Technology

High Flying Stock: L International Computers, Inc. The Next DELL?

L International Computers, Inc. is a publicly traded company on the pink sheets with the stock symbol LITL. According to a recent press release, the company designs, manufactures, markets and distributes opulent, high-performance PC/Windows© laptops, desktops, workstations and servers.

In addition, the company claims it also produces the largest and most spectacular personal and professional displays, as well as ultra-high-performance software, peripherals and personal electronic technologies.

They claim to be the “absolute top class/highest performance hardware solutions and no competition”.

provider, at any given price point.” Could Dell be next?

On August 10, 2006, shares of L International Computers, Inc. closed at $0.29 on no volume. On August 31, 2006, the shares traded as high as $1.85 and closed at $1.40 with more than 10 million shares.

Why all the investor enthusiasm?

a) A press release issued on September 1, 2006 announces its next-generation PuRam-Go™/PuRaid™ high-speed ultra-portable solid-state drive technology.

b) A press release issued on August 30, 2006 announces that the Metropolis is the world’s first laptop with Nvidia’s Quad-SLI technology; High-end graphics, gaming, and professional visual computing to be unleashed from the desktop box.

c) A press release issued on August 23, 2006 announced that L International signs a European distribution agreement worth $45 million; Breakthrough Deal solidifies global corporate marketing and sales strategies.

Great press releases, but is there any substance? Perhaps investors should focus on the following elements:

a) According to various magazines and trade articles, the company originally launched its technologies in 2003. We have not been able to find any financial statement indicating its sales, profit or loss since that time. The company says it will release financial statements sometime in the next few months. As a pink sheet company, they are under no obligation to provide investors with current or accurate information.

b) In an article published on October 14, 2004, the company was quoted as saying: “We are no longer in a position, from a financial point of view, to continue doing business and unfortunately we are forced to suspend our operations and liquidate our assets in support of our financial responsibilities”.

c) In a call to the company today, the company acknowledged that it had gone out of business about eight months ago due to technology upgrades and plans to reopen in about three to four months.

d) Who is Microscan International? They allegedly placed a $45 million order to buy L International products. However, a quick search on google.com turns up absolutely nothing about them, not even a website.

e) Although the company claims to manufacture its own technologies with employees working from its corporate headquarters, it appears that the address on file is in fact a mailbox at The UPS Store in Santa Barbara, California.

f) Stock of L International Computers, Inc is traded on Pink Sheets and has been actively promoted through stock spam. Interestingly, a message posted by Pink Sheets LLC on PinkSheets.com indicates that they have removed stock quotes from their website until the company makes current information available to the investment community. Furthermore, they suggest that investors exercise caution and due diligence in their investment decisions, as companies that engage in promotional activities without providing adequate up-to-date information are often targets of fraudulent activity.

The company reports that there are approximately 100 million shares outstanding. Is this company worth $150 million? Attention investors.

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