Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Surf-
Software technology ownership is a good question. Typically a software design company (Red Swimmer in this case) would be hired by someone to engineer the software according to their needs and the resultant software would be owned by that someone. However, a direct question to GPSi management regarding ownership should satisfy the issue.
Yes El-
That is what I was pointing out- HP does not get jail revenue. I'm also unsure if HP was diluted down to 10k after the split- How certain are you that he was?
Surf-
My understanding of that section would be-
- 11/09, HP loans $500k at 20% annual interest to GPSi payable weekly- etc.
- 6/11 Agreement amended to eliminate all future interest payments. HP negotiates exclusive "jail merchant services business" and 1m in shares to forgo that future interest on the loan.
Does not address jail "revenue"
Can be assumed there is a balance on this loan (it is a 2011 document, so until financials are updated all are just guessing)
Does not include exclusivity on municipal contracts
I'm very confident this is not GPSi Ron Hodge.
El
Please, I've already posted that info. My post included the link to the Federal Prison website where you could type in the information yourself to verify. And, that is factual.
El-
First off, please do not use a straw man argument comparing other pink sheets
I qualified my comment that you need to do what it takes to keep the doors open, that is recognition that I am aware of what it takes to keep a business afloat (a positive thing).
If you refer to a previous post of mine regarding this exact same scenario, you'll note that in lieu of the continuation of the 20% loan interest payments, HP was given exclusive dealing in merchant services and also 1 million shares of stock. My assumption was that this was a cash flow decision on the part of Ron (do what's necessary), but there was an additional 1M shares diluting everyone at the time. These scenarios do not look good when they come I'm multiples- that was my point.
I do not pick out 1 specific thing and try and armchair QB the decisions of how the company has been run for the past few years-my opinion is based on continued decisions (short term) that fly in the face of how ell run companies operate.
Remember, one of my suggestions was to "surround" Ron with a qualified Board and good teammates which included a credible COO. I did not suggest that Ron be removed from the position as CEO or fired- did I?
El
Please feel free to point out which facts you have an issue with and I will publicly change and address them if you are able to show me differently. There is zero innuendo, half truth or effort to mislead anyone.
And- if you are correct in your prognostications, then there will soon be more than 8 people reading this Board. So please help me clear them up.
Agreed that the only thing that Securas is buying is the jail revenue (today). But, that doesn't mean Secuas wouldn't be a potential acquirer of GPSi in the future and that is exactly what I was communicating.
Jails and courts are tied together in some operational issues and there is an argument for synergistic application for both. For example- If a kiosk is in a jail lobby and it's open 24 hours a day 7 days a week, why wouldn't Securas want a payment button on that kiosk that takes speeding tickets which are typically paid at the court building. They could share in that transaction fee and have the convenience of accessibility that may be limited paying at the court building. This goes for dozens of other payments too.
Wouldn't it be interesting if they put an MJ button on the jail kiosk in states that are legalizing it? The jail lobby also provides additional security as it's less likely to get robbed than another location.
There are merits to the concept that keep me intrigued, they just need to run the company properly.
Correction
However, those that bought after need that number to jump the 100 in reverse to get back to even.
That should read "those that bought in "before".
Is Hugh Pobur not the merchant services company?
El-
That is a very good question and not answered with just one number.
Me personally, If I bought at .16 those numbers would be good if I was able to sell and make a quick few dollars in the short term.
Having bought in pre-split and then selling post split, there is no realistic chance the pps could increase enough to get me whole with what I have left. If I reinvested my original amount and the pps jumped to .48 I could get back whole (simple math).
In context to the word, "significant" that I used in my post, I was still alluding to the $1pps. Reminder, I only used that number as an example because posters previously used it. It is unfortunate, but even a jump to $1 won't get everyone whole who was bought in pre-split- and every single investor has a different math calculation to get them right.
Regarding your last line- a 50% increase from .16 to .24 sounds great on the surface, but not if your $1 investment bought shares at an average of .16 pre-split. However, those that bought after need that number to jump the 100 in reverse to get back to even.
I'm bullish on idea and concept but bearish on the company as it is today. If some of the things change that I have mentioned, I may be back in. If this company makes the changes, starts reporting performance and there is a consistent increase in revenue, they could be a prime candidate for being acquired (even by Securas). Then you could see a liquidity event that has potential to return some money to the public investor. But, if they don't, this stock will languish on the public side and only the best, "guessers" will get a return chasing highs and lows.
If they don't start reporting audited financials and do what is necessary for transparency they will not get any serious inquiry from a PE or VC Group. Although, you could have a group come in review their P&L, buy them and take them private in preparation of a flip in a couple years after they clean up the books. That is a more likely scenario in my opinion and that would not be good for the public side.
Strom-
Please point out which fact(s) that you have a problem with. Every single fact I mentioned has come from fairly simple research which did not require a Private Investigator background.
So- please point out which ones you question and why and we'll review them for accuracy. Feel free to share any additional information that can be added. I will certainly and gladly change them if they are inaccurate because I want the information to be truthful.
FF-
I couldn't agree more with you on the recent increase in pps. I firmly believe that the recent upswing was due to people on this Board buying a little bit, just in case these rumors were actually true and a major announcement really was coming.
I'm not implying at all that an announcement is not forthcoming because there very well may be an announcement of some sort. My opinion is this- real change is necessary to drive a sustaining demand for shares that would drive "significant' increases in pps. Otherwise it will be a, who was in first and who got out first short-term increase.
I'm glad someone else gets it.
El-
Partly correct, I may purchase stock in the future if I see the changes in the company that I believe necessary for additional personal investment.
I've already provided that specific information for all three and a link for people to verify incarceration if they felt it important for their personal investing decision making process. I do not have access to their personal records to get the other detail you have requested. (But as we both know, you already know the details, so please stop the charade)
Please look at the significance of why I commented on the reverse merger (it wasn't the merger itself, although, I would like to understand the details and reasoning behind agreeing to assume the debt so feel free to share or point me in the right direction on that)
Please review their un-audited financial package as the answer is clearly in there and was also posted multiple times on this Board.
Please re-read my comment on licensee program. I was referring to selling the license to entities that go "sell" the GPSi product. The licensee you are referring to, are people who pay to "use" the software.
Please re-read the details of the reverse split and you'll see that some benefitted as i stated.
Please re-read my comment on public communication as I wrote that they were given, "good advice" from their attorney regarding the sharing of company information that was not being fulfilled (audited financials). It is possible, that for competitive reasons GPSi management changed their strategy and chose to go about their business as quietly as possible.
I never even mentioned or implied that they, "weren't busy" that's another of your mischaracterizations. (please feel free to re-read my answer above as it applies here too)
I cannot comment on whether previous PR had empirical impact either positive or negative on the stock price. I can state that for me personally, communication is important and would keep me more engaged if I can see progress in new accounts and PR's would certainly avoid all of the negative comments on this Board about their silence.
Imagine what a potential investor thinks after reading that GPSi leadership has completely stopped communicating with their public shareholders. In your opinion, Would that translate into a high percentage close ratio in getting that potential investor to buy some shares?
You may want to consider reading my posts with more of an objective mindset- who knows, you might even notice that i also point out and post what is positive.
FF-
Some significant factual GPSi history-
- Company starts via reverse merger, shell corporation with a company who's leadership has been under indictment and with a lengthy trail of fraud claims against them (I have not confirmed any incarceration)
- GPSi has 3 company officers previously incarcerated for felony convictions
- A Trust is formed with a contractural agreement in which they are paid off top line revenue and they have non-dilutable percentage ownership (This kind of deal typifies a negotiated settlement due to a strong claim against company, but I cannot confirm details)
- GPSi leadership enters into multiple high interest loans with people closely tied to the company itself (desperation requires, do what it takes to keep doors open, I'm just not fond of close ties)
- GPSi leadership initially releases PR's when new jail contracts are signed (along with some other positive company news items)
- GPSi creates and sells a licensee program to sell product that gets GPSi cash and some initial growth (licensee program disappears)
- GPSi releases unaudited financials and states clearly they do not follow GAAP accounting rules (i've reviewed that release and it's very unprofessional)
- GPSi makes public statements of new coming transparency and promises release of audited financials (multiple communications after the announcement that they are coming)
- GPSi holds an investor meeting and announces a reverse split that clearly benefits insiders
- GPSi goes quiet, does not release financials and has zero public communication for about the last 12 months (were probably given excellent advice by an attorney to just shut up)
That is some strikingly scary info for an investor. However, conceptually this is a solid to good business idea with incredible upside opportunity. GPSi has landed business in both jail and municipality space showing proof of concept. Appears there could be additional offshoots of the concept into other industries.
Disclaimer- I'm embarrassed to admit I've done more DD in the last month then I did prior to investing, mainly because I liked the concept. I am very confident I have the above facts correct, but not 100% certain. There is much more that could be added to that list.
Diagnosis (From a public investor perspective)- Inexperienced leadership in key positions within the company. Decisions show lack of cohesiveness and a strategy to grow the business.
Cure (that benefits public side)- Hire credible COO and Sales Director, Create a real Board of Managers and surround Ron Hodge with professionals who will provide proper business advice.
Prognosis (for public side to get a return) - Very slim if operational changes are not made.
El-
With the exception of, "forward guidance…", I've addressed each of those points under and in the context of a significant increase in pps. Your comment of, "you're probably right, there's nothing to drive price up after all." is absolutely not what I stated nor implied. Please be fair when responding to other people's posts and try not to mischaracterize others comments.
In the interest of being fair, assuming all of these current trending rumors proved to be true and were publicly announced, I would think that there may be a quick (but probable short term) increase in the pps. My reasoning is that you'll see an initial PR buy and you'll see other people then sell on the increase. I am just not convinced that there is enough in what has currently been discussed to see huge gains.
For clarification, even with these new details emerging, I'm struggling to see how this new information (via an imminent announcement) would drive such demand for this stock that would increase it 5X (without going back to look, I believe people were stating $1/share). There simply isn't enough change to drive that kind of demand. I think that if the price doubled, that would be good for many on this Board, but I'd suggest that even that price point is highly unlikely. As noted previously, investors will be cautious due to historical record of GPSi management.
In my opinion, for there to be a real sustained demand for this stock, potential investors must see a tangible change in the running of the company. The scenarios I mentioned in my previous post and prior posts are just those kinds of tangible things that would drive demand for GPSi stock.
Hopefully this post makes more clear what I intended to communicate.
I understand the GPSi model with municipalities and the many payments that can be taken by a kiosk creating that opportunity for revenue increases.
More specific question- What announcement could be forthcoming to drive the immediate PPS to the levels suggested in posts several weeks ago? Just because there is "opportunity" for revenue growth (which was already in place anyway) that does not drive the public to consume shares. With a divesture of the jail revenue division, arguably, the company valuation could be decreased with the loss of revenue.
Let's assume jail revenue was break-even or wasn't profitable at all and they get enough cash to pay off some, most or all of their debt by selling it to Securas, this scenario still screams for a reason that would drive public share price significantly upward. What has changed other than they reduced debt on their balance sheet?
Even the argument of better cash flow still requires the elements of time and execution to earn the stated municipal payment business. A lengthy RFP process to even be awarded a contract within a municipality is expensive and just because there is better cash flow, doesn't change the timing of the sales cycle. Maybe the balance sheet is well-improved by the reduction of debt that they can now release financials (sorry Surf!) that won't be embarrassing to the company. Even then, past company history and caution on the part of investors would not create the requisite demand to drive price.
A scenario(s) that would have an immediate and positive impact to pps, would be if GPSi acquired another strategic company, was acquired by a strategic partner or an announcement of a significant merger between GPSi and another successful and well run company.
Puzzle is coming together-
GPSi had several PR's about partnering with Archionix (Archonix allows kiosks to tie into jail management system)
Securas buys Archonix (Archonix allows phone and commissary to tie into jail management system)
Securas buys the jail revenue portion of GPSi (Securas now owns the phone, commissary, JMS and kiosk payment system as a single vendor that provides value to the jails, thereby eliminating several levels of commissions and creating a more profitable business model for Securas)
Still some big questions to be answered.
1) How does sale of jail revenue to Securas help public shareholders? GPSi gets cash, pays off some debt- but where is the value on the public side to drive share price?
2) C4Ever looks more like a licensee and will drive revenue for GPSi, but where is the value to public shareholders to drive that PPS?
I'm still stuck trying to find a scenario in which GPSi stock sees the boom.
Wondering if Sanjay and Vinay are related somehow?
Surf-
No disagreement with your opinion at all regarding an investor. Any quality investor interested in GPSi would certainly be doing significant DD, which would include a forensic audit to track all money that has flowed into GPSi from the business end and also on the investor side. As you point out, some deals never materialized and a potential investor's DD team will be wanting specific reasons why deals were never consummated. I'm also confident that a thorough review of all the necessary licensing and approvals are in place to ensure that this business is operating according to the rules regarding money transfer legalities, especially in light of the rumored business dealings in the pot related businesses.
The company's history of making public statements and failing to execute on them would also be of concern and Ron would have to be convincing in his explanation as to why he did not live up to those commitments. He'd also be in the hot seat explaining all of these high interest loans paid out to people who are clearly tied into the operation of the business.
For example; looking at your previous post, consider the 20% loan payable to Pobur; Should be obvious to anyone really looking at that agreement. 1- Pobur must have been aware of the risk to loan the money and required the 20% (high reward). 2- Ron agreed to the 20% which acknowledged the risk in investing in the company. 3- Pobur rewarded with merchant payment contract and 1 million shares of stock in lieu of any future interest payments due to Pobur. The modification to agreement was lucrative to Pobur for him to have agreed to it. Can also assume that something near the original $500 thousand still owed. You can apply this same logic to all the other high interest loans.
According to EL- need to watch Surna, Agri and C4 developments in respect to GPSi. Maybe some type of mutual partnership is forming between GPSi and 1 of them.
1g-
Agreed, and was just looking at possible connections to other related businesses or prior history that can be found helping connect dots to solve this riddle.
Looking at this situation with admittedly very few details and facts, here is where I am at. Based on this imminent big news claim and the following share price explosion to $1 the following scenarios can be considered-
**GPSi acquires a strategic partner along with their current revenue stream which provides a significant growth trajectory. This is best situation that answers the significant increase in share value that Eleniak is predicting. However, this scenario is questionable because it's doubtful that GPSi has the capital required to pull it off. Doubly questionable as an equity buy via shares is unlikely due to past history of GPSi.
**GPSi sells off the jail revenue division and stays involved with municipal payments only. This may get the company some cash, but a large increase in share value is unlikely and wouldn't do much if anything for the shareholders like all on this board.
**GPSi brings on a strategic investor that provides cash and receives a minority interest in the company. Depending on this partner, could drive stock value, but would any quality partner buy into the company without majority control? In my opinion, it is doubtful that Ron would give up control because GPSi performance over the last several years would necessitate that the new governing Board
puts the Hodge brothers in the unemployment line. Or, in sales positions with GPSi.
There are other scenarios, but this is best I can come up with now. Hopefully for all, Eleniak is correct and investors will see some returns.
El-
Truth be told, it's probable that almost everyone on this board hopes that you are correct with your prediction of the big news event soon to be here.
I previously sent the following post a few weeks back and was looking for your opinions, but did not see a response. Do you have an opinion on the questions below?
Some questions for you and your contacts.
Is GPSi actually getting acquired or are they just selling off the unprofitable jail revenue and then GPSi continues as a company but only in the more alleged profitable municipal payment space?
It has been stated here that C4 is a licensee of GPSi- If true, why would Ron leave GPSi and go run C4? It seems much likelier that he would maintain his CEO status at GPSi and then just run C4 as a separate entity. Any opinion on that?
A quick review of Mikey's linkedin (thanks Gumbi) and I note no prior experience- is this just handing a title to someone or is there a background on him you are aware of other than he's the son of Cheri that I can dig into?
Are you aware of the number of licensees that are currently representing or selling GPSi services?
El
Some questions for you and your contacts.
Is GPSi actually getting acquired or are they just selling off the unprofitable jail revenue and then GPSi continues as a company but only in the more profitable municipal payment space?
It has been stated here that C4 is a licensee of GPSi- If true, why would Ron leave GPSi and go run C4? It seems much likelier that he would maintain his CEO status at GPSi and then just run C4 as a separate entity. Any opinion on that?
A quick review of Mikey's linkedin (thanks Gumbi) and I note no prior experience- is this just handing a title to someone or is there a background on him you are aware of other than he's the son of Cheri that I can dig into?
Are you aware of the number of licensees that are currently representing or selling GPSi services?
Yes, I've taken my beating with GPSi and No, I'm not completely out and will continue to watch the Board and Company performance. As far as any future postings, if I come across anything that I perceive would be of value to potentially help someone make a sound financial decision, I will post that info. Good luck to you and all others that believed by investing.
You are probably correct. His experience with phone cards prior and his subsequent incarceration "probably" allowed him to connect the dots and envision the release card. You could also make the assumption that this is where he recruited his financial officer too.
I'm pretty much out of GPSi now, took my beating and am shamed for breaking a cardinal rule in investing- Don't believe in the concept more than you believe in leadership. Good luck to all in 2015!
I am not sure which, "he" you are referring too. However, to answer your question, I do not know where any of the three were arrested.
I wonder who keeps deleting my posts!?
For anyone interested in doing their own DD to get the truth, please use the link below.
http://www.bop.gov/inmateloc/
Strom- do you recognize these?
"I agree,you need to post the truth."
"Factual ststements are ok. too many make up their own facts."
My "agenda" is truth.
Would you consider this as proof?
"I WAS WRONG YESTERDAY ABOUT RON AND GREGGS CONVICTION ON A POT RELATED OFFENSE THAT HAPPENED 20 FREAKING YRS AGO WHEN THEY WERE VERY YOUNG MEN."
"so you're right.....Ron and Gregg got busted over a pot related offense 20 yrs ago.. "
El and Strom-
Answering both of you at the same time. First off, it's interesting that you both question credibility based on recent registration and limited posts to the Board- How is that relevant? Are you questioning my motives- seriously? I've stated my motive very clearly- I'm trying to discern truth. Should we all question your motives for your posts? In truth, It has not been necessary for me to register or post previously. For what it's worth (and neither of you are really entitled to any of this info) I've invested in this company, like many others monitoring this Board and I've learned of this information and was looking for help in determining it's truthfulness. In fact, I only received what appears to be proof after my initial posts and questions (somebody helped me find that detail- thank you!) and I subsequently posted that info. I've also asked that someone who is more experienced or has access, to verify the information. My original questions were legitimate at the time and have now been answered to my personal satisfaction. if other investors need additional information then it is up to them to dig further. I've learned quite a bit in the last week and i'm satisfied that I've made the correct decision for me personally regarding this investment.
Strom- Really? You would like me to divulge who I am? Show me yours and I'll…..
El- You have the three registration numbers and can do your own search to prove out or to satisfy your curiosities. For me, my decision is now made. After calling me a fraud (paraphrasing) You so easily were able to get the, "facts", "after a few calls". I'd suggest you make a few more calls. Ask your contact if any other company officers have been convicted of a felony or spent time in prison. You might also want to clarify the reason for their incarceration as you may also want to dismiss their conviction with your liberal use of, "lol's".
To everyone else on this Board (and including both El and Strom)- best of luck to you in determining your own course of action regarding this investment.
Your assumption as to the reason for posting this information is incorrect- it's not about harming anybody. The information is intended so all investors, which includes you, have relevant information to help make informed decisions. Investors take all information they can possibly gather, including past performance as a company (has not been made available) and also performance by company officers to do what they say they will do (audited financials) and then decide on whether or not to fund. Based on your, "just pot" and "20 years ago" dismissals of seriousness, it doesn't appear that this would bear any weight in your investing decision. However, it may weigh heavily in somebody else's decision. Please allow all investors the courtesy of as much information as possible to make better informed decisions.
With all due respect- it is not crossing the line when it has material implication to the business. Please answer this question- Is it relevant to jails or courts that a current or potential vendor has company officers with criminal convictions in their background? I'm fairly confident that it would matter. What about current or potential investors, is it relevant to them? The answer is "yes" again.
Many people have provided bits and pieces of information that help put this puzzle picture together that allows all to make informed financial decisions. This is a public company and solicits funds from the public.
Final question Lawdog- Had you known that three of the company officers had criminal convictions and all three spent significant time in prison, would you have invested your hard earned money? I'm confident at minimum, it would have led to you doing additional DD prior to committing any funds. As objective as I can possibly be, I am confident that had I known this information, I would never have invested.
Why is it funny that there is proof of conviction and jail time? Did you comprehend that there are three numbers?
Eleniak, Try these.
1) 05066-097 released 1/25/96,
2) 05065-097 released 1/25/96,
3) 84323-022 released 5/3/94
1Gumbi- There was allegedly a letter sent to the jail accounts (not recently,but a couple years back) regarding the past history of both Ron and Greg. In this letter it was alleged that both had spent time (possibly 5 years) incarcerated for something having to do with drugs. It was also alleged that they were incarcerated in California. Somebody with access or familiarity of how to investigate this (should be public record) can look into verifying truth regarding these allegations.
Eleniak, for the sake of all investors on this board (including yourself), do not make yourself look so foolish by making personal attacks. The number of posts on this board is not important to this discussion. I suggest again that you directly ask the attorney you referenced (or the Hodge brothers directly) a couple of specific questions. Have either Ron or Greg ever been convicted of a felony? Have Ron or Greg ever been incarcerated? The answers to those two questions are important to those interested in investing in GPSi. Again, I will wait for your response (on those specific questions).
That being the case, what oversight organization rules applies here? Do the officers of GPSI have any legal obligation to disclose any criminal history to current or prospective shareholders? Would FINRA be interested regarding transparency and disclosure regarding this?
Question- Does the SEC require that officers of a publicly traded company disclose history of convicted felonies or incarceration?
"They are all clean"? What "letter" and from what attorney are you referring too? Are you stating that none of them are convicted felons? Please do yourself a favor and look into this properly and I'm confident that you will discover that this so called, "letter" is as untruthful as the way the Hodge brothers have run this company assuming that the letter states that they have never been convicted of a felon. More spin? Ask very specifically, have the Hodge brothers ever been convicted of a felon or spent time in jail? Now I'm really curious as to how you or your so-called attorney will respond to those direct questions. I'll wait for your response.
Has anyone done the necessary DD and checked to see if the GPSi officers have been convicted of felonious crimes? Ron? Greg? Jim? What about Horowitz?
Real DD would check to see if any GPSi officers have already spent time in jail, not just making comments some are there. Has anybody looked into this? Once a crook, always a crook.