ESCALA GROUP INC (ESCL)
Name: Escala Group, Inc.
Web Site: http://www.escalagroup.com
Brief Description: Escala Group, Inc. operates as a global collectibles merchant and auction house network with operations in North America, Europe, and Asia, as well as on the Internet. The company, through its subsidiaries, specializes in auctions, merchant/dealer operations, and trading. In North America, the company engages in Internet, interactive telephone, and Internet and live simulcast-auctioning and merchandising/dealing of collectibles, such as rare stamps, stamp collections and stocks, coins, sports trading cards and memorabilia, and fine art. The company also operates auction divisions under the names Greg Manning Auctions and Spectrum Numismatic Auctions. It also conducts philatelic auctions of rare single stamps and collections targeted to individual collectors, as well as dealers; focuses on smaller, less expensive, and mid-range individual stamp collections; sells individual stamps to collectors; acquires and sells collectible coins, collectible sports cards, and other sports memorabilia; and conducts Internet and telephonic auctions of coins. In addition, the company owns GMAI Auctentia Central de Compras of Madrid, Spain, which engages in the sale, marketing, and production of owned and third-party collectibles, with an emphasis on specialized philatelic material. The company was established in 1981. It was formerly known as Greg Manning Auctions, Inc. and changed its name to Escala Group, Inc. in September 2005. Escala Group is headquartered in New York City.
05/10/2006 - Downgraded to Neutral rating
ANALYST OPINION: We downgrade Escala Group Inc. (ESCL) to Neutral rating on recent news about alleged fraud involving collectible stamps.
INVESTMENT PERFORMANCE: INVESTMENT PERFORMANCE: ESCL performed extremely well since our initiation of coverage, more than doubling in just 2 months. Unfortunately, yesterday ESCL lost more than half of its value on news that Forum Filatelico and Afinsa (67% owner of ESCL) were being investigated for crimes including fraud and money laundering. In our opinion this event and coming lawsuits significantly cut the prospects of ESCL; therefore, we downgrade ESCL to Neutral rating.
07/25/05 - Initiated with Buy rating.
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