3SOF

Some people bought GSB due to the following information last week ...

«Investors Business Daily Names GlobalSCAPE Stock #1 on its list of Top 10 Stocks Under $10

December 28, 2007

SAN ANTONIO, Texas – GlobalSCAPE (AMEX:GSB), a leading provider of products that allow companies to move, store and share files securely over the Internet, today announced the Company's stock was featured as Investor's Business Daily's No. 1 stock on its list of the top-rated stocks under $10. The ranking is based on the stock's performance against key investment parameters such as the P/E ratio and EPS (price earnings ratio and earnings per share).

IBD's online search tool compiles the list for its subscribers from 2,000 comparable stocks listed in its database. Stocks that appear on the list are often highlighted in Investors Business Daily's weekly e-newsletter. GlobalSCAPE appeared at #1 in the ranking on December 27th.»

... which obviously wasn't a valid reason to buy the stock, since these rankings are made using an automatic programming code which didn't take into account the significant one time gain GSB enjoyed in Q2 2007.

So, unfortunately GSB is falling 18.9% this week. I guess this is enough to punish those buyers with weak motivations, also because GSB hit the $4.4 support area today.

I continue to love GSB's products and business model and believe the company will enjoy very strong growth for years to come. I'll hold GSB.

David, I really doubt that IBD had all that much to do with the runup and subsequent fallback. The IBD "top stocks under $10" is not part of the mainstream IBD and requires a separate subscription. I do not have one for it and can't access. I doubt that many IBDer's have this sub-subscription, at least I have no intention of buying it. I can access the IBD "stock checkup" for GSB though and they still rate it  poorly with only a 65 out of possible 100 overall, but with a decent fundamental rating of 89.

You're right, the system doesn't take into account one time gains or charges, but think I they usually comment on these. They commented several times on ROCM's one-time gain while it was on the "100" list. People seemed to ignore that fact anyway and the stock eventually dived and was removed. Another reason why they always say the IBD 100 is not an automatic "buy" list.

IBD  says that stocks under $15 should be mostly avoided, because they don't consider them to be "institutional quality". That's why all stocks on the IBD 100 have to be above $15,

was this the bottom?
nice chart action today

QuoteDavid, I really doubt that IBD had all that much to do with the runup and subsequent fallback. The IBD "top stocks under $10" is not part of the mainstream IBD and requires a separate subscription. I do not have one for it and can't access. I doubt that many IBDer's have this sub-subscription, at least I have no intention of buying it. I can access the IBD "stock checkup" for GSB though and they still rate it  poorly with only a 65 out of possible 100 overall, but with a decent fundamental rating of 89.

Yeah, but the "#1 IBD rank news" was widely publicized, even GSB's CEO commented on the fact.

QuoteYou're right, the system doesn't take into account one time gains or charges, but think I they usually comment on these. They commented several times on ROCM's one-time gain while it was on the "100" list. People seemed to ignore that fact anyway and the stock eventually dived and was removed. Another reason why they always say the IBD 100 is not an automatic "buy" list.

IBD  says that stocks under $15 should be mostly avoided, because they don't consider them to be "institutional quality". That's why all stocks on the IBD 100 have to be above $15

Thanks for the information BigSully1

Quote from: la-onda on January 10, 2008, 09:40:19 PM
was this the bottom?
nice chart action today

Indeed la-onda, we had a triple support area in play around $4.4. It was the horizontal support, the descending trendline, which was a prior resistance, now support and the 200 days SMA which already worked as a fine support in the recent past.

Let's see if now we can approach the upper end of the range at $6.2.

GSB is that stock where we can have awesome good news overnight ... but we didn't get one today. I'll patiently keep holding GSB for the long term.

GlobalSCAPE Projects 2007 Revenues to Exceed Guidance by almost $1M
Tuesday January 15, 8:00 am ET

SAN ANTONIO--(BUSINESS WIRE)--GlobalSCAPE (AMEX:GSB - News), a leading provider of products that allow companies to move, store and share files securely over the Internet, today announced projected record revenues for the quarter ending December 31, 2007 and the year 2007. Revenue for the 4th quarter, 2007 should exceed $4.4M, and for 2007 revenues should surpass $18.3M. The Company emphasized that these are preliminary, unaudited numbers that may be subject to audit adjustments upon completion in mid-March of this year.

"I am particularly encouraged by the strong finish we had in the fourth quarter, and am optimistic about our opportunities in 2008," commented Randy Poole, President and CEO. "I look forward to reporting our fully audited final results in mid-March and discussing our plans for 2008 at that time."

QuoteRevenue for the 4th quarter, 2007 should exceed $4.4M

These are encouraging news la-onda. Q4 2007 is the best quarter ever for GSB, if we don't take into account Q2 2007 when the company had a special one time gain.

$4.4 M revenue represents a 13% increase from the previous quarter (when revenue was $3.9 M) and 25% growth from Q4 2006 (this isn't as impressive).

Anyway, it seems that the 3rd quarter weakness didn't extend into the 4th quarter and momentum is picking up again.

I remain confident that GSB's products will be in very high demand for years to come, regardless of how the economy does.

I'll remain a long term investor in GSB shares.

Had to buy this at 3.80. Had been waiting. Good move? we'll see.

I bought some @ $4.05

I bought 200 shares  for 3.40

you lucky guys...

Quote from: soxguy on January 22, 2008, 10:15:20 AM
Had to buy this at 3.80. Had been waiting. Good move? we'll see.

Quote from: Se7en on January 22, 2008, 10:23:19 AM
I bought some @ $4.05

You bought around the horizontal support. It looks like a good move from a technical standpoint.

Quote from: babouk on January 22, 2008, 10:36:29 AM
I bought 200 shares  for 3.40

The low on my chart was $3.60 ... the chart wasn't even able to admit someone gave you shares at $3.40. He didn't sold them, he gave them to you

Quote from: terainvestment on January 22, 2008, 10:51:53 AM
you lucky guys...

I'm starting to learn, from the recent past, that fundamentals don't matter much if one has a one year perspective. Any investment has to be bought with at least a three years time horizon, because stocks don't respond to fundamentals over the short term ... they respond to fear, the fear of losing and the fear of missing out.

Anyway, as years go by, some companies appreciate in value and others don't, according to fundamentals. But it takes years. One has to understand this if he wants to be a long term investor.

GSB has awesome products that will be in very high demand over the foreseeable future. The company is currently valued by the market at $78 M but I think it may be worth 10 times more over the long term. But it will take several years ...

Somebody bought 10,000 shares at the open yesterday and produced the black candle you see on the chart below. Clearly that person wasn't worried at all about the next 5-10% move.

I'm also not worried about the short term developments, as I'll hold GSB for the long term.

GSB went down 4.6% on Friday, like other micro caps inside the Main Portfolio. This phenomenon usually happens when the S&P 500 starts rising, first the large and medium caps start moving up and some small money leaves the micro caps to join the rise ... however, in a few weeks time, the micro caps (the good ones, of course), should more than compensate for this lack of performance, by rising rapidly.

As for GSB specifically, it looks evident that the company will beat analysts 4th quarter EPS projections:



Since management already gave the following guidance:

«Revenue for the 4th quarter, 2007 should exceed $4.4M, and for 2007 revenues should surpass $18.3M.»

Well, in the 3rd quarter, with $3.9 M revenue, they already made $0.04 EPS, so with $4.4 M revenue I would expect at least $0.05 EPS for the quarter. It doesn't look like much, but it's 25% more

I'll keep holding GSB for the long term.

Quote from: David Randolph on February 03, 2008, 11:19:49 PM
GSB went down 4.6% on Friday, like other micro caps inside the Main Portfolio. This phenomenon usually happens when the S&P 500 starts rising, first the large and medium caps start moving up and some small money leaves the micro caps to join the rise ... however, in a few weeks time, the micro caps (the good ones, of course), should more than compensate for this lack of performance, by rising rapidly.

Small caps have been outperforming recently, but not tech.

QuoteSmall caps have been outperforming recently, but not tech.

Yes, but you know, the Russel 2000 is composed by the 2,000 smallest of the 3,000 largest companies traded in the USA, so they're small caps, but not precisely micro caps.

Companies like CIMT, GSB and PFSW are not included in the Russel 2000, they're not big enough for that ... so I guess they're still being left in the cold.

Anyway, it's a sign of health for this market that small caps are outperforming again, because they're more attractive from a fundamental standpoint and it improves the breath of the market, in technical terms.