SwingTrade Member Forum

[MikeDDKing]

GAXC is a mini Coinstar in the making that has considerable appreciation possibilities. They started rolling out their DVD service last year and ran into some problems. The CEO was fired and new management has taken the helm. They are making considerable progress in the turn around and subsequent growth. Here are some more details on why I like GAXC:

1. GAXC is guiding for record revenue in Q2 of $8.2M and EPS of $0.01/share.

2. Their DVD business is going through rapid growth. This includes the following initiatives:
a. Their existing business on military bases has limited DVD capacity. If I remember correctly they only have capacity for 100 DVDs. They are replacing those machines with ones that can hold 600 DVDs which should improve the revenue per machine.
b. They are adding DVD kiosks at more military bases. Also, they are focusing on placing DVD kiosks outdoors as outdoor kiosks have better revenue than indoor kiosks.
c. They are working with A&P to market the DVD kiosks in A&P stores to A&P customers. Also, they are eliminating unprofitable DVD kiosks at the A&P chain.

3. They are rapidly increasing the number of ATMs that they serve. This is being done both via acquisition and via organic growth. As of the end of 2010 they had approximately 4700 ATMs. Some recent wins include the following:
a. On May 24th they announced an agreement with a grocery chain to provide up to 400 or more ATMs.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63491957
b. On May 17th they announced a purchase of 23 ATM sites from another ATM company.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63207316
c. On Jan 14th they announced the purchase of 140 ATMs.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58794133
d. They are working to streamline the DVD business as they have their own organically grown DVD business and one they acquired at the end of 2010.

4. They are trading at a discount to book value which is $0.70/share.

5. In the last conference call they stated that they are looking to have 25-30% year-over-year revenue growth.

6. Insiders have been making substantial purchases in open market transactions.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7923197-1362-9782&type=sect&TabIndex=2&companyid=10136&ppu=%252fdefault.aspx%253fcik%253d852570

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7924159-1249-9382&type=sect&TabIndex=2&companyid=10136&ppu=%252fdefault.aspx%253fcik%253d852570

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7924158-1380-10276&type=sect&TabIndex=2&companyid=10136&ppu=%252fdefault.aspx%253fcik%253d852570

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7941561-1380-9452&type=sect&TabIndex=2&companyid=10136&ppu=%252fdefault.aspx%253fcik%253d852570