I AM BACK on the board. I never left GBHD though. Actually been just adding and adding as people continue to sell at these discounted prices. I couldn't be more excited to get the 3Q financial results, which we can be expecting to see in the coming weeks. This company has been so busy with acquiring positive value-added business segments, I am anxious to see everything integrated together. While it may take a quarter or 2 to realize large value from these acquisitions, we will still be able to get a look at what GBHD is going to be capable of in the future.
Still hard to believe such an undervalued opportunity exists with this company in the market. THE COMPANY HAS HAD 25MM$ in revenue in the past TTM?!? and people are going to continue to sell shares in the .20-.30 range or Mkt Cap 50-70MM$?? Currently they are trading at 2X their companies TTM revenue. 2X REVENUE?? WHAT? I really don't think people are analyzing what a pps like that means when they are selling it. But doesn't bother me, I am continuing to exploit those weak hands and soon reap the benefits.
I could see a justification for maybe 3-4X revenue for the most conservative investor if they had a decent amount of debt. BUT THEY HAVE NO DEBT. Hopefully people realize how huge that is, and not just for the financial health of the company. But it also represents a management that is extremely smart to be capable of having this growth pattern without taking on any debt.
People are likely frightened by the wild swings in price. That is largely because of 2 reasons. The first is the relatively low amount of shares that are traded actively over the short term. If you look back to the peak times in the past couple of months, there are still very little volumes (compared to the outstanding amount) traded. Lower available volumes will cause buys to have to pay higher premiums for getting large volumes. That also goes for the sellers. They will have to sell at major discounts to get out of the stock whenever they want. Poor trading strategy only increases the effects on those 2. Don't sweat a premium price paid for the shares though, this company is worth so much more than it has traded for ever. (Unless you really need the funds today or something, bc then you may be in trouble).
The second reason: The mix of trader types in this stock. The majority of shares being held are not speculative day-traders. They are much larger funds waiting on a long term payoff. There is also a minority amount of traders that are continuing to trade this stock like a penny stock. These individuals are the ones responsible for the wild swings downward lately. Again even in the most peak prices of the past couple of months the major ownership hasn't even flinched. These are the owners that talk daily with management and know much more than we do. They know what this companies worth. And ITS NOT IN THE CENT RANGE. JUST WAIT, THE Q3 FINANCIALS ARE ALMOST HERE AND THE YEAR END FINANCIALS WILL BE SOON TO FOLLOW. ITS COMING..
