound to you like they are saying that an SEC investigation is still going on after the revocation? Well I guess it's "business as usual" at 105 Concord.

Posted by john lichtenstein @ 2006-04-07 23:33

John, I noticed the same language. The implication is that the SEC may be looking for insider trading shenanigans ala USXP. They may also be working their way towards banning the principals from holding control positions in any public company for awhile. I don't think any of those tout posts will turn out to have been a good idea for GMCC.

I just can't stop laughing at the delusional claims the GMCC touts have been cooking up. They seem positively desperate to convince someone, anyone, themselves perhaps, that permanently losing the market for their paper is a good thing.

Posted by Penny Gruber @ 2006-04-08 05:12

Anybody that wants to sell there GMCC shares please email me.

Posted by Charles Syphrett @ 2006-04-08 12:21

Penny ;

are you getting inside information from the SEC ? if so tell my how , I can't get anything other yhen they already released

Posted by REXH @ 2006-04-08 14:06

Excuse the spelling(then)

Posted by REXH @ 2006-04-08 14:10

Another one for the CMKX dustbin.

Posted by goLEEgo @ 2006-04-08 17:01

REXH, GMCC's own press release describes an ongoing SEC investigation. Since the registration has been revoked, it stands to reason that an ongoing investigation must serve an additional purpose. I for one would never jeopardize any investigation by divulging confidential details. I have already explained that my presence in Orlando last week was for other business.

Let's see, what could possibly still have the SEC's interest? Could it be the phony claims to a perpetual motion machine? Could it be the cooked up claims to a "cold motor/coil" technology? Could it be the apparent pump and dumps orchestrated by release of phony and/or inflated claims such as the nonexistant $350MM license deal? Tick-tock, tick-tock REXH, McKenzie said closure should come in two months, two months ago. But then he promised an audit many months ago, and the company still promotes its BS perpetual motion claims. Whistle past that graveyard REXH. Try to convince yourself that the SEC having previously gone after Windsor won't go after Brace, McKenzie and Vaughn now.

I know that comprehension of reality is difficult for you true believers, what with all the tout pleas for FAITH in a perpetual motion scam and such. But you will only get better if you try.

Why don't you work on an explanation of how the reg revocation works in favor of existing GMCC stuckholders? Perhaps you would like to explain why after the SEC initiated a revocation process, GMCC saw it in the interest of existing stuckholders to accelerate that revocation process as GMCC now claims.

Posted by Penny Gruber @ 2006-04-08 17:54

Penny I can't believe that the PMM or pink motor claims are the SEC's problem, otherwise I would wonder why the SEC was so soft on Hydrogen PMM scams. I suspect that they are looking into the claims that there were negotiations about a 9 figure deal with Fortune 500 companies. The SEC wont even need to hire experts to investigate that claim, just take the numbers for the negotiating parties.

Posted by john lichtenstein @ 2006-04-08 23:16

John, the impetus for SEC inquiry was most likely the dubious promise of the nine figure payday. However, once Pandora's box opens, all manner of things come out. The falsity of the technology claims are material to the falsity of the deal claims.

Posted by Penny Gruber @ 2006-04-09 00:49

I guess IR guy Mr.Dan York (of pumping CMKX hall of fame) didn't see this one coming....LOLOLOL those poor poor stuckholders...

Posted by mythbuster @ 2006-04-09 05:14

You boys enjoy!! Your folly here is much akin to a circle jerk!

Posted by pot o'gold @ 2006-04-09 11:33

BYE

Posted by REXH @ 2006-04-09 14:37

REXH - Comments were not directed at you. They were for the MALCONTENTS PG and JL.

Posted by pot o'gold @ 2006-04-09 16:37

were cool gold, all I can say is I put more trust in what Dan York tells me than Lee, Penny or Chip

Posted by REXH @ 2006-04-09 17:45

REXH - There is no trust you can put into what these guys say. They have maybe, maybe 25% of the story! While what they say has some merit for concern, there is no evidence of investigate reporting or intelligent DD.

Lee Webb is a complete joke. He ought to be investigated or challenged on his REAL purpose for attempted journalism and coverage on this story!

Posted by pot o'gold @ 2006-04-09 18:25

go Lee go!

Posted by mythbuster @ 2006-04-09 19:02

I'd just like to note for all the skeptics of the technology that I have seen with my own eyes a REMAT motor. It was on a University Lab tour a few months before GMCH came out with this whole thing. The researching professor conveyed the incredible implications of such a technology. He said they had gotten it to run, although not completely stand alone I believe, but of course there were still bugs to be worked out. Bottom line is this is a real technology and whos to say that GMCH isn't the ones who got it right? I do not know enough of the company to defend them, however I do know such an engine is not too far in the future.

I wonder how the oil industry feels about all this...

Posted by BCHAN @ 2006-04-10 13:05

It is incredible how dilydalyny has taken us out for a ride with his stock pumping friends, what a scumbag

Posted by Seasoned Investor @ 2006-04-10 19:38

It is incredible how dilydalyny has taken us out for a ride with his stock pumping friends, what a scumbag

Posted by Seasoned Investor @ 2006-04-10 19:38

I would assume that it is time for crow pie. I for one feel pretty stupid for the investment I made. I completely trust those who told me of the technology but am afraid that they are unwilling to accept the outcome. I was hopeing that this would be the investment of a life time but it appears that it was the mistake of a lifetime. I invested alot of money into these stocks. I am now much lighter in the pocket for that. Penny it would seem that you were in fact correct about your allegations. I am not sure where to go from here but what I do know is that its been two months two months two months and never going anywhere. The sad thing is I tell clients all day long to avoid stocks that they are way too risky and yet I dumped the largest investment I have ever done into this. I also have to now deal with others that bought stock that I know. I feel like I have to pay them back for giving them bad advice. Mr York and Mr. Mckenzie I hope that you sleep well for the next few nights because I will find a way to legally make you pay if this is proven to be a fraud. I saw the warning signs and I simply chose to believe that it couldnt be true. GMCC share holders it is time we band together and make reality come true for those who appear to have taken advantage of us. I am sure that they are all living in their big homes, taking their long vacations, buying new vehicles and expensive toys. I for one couldnt afford the loss.

Posted by Silent Investor @ 2006-04-11 00:28

BCHAN, what professor at what university, on what date? I would like to speak with this professor who you say promotes a perpetual motion scam. His dept. chair and dean might wish to speak with him as well.

Posted by Penny Gruber @ 2006-04-11 07:14

Silent Investor, this is quite a turn around for you. What changed your mind? Who was the person closely involved with the company that you said you put your trust in? Why have you lost the strong faith that you held so tightly two weeks ago?

When you said that you saw the technology work, what did they show you? Just describe what you think you saw, and what they said to you.

What reason did they give you for Tom staying hidden in the shadows?

If you are serious, you can always file a fraud complaint with the Florida AG.

Posted by Penny Gruber @ 2006-04-11 07:52

Silent there is already an effort to file a class action, but I am skeptical about that because of the guy leading it. I agree with Penny that the place to start is with a complaint to the Florida AG.

I hope you will take some time to talk about the motor a little, starting with Penny's question.

Posted by john lichtenstein @ 2006-04-11 11:22

they made me tell people to buy the stock with a gun to my head.

It was horrible. they dont sell motors they sell fruits and candy, its all a acam.

Pennys John please help me :(

Idiots

Posted by Silent Investor @ 2006-04-11 14:20

Dont know who the idiot is posting something with my name but dont do that. If you need to say something have some balls and say it for yourself.

Posted by Silent Investor @ 2006-04-11 20:01

Silent investor, it did seem strange that you would do that kind of 180. Just think how much money you will have when people stop using not so cold motor technology. Why you might make as much as an unpublished poet.

Posted by Penny Gruber @ 2006-04-12 00:14

No Penny I did post the comment on 4-10 T 12:21 and I have had a major turn around. I feel like there is something wrong in the mix and when people dont give straight answers it usually means there is a reason. I was refering to the comment posted in my name on 4-11 at 11:20.

Posted by Silent Investor @ 2006-04-12 10:54

Silent - Completely agree with your assessment. GMCC's communication is weak at best!

One possibility is that the impending SEC issues have forced a quiet period? Excuses are running out.

Posted by Tahiti @ 2006-04-12 12:31

Silent why not talk about the motor? What did you see? What were you told?

Posted by john lichtenstein @ 2006-04-12 21:41

Unfortunately I'm in very deep. I dont know who I'm dealing with. No one does. I dont know who you people are. I cant talk anymore.

Posted by Silent Investor @ 2006-11-03 15:04

Silent the only thing you have to be afraid of has already happened.

Posted by john lichtenstein @ 2006-11-14 02:55

ahhah fools i tell ya, dont fuck with gmcc

Posted by bill @ 2007-04-09 19:20

Hello...

Anybody out there? (Sound of crickets chirping...)

Dans' email is down. The website is down.

Whatever can this mean? Is Dan in the cell next to Mike Vick?

Posted by Russ @ 2008-01-15 14:11

This motor was invented by backyard type mechanics.I went and saw it running in there garage.These guys were working on a small budget. I think it has some potential,i bought 1,000 shares, oh well.I tried,dought they ever made much profit.No im not associated with them. MY only hope is that they keep working on it and pull there asses out of the fires and make this motor work.forever the optimist.PS Just read that the japanese built motorcycle using a magnetic motor. POpular science. Ya, later guys

Posted by Gary @ 2008-01-24 17:15

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