$GSB: future is bright. Debt free and undervalued!
Post# of 63700
Posted On: 09/30/2016 10:09:06 AM
$GSB: future is bright. Debt free and undervalued!
"GSB has great products and technology in a competitive market. Over the past year or so, GSB's stock has stagnated. We feel that is about to change.
GSB has a new CEO, one that has had a few years' experience at GSB but also 20+ years in the industry outside of GSB. He know how things work and knows where the industry is going. What we like most about him is that he is starting to have GSB focus on its core products and core strengths. Instead of trying to be everything for everyone, GSB is beginning to be a leaner and more focused company. Instead of trying to grow revenues by expanding to other products, it is taking its core business (and most profitable) and expanding that. GSB is one of the 'best of breed' companies in its industry and this new focus will help it grow into one of the larger players.
As an example, GSB's CEO recently mentioned that half of its research & development budget had gone to products not directly related to its core EFT platform. That meant its EFT platform started to fall behind competitors and as a result, GSB lost meaningful revenues. If there is one thing that the new CEO will fix, it's this mistake.
GSB is debt-free and holds cash that totals nearly $1.00 per share. Therefore, when you subtract that out, the market value of the business is about $2.50 per share. That won't last long as the CEO delivers - he has had enough time now that his initiatives will start showing up in GSB's quarterly reports.
We believe GSB's stock can grow 25%-40% in the shorter term (1-3 months) and as much as 75-100% over the longer term."
"GSB has great products and technology in a competitive market. Over the past year or so, GSB's stock has stagnated. We feel that is about to change.
GSB has a new CEO, one that has had a few years' experience at GSB but also 20+ years in the industry outside of GSB. He know how things work and knows where the industry is going. What we like most about him is that he is starting to have GSB focus on its core products and core strengths. Instead of trying to be everything for everyone, GSB is beginning to be a leaner and more focused company. Instead of trying to grow revenues by expanding to other products, it is taking its core business (and most profitable) and expanding that. GSB is one of the 'best of breed' companies in its industry and this new focus will help it grow into one of the larger players.
As an example, GSB's CEO recently mentioned that half of its research & development budget had gone to products not directly related to its core EFT platform. That meant its EFT platform started to fall behind competitors and as a result, GSB lost meaningful revenues. If there is one thing that the new CEO will fix, it's this mistake.
GSB is debt-free and holds cash that totals nearly $1.00 per share. Therefore, when you subtract that out, the market value of the business is about $2.50 per share. That won't last long as the CEO delivers - he has had enough time now that his initiatives will start showing up in GSB's quarterly reports.
We believe GSB's stock can grow 25%-40% in the shorter term (1-3 months) and as much as 75-100% over the longer term."
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