GSB

[das317]

Nice bounce today.  Hopefully that upward trend continues.

[berloga]

Looks like a nice bounce. I am back in at $4.35. Thanks, eggman for helping me press the trigger earlier at $6.50!

[David Randolph]

Looks like a nice bounce. I am back in at $4.35. Thanks, eggman for helping me press the trigger earlier at $6.50!

Congrats for this nice trade berloga

I'm glad about GSB's comeback after touching the 200 days SMA, like it happened after August's dip.

But I would be even more glad if this were due to any pending fundamental information. We'll know about that over the next few days ... as we've been writing in this thread GSB has a lot of potential and an overnight news can make it jump 50-100%. These news can be business coming from the partnership with Synteras (a $1 B private company), a new big order coming from the Government or even a new law enforcing more data and information security.

Even in the "soft" 3rd quarter GSB's revenues grew 50% and the stock trades with a 2007 p/e of 20. This is attractive.

I'll keep holding GSB for the long term.

[David Randolph]

GSB held up well yesterday, despite the 40% run up in a couple of days.

I guess GSB moved back up so sharply because, even being a micro cap, several institutions own and follow the stock. And we're getting near the close of the year. Institutional investors see that with not much money they can push the stock dramatically up and improve their year end results.

This way I don't expect GSB to drop back down between now and the close of the year. It is more likely that it will move back up to $7 plus.

Longer term I believe fundamentals will keep improving and will justify not just $7 per share, but a lot more.

I'll keep holding GSB for the long term.

[David Randolph]

I guess GSB moved back up so sharply because, even being a micro cap, several institutions own and follow the stock. And we're getting near the close of the year. Institutional investors see that with not much money they can push the stock dramatically up and improve their year end results.

GSB's behavior yesterday is illustrative of what I wrote, with the stock being pushed higher right in the final minute of the session. I'm positive fund managers will keep pushing this illiquid stock until the close of the year.

[terainvestment]

I noticed the same thing yesterday, a fast increase in price and a great closing 2 minutes before the bell.

David: which is the rationale behind these fast price movements before the closing bell?

[David Randolph]

I noticed the same thing yesterday, a fast increase in price and a great closing 2 minutes before the bell.

David: which is the rationale behind these fast price movements before the closing bell?

Imagine you own 1.7 million or so shares like Michael Roth does. You can increase the value of your 1.7 million shares by buying a few thousand just before the close. This is important, especially if you want to present pleasant year end results to your clients/investors.

[David Randolph]

GSB fell 6.2% yesterday. Fortunately that wasn't enough to take the Main Portfolio down. I'm feeling that most of you guys don't own this stock anymore. The drawdowns have been sharp and painful, but I wish all my stocks were up 46.5% from my buying price like GSB is.

Because of a 1 cent miss in EPS in Q3 relative to analysts expectations, they cut 2008 EPS estimates by 23.5%:



I don't think this is reasonable and believe GSB will do a lot better than analysts expect.

Take a look at the PEG ratio for GSB and its industry peers and see how cheap the stock actually is:



Over the short term I believe fund managers holding GSB in their portfolios won't let it slide significantly between now and the end of the year.

I'll keep holding GSB for the long term.

[JKN]

Long and strong...buys at 4.27, 4.2 and 3.2.  I'm up +50% on paper.

Kent

[David Randolph]

Long and strong...buys at 4.27, 4.2 and 3.2.  I'm up +50% on paper.

Kent

Sounds cool Kent

GSB did better than most stocks yesterday, corroborating the notion that fund managers are not willing to let this one slip before the end of the year.

GSB isn't cheap, I would say it is fairly valued considering current fundamentals, but we can get a big positive surprise anytime. Anything coming from the DoD or any other government arm, anything from the Synteras partnership or just strong growth in CDP or WAFS products will make this small cap fly a lot.

I'll keep holding GSB for the long term.

[David Randolph]

Ouch, -9.7% yesterday

I was wrong when writing the following:

GSB did better than most stocks yesterday, corroborating the notion that fund managers are not willing to let this one slip before the end of the year.

Anyway, volume has been weak, so it is entirely possible that today, since there's a different mood, GSB claws back up the entire 10% or so lost yesterday.

My fundamental reasoning for owning this company has more to do with a vision of the future than the company's intrinsic fundamentals. I believe that the number of people working from their homes will increase exponentially over the next 10 years. In my view, the corporation of the future won't have a big headquarters where people meet to work. The corporation of the future will have its employees spread across the World (even small companies), most of them working from their homes and communicating through their computers.

To accomplish this, companies will need Wide Area File Sharing (WAFS), Continuous Data Protection (CDP) and secure servers. GSB is one of the companies providing this. Of course, there are others in the field, like Riverbed (RVBD) for example. But GSB is more profitable than RVBD and GSB is a $84 M market cap, while RVBD is a $1.8 B company. If there are 10 or 20 bags of profit to make from this trend, they will be in GSB, not in RVBD, in my view.

Anyway, I know I can't have 15 "all or nothing" stocks. I don't think "nothing" is a possibility in GSB's case, the company has been around for a long time and it has been growing revenues and profits steadily.

I'll keep holding GSB for the long term.

[David Randolph]

There weren't any news out to support that two days big rally and GSB is almost back down to the previous level.

I guess it weren't institutional investors pushing the stock up on that big rally ... maybe it was short covering ... or else the CEO got mad about the market's response to results and reignited the company's buyback plan. I don't know.

I believe we will never see GSB below $3.5 again. But probably we won't see $8 either without any new fundamental information, which can be released anytime.

I'm interested in this company's business area and appreciate the fundamental trends. I'll keep holding GSB for the long term.

[David Randolph]

Nice late day push in GSB. It's good to see that bears weren't able to take it as much down as in their prior ride, when GSB fell below $4.

One of the many things I like about GSB's business is that companies are obligated, by law, to buy GSB's or its competitors products:

«Who Must Comply and Why?
If your company transmits, processes, or stores Primary Account Numbers (PAN) you must comply with the PCI-DSS or face fines, which can be up to US$500,000 per incident, increased fees, restrictions, and even removal of processing privileges. Examples of the wide range of businesses who must comply include medical facilities that accept credit card payments, retail stores that move POS transaction data, or law firms that accept credit cards.»

If you're interested, read here about Globalscape's solution for PCI-DSS compliance.

VDSI is a $1 B company and GSB is just an $83 M market cap, but the way I see both businesses, GSB has a more diversified and compelling product and services offering and its long term value will be, in my view, higher than VDSI's value.

I'll continue holding GSB for the long term.

[la-onda]

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.

Top Rated Stocks Under $10 allows subscribers to research stocks using Investor's Business Daily's proprietary ratings. Subscribers can then decide which stocks are to their liking and move forward, with confidence, in the investment process.

"Since joining the American Stock Exchange earlier this year, we have been excited by the growth of our Company and the continued momentum of our stock," stated GlobalSCAPE CEO Randy Poole. "To be featured on Investor's Business Daily's list of top stocks is very fulfilling and underscores the business value GlobalSCAPE brings to the industry. We are pleased that a publication like IBD recognizes our brand in this very competitive market."

GlobalSCAPE software can help secure data both in transport and at rest. GlobalSCAPE supports a full range of secure transfer protocols -- SFTP (SSH), FTPS (SSL) and HTTPS (SSL) and secures data at rest using PGP encryption. GlobalSCAPE's EFT Server, Wide Area File Services (WAFS), Continuous Data Protection (CDP) and FTP Secure Server are part of an enterprise product range that allows customers to expand functionality as their needs increase.

http://globalscape.com/company/news.aspx#122807

[David Randolph]

"Since joining the American Stock Exchange earlier this year, we have been excited by the growth of our Company and the continued momentum of our stock," stated GlobalSCAPE CEO Randy Poole. "To be featured on Investor's Business Daily's list of top stocks is very fulfilling and underscores the business value GlobalSCAPE brings to the industry. We are pleased that a publication like IBD recognizes our brand in this very competitive market."

I think this is meaningless.

Now these ...

«GlobalSCAPE software can help secure data both in transport and at rest. GlobalSCAPE supports a full range of secure transfer protocols -- SFTP (SSH), FTPS (SSL) and HTTPS (SSL) and secures data at rest using PGP encryption. GlobalSCAPE's EFT Server, Wide Area File Services (WAFS), Continuous Data Protection (CDP) and FTP Secure Server are part of an enterprise product range that allows customers to expand functionality as their needs increase.»

... are great products. GSB is the most environmentally friendly stock of the Main Portfolio ... instead of providing an hybrid or fuel less car, GSB, through its WAFS services, helps corporations put people to work at their home offices, instead of losing two hours a day driving back and forth.

My wife works at an investment fund and they pay $350 a month for a guy that just goes there 5 minutes a day to change some tapes that record everything the computers did that day. Wouldn't it be easier and cheaper to buy GSB's Continuous Data Protection software for $2,388? In 7 months they would get their money back and from then on they would cut costs $350 a month.

I'll keep holding GSB for the long term.