GTT Communications Inc (GTT)

[jbrhema]

A good Q2 2014 and a very bullish conference call:

http://seekingalpha.com/article/2406285-global-telecom-and-technologys-gtt-ceo-rick-calder-on-q2-2014-results-earnings-call-transcript?part=single

Their financing is stronger and cleaner now, and they are well poised for some more acquisitions – I believe they have successfully done something like 15 in the last 5 years or so – Tinet last year almost doubled them - and the acquisitions are usually accretive to the bottom line within 2 quarters.

My guess is the stock will stay in the $10-$12 range until the next major acquisition - and perhaps until the next major acquisition starts generating clear results. Organic growth alone will be somewhat slow to impact share price - they really need M&A to get to their goal of $400 million revenue / $100 million EBITDA in the next 2 to 3 years. $11/share is probably a pretty fair price for where they are now. I have no reason to be believe they won't do it [sorry for the double negative]

Been following GTT closely for 5 years when I first bought under $0.80, and they have hit every target they have publicly set. But I doubt we will see it in a year - may be more like 2 to 3 years. But at $100 million EBITDA, no reason this is not a $20 stock. And at that level, they probably start to get noticed and could see a buyout offer at $30/share. And still - it seems that NO ONE KNOWS THIS STOCK EXISTS! Obviously some do - hence the price rise from $1 to $11 in the last two years. But no press coverage by outsiders to speak of - which is great for those hoping to still buy more, as I do once another stock of mine hits some targets and I can sell it and plow the money into GTT.

GLTA.