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You're absolutely right, and I'm glad you brought up that point. You could have a dealership sitting on 100 acres that sells 10 cars/month, or you could have a dealership sitting on 10 acres that sells 100 cars/month...which one would you prefer?
(these examples are just examples and aren't based on NowAuto's actually lot sizes or sales volumes..)
E-mail from Scott:
I wrote:
Recently I have been corresponding with several other NowAuto
investors and potential investors. A few have demonstrated concern over the validity of NowAuto's operations. Please read these messages below and let me know what you think. I have complete faith in your management and operations, so I am trying to resolve any distrust. Thank you very much for your help.
First Statement:
From what I understand, Michael Fischer is Nowauto's founder and chief shareholder and the guy who hired Scott Miller....the Cossack Group, which paid Lebiz to pump NWAU stock, appears to be owned by Michael Fischer. I encourage you to check the registration of www.cossackgroup.com. The website is not functional, but the domain name is registered to Michael Fischer, 2339 N Hayden Rd, Scottsdale, AZ contact email goinkout@aol.com, administrative email goinkout@aol.com. I searched his email reference, GoInkout. Turns out it was an small office supply company based in Scottsdale, AZ. It appears GoInkOut was founded and run by NWAU's/Cossack's very own
chief shareholder, Michael Fischer, operating @ the years 2001-2002.
As you can tell in the links, "googling" Mr Fischer's GoInkOut company yields many disturbing complaints...I didn't find any that shed GoInkOut in a positive light, besides maybe GoInkOut's own glowing business description. The Better Business Bureau of Arizona received numerous complaints against Fischer's operation. Today, GoInkOut is no longer, but it leaves a trail of debris in its wake (see links below). So this finding begs the question: is NWAU for real, days away from filing with the SEC and realized EPS of .30 this year? Or is NWAU just another scam pinksheet stock run by a shady character who stays in the
backround? How much of a role does Fischer have? Maybe if they file with the SEC this month, we can see some numbers and all concerns will be alleviated...
Second Statement:
I'm new to this board but very familiar with Now Auto and their
concept. I would like to complement the company who handles their PR. They have taken a disastrous and expensive event for the company and turned it into positive. If anyone knows the name of this PR firm please post it as I would like to contact them.
For all those who are puzzled as to why they announced this merger with another BB shell, it's because after nearly a year of trying, they were not able to get their original shell or the acquired companies to pass an audit. I am familiar with the company's auditor, Shelley International, and if this guy can't or won't twist numbers and events to make the company qualify, there are some serious problems. Going shell shopping at the 11th hour should have been a clue to who own this stock. I guarantee some part of this company is toast, and it's probably the original shell. However, shedding this entity, whichever it is, can be troublesome. Once you operate under a company like this, you cannot just toss it aside and start over.
The SOX act now has auditors, the CEO and the CFO staking their lives on the validity of the filed document. I'm guessing, but a very educated guess, that the projections coming from the company's management are not remotely close to what the auditor has found, and the company is scrambling to stall, hoping something good that can stand the audit test, will happen and bail them out before they become fully reporting. Otherwise, the stall will continue because no one will sign off on a good news audit when the real news is all bad.
I could go on and on but I'm sure you guys will just brand me a basher and delete my entries. However, keep these facts in mind. 1) The company has a habit of misleading all of you with their headlines. For example, they claim to be the largest independent used car dealership in Arizona. I noticed lately, they changed it to the largest 'volume' dealership. Auctions do not count, trust me, and if they did, I know of 3 or 4 more in the area that are much bigger. It not semantics, their words are meant to mislead investors into thinking they are something much larger then they are. As far as earnings go, it takes a few years at a minimum to make a return in the BHPH business, I know from personal experience. GPS is nice, but for every ten you install,
you could own another vehicle, this is why so few dealers employ its use. However, this looks good to investors who think you can't lose if you just get the car back. WRONG! 2) These told you from the beginning how great they were in the GPS business. They were just distributors trying to save a buck on their own units. Then they tell you they are becoming a Tier 1 seller. But nothing has really changed; they're just doing a private label deal with some small company that's doing their own private label. This company has no meat, but I repeat, absolutely brilliant PR. Good Luck to all.
-------------------------------------------------------------------------------------------------------------------------------
Thank you Mr. Miller for reading these statements and responding to these potential issues. I trust you and your company, so I am working to spread the word that everything is OK. Have a wonderful 4th of
July!
Scott Responded:
I can't speak about Mr. Fischer's other interests. He is a large shareholder of NWAU and cares about the same things all shareholders care about. As for the other info you sent, I don't waste my time with foolish, self-aggrandizing statements. They are uninformed and counterproductive.
No, I haven't heard yet. I imagine all the details will be explained after 10 business days. I wouldn't be surprised if we keep our same ticker on the OTCBB, but then change it on the Nasdaq. We'll find out in due time.
Once again, I apologize for the idiot remark...I just feel like all this has been picked through before. What is your affiliation with NowAuto? How did you get this information? Can you provide proof? Are you a used car salesman? (just kidding :))
I like to hear both sides of the argument, it keeps things balanced, but it just seems like you are only trying to provoke fear. Correct me if I'm wrong, but I think you need to back up your allegations with evidence my friend.
Yeah, I guess we'll just have to get used to it...
I apologize for that comment, I just feel as though we're beating a dead dog. These issues have been discussed before, and we're all confident that everything is on the up-and-up. The car lots and Navicom aren't invisible, in fact, they're quite visible. Even if they miss projections, and make .15/share, the company is still undervalued! We'll have all of our answers cleared up very soon, you just have to go with your gut. My gut is telling me things are great.
Plus, please address your concerns directly to Scott Miller, Mike, and Keith. Once you've done this, please post their responses. Thank you.
Where are these idiots coming from? Geeze.......
"is NWAU for real, days away from filing with the SEC and realized EPS of .30 this year? Or is NWAU just another scam pinksheet stock run by a shady character who stays in the backround?"
You're kidding right? Give me a break! The car lots and Navicom must be holograms then, huh? I think you have problems with Michael Fischer, not NowAuto. Who cares if he has had problems with his previous company. Scott Miller and Keith are at the helm now, and Mike just provides capital. LOL
I noticed that someone was very anxious to unload a bunch of shares once the bid was increased to $1.50. Fortunately we didn't see much of an effect from this, but I still can't figure out why someone would be selling... I'm starting to think it's just day traders playing this stock up and down.
You're right, it's been in a pretty tight trading range today (again.) The ask was FINALLY moved up, so hopefully we'll close out the week on a good note. The blocks have been pretty large on both sides of the table.
You're right, it's been in a pretty tight trading range today (again.) The ask was FINALLY moved up to $1.51, so hopefully we'll close out the week on a good note. The blocks have been pretty large on both sides of the table.
The MM is picking up some cheap shares and playing games today. I have seen some nice blocks purchased at the ask, however. 30K here, 20K there... Today is a waste of a day anyway b/c of the holiday...
It will definitely go through, I don't think he would have released it to the press if he wasn't confident. He has a lot at stake and he wouldn't gamble on something like that. We'll be doing just fine in due time. Patience is rewarding.
I agree, if it was solely up to Scott, and the rest of management, we would already be on the bulletin board. The other parties have to get their engines started as well. If we were just filing, and not merging, we would see the numbers. Instead of discussing this, we would be picking apart the company from top to bottom.
I was a little disappointed that the PR lacked the substance we were all waiting for, but at the same time, I realize it will happen soon. I'm not going anywhere, this company isn't going out of business, and all our expectations will be met in due time. I couldn't be happier with Navicom, in particular, this is going to be the driving force for this company.
I thought it was interesting that he mentioned Tuscon as well. I guess it shows that those idiots were banned for good reasons...
I imagine now we just have to wait about 10 days before we get more news about the merger. Hopefully the stock will not suffer too much profit taking in that time, but I do imagine that the volume will continue to decline. If we do drop low again, oh well...it's just another buying opportunity.
E-mail from Scott:
I asked:
Do you still plan on making more acquisitions this year? Previously you announced plans to acquire one dealership per quarter. Is this still true? Is the proposed merger considered one of the acquisitions? Is the merger going to be a reverse merger? Do you expect share dilution?
He answered: (I wish he would have talked more about the merger..)
The Sunburst acquisition was like making three (because of their size). No the merger does not count as an acquisition. I do not expect us to make another lot acquisition in 2005. However, we fully plan to add a location in Q1 of 2006 which will likely be announced in Q4 of 2005. Thereafter we will look at one new lot per quarter in 2006. Also, we have a chance to significantly increase the size of our Tucson lot, which would not be included as an acquisition. We do not believe we need to finance new lots,
they should be financed out of internally generated cash flows, thus non-dilutive.
I'd say today was a great day considering the market tanked again. The volume was quite low for the decline, and I saw some decent sized blocks bought at the ask. We are forming a nice handle next to the large cup we formed. If we can hold this trading range we'll be fine. No complaints here.
It looks like the MM is trying really hard to move the price down, he keeps lowering the bid and leaving the ask unchanged. I guess he is trying to scare some people and pick up some cheap shares...I can't say I blame him. My guess is that we'll have some volume this afternoon, and then it'll be slow until Tuesday.
That's the truth! I've held this stock through thick and thin, so I'm perfectly content with things. Less risk is icing on the cake. When we dropped down to 80 cents a while back, I was a little concerned...but I just bought more! You have to stick with your guns in this market or you'll get taken advantage of. IMHO
That's a very wise move. Buy on weakness and sell into strength. I would buy more but I don't have any trading cash right now. (the wife wants a fun 4th of July weekend...) The market is just a deer in the headlights right now until the Fed speaks, so you should take advantage of it. We all know this stock is trading at undervalued levels, it's only prudent to accumulate while these conditions remain.
Most of the stocks I watch regularly are having a low volume day. I'm pretty sure it's related to the Fed meeting this afternoon, and not the 4th of July. Tomorrow, on the other hand, the volume will be low b/c of the 4th. I'll be perfectly happy if we trade side-ways for a while, it would form a nice handle.
No kidding, does it seem like the volume is REALLY light today? I expected a lot higher volume, but maybe we have to wait 10 more days now...
I think you're the only one that spotted a negative, everything sounds peachy to me.
That news sounds great! I figured they needed a little more time to finalize everything, but at least they followed through with a press release on time. Now Auto Group sounds like it's blossoming into a very strong company, with stellar management at the lead. Let's see how the market reacts, the management retained their credibility...and that's a fantastic characteristic in this day and age.
Oh. Well, I guess the truth will be revealed tomorrow my friend. Have a wonderful night and sleep well. I'm sure this board will be active tomorrow if things go as planned...
Sorry about that, you're right. Thank God...
Did you ask him if he was going to issue the press release on time? If so, and he didn't answer you, it probably means that your question will be answered tomorrow...with a press release. I'm glad you reminded him, I'm sure he realizes the importance and implications of the press release.
I have communicated with Mike Fischer as well. My worries about the Cossack Group are now relinquished, thank god.
Has anyone spoken to Mike, Scott, or Keith since the press release with the merger announcement? I am concerned that if we don't receive a press release tomorrow, there could be a lot of selling pressure. They have never let us down before, but this is a very important time and there is little room for error.
Can someone comment on this and make me sleep a little better? TIA
thanks for the info Hog, eom
That's as good as I could describe it as well. Personally, I prefer bigcharts over stockcharts.com
On the weekly chart, and daily, it kind of looks like we have formed a deep cup with handle... I could be wrong, but I like what I see.
Here's how stockcharts.com describes it:
If the previous day's closing value is less than or equal to the closing value for the current day, draw the current day's candlestick in black.
If the previous day's closing value is more than the closing value for the current day, draw the current day's candlestick in red.
Here's the link:
http://stockcharts.com/commentary/mailbag/mailbag20000809.html
Looks like today wasn't too bad at all. We had a slight decline on lower volume, that's very bullish. Assuming we get the press release we're all waiting for, tomorrow should be a day for the books. Sleep tight everyone.
If we go positive, I bet we'll see an increase in volume. People are waiting for either a press release or a pullback before they buy in. If we start to advance, we'll pull people off the fence b/c they don't want to miss the boat.
Here we go, we just hit $1.50! Let's see if we get some buyers.
Volume is pretty light today, so people are obviously waiting for the press release. Scott has always followed through, and I don't expect him to disappoint this time. Especially since he publicly announced the future press release. I can't imagine what news would be negative b/c he has already gived their DILUTED EPS estimate for 2005. Right now we just have scared traders selling b/c of the uncertainty of holding a pink sheet stock.
If this stock had options, we could do a long straddle and make a killing tomorrow...
Yep, we're just waiting for Miller, you're right. I guess they plan on releasing the news tomorrow. That makes sense, actually, b/c it's the end of the quarter. All the weak hands are folding today, and the volume is pretty light. From a technical standpoint, if we decline on lower volume today, it will set us up for a powerful break-out.
Darn! I was really hoping we would get the news today so we didn't have to deal with the market on "Fed day". Oh well...
My guess on why people would be selling is that they aren't confident that management will follow through, and they want to realize gains (if any) before a potential drop. Either that, or it's people that need to sell to raise cash for something. Other than that, I don't see a reason to sell. I'm staying put, that's for sure.
I'd say we have a 50/50 chance of getting news tomorrow, and a 100% chance of getting news tomorrow or the next day. Anyone wanna bet? j/k It feels like we're waiting for Santa Claus or something, I just hope we get a new bike and not a lump of coal!
I just got a woody :)