IT-AT™

About the InfoTelesys Automate Trading System

First Auctions

For security and control reasons the first auctions run on IT-AT™ will be restricted to InfoTelesys corporate share sales only.  Management of InfoTelesys will also be prohibited from trading shares during this time.  You will only be able to sell your shares on IT-AT™ once the first open trading auctions to start in May or June of 2001, after IT-AT™ has conducted a number of auctions to ensure efficient operation and the security of your Share Account and your IT$ Current Account.  

How IT-AT™ Works

The goal of the IT-AT system is to provide a fair and efficient trading system for InfoTelesys shareholders. The systems goals are to encourage maximization of shareholders value first giving preference to the time sellers placing their sale on the market then giving preference to lower asking price. Buyers are provided an efficient means to acquire InfoTelesys shares, buyers willing to pay higher prices are naturally provided preference.

IT-AT™ employs an advanced Dutch auction model so as to optimize the sale price you can achieve for your shares while at the same time stabilizing trading.

When you submit an Buy order, your order is time stamped and placed in the auction bid queue.

When the auction ends all the Buy orders are sorted first against the price offered then against time submitted.  The highest bid is then applied against the first stock sale in the stock for sale queue.  The stock for sale queue is simply sorted on a first come first serve basis.

If the bid price exceeds the asking price, the number of shares in the stock offer are applied to the bid consuming either the entire stock offer or the entire bid at the bid price. If the bid requires more shares these are applied to the next inline stock offer. If the stock offer at the top of the queue is asking a higher price than the bid at the top of the bid queue, then that bid is applied against the next stock offer in the offer timeline until the bid price finds a stock offer that is lower than or equal to the bid. If no offer is found the bids and offers are automatically transferred to the next auction after automatically removing bids or offers that are fixed percentage above or below the average sale price for a fixed number of days. InfoTelesys will adjust the number of days and the percentage removal based on principles that will be established to ensure smooth trading and removal of outrageously high asking prices and outrageously low bids.

Walk through an Auction example here

IT-AT™ IT$ Current Account - The New Gold Standard™

IT-AT™ is integrated with the next generation InfoTelesys banking system.  Currently the InfoTelesys Bank is not operational, but will be brought on-line as a full fledged Bank in the near future.  During the first months of operation, during the period InfoTelesys' Banking system is being registered and brought fully operational, you will be able to deposit funds into your IT$ Current Account for use in trading shares on IT-AT™.

All shares are traded in IT$'s.

You pay for your shares you have won on an IT-AT™ auction through your IT$ Current Account.

Money can be transferred into your IT$ Current Account by one of three different ways:

1. By mailing a check to:
InfoTelesys Share Accounts Processing
Your email address, Your IT-AT™ nickname
1475 Terminal Way Suite E
Reno, NV 89502 U.S.A.

2. By Credit Card
Simply fill in the online form to add funds to your IT$ Current Account and your Credit Card will be charged in U.S. dollars.

3. By wire transfer of funds
To be added shortly, our current third party bank cannot handle the high transaction load or provide us with integrated mapping to our IT-AT™ system.  InfoTelesys, will be implementing the IT Bank™ which will be able to securely handle your wire transfers and integrate efficiently and easily with IT-AT™ and your IT$ Current Account.

The IT$ Current Account is currently pegged at the U.S. Dollar.

First Implementation of IT-AT™

In order to meet the demands of getting to market on short notice, InfoTelesys chose rather to take an existing stable product and slightly modify it to meet the InfoTelesys design specification.  We have started working on our next generation system that is more advanced from a security, scalability and functionality perspective than the current application.  The next IT-AT™ will be integrated with our future next generation banking system.

InfoTelesys is assuring security of trading during the first two months by only offering company stock on IT-AT™.  This allows us to gauge and test the system, while any illegitimate stock purchases can be easily reversed.

InfoTelesys built this implementation of IT-AT™ in one week

How do I know InfoTelesys is not a scam!?

It is an unfortunate fact our societies are littered with wolves wearing sheep's clothing.  Free-market principles, by their nature, open the opportunity for criminals to scam the public, and Internet's current virtual element certainly does not help prevent such scams.  InfoTelesys recognizes this and is working on next generation digital technologies to bring higher levels of security to your assets that have been previously possible.

In regard to the companies pedigree and origins, InfoTelesys' Founder, Chairman and CEO not only comes from an exceptional and solid career background with the industries most respected companies, but he also comes from an exceptionally well respected international family background.  You can read about the founder and his background in the Management Section of this site.  The Founder give his personal assurance that all matters under his control within InfoTelesys will be conducted with complete integrity and honesty.

From an assurance perspective, probably most important aspect to recognize is that InfoTelesys is dealing directly with the Russian government and the U.S. government - the former KGB and the CIA.  There is no place InfoTelesys' board of directors could hide!

InfoTelesys is an open company, through our digital channels we will offer a higher level of interaction with our shareholders than other comparable companies have been able or willing to provide.  InfoTelesys wants our team and you our customers to own the company, we truly want InfoTelesys to be the People's Communication company.

InfoTelesys, open for open business, in a new digitally connected world.  This is IT™

Security - Are My Shares Safe?

IT-AT™ already implements state of the web security methods.  InfoTelesys is in development of substantially more advanced security systems and technology to make IT-AT™ and the future InfoTelesys IT Bank™ more secure than any financial system currently available.

InfoTelesys will innovate in this area and we will lead (InfoTelesys' founder was responsible for architecting the systems architecture for the world's largest banking system).  Watch this area as we reveal far more advanced financial security and financial systems when IT Banking™ comes out of development.

Recognize that InfoTelesys rushed to market with internal funding to meet Space Station Mir's deadlines.  What you see today is only a fore taste of what you will see in the near future.  The InfoTelesys site, like other secure web sites implements 128 bit and higher encryption, we are already implementing other security measure in the background within IT-AT™ that are not published to ensure the security of your shares and your IT$ Current account.

To take extra precautions, InfoTelesys is restricting trading during the first two months of operation to InfoTelesys company shares only.  This allow InfoTelesys to ensure fair and secure trading - no one will be able to sell your shares or pay out of your IT$ Current Account until we are confident in the systems stability and that your asset's are sufficiently secure.

Security, particularly in the digital world is an important issue.  The old fashioned security methodologies of paper cash, checks and "plastic" credit cards need to be radically changed to operate securely in a modern world, let alone a digital one.  At InfoTelesys we have technologies and methodologies that can add significant security to your assets and protect them from prying hands, including out of control governments.

3. Auction Frequency - When's The Next Auction Start and Stop?

The start and stop dates and times of auctions will be set by the IT-AT™ administrator before they are held.  Auctions will be held more frequently and with shorter duration as the trading volume increases. As the trading volume decreases the auctions will last longer.  Forty eight hours are allowed between the start and stop of auctions to allow for settling of buyers funds.

InfoTelesys Domicile in a Virtual World

InfoTelesys is currently domiciled in Nevis, once InfoTelesys has established stable presence in space, the companies presence will be moved to our global offices in space. More here to be published shortly.

4. The Reasons Behind IT-AT™ - Why Not Trade on Old Fashioned Exchanges?

Were glad you asked. InfoTelesys is interested in protecting our shareholders and ensuring that shareholders receive the maxim price when selling their shares while marinating stability in trading.

Gambling Exchanges or Legitimate Capital Market?
Traditional stock markets have become more akin to gambling halls than legitimate places to buy and sell securities.  Shares traded on traditional exchanges are subject to wild and uncontrollable fluctuations more often by forces that are totally unrelated to any activity or condition of a company.

Traditional exchanges are not true open markets, you have to be a broker in order to trade in traditional exchanges.  This naturally favors brokers.  Trading on the inside gives brokers considerable advantage, many exchanges go as far as enforcing outrageous information delays for the public. That is, the public is restricted from obtaining real-time data, however, brokers are allowed access to real-time information. This allows brokers a head start on analyzing trends before the public can get in.  It is surprising this practice is even legal!

Many broker systems automatically track stock's real-time price fluctuations, applying differential calculus against the variance and predicting future values.  This small incremental analysis provides an easy way to take advantage of small fluctuations and stock movements. The computer becomes the incremental trader, milking the system - bad for the public and bad for company stocks but very good for brokers.  Have you heard any brokers or Investment Bankers complaining regarding the stock market fall in mid 2000? It is in the interests of brokers to have a wildly fluctuating stock market. It is not in the interest of the public and private investor to have a turbulent market as they are the ones who take the fall.

A More Stable Process That Favors The Private Investor

The IT-AT™ auction cycle and real-time equal access, places a dampener on the automated gambling found in traditional exchanges, while we try to decouple the gambling mentality from the stock.

Companies sell shares for the purpose of raising capital for business to make profit and provide services. InfoTelesys is interested in attracting sound investors who are more interested in long-term investment than in making a quick return on a gamble.  The InfoTelesys business plan addresses long-term and strategic growth, we are here for the long-haul not the fly-by-night or the "dot gone" business. InfoTelesys' businesses can support significant revenue streams and profit, this is where we will focus the company.  It is far more important to build a financially sound company that can stand on it's own, than to build a runaway stock that feeds off investors to survive.

5. Where's the Venture Capital?

Venture Capital, or as we refer to it, Vulture Capital, has received considerable press lately. The reason for all the press is the absurd profits VC's are earning. VC's can make as much as one hundred thousand percent return on investments. For example, Laurence Rockefeller's Venrock VC fund started with $7.6M in capital about thirty years ago. To-date the company has distributed up to $1.6 billion dollars and retained assets worth $1.5 billion. Some of Venrock's investments included taking ten percent of Intel for $600,000 and ten percent of Apple for $500,000! Recently a $6.5M stake in Neoforma.com a hospital supply firm shot to $275M in next to no time.

Base VC's expectations are demonstrated in the following tables taken from a VC white paper http://www.whiteandlee.com/papers_international_map.html .

Sample VC Return On Investment Expectations:

Sample of VC's Expected Payoff:

If a company goes through all the VC stages, by the time it goes public, nothing is left for the company. VC's skim off all the money that needs to go into the company for initiating and supporting operations!

In 1998 VC's invested about nineteen billion dollars in companies, in 1999 VC's invested nearly forty eight billion. There were more than one and a half thousand VC firms at the beginning of 2000, nearly twice the number of VC firms that were around in 1998.

Venture Capital funds are usually a conglomerate of smaller investors who put their money under the control of the Venture Capital firm. Typical VC funds charge 2.5% management fee for their services and retain 20% of the profits!

Venture Capital firms will provide anywhere from fifty thousand dollars to one hundred million dollars. Many VC firms will not look at companies that need less than ten million dollars. Vulture Capital Investors demand between thirty and eighty percent equity in the company they invest in. Typically most VC's try obtain a majority stake in a company.

The primary goals of Vulture Capitalists is to make lots of money. Most VC's will diligently work to gain control of the business so that they can steer the company in their profit making direction. If they do not obtain control upfront through a majority stake in the company, VC's will often attempt to put their own management into a company and gain control through a management takeover. Recognize, the VC's goal is to make a quick return on their investment, the longevity and stability of the company is generally not important.

The basic Venture Capital process is for the company seeking funds to send a business plan to selected VC's. VC's typically refuse to sign non-disclosures, which results in significant risk to any company with good ideas. A key factor to recognize regarding VC's is that they will nearly always direct ideas towards existing investments in which they have control. Consequently, few good ideas ever reach VC's in the ideas' early stage.

If a VC likes a business plan, which they somehow select from thousands that are discarded at the VC's, they will bring the company into their offices and ask for a presentation. If the presentation is successful, it is followed by a due diligence phase.
Apart from checking value, one of VC's primary goals in the due diligence phase is to break down the value of the company. VC's will often insult founding teams and making the VC out to be the gods to which founders must grovel. After the VC has broken down the value of the company, usually to ridiculous levels, they get into term sheets. Term sheets in the Vulture Capital world, are tools that are most often used to trick founders into giving up even greater shares of their companies than the founders realize. Term sheets often give VC's privileged voting or management rights over other shareholders. One element is usually always true regarding VC terms sheets; they are almost always onerous.

The net result of most Vulture Capital deals is that the VC's take such an enormous share of the business that founders loose control. What follows is a takeover by staff installed by the Vulture Capitalist and a business that rapidly looses any ability to compete in the knowledge driven world. Business' where Resource Contributors own and control the direction of the company.

Some of the more mature Venture Capitalists now only take small stakes in companies of around ten percent. Recognize, however, that most VC's are new to the market, there are more than twice as many VC's today as two years ago, maturity, is inherently uncommon.

In the technology industry, history indicates that most companies that give up more than 30% of their stock to VC's are generally short lived in accordance to the Business C-Law. Interestingly, companies that either failed to get initial Venture funding, like Microsoft, or Amazon.com, or were only minimally diluted through Venture Capital, tend to survive due to their stronger Intellectual Property Contributor ownership and smaller VC dilution.

Experience of the impacts of Silicon Valley's Vulture Capitalists on companies, and the consequences of diluted Intellectual Property contributor ownership, has saved InfoTelesys from seeking Vulture Capital. Resource Contributors have little impact on the long-term success of a company in the technology field other than providing funds. InfoTelesys will continue to attempt to minimize the effect of early dilution. The company will focus on increasing company value before releasing capital stock.  This should imply that investors who have the opportunity to invest in InfoTelesys obtain even more value for their holding.

6. Why not use an Investment Banker?

Most people are unfamiliar with the Investment Banker process, they also do not realize that it is in this field that the world's largest scams are pulled off on a regular basis.  Surprisingly, Investment Bankers hold the impression of being stable mature ethical businesses, however, the process is far from ethical.  

The basic process is that the Investment Banker locks up a company based on the number of shares they will offer to the Investment Banker.  The next basic step the company is taken on a "road show" past clients the Investment Banker chooses, typically an inner circle of associates of the Investment Banker.  After the road show, the Investment Banker decides what to pay the company for their shares!  It is always ten bucks - the company will simply have to reduce their share capital to meet the magic ten bucks.  So the Investment Banker then buys all the companies shares from their initial public offering for ten bucks each, usually with nice escape clauses.  The company's part is then basically finished, that's all they get. We will let the numbers, the industry facts tell the rest of the story.  The following chart shows a few examples of what Investment Bankers inertly refer to as "Money Left on The Table".  This is the difference in price the Investment Bankers paid for shares and the price they sold them for on the exchange or, in other word's, the amount of money the Investment Banker scammed from the company going public:

Source: Prof. Jay R. Ritter, University of Florida (352-846-2837 voice) Data comes from Bloomberg, Securities Data Co., and the S.E.C.'s Edgar electronic database of 424B forms (final prospectuses).

As the numbers shout out so clearly, the Investment Banker process is not a process legitimate companies should follow. Can any of the CEO's of these companies turn around to their shareholders and say, "well we only left a quarter to billion dollars behind in the deal"?

On top of the Ingestor Banker "Money Left On The Table" scam, the Ingestor Bankers charge exorbitant fees for getting the company to fill out basic S-1 disclosures regarding their company in addition to approximately 7% of the deal just to cap things off.

At InfoTelesys we believe we need to be more responsible, and that using Investment Bankers not only rips the company off of much of the capital needed for establishing business processes.  We believe that we should not be trying to attract the type of investors Investment Bankers go after such as day traders and "flippers". InfoTelesys wants to attract stable investors, we would far rather sell our shares to someone who is our customer or partner than to someone who is simply interested in making a quick buck.

IT-AT™ brings all the advantages to InfoTelesys and to our shareholders.  IT-AT™ auctions run 24 hours a day and not only during bankers hours in New York.  There is no insider trading on IT-AT™, everyone has equal access.

Copyright © 2005 InfoTelesys, Inc. All rights reserved.