Escala Shares Rise on Auction Results
Published July 13th, 2006
Auction Blogs
Shares of Escala Group Inc. rose Tuesday morning after the stamp and collectables company reported auction results, giving investors some hope the outfit can make money without its insolvent majority owner.
The stock has taken a beaten since early May, when Spanish authorities announced arrests and indictments at Afinsa Bienes Tangibles, Escala’s majority shareholder and only major customer, related to a stamp-investment program that was allegedly nothing more than a trumped-up pyramid scheme.
Prosecutors have not alleged wrongdoing at Escala, but Escala shares fell from more than $30 to as low as $3.95 after Spanish authorities declared Afinsa insolvent.
