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. Ignoring one time items they made $0.019/share in Q3. Q4 is seasonally slower and they are targeting EPS of $0.01. I think Q4 will have the last one-time items. Their current EPS run-rate ignoring one-time items and seasonality is probably around $0.06/share. I think in 2012 they could make $0.07-$0.11/share which could potentially double their share price.

2. They are growing their DVD business at "The Exchange" which is located on military bases. Also, they have been upgrading their DVD machines at "The Exchange" to ones with higher capacity which should improve revenue per machine.

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. A recent win is as follows:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=69239213

4. They are trading at a discount to book value which is $0.61/share.

5. In a recent 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