Beacon Equity Research

Stock Alert for L-1 Identity Solutions Inc. (ID)

Stock Alert for DryShips Inc. (DRYS)

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Amico Games Corp. Rated ‘Speculative Buy,’ by Beacon Equity Research with a Price Target of $1.44.

L-1 Identity Solutions Inc. (NYSE: ID)

Financial Summary

Analyst Consensus

Investment Highlights

Technical Analysis

Comparative Analysis

Insider Trading Activity

Report Disclaimer

DryShips Inc. (NASDAQ: DRYS)

Financial Summary

Analyst Consensus

Investment Highlights

Technical Analysis

Comparative Analysis

Insider Trading Activity

Report Disclaimer

Click below to read the full report.

General Automotive Co (OTCBB: GNAU)

Financial Summary

Analyst Consensus

Investment Highlights

Technical Analysis

Comparative Analysis

Insider Trading Activity

Report Disclaimer

BeaconEquity.com — Tue, 09 Feb 2010 08:52:20 +0000

L-1 Identity Solutions Inc. (ID) is a provider of technology, products, systems and solutions, and services that protect and secure personal identities and assets. L-1 operates in two business segments: the Identity Solutions segment and the Services segment. The Identity Solutions segment offers secure credentialing, biometrics and enterprise access solutions marketed to federal agencies, state and local government agencies, including law enforcement and departments of corrections, foreign governments and commercial entities, such as financial, casinos and health care institutions. The Services segment offers enrollment services to federal and state government agencies and commercial enterprises, and financial institutions. In March 2008, the Company acquired Bioscrypt Inc. In August 2008, the Company acquired the ID Systems business of Digimarc Corp., a United States-based business in the secure credentialing market.

The Company was founded in 1992 and is headquartered in Stamford, Connecticut.

Share Statistics (9-Feb-10)			FY 2007	FY 2008	% Chg	Q3 2008	Q3 2009	% Chg
Symbol	ID	Revenue, $Mn	389.5M	562.9M	44.5%	154.5M	172.5M	11.7%
Current price	$7.68	Gross marg.	31.1%	29.8%	4.2%	n/a	31.9%	n/a
52wk Range:	$3.23-9.50	Oper. margin	1.3%	-91.3%	7123.1%	n/a	8.1%	n/a
Avg Vol (3m):	680,775	Net margin	4.6%	-97.5%	2219.6%	n/a	0.8%	n/a
Market Cap.	700.9M
Dil. Shares Outst.	91.3M	EPS, $	0.24	-7.08	3050%	-0.01	0.02	300%

Source: Reuters.com, SEC Filings.

Based on a preliminary review of fourth-quarter 2009 results, the Company expects revenue for the quarter ended December 31, 2009, of approximately $160.0 million and Adjusted EBITDA of $23.0 million – $25.0 million. The decrease from previously announced expectations of revenue between $180.0 million – $190.0 million and Adjusted EBITDA of $30.0 million to $35.0 million is due primarily to the delay in the award of an enterprise license with an existing U.S. customer. Less than anticipated revenues on an enrollment services program also contributed to the lower sales number.

For the full-year ended December 31, 2009, revenue is expected to be approximately $650.0 million, down from the previously anticipated range of $670.0 million – $680.0 million. The Company expects Adjusted EBITDA to be between $95.0 million – $97.0 million versus $102.0 million – $107.0 million. The Company expects to end the year with $1.3 billion in backlog.

Preliminary expectations provided for the full year ending December 31, 2010, remain unchanged at revenue of between $750.0 million – $775.0 million and Adjusted EBITDA of approximately $110.0 million – $120.0 million.

Financial Strength (9-Feb-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.94	1.85	1.51	0.80
Current Ratio (MRQ)	1.12	2.02	1.78	0.94
Long-Term Debt to Equity (MRQ)	58.74	33.78	27.76	127.02
Total Debt to Equity (MRQ)	61.26	58.67	43.79	179.98

Source: Reuters.com, SEC Filings.

Buy

Outperform

Hold

Underperform

Sell

No Opinion

This is the consensus forecast among 7 polled investment analysts. Against the L-1 Identity Solutions Inc. company.

The 4 analysts offering 12-month price targets for ID have a median target of 8.00, with a high estimate of 9.00 and a low estimate of 8.00. The median estimate represents a 9.89% increase from the last price of 7.28.

Source: www.ft.com

Consensus Estimates Analysis

	# of Estimates	Mean	High	Low	1 Year Ago
SALES (in millions)
Quarter Ending Mar-10	5	166.71	171.73	157.50	–
Quarter Ending Jun-10	5	180.82	189.00	168.00	–
Year Ending Dec-10	6	743.10	765.00	697.00	845.04
EARNINGS (per share)
Quarter Ending Mar-10	6	-0.03	-0.01	-0.04	0.04
Quarter Ending Jun-10	6	0.00	0.02	-0.02	0.09
Year Ending Dec-10	6	0.04	0.09	-0.01	0.26
LT Growth Rate (%)	2	20.00	20.00	20.00	20.00

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=ID

ID last week announced that it will be the exclusive provider for the program formerly known as Registered Traveler as a result of Alclear LLC winning the competitive bid for Verified Identity Pass Inc. assets. The competitive bidding process was conducted through procedures approved by the U.S. Bankruptcy Court, Southern District of New York. In connection with Alclear’s purchase of VIP’s assets, ID is expected to receive a multi-year contract to serve as prime integrator for the program formerly known as Registered Traveler. In that role, ID is expected to be the exclusive provider for all of the program’s systems integration, enrollment services and verification needs once the program is re-started. In recognition of its prior investments and contributions to the program, ID will also receive an equity investment in Alclear.

ID in late January announced a contract valued at $9.9 million over three years for advanced live scan biometric capture systems to be used as part of the USCIS immigrant citizenship application process. The terms include a one-year base contract of $6.6 million with two consecutive one-year options of approximately $1.6 million for additional solutions and services that bring the total contract value to $9.9 million over three years. The systems included in the base contract will be fully deployed by the end of the first half of 2010 within all of the 134 U.S. Customs and Immigration Service Application Support Centers (ASCs) located throughout the U.S. and U.S. territories of Saipan, Guam, the Virgin Islands and Puerto Rico.

The procurement is being conducted under the Department of Homeland Security “First Source” IDIQ. ID was the original technology provider on this program and an incumbent on the new contract. NCS Technologies Inc. is the prime and acting as program manager. The new live scan systems from ID will provide advanced systems using enhanced technology that increases the productivity of digital capture and electronic submission of fingerprint images to the Federal Bureau of Investigation (FBI) and US-VISIT. The fingerprints are used to conduct criminal background checks prior to USCIS making a determination whether to grant immigration benefits to applicants. The new ID live scans leverage a user friendly Windows-based interface and capture both roll and slap prints. The systems will be available in three configurations: kiosk, desktop and portable units. The systems will be supported by a 24-hour call center and nationwide field service organization that is wholly owned and operated by ID as part of the Company’s existing customer support infrastructure.

Source: http://ir.l1id.com/releases.cfm

Source: http://stockcharts.com

ID is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

ID has been relatively stable recently. This is evidenced by the width of its Bollinger Bands, which are tighter than normal. Additionally, ID is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

ID’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Feb-08-2010	symbol	Share, $	$ Mn	2009	2010	2009	2010

Cogent Inc.	COGT	10.55	946.82M	27.58	n/a	8.13	n/a
ImageWare Systems Inc.	IWSY	0.77	13.97M	n/a	n/a	2.01	n/a
LaserCard Corp.	LCRD	5.61	68.64M	11.27	n/a	1.36	n/a
*Drug Manufacturers Median*			*349.14B*	*19.42*	*n/a*	*3.83*	*n/a*
L-1 Identity Solutions Inc.	ID	7.68	700.9M	n/a	n/a	0.96	n/a

Source: Thomson Financial

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	0
Sales	n/a	0
Net Shares Purchased (Sold)	n/a	0
Total Insider Shares Held	24.31M	n/a
% Net Shares Purchased (Sold)	0.0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(9,258,440)
% Change in Institutional Shares Held	(24.3%)

Source: Yahoo Finance

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

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Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

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We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

BeaconEquity.com — Tue, 09 Feb 2010 08:09:32 +0000

DryShips Inc. (DRYS) owns a fleet of drybulk carriers, shipping materials and commodities worldwide. In addition to its fleet of vessels, which include 29 Panamax, two Supramax, seven Capesizes and two newbuilding drybulk ships, the Company owns two ultra-deep-water semi-submersible drilling rigs and two ultra-deep-water drillships. With a combined capacity or more than three million deadweight tons, DryShip’s drybulk carriers transport various commodities, including coal, grains, metals and fertilizers. The Company’s services include vessel leasing in the spot charter market as well as in drybulk carrier pools.

Founded in 2004, the Company is based in Athens, Greece, and operates three subsidiaries, including DrillShips Investment Inc., Ocean Rig ASA and Primelead Shareholders Inc.

Share Statistics (08-Feb-10)			FY 2007	FY 2008	% Chg	Q3 2008	Q3 2009	% Chg
Symbol	DRYS	Revenue, $Mn	582.6	1,080.7	85.5%	328.0	228.2	-30.4%
Current price	$5.36	Gross marg.	93.3%	86.2%	71.5%	78.6%	72.9%	-35.5%
52wk Range:	$2.72-11.48	Oper. margin	90.6%	-20.5%	-142%	74.9%	41.2%	-61.7%
Avg Vol (3m):	19,366,600	Net margin	82.1%	-33.4%	-176%	54.9%	15.6%	-80.2%
Market Cap.	1.36B
Dil. Shares Outst.	253.8M	EPS, $	9.444	3.949	-58.2%	2.679	0.125	-95.3%

Source: Reuters.com, SEC Filings.

Financial Strength (08-Feb-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.41	1.01	1.48	0.80
Current Ratio (MRQ)	0.41	1.10	1.84	0.94
Long-Term Debt to Equity (MRQ)	26.05	109.17	65.15	127.02
Total Debt to Equity (MRQ)	92.13	129.91	92.01	179.98

Source: Reuters.com, SEC Filings.

The mean of 15 analysts surveyed by Reuters rate shares of DRYS an “Outperform.”

Analyst Recommendations and Revisions

1-5 Linear Scale	Current	1 Month Ago	2 Month Ago	3 Month Ago
(1) BUY	5	3	3	2
(2) OUTPERFORM	3	2	1	1
(3) HOLD	5	6	7	6
(4) UNDERPERFORM	0	1	1	1
(5) SELL	0	1	1	2
No Opinion	2	2	2	2

Mean Rating	2.00	2.62	2.69	3.00

Source: Reuters.com, SEC Filings.

The shipping industry has been profoundly affected by the global recession, as measured by the Baltic Dry Index ($BDI), which, after peaking in May 2008 at 11,500, plunged to a low of 800 in early December, then settled at 2,715 as of February 5, 2010. Economists expect a moderate rebound from a collapse in trade starting in May 2008, citing signs of production and purchase orders improvements from Asia, especially China.

Recent news from China, however, that its central bank has embarked on a tighter monetary policy–as well as Greece’s sovereign debt crisis– have spooked global markets, precipitating a sell off by investors of stocks including the dry bulk freight rates as measured by the Baltic Dry Index.

Further signs of growth from Asia’s renewed demand for oil has markedly improved the price of WTIC oil which doubles from its December low of approximately $35 per barrel to approximately $72 as of February 5. Worries of falling steel prices have recently weighed on freight rates, however.

The Company anticipates business to improve, as evidenced by its decision in early July to acquire the remaining 25% outstanding shares of its subsidiary Primelead. Primelead’s assets of two ultra deepwater semisubmersible drilling rigs are expected to produce significant income as offshore oil drilling programs restart worldwide in response to higher oil prices.

Primelead expects delivery of four newbuilding drillships, rounding-out its assets as one the youngest and sophisticated fleet of ultra deepwater drilling rigs in the industry. The delivery dates are scheduled for the fourth quarter of 2010 through the third quarter of 2011.

Two high-profile investment bankers, Credit Suisse and Cantor Fitzgerald have announced the week ended July 10, 2009 upgrades to the Company’s stock. Cantor raised its rating to a “Hold” from “Sell,” while Credit Suisse announced its upgrade of DRYS to “Outperform,” up two rating notches from “Underperform,” citing higher oil prices and anticipated elevated demand for DRYS’ drillships and Primelead’s deepwater drilling rigs. Both Cantor and Credit Suisse raised their stock price targets to $8.

The Motley Fool recently interviewed the Company’s COO Pankaj Khanna in January. Khanna told The Fool that the Company expects to enjoy a better year in 2010 than 2009. Additionally, Khanna said the Company plans to launch DrillShips business publicly this year.

The Company’s Capes presently lease at $40,000 per day, while the Panamax averages $30,000 per day. Industry analysts state that $40,000 per day is an excellent rate at this time of the world economic recovery.

Source: http://stockcharts.com/h-sc/ui?s=DRYS

DRYS trades below its 13-day moving average. The 13-day moving average is downwardly sloped, a bearish signal.

The MACD for DRYS currently indicates a bearish signal. The MACD is below the signal line, a 9-day moving average of the MACD. The MACD is also below the critical level of 0, which implies the past price action had been negative. Overall, the chart is bearish.

Company Name	Ticker	Price/	Mrkt. Cap.	P/E		P/S
Feb-08-2010	symbol	Share, $	$ Mn	2009	2010	2009	2010
Eagle Bulk Shipping Inc.	EGLE	4.93	305.92	6.38	16.43	1.45	n/a
Excel Maritime Carries Ltd.	EXM	5.29	397.32	n/a	18.89	1.04	n/a
Genco Shipping & Trading	GNK	18.73	594.19	322.9	5.23	1.54	n/a
*Shipping Median*				*7.79*	*n/a*	*0.99*	*n/a*
DryShips Inc.	DRYS	5.36	1,360	n/a	5.89	1.60	n/a

Source: Thomson Financial

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	n/a
Sales	n/a	n/a
Net Shares Purchased (Sold)	n/a	n/a
Total Insider Shares Held	n/a	n/a
% Net Shares Purchased (Sold)	n/a	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	n/a
% Change in Institutional Shares Held	n/a

Source: Yahoo Finance

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

BeaconEquity.com — Tue, 09 Feb 2010 00:45:00 +0000

SWI, INTC, OWVI, WTU, MSFT, NUAN, GOOG, LNC, DELL, SHMN

SolarWinds Inc. (NYSE: SWI) $20.04 -1.23% SolarWinds posts better-than-expected Q4 profit (NYSE:SWI), ($SWI)

Intel Corp. (NASDAQ: INTC) $19.35 -0.62% Intel unveils Itanium® processor 9300 series (NASDAQ:INTC), ($INTC)

One World Ventures Inc. (OTC: OWVI) $0.0038 +2.70% One World Ventures to release FY 2009 financials February 11, after market close (OTC:OWVI), ($OWVI)

Williams Coal Seam Gas Royalty Trust (NYSE: WTU) $1.65 -43.69% Williams Coal Seam Gas Royalty Trust announces cash distribution for Q1, termination date for the Trust (NYSE:WTU), ($WTU)

Microsoft Corp. (NASDAQ: MSFT) $27.72 -1.07% Microsoft says pirated software still in Russian shops, AP reports (NASDAQ:MSFT), ($MSFT)

Nuance Communications Inc. (NASDAQ: NUAN) $14.91 +1.57% Q1 loss narrows on revenue growth (NASDAQ:NUAN), ($NUAN)

Google Inc. (NASDAQ: GOOG) $533.47 +0.41% Google expanding “status update” feature on Gmail (NASDAQ:GOOG), ($GOOG)

Lincoln National Corp. (NYSE: LNC) $23.50 -0.93% Lincoln posts profit in Q4 (NYSE:LNC), ($LNC)

Dell Inc. (NASDAQ: DELL) $13.39 +1.13% Dell to buy Exanet Ltd.(NASDAQ:DELL), ($DELL)

SOHM Inc. (OTC: SHMN) $0.16 +41.30 SOHM enters multi-vitamin and antioxidant product segment in India and emerging target markets (OTC:SHMN), ($SHMN)

BeaconEquity.com — Mon, 08 Feb 2010 18:50:56 +0000

BeaconEquity.com — Mon, 08 Feb 2010 17:11:03 +0000

JYHW, CBAI, BPAC, FNXC, NXTH, AENY, GETA, UNCO, BHWX, ISCO

As of 11:41 a.m. EST

Jayhawk Energy Inc. (OTC: JYHW) $1.72 +15.44% Jayhawk Energy shares on the move (OTC:JYHW), ($JYHW)

Cord Blood America Inc. (OTC: CBAI) $0.0086 +10.26% Cord Blood America finalizes agreement to process and store cord blood specimens for BioCells (OTC:CBAI), ($CBAI)

Biopack Environmental Solutions Inc. (OTC: BPAC) $0.59 +5.36% Biopack eyes expansion in Southern China (OTC:BPAC), ($BPAC)

Fonix Corp. (OTC: FNXC) $0.0027 +50% (OTC:FNXC), ($FNXC)

NXT Nutritionals Holdings Inc. (OTC: NXTH) $2.93 +8.52% NXT Nutritionals says SUSTA™ Natural Sweetener 50 Packet Boxes are now being sold in New York’s D’Agostino Supermarkets (OTC:NXTH), ($NXTH)

Americas Energy Company (OTC: AENY) $4.6299 -1.07% Americas Energy closes acquisition of Evans Coal Corp. (OTC:AENY), ($AENY)

Genta Inc. (OTC: GETA) $0.1186 +7.82% Genta initiates treatment of first subject in new Phase 2 trial of tesetaxel in advanced melanoma(OTC:GETA), ($GETA)

Unico Inc.(AZ) (OTC: UNCO) $0.0004 +33.33% UNCO traded shares volume up (OTC:UNCO), ($UNCO)

Black Hawk Exploration Inc. (OTC: BHWX) $0.64 +12.28% Black Hawk Exploration announces selection of Vista Partners LLC to head shareholder communications (OTC:BHWX), ($BHWX)

International Stem Cell Corp. (OTC: ISCO) $1.08 -18.80% International Stem Cell says new cell production facility has passed final building inspection ($ISCO), ($ISCO)

BeaconEquity.com — Mon, 08 Feb 2010 15:56:51 +0000

HAS, CVS, ORCL, SAP, CIT, L, BAC, C, AAPL, RIMM

Hasbro Inc. (NYSE: HAS) $34.22 +11.10% Hasbro Q4 profit surges, propelled by sales of boys’ products (NYSE:HAS), ($HAS)

CVS Caremark Corp. (NYSE: CVS) $32.99 +6.18% CVS Caremark posts 11% rise in Q4 profit (NYSE:CVS), ($CVS)

Oracle Corp. (NASDAQ: ORCL) $23.38 -0.72% Oracle agrees to acquire AmberPoint (NASDAQ:ORCL), ($ORCL)

SAP AG (ADR) (NYSE: SAP) $44.63 -2.89% SAP AG CEO Apotheker resigns; Company returns to co-CEO structure (NYSE:SAP), ($SAP)

CIT Group Inc. (NYSE: CIT) $31.85 +3.59% CIT in focus (NYSE:CIT), ($CIT)

Loews Corp. (NYSE: L) $35.11 -0.74% Loews Q4 profit falls short of expectations (NYSE:L), ($L)

Bank of America Corp. (NYSE: BAC) $14.68 -2.13% BAC levels to watch (NYSE:BAC), ($BAC)

Citigroup Inc. (NYSE: C) $3.21 -0.31% Schaeffersresearch.com: Option Skews – Relatively Heavy Call Activity on C, CIEN (NYSE:C), ($C)

Apple Inc. (NASDAQ: AAPL) $196.52 +0.54% AAPL on the move (NASDAQ:AAPL), ($AAPL)

Research In Motion Ltd. (USA) (NASDAQ: RIMM) $66.77 -1.45% RIMM’s Q4 tracking well, says Piper Jaffray (NASDAQ:RIMM), ($RIMM)

BeaconEquity.com — Mon, 08 Feb 2010 08:41:27 +0000

General Automotive Company (GNAU) is a provider of original equipment (OE) and aftermarket automotive parts and related automotive products at multiple levels of distribution throughout the United States and internationally. The Company operates through its wholly-owned subsidiary, OE Source L.C. (OES). OES sells conventional auto parts that it imports directly from manufacturers, consolidators and distributors in the Far East to the customers in the United States. On February 22, 2008, the Company completed a reverse merger with Global Automotive Supply Inc. (GAS Nevada). On November 14, 2008, the Company divested its wholly owned subsidiary, Global Parts Direct Inc. (GPD).

General Automotive Company is based in Orlando, Florida.

Share Statistics (05-Feb-10)			FY 2007	FY 2008	% Chg	Q3 2008	Q3 2009	% Chg
Symbol	GNAU	Revenue, $Mn	11.57M	12.38M	7.0%	n/a	2.55M	n/a
Current price	$0.20	Gross marg.	10.6%	9.3%	12.3%	n/a	10.6%	n/a
52wk Range:	$0.035-0.51	Oper. margin	-7.2%	-14.4%	100.0%	n/a	-6.7%	n/a
Avg Vol (3m):	44,492	Net margin	-15.1%	-26.8%	77.5%	n/a	-7.8%	n/a
Market Cap.	33.2M
Dil. Shares Outst.	15.9M	EPS, $	-2.38	-0.015	-68.2%	n/a	-0.01	n/a

Source: Reuters.com, SEC Filings.

Gross margin improved 20.39% for the quarter ended September 30, 2009, to 10.74% compared to 8.92% for the same quarter in 2008. Sustained improvements in purchasing practices and product sourcing at its OE Source subsidiary have resulted in a year-over-year reduction in cost of goods sold and the realization of 12.50% gross profit margin for the nine months ended September 30, 2009. The Company achieved a reduction in its loss from operations of 47.62%, to $378,712 from $723,171 for the nine months ending September 30 in 2009 and 2008, respectively.

Earnings before interest and taxes continued to improve in the three months ended September 30, 2009, to a net loss of $171,161 from an operating loss of $215,068 for the quarter ended September 30, 2008. Through sustained operating initiatives GAC reported a reduced net loss of $706,052, or $0.04 per basic and diluted share for the nine months ended September 30, 2009, versus a net loss of $2,416,024, or $0.20 per basic and diluted share, in the nine months ended September 30, 2008. The year-over-year net loss included $1,551,263, or $0.13 per basic and diluted share, related to discontinued operations.

Financial Strength (05-Feb-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.37	1.47	0.36	0.82
Current Ratio (MRQ)	0.53	1.84	0.45	0.96
Long-Term Debt to Equity(MRQ)	–	38.75	17.38	110.57
Total Debt to Equity (MRQ)	–	57.18	28.36	161.61

Source: Reuters.com, SEC Filings.

No chart available.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=GNAU.OB

GNAU last week announced it has an agreement to acquire privately held S.P.E.C. Inc. The transaction is expected to further position the Company as an organization that capitalizes on both organic growth as well as growth through strategic acquisition. S.P.E.C., based in Birmingham, AL, is a leading provider of high performance clutches and flywheels to the high performance automotive market. S.P.E.C., which reported unaudited revenue of approximately $5.6 million in 2009, will operate as a wholly owned subsidiary of General Automotive.

S.P.E.C. highlights:

– Leading provider of clutches, flywheels and pressure plates to the high

performance automotive market

– Extensive distribution network with over 100 domestic dealer

participants

– State-of-the-art warehouse and production facility

Under terms of the agreement, GNAU will issue 750,000 shares of restricted common stock to the current owners of S.P.E.C. in addition to $2 million cash. S.P.E.C. shareholders can earn shares over the next six years based on the achievement of certain revenue and profitability milestones. Closing of the S.P.E.C. transaction is subject to completion of due diligence and other conditions. In connection with the acquisition and with its overall growth plan, GNAU expects to raise additional capital in 2010.

GNAU announced in late December that it has launched an export sales division for the purpose of expanding its distribution abroad. General Automotive has historically focused its sales and distribution efforts in the United States, but now seeks to take advantage of opportunity for international distribution of its products. The Company has appointed industry veteran Scott Bruno as Director of Sales, and has brought on a full sales team for the purpose of building the export division.

Source: http://www.generalautomotive.com/

Source: http://stockcharts.com

GNAU is trading above its 50 day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

GNAU is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for GNAU currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Feb-05-2010	symbol	Share, $	$ Mn	2009	2010	2009	2010

TWINTEC AG	TIN	12.02	78.16M	n/a	n/a	2.48	n/a
Steadfast Holdings Group	STDF	0.0025	147.30K	n/a	n/a	n/a	n/a
Genuine Parts Company	GPC	37.70	6.01B	15.52	n/a	0.60	n/a
*Automotive Median*			*2.02B*	*n/a*	*n/a*	*1.54*	*n/a*
General Automotive Company	GNAU	0.20	3.2M	n/a	n/a	0.17	n/a

Source: Thomson Financial

NET SHARES PURCHSE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	n/a
Sales	n/a	n/a
Net Shares Purchased (Sold)	n/a	n/a
Total Insider Shares Held	n/a	n/a
% Net Shares Purchased (Sold)	n/a	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	n/a
% Change in Institutional Shares Held	n/a

Source: Yahoo Finance

Analyst Detail

Outperform

Underperform

No Opinion

2 months ago

3 months ago

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.