1:30 pm EST / 10:30 am PST – Wednesday, May 21, 2008 New Green Baron Stock Pick General Automotive Company
(OTCBB: GNAU - $.70 per share) A Global Manufacturer and Distributor of Automotive Parts Common Shares Outstanding (as of 3/31/08) - 14,363,684 Current Market Cap - $10.05 Million Year High - $1.35 per share / Year Low - $.40 per share Accepted Tier 1 Supplier to Chrysler Goes Public Successful Recent Funding at .75 per share plus Conversion of $6.6 Million of Debt to Equity Positions General Automotive to Leverage High Growth Automotive Parts Niches At a time when it seems the automobile industry is in utter chaos, The Green Baron Report has pinpointed a company that appears to be a diamond in the rough. In this report, we will clearly explain why General Automotive Company has advantages over its competition, and why this stock makes perfect sense as an investment right now. Please spend a few moments to understand why we see this stock as a win-win for all. The Green Baron Report is proud to announce that General Automotive Company (OTCBB: GNAU) is officially our 69th fully profiled stock and will be added to our storied list of previously profiled stocks on our home page. Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com. Although we have very aggressive short and long term expectations for this stock, we suggest our members try to accumulate shares as close to our profile price as possible. General Automotive Company provides quality aftermarket automotive parts, mobile electronics, and related automotive products at multiple levels of distribution throughout the United States and internationally. Through its two divisions, Global Parts Direct (GPD) and OE Source (OES), it utilizes unique relationships with manufacturers in China, Korea, and Japan to bring state-of-the-art automotive parts, accessories and products to automobile manufacturers and major parts distributors in the U.S. General Automotive Company already has OEM contracts in place with Chrysler Corp. (MOPAR), and distribution relationships with large international distributors. It is extremely difficult to make the list of Tier 1 suppliers to Detroit automakers. This “A” list is reserved only for a select few that have proven to provide quality service and on time delivery, and Global Parts Direct has maintained this status since it was awarded in March of 2004. For those that might have cracked a Wall Street Journal or your local Business section recently, you might have noticed that the “Big Three” U.S. automobile companies are losing market share and have taken extraordinary steps to shore up sales and improve its cars. In order to survive and keep pace with international competition, the “Big Three” appear to be stressing the need for more automation in its manufacturing divisions and to try to farm out manufacturing of as many parts as possible so the auto makers become less responsible for direct labor costs. In response, here comes General Automotive Company to meet growing demand for outside suppliers, and offers dependable product, low pricing and on time delivery. Although competition exists, smaller competitors lack the relationships that GAC enjoys as a tier one automotive supplier to OEM in Detroit, and as a direct supplier of products to some of the largest and best known distributors in the country. Additionally, as a result of a direct relationship to the manufacturers in Asia, GAC enjoys a competitive advantage in terms of quality and pricing that allows the Company to leverage these relationships into increased market share and profitability. General Automotive is expected to have a strong pipeline of potential acquisitions that would be accretive. Its recent influx of cash and strong investment banking relationships should enable it to effectively acquire one or several companies. (An entire section of its website specifically identifies GAC acquisition criteria). In case you have not figured it out already, General Automotive ought to be able to significantly add to revenues of an acquired company through its direct relationships to manufacturers in Asia coupled with its tier one status in Detroit. The possibilities are endless!!! In a nutshell, here is why we love this stock:
After careful review of General Automotive Company, we believe the stock will be a winner for both short-term and long term investors. The Green Baron Report considers this is a stock members can buy and sleep soundly owning. Over the next 30 to 60 days, we think the stock will trade at over $2.00 per share. Longer term we believe sound management will help guide this company to respectable earnings numbers making this a NASDAQ listed stock in double digits. About General Automotive Company General Automotive Company (GAC) was incorporated as “Global Automotive Supply, Inc.” in the State of Nevada on June 10, 2005, for the purpose of providing mobile electronics, conventional auto parts, and accessories directly to auto manufacturers and major distributors, both domestically and internationally. The principal executive offices are located at Global Automotive Supply, Inc., 5422 Carrier Drive, Suite 309, Orlando, FL 32819. GAC intends to build a growing family of profitable companies. Currently, its two operating companies are Global Parts Direct and OE Source. The first division, Global Parts Direct (“GPD”), provides auto sound, mobile video, and mobile electronics to auto manufacturers and dealerships. The business operations and assets of GPD were acquired as a division in October of 2005. OE Source L.C. (“OES”), the second division, focuses on selling and distributing engine management products and other traditional auto parts to the largest US distributors. The business operations and assets of OES were acquired as a division in January of 2007. GAC is positioned to become a more significant player in the automotive parts and accessories industry, with OEM contracts in place with Chrysler Corp. (MOPAR), and distribution relationships with large international distributors. It has sales personnel, as well as office/warehouse facilities in Orlando, FL, and Phoenix, AZ. The predecessor to GPD, Promise Mobile Electronics (PME), was first established in 1995 in the state of Washington as Rapids Incorporated. Rapids Incorporated developed programmable defrost and cooling systems for vehicles with obtained patents. (US Patent #5791407 and Canadian Patent #2258839). As the company made the transition to PME, it began to develop advanced solutions for two-way vehicle security and safety systems. GPD’s current product line includes backup view sensor and camera systems, and all-in-one overhead and in-dash DVD mobile entertainment systems. In March 2004, GPD was awarded Tier 1 supplier status by Chrysler Corp. After the successful launch in September 2004 of its first Original Equipment product, a 7" all-in-one overhead DVD player for the Dodge Ram, PME sold its business assets, including the Original Equipment distribution business to Global Parts Direct, which became one of our divisions in October of 2005. In November 2005, Global Parts Direct was awarded the 10” all-in-one program from Chrysler and continues to solicit all Vehicle OEM’s for future business. OES is the second division, selling conventional auto parts that we import directly from OE manufacturers, consolidators and distributors in the Far East to major customers in the United States. OES has grown rapidly since its inception in 2004, and expect sales to continue growing substantially during the next 3 to 5 years. It is anticipated that during this period, the OES customer base will continue to expand through marketing efforts, and the demand for the OES products, particularly in the areas of engine management, will continue to increase. OES’s current product line includes replacement mechanical parts for automobiles, such as ignition coils, fuel pumps, and oxygen sensors. Automotive Parts and Accessories Industry The automotive OEM industry is the segment of the automotive industry that develops, manufactures, and provides parts to auto manufacturers to include in their products. The automotive aftermarket is the segment of the automotive industry concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, tools, equipment and accessories for light and heavy vehicles. Estimated as a $257 billion market in the United States, the aftermarket is a major US industry, encompassing parts for replacement, collision, appearance and performance. The aftermarket industry provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models on the road and employs 4.54 million people in the United States at manufacturers, distributors, retailers and repair shops. Industry Overview and Market Penetration General Automotive Company’s business model is to sell a suite of mobile electronic products and general automotive parts and accessories to auto manufacturers and distributors in the United States. According to the National Automobile Dealer’s Association (NADA) there are over 15,000,000 new cars manufactured each year in the United States. A large and growing percentage of those cars are of the type that would include a mobile electronics or entertainment package such as a DVD player, back up camera system, navigation system, or telematics system. GPD is involved in the manufacture and sale of all of these types of products, and with channel partners like Chrysler/MOPAR, General Automotive is in a position to take advantage of this rapidly expanding segment of the automotive industry. In addition, GAC intends to expand on current conventional auto parts manufacturing and distribution business (OE Source) by adding new customers and continuing to grow its business base with existing customers. OES has specialized in the areas of engine management products to date, such as oxygen sensors, fuel pumps and related products. According to the Consumer Electronics Association (CEA), mobile electronics is a rapidly evolving industry with audio, video, multimedia and telematics, creating a $6 billion U.S. market for car technologies alone. According to the Aftermarket Automotive Industry Association, due to mandated Federal government regulations, engine management products are considered to be one of the fastest growing segments within the $244.5 Billion aftermarket automotive parts industry. The best way to understand the size of this market is to discuss it in terms of the number of new car manufacturing and new-car auto dealerships in the United States. On average 15.5 million new cars are sold annually within the United States. Chrysler makes up approximately 15% of the new cars sales, representing 2.3 million new cars. Through GPD, the Company intends to leverage its position as a tier 1 supplier to attempt to win contracts with other new car manufacturers. The Company is currently supplying products to Chrysler and plans to grow the GPD business with Chrysler and expand its focus to other major manufacturers as well. Recent Announcements May 20, 2008 – General Automotive Announces Partnership with Edgetek - General Automotive Company (OTC BB: GNAU.OB) (“GA”), a provider of original equipment and aftermarket automotive parts, mobile electronics and related products, today announced it has entered into a partnership with Edgetek Co., Ltd. to expand its OEM business. Under the new agreement, GA will serve as the exclusive distributor for Edgetek’s next-generation rear vision and navigation systems in North America. The combined systems, currently under development, will offer instant rear visibility to help prevent back-over or collision accidents while providing GPS navigation and Bluetooth hands-free functionalities using a single-touch panel LCD monitor. These systems can also accommodate a second camera that can be used for other purposes such as an in-cabin baby monitor or front-view parking assistance. ``Our partnership with Edgetek will help us bring an exciting new product with strong growth potential to our customers,” said Joe DeFrancisci, President and CEO of General Automotive. “Edgetek has been working with one of our operating subsidiaries, Global Parts Direct, since 2004 and both our companies are dedicated to providing innovative, high-quality products, so it was an easy choice for our companies to partner.” Based in Suwon, South Korea, Edgetek is a developer, manufacturer and distributor of automotive electronic parts and game players. Established in 2004, the company is also a leading supplier of engine control unit products in Korea. Edgetek specializes in creating new value through technological innovation. May 2, 2008 ORLANDO, Fla. – General Automotive Retains AGORACOM for Online Investor Relations Activities - (PRIME NEWSWIRE) -- General Automotive Company (OTCBB:GNAU) ("GAC") is pleased to announce it has retained the services of AGORACOM Investor Relations to provide online investor relations services. The objective of this agreement is two-fold. First, through AGORACOM's Internet-based investor relations system, it will create effective communication between GAC, its shareholders and the retail investment community. Effective immediately, a customized and monitored General GAC IR HUB (http://www.agoracom.com/IR/GeneralAutomotive) will allow both GAC and AGORACOM to communicate with investors simultaneously, anytime and in real-time, while providing shareholders with equal access and complete transparency to all investor relations communications. The IR HUB will also provide one-click access to all critical GAC IR information, as well as an executive audio address. In addition, the IR HUB provides investors with a monitored discussion forum for the purposes of constructive and high-quality discussion about the Company that is free of spam, bashing and hyping. Second, AGORACOM will be responsible for raising GAC awareness amongst retail investors for the purposes of attracting new and prospective shareholders. As an exclusive small-cap content provider to Yahoo! Finance Canada, AOL Finance Canada and all Blackberry devices, AGORACOM will provide Tier-1 financial coverage of all GAC press releases. President and CEO Joe DeFrancisci stated, "General Automotive believes the time has come to significantly increase our communications with shareholders and the investment community. The solution provided by AGORACOM helps fulfill our need to manage and execute an IR strategy in a cost-efficient manner, while providing our management team with the ability to focus on executing the business plan. Our shareholders and Company will benefit greatly from near real-time communications, regularly planned updates and increased exposure." For future GAC investor relations needs, investors are asked to visit the General Automotive IR Hub at http://www.agoracom.com/IR/GeneralAutomotive, where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to GNAU@agoracom.com, where they can also request addition to the investor e-mail list to receive all future press releases in real time. Management Joseph L DeFrancisci is the President and Chief Executive Officer as well as a director. Mr. DeFrancisci served as Senior Vice President of Worldwide Operations for Grindmaster Corporation (2003-2007) with responsibilities for Global Operations and overall responsibility for Grindmaster’s Thailand subsidiary. Prior to working for Grindmaster, he served as Senior Partner with the Highwood Group LLP (2000-2003) a consulting firm focused on competitive strategy and operational effectiveness. Prior to that he served as President and Chief Operating Officer of Pasta Montana LLC (1996-2000) a start up food company heralded as one of the fastest growing and best managed food companies of its time. Before Pasta Montana, Mr. DeFrancisci served as Vice President of Operations at Howden Food Equipment, Howden Group North America (1991-1996), a Public engineering and heavy manufacturing firm based in Glasgow, Scotland. Mr. DeFrancisci began his career at DEMACO (1981-1991), engineers and manufacturers of food manufacturing equipment and entire food plants, serving as Director of Marketing, Director of Operations, and various other positions. DEMACO was acquired by Howden Group PLC in 1991. Mr. DeFrancisci has served on the Advisory Board of Directors of First Interstate Bank of Montana, The Board of Directors of Timeless Foods Inc., and the Board of Directors of Pasta Montana LLC. He earned his BS in Industrial Technology Education from the State University of New York and is an alumnus of the Kellogg Graduate School of Management’s Advanced Executive Program. Harry Christenson (CFO) is an accomplished senior financial executive with more than 30 years of experience in operating and managing complex international businesses. He recently served as a Director and Chief Financial Officer of LNG Holdings, SA, the parent company of LambdaNet Communications, a pan-European supplier of network-related telecommunications services. Among his achievements was the successful turnaround of the company, concluding with a transfer of ownership by its private equity holders to a U.S. public ISP network operator. Previous positions include Director and Chief Financial Officer of Precell Solutions, Inc; Chairman of the Board and Chief Financial Officer of Octagon, Inc; and Director, Chief Operating Officer, Chief Financial Officer and Executive Vice President of Penril DataComm Networks. Mr. Christianson received his Bachelor’s Degree in Accounting from Fairfield University and a Masters Degree from the University of New Haven, CT. Dan Valladao is Vice President of Business Development and a Director. Mr. Valladao is one of our founders and has over 20 years of automotive experience, including retail, wholesale, and OEM sales channels. In 1984 he co-founded Mobile Living Corp. a retailer of vehicle accessories. Within 5 years, Mobile Living Corp had become a 35-store chain with sales in excess of 20 million. Mobile Living was sold in 1993 when Mr. Valladao joined HSG Corp., a large MFG Rep firm, and headed up sales to OEM companies such as Ford, GM, Chrysler, Honda, and Toyota. Mr. Valladao was successful in procuring over 200 million in product sales over a six year span. In 1999 Mr. Valladao joined APS International, a global manufacturer and distributor of automotive product as Director of Sales and Marketing where he remained until he formed OE Source in April 2004. He has been the driving force behind building GAS from just over $3 million in sales in 2004 to over $15 million in 2007. Sechoon Park is the President of Global Parts Direct, a wholly-owned subsidiary. Mr. Park is a former executive with IBM and AT&T, with more than 15 years experience in marketing and sales management, international project management and technical sales and support. Since 2003, Mr. Park has served as Vice-President of OEM Sales at Promise Mobile Electronics, Inc. (“PME”) and as President of Global Parts Direct, subsequent to the acquisition of PME in November of 2005. His duties have included developing and implementing product marketing and sales strategies for the automotive OEM accessories business. Mr. Park graduated with an MBA from Yale University in 1987. Mr. Park’s network of contacts has contributed significantly to GPD’s successful interaction with Chrysler Mopar and GPD’s manufacturing partners in Korea. Tim Alford is the President of OE Source, a wholly-owned subsidiary. Mr. Alford has over 25 years in sales and marketing with both OEM and global distribution channels. He has served as Operations and Marketing manager for multi-billion dollar global electronic distributors such as Arrow Electronics (2000-2004), Future Electronics (1997-2000), and Milgray Electronics (1991-97). He also served as Regional Distributor Sales Manager for OEM Manufacturer AVX Corp (1979-1984 and 1987-1991). His primary responsibilities at the corporations were to provide management direction relating to all aspects of product procurement and inventory control. In addition, he provided sales and product expertise to customers and sales force. Green Baron Conclusion General Automotive Company (BB: GNAU) operates businesses that fill profitable niches within the very large automotive market space. The company has a defined plan to gain more business by leveraging its current relationships both in Detroit and overseas. We are impressed by the Company’s current growth, and we expect positive attention from investors as the company meets its projections. The Green Baron Report believes that the recent cash infusion will allow General Automotive to grow organically and possibly seek new opportunities in familiar space. We are confident that GAC could add tremendous value to many existing businesses in its industry, and a smart acquisition would accelerate growth. Management is extremely experienced and appears both capable and competent to guide the Company toward significant profitability. In addition, recently added professional investor relations firms are expected to add quality exposure and attention over the coming months. We view this as a rare opportunity to purchase a high quality small-cap stock at or near the same prices as the accredited investors who bought at .75 per share. Company Contacts: Corporate Inquiries: Lippert/Heilshorn & Associates Harriet Fried 212-838-3777 Investor Relations AGORACOM Investor Relations http://www.agoracom.com/IR/GeneralAutomotive
Email: GNAU@Agoracom.com
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