GSB

[kpunarc]

you think the 'future news' is already priced in?

[DragonAMG]

you think the 'future news' is already priced in?

Today looks like a good day to pick some up... down .37 on no volume.

[David Randolph]

you think the 'future news' is already priced in?

Well, both the AMEX listing and the 2nd quarter revenue guidance were already released, so perhaps that's priced in, in terms of public knowledge and reaction, since the stock is 21% above where it was one month ago. But I believe the news should warrant a much higher share price.

As for the real future, that is, one to two years from now, the CEO said (and I believe, because I know the company's products) the company is set to achieve $40 M in revenues and sport a 25% net profit margin, which means $10 M net income. Since the current market cap is $64 M, the stock is trading at 6.4 times forward earnings, which is extremely attractive.

I'll keep holding GSCP.OB.

[la-onda]

awesome 
cheers
Oliver


GlobalScape awaits listing on American Stock Exchange
Web Posted: 07/05/2007 01:17 AM CDT

When Randy Poole applied to have his small San Antonio software company added to the American Stock Exchange last year, he expected to perform the ceremonial ringing of the bell on his first trading day by May.

Two months later, Poole's GlobalScape Inc. is still waiting to get a launch date. Poole, the company's CEO, expects to receive notice this week.
The delay reveals how hard it can be for a small, thinly traded company to transition to the three main U.S. stock exchanges. For GlobalScape, it is rooted in how few investors own the company's stock.

"We couldn't keep the price above $3. It's one of the reasons we are so desperate to get off the bulletin boards," Poole said.

In December, GlobalScape submitted an application to move from the over-the-counter market to the American Stock Exchange. The company had $11 million in annual revenue. It has more than 60 employees and expects to hit $20 million in revenue this year.
Most U.S. exchanges require a company to meet minimums for pretax income, market size, the amount of stock available for trades and the price. Normally, tech companies join the tech-heavy Nasdaq small-company exchange.

Poole picked the Amex because, he said, "it was easier" to qualify: It will accept a company if its stock trades at $3 per share, while Nasdaq requires $4 per share.

That threshold was important because GlobalScape's stock price tended to bounce around, staying above $3 a share no more than a few days at a time.
The stock has 8,000 shareholders but just 6.3million shares available and so is thinly traded, Poole said. Investors traded an average 113,105 shares each day for the past year, according to Yahoo Finance. Because they have so few shareholders, over-the-counter stocks — often called penny stocks — are prone to wide fluctuations, so most financial advisers shun them.

"We just don't recommend them," said Luci Harty, certified financial planner at Investment Professionals Inc. "They are more volatile than other stocks. My clients are more conservative about their investments."

GlobalScape's listing was also delayed by staffing shortages in the Amex department that reviews listing applications. It has about five employees when fully staffed. The department conducts background checks on hundreds of board executives listed in applications each year.

"The exchange looks at the credentials of board members to ensure themselves that these people are independent," said Marc I. Steinberg, who teaches securities law as the Radford professor of law at Southern Methodist University. "Whether they are insiders or outsiders is a major corporate governance issue."

Amex officials declined to comment on "nonpublic information" and "specific companies that are going through the listing process."

Still, Poole now thinks his wait is nearly over.

Investors began pushing up GlobalScape's stock price after the company announced last month that it expected a 170 percent increase in revenue for the second quarter and had upgraded its software. Meanwhile, Poole went on a road show to promote the company to large investors.

As a result, GlobalScape's stock price on June 4 jumped above $3, where it has remained. The stock closed at $3.75 a share Tuesday.

Amex officials told GlobalScape executives last week that the stock price is now considered "stabilized" and they should receive a launch date during the next few days, Poole said.

http://www.mysanantonio.com/business/stories/MYSA070507.13A.BIZglobalscape.25504a8.html

[David Randolph]

Thanks for posting the news la-onda

It seems like management delivers on its promises. They said they would get a huge order from the US Army, and they did. They said they would go to the AMEX, and it looks like that's about to happen.

Now a slight detail. They said "$17.5 M revenue guidance for 2007" and now the CEO slipped ...

«It has more than 60 employees and expects to hit $20 million in revenue this year.»

Management also said "$40 M in revenue with 25% net profit margin for 2008", that is, $10 M net income, which at a $64 M market cap means a forward earnings multiple of 6.4.

Will management deliver on the 2008 expectations? I think it will, because I know the company's products and the recent fundamental trends.

GSCP is a business that could trade at 30 times earnings, not 6.4. If they make $10 M net income next year and the stock trades at 30 times earnings, it will then be a $300 M market cap company or a $17.3 stock.

Insiders bought options at $3.1, so the downside is quite limited, while the upside is huge, in my view. I'll continue holding GSCP.OB, soon to be GSCP.

[David Randolph]

It seems not many people paid attention to that www.mysanantonio.com article la-onda, since there were just 16,300 shares changing hands on Friday. Anyway, the real news of the AMEX listing is coming, so there will be a nice press release to put highlights on GSCP.OB.

I'm thinking about that $20 M revenue mark for 2007. In Q1 the company had $3.623 M in revenue. For Q2 it gave guidance of $6.25 M, so the first half will book about $9.873 M. This means management expects to achieve roughly $5 M a quarter for the remainder of the year, which is above the previous average and 40% above the Q1 2007 number. This is a clue that the very strong Q2 2007 won't be an isolated event.

Now let's think a bit about profits. In Q1 2007, net income was $473 K. In Q2 2007, if we apply a 25% net profit margin, it will be $1.56 M. And applying the same net profit margin of 25%, second half net income will be something like $2.5 M. This gives me 2007 total net income of $4.533 M.

GSCP.OB currently has a market cap of $64.6 M, so it appears to be trading at 14.25 times 2007 earnings. As for 2008, if there's 100% revenue growth to $40 M and the 25% net profit margin is maintained, the stock is trading at 6.4 times earnings as we've seen.

GSCP.OB industry (according to Yahoo Finance) trades at 33 times earnings.

I'll continue holding GSCP.OB.

[David Randolph]

Nobody is paying attention to GSCP.OB news or fundamentals. Investors will only react when they're hit with a sledgehammer in their heads. I don't have a problem with that.

Clearly fundamentals are improving, right here, right now. Let's take the 2nd quarter results, for example, that will soon be announced. The company gave revenue guidance of between $6.2 M and $6.3 M.

The US Army order was a $2.5 M order. So, without it 2nd quarter revenues would be roughly $3.75 M, which represents 53.37% growth from Q2 2006.

But just 3.5% growth from Q1 2007 revenue number of $3.623 M.

I wonder if GSCP.OB won't beat its revenue guidance for the 2nd quarter.

It's hard to know the magnitude of the improvement, but I think it is obvious that this very profitable and fast growing internet company is worth a lot more than $64 M.

I'll hold GSCP.OB whatever happens to the chart.

[David Randolph]

Sounds like good news for GSCP.OB, partnering with a $1 B value company:

• Synteras Partners with GlobalSCAPE to Provide Secure Data Management Solutions to Enterprise and Government Customers
Business Wire (Tue 7:00am)

Let's see if there's any reaction to the news, that hasn't happen lately with GSCP.OB, as the stock continues in its consolidation phase.

[David Randolph]

Sounds like good news for GSCP.OB, partnering with a $1 B value company:

• Synteras Partners with GlobalSCAPE to Provide Secure Data Management Solutions to Enterprise and Government Customers
Business Wire (Tue 7:00am)

Let's see if there's any reaction to the news, that hasn't happen lately with GSCP.OB, as the stock continues in its consolidation phase.

No, still no meaningful reaction to good news from GSCP.OB, as the stock keeps consolidating its recent bullish move. Anyway, the stock went up 0.54%, while the general market tanked 1.5%, so, not bad.

I'll keep on holding GSCP.OB.

[Garoh]

very Bullish now , next target 4.90  if we close abovve 4 

[Stocky2000]

hey randolph this thing is waking up.. patience might pay off...i came back loaded up today...lets see 

[David Randolph]

very Bullish now , next target 4.90  if we close abovve 4 

yeah, GSCP.OB did it

hey randolph this thing is waking up.. patience might pay off...i came back loaded up today...lets see 

Today? That means you weren't holding prior to today?

You're right about patience paying off, and GSCP.OB provides us a nice lesson about patience, since over the past three to four weeks there were several positive news releases out and nothing happened. Today, without any news, the stock pushed 12.63% higher

It goes to show how stocks, especially micro cap stocks, work.

Fundamentally Globalscape is a stock to own for the long term.

[la-onda]

news 
cheers
Oliver

GSCP: Anderson Starts @ Outperform; Sets Tgt @ $8; Analyst Notes
Wednesday, July 11, 2007 10:19ET

Issuer: GlobalSCAPE Inc (OTCBB: GSCP)
Analyst Firm:  Anderson & Strudwick
Ratings Action: INITIATE
Current Rating: Outperform
Target Price Action: INITIATE
Target Price: $8.00

Analyst Comments: According to the firm, GSCP has applied for listing on the AMEX in 12/06 and believes listing is close at hand. The company then has plans at some point to move to the NASDAQ Capital Market. Based on the company's guidance of $20 million in revenues for 2007 and plans of continued 40% internal growth, they believe that the stock could trade to the $8 range in the next 12 months, or 25X their 33c taxed EPS estimate for 2008.

[David Randolph]

news 
cheers
Oliver

GSCP: Anderson Starts @ Outperform; Sets Tgt @ $8; Analyst Notes
Wednesday, July 11, 2007 10:19ET

Issuer: GlobalSCAPE Inc (OTCBB: GSCP)
Analyst Firm:  Anderson & Strudwick
Ratings Action: INITIATE
Current Rating: Outperform
Target Price Action: INITIATE
Target Price: $8.00

Analyst Comments: According to the firm, GSCP has applied for listing on the AMEX in 12/06 and believes listing is close at hand. The company then has plans at some point to move to the NASDAQ Capital Market. Based on the company's guidance of $20 million in revenues for 2007 and plans of continued 40% internal growth, they believe that the stock could trade to the $8 range in the next 12 months, or 25X their 33c taxed EPS estimate for 2008.

You had to spoil my lesson/argument

So this was the cause, an analyst recommendation? It is a lot less interesting, but I appreciate 12.6% in any given day, nevermind the cause

That's all GSCP needed to push higher ... promotion. The story is awesome. Now it just needs to be spread.

Thanks for the news la-onda ... come on, how do you get all these news about analyst's recommendations, what's your source? Thanks again.

[Garoh]

Yes me too , can you give us your source?