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Microcap & Penny Stocks : Genesis Media Group, Inc (GNNX) -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (1123)	5/19/1998 3:51:00 PM
From: Roger	Respond to of 3129

Rock nj I respectfully disagree, you are right there is not much buying right now but a typical pattern has occured over the last few weeks that leads me to believe that the MMs walk it down any chance they get. One thing being they are always thin at the ask, they are manipulating the stock through psychology. I truly believe if the MMs were out of the picture we would have a much higher price right now. The recent 10Q should be on the positive side of things most definitely, it is all part of the puzzle they are putting together, and why would they throw in a piece that would ruin the rest of it. JMHO, good luck to ya!

To: Rock_nj who wrote (1123)	5/19/1998 6:35:00 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 3129

<<The MMs aren't holding this back. The spread does seem rather wide at times though. There is not much buying right now. Nothing pushing the stock up. >> Agree on that point. No buying pressure yet. There was no "beef" in the Press Release to excite non-shareholders. For us current shareholders, its a great press release because it shows Genesis is keeping their word, and it is now a FULLY REPORTING COMPANY which is what people cry about complaining for months on other OTC-BB stocks. However, it was not significant enough (without any numbers) to draw many NEW investors in. <<<Keep in mind, it could be a downward earnings surprise if the auditors find inconsistencies and state earnings differently than was previously done by the company. I hope not.>> So lets see.. they "claim" .31 for 1997.. for a $2.25 stock. Hmmm.. and this is before signing $200 M worth of contracts. So if the auditors find some inconsistency and hmm.. well lets say Genesis REALLY Screwed up and have no clue about accounting and made an error of 30%..that still leaves you with .20 EPS in 1997.... plus ummm.. a bunch of contracts for 98 that still have to be realized in the revenue stream. I think stocks are MOSTLY priced on future revenue and EPS expectations, not the past to be honest.. otherwise Yahoo would be a $2 stock. Daniel has met the accountant and he is a VERY conservative man, with a very conservative approach. He would not give out any hyperbole in his projections to Daniel because he wants no HYPE and to be conservative. Yes, it is possible he made a clerical error somewhere along the line (but we dont know either way), but this is not a company you have to be afraid has "aggressive accounting practices". So I guess I dont understand your second point.. even if there was a major problem and hey Genesis only made .10 EPS in 97 ... that puts it ahead of 95% of OTC-BB stocks (because it is profitable) and that discounts all of 1998's contracts and the book value of its music and video library. So I agree to disagree with you on this point. Last---it has been stated time and time and time and time again on the thread to not expect a pie in the sky number for FIRST QUARTER 1998. This is not the Quarter revenues will be skyrocketing... This financial filing is for credibility, not to make the stock jump up $5. However, new contract announcements should kickstart the stock price back up. Right now the problem is demand.. its not there yet. OTC-BB investors need a "news event" that knocks their socks off to get their attention. (i.e. $120M contracts) And the impatient ones move on when that doesnt happen. This is really silly (the price) when you take five minutes to think about it. It has been stated that the profit margin on the telecom contract alone is 3-5%... So on the telecom contract alone: $120M x 3% Profit Margin = $3.6M $120M x 5% Profit Margin = $6.0M Take that 3.6M to 6.0M range and divide it by 22M shares and you have .16 to .27 EPS for a full year of the contract... FOR THAT ONE CONTRACT ALONE?! Look forward people... .16 EPS x 20 PE = $3.20 stock price .27 EPS x 20 PE = $5.40 stock price That is for 1 single contract ... So for all I care, if they broke even in 1997 its fine with me. Problem here is not the stock or MMs but the attention span of the average OTC-BB investor. If there is not a press release every 3 days they go and run to the next momentum stock and try to beat the MMs at their game. (which usually doesnt work) GO AUDITORS!!!!!!!!!!!!! Mark

To: Rock_nj who wrote (1123)	5/19/1998 6:53:00 PM
From: mark g	Respond to of 3129

I agree, Rock nj. The MM's had plenty of opportunity to load up, if they were going to. That, with the wide spread today does not indicate,IMO, the work of MM's. Your second assertion concerning the possibility of a restatement of earnings is something that should not be treated lightly. There's nothing like a downward revision of earnings to shave a quick buck off the price of a stock. When you combine that with the general lack of skill GNNX has displayed when dealing with PR you get a combustible mix. However it's the future that counts and the future looks great. There may be some short term uncertainty but in the long run we holders of GNNX will profit considerably. Good luck to all. mark