Escala group stock on a meltdown, $7.00 today from $30 yesterday.

[truthteller]

Yikes!!!

 

 

http://moneycentral.msn.com/investor/research/msnbc/newsnap.asp?symbol=escl

 

 

 

TRUTH

[TJ'S Coins]

I hate to see that for anything related to the hobby. The scandals were overseas and not directly related to US operations if I read the articles correctly.

[braddick]

[physics-fan3.14]

For those of us who don't know, who or what is Escala and what did they do?

[Excaliber]

I hate to see that for anything related to the hobby. The scandals were overseas and not directly related to US operations if I read the articles correctly.

 

 

I believe in Truthteller's other EXCELLENT post, with many outstanding facts included, that Mr. Noe may have been involved in some way with this whole mess being brought out. I believe from reading his other post there may be more to this story than what we've read so far.

 

Oh, by the way, thank you Truthteller, two EXCELLENT posts!

[michael]

[truthteller]

For those of us who don't know, who or what is Escala and what did they do?

 

Escala is the group name of a company that uses collectibles such as stamps and coins for investment profits. Apparently, there was a "built in" profit clause in the investment whereby the company would "guarantee" 10% minimum return per year.(red flag ). It is the parent company to Greg Manning auctions, Bowers and Merena, Teletrade, Spectrum.

 

 

 

TRUTH

[truthteller]

Down another 10% this morning. With 5 million shares traded already!

 

Can bankruptcy be far behind?

 

 

 

TRUTH

[braddick]

Down another 10% this morning. With 5 million shares traded already!

 

Can bankruptcy be far behind?

 

 

 

TRUTH

 

Doom Gloom

[gmarguli]

Down another 10% this morning. With 5 million shares traded already!

 

Can bankruptcy be far behind?

 

 

 

TRUTH

 

Ended the day down 34% with 9.5M shares traded. Off another 8% in after hours trading.

[braddick]

Down another 10% this morning. With 5 million shares traded already!

 

Can bankruptcy be far behind?

 

 

 

TRUTH

 

Ended the day down 34% with 9.5M shares traded. Off another 8% in after hours trading.

 

[4ucoin-migration]

For those of us who don't know, who or what is Escala and what did they do?

 

Escala is the group name of a company that uses collectibles such as stamps and coins for investment profits. Apparently, there was a "built in" profit clause in the investment whereby the company would "guarantee" 10% minimum return per year.(red flag ). It is the parent company to Greg Manning auctions, Bowers and Merena, Teletrade, Spectrum.

 

 

 

TRUTH

 

Close...Afinsa is the 70 percent owner of Escala. Escala had a affiliated sales agreement with Afinsa whereby Escala would purchase stamps from third parties and resell to Afinsa at cost plus 5 percent. Afinsa then "sold" this stamps to "investors" with a guarantee yield of 6 to 10 percent. At the end of the contract, if the investor wanted to turn the stamps in, Afinsa guaranteed the original purchase price.

 

The allegation is that Afinsa was selling the stamps to its investors at greatly inflated rates (or even selling fraudulant stamps).

[JamminJ]

Down another 10% this morning. With 5 million shares traded already!

 

Can bankruptcy be far behind?

 

 

 

TRUTH

 

Ended the day down 34% with 9.5M shares traded. Off another 8% in after hours trading.

 

 

You're happy?

[braddick]

Yes, because now the stock has nowhere to go but up.

[JamminJ]

Yes, because now the stock has nowhere to go but up.

 

In that case, make sure to buy on margin.

[chinook]

It was a screaming buy this morn. From another gap down to $4 back to 5.25 30 min later. 25% aint too hard to take.

[truthteller]

Wow. Over 13 million shares have traded by 10:30PM PST. The stock is stuck around $8/share. Scouter has just downgraded the stock from a 7 to a 3. Bye-bye Escala.

 

 

 

TRUTH

[braddick]

Wow. Over 13 million shares have traded by 10:30PM PST. The stock is stuck around $8/share. Scouter has just downgraded the stock from a 7 to a 3. Bye-bye Escala.

 

 

 

TRUTH

[truthteller]

Escala stock trading today at $5 a share. Scooter downgraded the stock again to a 2. Bye bye Escala.

 

 

 

 

TRUTH

[gmarguli]

Escala stock trading today at $5 a share. Scooter downgraded the stock again to a 2. Bye bye Escala.

 

TRUTH

 

Not so fast. Escala stock more than doubles today. No fraud found at company.

[LuvToCollect]

There may be hope yet.

[jgrinz]

There is NO Hope if they have to RESTATE past earnings that far back

 

>>>

 

NEW YORK - Escala Group, which trades in stamps, coins and other collectibles, said Tuesday it will restate its financial results for three fiscal years and part of a fourth, as a result of a review of deals between the company and a majority shareholder.

 

In November, Escala said it would delay filing its most recent quarterly report with The Securities and Exchange Commission to give it more time to investigate dealings with shareholder Afinsa Bienes Tangibles SA, which was implicated in a large postage stamp investment fraud in May. The company has also yet to file its annual report for the year ended June 30, 2006.

[gmarguli]

Escala goes bye-bye from the NASDAQ as of tomorrow. The stock is down about 40% today.

[DC Dawg]

Ouch... they officially go on the Pink Sheet. They are now considered a penny-stock and will probably start to be traded as such. It is just a matter of time before they are fully delisted.

[truthteller]

There is NO Hope if they have to RESTATE past earnings that far back

 

 

Bye Bye Escala.

 

If I remember correctly, a well known coin dealer owns quite a bit of Escala.

 

 

 

 

TRUTH

[Zoins]

Before the crash, a friend and I talked about investing in this company. After our research, we changed our minds and decided it was a short candidate. My big regret is that it crashed before we got to short it. IIRC, there were articles published months before the crash about how this company and Afinsa Bienes operated in the stamp collectibles market.

 

What was the consensus here? Did people expect ESCL to crash or not?

[truthteller]

Crash?

 

 

Well, I did post this thread over 7 months ago, and that was several months after the trouble was uncovered with Alfinsa. So, yes, I expected the stock to crash. Yes, I expected the stock to be delisted. Now, I am sure the investors will start their lawsuits within a few months. It gets ugly when the unregulated coin and stamp industry is mixed into the highly regulated stock industry.

 

 

TRUTH

[Zoins]

Ah, I missed your other thread on this topic which is apparently excellent. I wasn't on these boards at the time but will look up the thread when I get the time. Good to jog the memory.

[gmarguli]

Well, I did post this thread over 7 months ago, and that was several months after the trouble was uncovered with Alfinsa. So, yes, I expected the stock to crash. Yes, I expected the stock to be delisted. Now, I am sure the investors will start their lawsuits within a few months. It gets ugly when the unregulated coin and stamp industry is mixed into the highly regulated stock industry.

 

It got delisted because they didn't file their financial statements. They very well might get relisted on the NASDAQ after getting their financial statements in order. This is not unusual.

[truthteller]

Ah, I missed your other thread on this topic which is apparently excellent. I wasn't on these boards at the time but will look up the thread when I get the time. Good to jog the memory.

 

 

I forgot to emphasize that all the board members of Escala resigned just before the delisting. The entire board doesn't resign due to 'paperwork' problems. I guess it's really bye bye.

 

 

 

TRUTH