GSB

[Garoh]

Closing below 4.15 by friday will be ugly 

[tokyopua]

Closing below 4.15 by friday will be ugly 

$4 looks like support, so a close below that might be bad, but not sure about $4.15.  Is that where you expect the 50sma to be by Friday and is that why you are worried about that level?

[tokyopua]

Any close above about $4.03 makes today a hammer reversal candle, I am expecting to see that, probably closes above its 50sma at around $4.10.

So much for my brilliant prediction, guess I should have stipulated "unless the market blows up yet again".  Still, down 12.5% today?  WTF?  The candlesticks are now 3 black crows, I hate that considering the great earnings.  Yeah, I am a bit frustrated with the overall market, and the last 3 days of price action here.   Doesnt make sense

But Im still holding...

[berloga]

Based on an absolutely bi-polar views on the situation in different forums (posted here as well), it is better either to hold or not buy. I'll hold GSB.

[la-onda]

GSB: Volume Spike; 6% > 20-adsv, Stock -8.43%
Wednesday, August 15, 2007 10:25ET

This is the 3rd VOLUME alert for GSB in the past 7 calendar days.

Trading for GlobalSCAPE, Inc (AMEX: GSB) has been heavier than usual in today's session. By 10:25 ET, the stock had already traded 103,100 shares via 53 trades. The cumulative volume is 6.05% above its 20-day average of 97,220. Normally the stock experiences around 116 individual trades per session. So far, today's volume surge has caused a net decline in GSB's stock price. At the time of this alert, the stock was trading at $3.800, down $-0.350 (-8.43%).

One year ago, the Company's shares closed at $2.850. The price has gained more than 33 percent since then.

Over the last 10 trading session GSB has traded in a range between $4.020 and $5.900 and is currently trading 35.59% below its 52-week high of $5.900 set on August 13,2007 and 78.40% above its 52-week low of $2.130 from May 15,2007.

In the previous 4 sessions, GSB trading has displayed a mixed trend. Closing results have been as follows:

August 15, 2007 --- closed at $3.650 down $0.500 ( -12.048 %) on  383,700 shares
August 14, 2007 --- closed at $4.150 down $0.720 (-14.78%) on 315,600 shares
August 13, 2007 --- closed at $4.870 down $0.430 (-8.11%) on 280,600 shares
August 10, 2007 --- closed at $5.300 up $0.600 (+12.77%) on 103,900 shares

[Terliso]

Man! I am out from GSB, it took my stop where I bought it... loss only in commission

[Se7en]

Around 3,25-3.35$ and the 200MA should be a good entry, if it gets there ofcourse, watching it ...

[David Randolph]

GSB's chart turned bearish now, with the stock closing below the $4 support level. GSB is trading like a stock, not like a business. The business is doing well as prospects are great, but traders just read "buy the rumor, sell the news" and then "the stock is going down on good news, sell" and then "the stock broke support, sell".

I know who will be buying shares around current levels, GlobalScape itself.

Terliso opted to get out at break even and I respect his risk management rules.

I'm not going to do that, because I don't want to waste the long term potential of the WAFS and Secure File Sharing markets just because the stock keeps bouncing around $4 on different trading appetites.

I want to see beyond the stock and look into the business fundamentals. These I see as very strong and promising. I'll continue holding GSB for the long term.

[Garoh]

Well , this is really weird !!

A stock losing almost 45% of its price in 4 days with strong volume , there must be something wrong with company that we don't know !!!

I really didn't like it from the first day when we got that ugly candle after reaching a very important resistance around 6 or less ....

we need ti dig more about hiden news

[Michael]

GSB's chart turned bearish now, with the stock closing below the $4 support level. GSB is trading like a stock, not like a business.

Hmmm... I guess there were too many Technicians and too few fundamentalists in this stock.

I like the story and the outlook so I am in!

(I have been on a bit of a shopping spree today  )

[JKN]

I bought more at 3.20.

[ygtrdr]

I missed this one the first time around so I'm grateful for the cheap prices today. Let's go GSB!

[bourbonstreet_crawdaddy]

Hey Gang,

I am not worried at all here - as "just some short term noise" - probably some big seller. Also, GSB is simply a thinly traded stock with about 90k shares traded per day. I would not be surprised to see GSB fly high soon, and for the record doubled down yesterday at $3.75.

Here is an excerpt from RB MB that I thought I would share - Enjoy!

<<By: Mighty_Mouse
23 Jul 2007, 10:23 PM EDT
   Msg. 1148 of 1150
Jump to msg. # 
Cramer's site rates GSB a BUY: excerpt...

[With comments from yours truly, of course, in brackets.
I don't use the free analysis on his site, which is dated, of course, but I am registered as a paying member and get the latest updates, and that's what you're about to read about Globalscape. Important to note ... the stock price at the time of this update was $5.15.]

RECOMMENDATION
We rate GLOBALSCAPE INC (GSB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, [remember, this is the updated on 7/19/7 with the stock price at $5.15, shown on Cramer's site -- MM], solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income [which we know from guidance for Q2 (APR-JUN) net income is about to change dramatically -- MM].

HIGHLIGHTS
GSB's revenue growth, albeit extremely impressive, trails in comparison to the industry average of 57.0%. Since the same quarter one year prior, revenues leaped by 50.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share. [Again, we know the 2nd Quarter results are expected to be in line with previous margin percentages, so net income, again, should be very strong. After Q2 net income figures are incorporated in Cramer's analysis, if as I expect and income is indeed very strong, all the good things in this analysis will remain the same or improve, and the net income issue will not be considered sub-par, in my humble opinion. -- MM]

Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.20 is sturdy.

Compared to its closing price of one year ago, GSB's share price has jumped by 92.01%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GSB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. [This is why I have enjoined family and friends to look forward to a strong stock and why I call this stock a 'splitter'. In my opinion, it will move up and split, move up and split... -- MM]

Net operating cash flow has significantly increased by 75.44% to $1.08 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 45.93%.

[Let this suffice for now as I just got in from enjoying yardwork, or as may be more preferable or cool to deem it, gardening. Indeed, I was in the garden. I have a green thumb. With Globalscape, I also have a green thumb (smiles). (It's really research, not the thumb.)

If I can update some more tonight, I will. If not, look for more soon. Don't let this get away from; buy on dips and hold for the long-term because the Army isn't going away, there's other militaries out there and the FIPS certification process is moving along, and the Synteras partnership is, too.

MM >>

Good Luck and Happy Trading!

Bourbon   

[la-onda]

fyi:High Growth, Kept Promises: GlobalScape is a Bargain
Friday August 17, 4:46 am ET

Philip Obal submits: GlobalSCAPE (AMEX: GSB - News) is at a bargain price now. It has announced great quarterly earnings recently (6.4 million, an increase from a year ago of 2.4 million) - then took a nose dive down!
The company's current growth rate is close to 50% while its forward PE is a 10. This thinly traded technology stock swings widely based on market moods (irrational at times).

Management follows through on what they say will do. They pre-announced a major win - and then announced a DOD contract. They pre-announced a move to American Exchange - and then made the move; the company's new stock symbol is GSB (it was GSCP.OB). The company has ZERO debt (which is very healthy). They made smart acquisition of AVAIL in 2006 and are now adding to the revenue and earnings growth.

[David Randolph]

GSB fell 52% from top to bottom in four trading days and I don't have an appropriate adjective to qualify the nature of the move.

Let me just say that I don't think Garoh is right when saying:

A stock losing almost 45% of its price in 4 days with strong volume , there must be something wrong with company that we don't know !!!

I read the latest 10-Q filing, the press release and heard the conference call and there's nothing wrong with the company or its prospects. Believe it or not, I guess what happened was a lot of people wanted to sell because of general market jitters and not a lot of people were watching or inclined to buy GSB, as most walk away from small caps when the general market is bleeding.

Fortunately there are some smart investors outthere, like Michael, who recognize value and took advantage of this great buying opportunity.

As far as I'm concerned, it may take longer than four days for GSB to be at $5 again, but say six months from now I see it at $8, because fundamentals will probably keep improving (as secure file sharing and wide area file sharing servers will just keep growing, with or without general economic growth) and I see the stock as very cheap now, trading at 5.7 times next year earnings (my estimate goes for net income of $10 M in 2008).

I'll continue holding GSB for the long term, despite the shocking price action