GMAI, NWAU what do u think?

**hydralistor** Wed Feb 09, 2005 8:50 am

GMAI, NWAU what do u think?
thanks

**blast_investor** Wed Feb 09, 2005 4:33 pm

GMAI earning numbers are great.

However, I am suspicious of this company's balance sheet or accounting book. Its cashflow is very poor, that is red flag. There are other balance sheet issues and issues like related party transaction. I would avoid this stock.

**blast_investor** Wed Feb 09, 2005 4:44 pm

NowAuto NWAU does not have any financial filing. Its web site said it only give out news, or press releases for investors.

I of course would avoid. No information means that no intrinsic value or no net worth can be easily determined. Blindly betting is something I do not do.

**hydralistor** Mon Feb 14, 2005 11:14 am

Gmai's cash flow varies alot from q to q because it has to purchase inventery(coins, stamps) from time to time. Also it bought quite a few smaller auction houses around the globe. Just bought a auction house in Hongkong. Its CEO says the auction event in far east normally attracts much larger and younger crowd, especially China/Hongkong.
In the new Q report, it has a large positive cash flow.

NWAU is a pinksheet, normally I won't consider them either.
but it release news that it will have 30-35c/share net earing in 2005.

**blast_investor** Mon Feb 14, 2005 12:21 pm

I was trying to say "inventory" red flag in balance sheet. Well even if GMAI management explained this red flag, it is still red flag.

Unless GMAI management can explain with a good reason that cash flow or inventory red flag will go away soon and it is just short term issue, I would avoid GMAI. This kind of red flags are leading indicators of "cheating" or "trouble" or "inventory stuffing".

Frankly, I do not just want to naively take CEO's words as it is. There are just so many dishonest sharks out there in stock market.

Do not take my word wrong, I am not saying GMAI management are cheaters. I just want to say that my investment opinion is "avoid or sell" on GMAI.

**hydralistor** Wed Nov 16, 2005 8:06 pm

GMAI changed to ESCL, price doubled from 6 months ago.