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if i had a limitless bank account I would ;)
They will likely do that without anything accretive that has already been announced this summer. They will grow revenues 70% in H2 of this year, and net income 30% in second half of this year. At the run rate of Q3/Q4 09', Probably can trip over themselves and do 18c with current game card deals..thats not including Thomas the Tank goes out Q1, any FM moscoe, any china, any korea, any casino wins etc..
The whole point is buy before the street wakes up to the opportunity, not after. The street has not awoken, but it will..
Again it really isn't rocket science, 14c this year, up 40% over last, will grow another 40%+ next year at least. Stock is trading at 1.63, so your paying 11.5x ..I really don't see this big risk you speak of. It's been laid out on a silver platter for all to see. Only reason stock isn't $2+ is the share structure..need to chew through them sellers.
An interesting catalyst for EGMI: http://bit.ly/rpBBc
shhh you are a sly devil
valid points, but this will grow at least 50% this year into next year and that does validate a 30x multiple.
GORO (6.80)
Nothing new for some of your guys, but had some fun with some numbers. Been in the stock since October 2006. In fact, I believe I bought the only shares that ever traded below $1 right after the IPO. Ah, the good ole days.
http://bit.ly/Y9YAa
Yes Merriman is much more reputable. And Yes I have had experience with them in the past.
Lets see here, guidance of 14c this year, and 20c next year. Catalysts are China Lot (could probably double net income alone), Korea, FM Moscoe..hitting the income statement starting Q1 2010..Now you take a simple 20x mulitple to EPS and you come up with a price target of 3-4 bucks. This isn't rocket science.
If EGMI is your largest holding and you still don't understand what you own, you need to sell. I recommend T-Bills, the yeilds are off the charts lately.
yes, richard fetyko is a real anaylst. About time we land one ;)
Merriman Curhan Ford Initiates coverage of EGMI, and believe that the stock should be valued at $3 - 4
We are initiating coverage of Electronic Game Card Inc. (EGC) with a Buy rating and believe that the stock should be valued at $3-4. We like EGC’s unique technology which can be leveraged into several large end markets including gaming, education and promotions. We believe that EGC’s growth is primed to accelerate in 2H09 and 2010 as many of the new management’s efforts with product development and strategic partnerships yield results. Recent insider buying adds to our conviction regarding EGC’s prospects.
• Unique technology. EGC has developed a credit-card sized Game-
Card with microchip and a small LCD screen that can be loaded with simple games and/or content, and produced on a very low cost basis. EGC holds several technology patents, and has obtained Class II and III classification, and a GLI license for the gaming industry.
• Expanding end markets. The majority of the company’s revenue
comes from the Promotions segment where the EGC GameCards are
used by corporations as part of promotion and branding campaigns.
However, EGC is expanding into gaming (lottery, casinos) and
“edutainment” verticals with new distribution and content deals that should expand the addressable markets.
• Accelerating and profitable revenue growth. EGC grew revenue
by $4.6M in FY08 and is projected to increase by $5.3M in FY09 and by $11.3M in FY10. This growth is accompanied by profitability, which we believe is not fully reflected in the company’s valuation.
• Insider ownership. During the last twelve months, management
and the company’s chairman have bought shares in the open market
and own 35% of the company. In fact, the chairman bought
10M shares since he joined the company in September of 2008,
which further emboldens our conviction in the company’s prospects.
• Compelling valuation, in our view. With 40% growth in EPS
(fully taxed) in FY09 and FY10, we believe that the valuation multiples should expand to 25x-35x P/E (FY10E), implying a $3.00-4.00 price per share.
i actually wrote the ratio wrong...should be 1:2 reverse not 2:1
Yes, this would cut the sharecount in half, which would correspondingly double the share price.
My guess is they don't do a reverse though, but I would like them to do it.
lol very witty of you.
is the accredited members forum worth it? Time will tell. I was a member of Edgewater Research for several years and it was a great group of investors. This year they have revamped a lot of things and gave it a new name while also increasing the subscription significantly. So i will have a better idea on if its worth it in 6 months or so.
me you dumbass ;)
I am probably going. A lot is going to happen between now and then and it will be a good time rub shoulders.
yes the future is very bright. was a hell of a trip. And it was a pleasure meeting a lot of you that post here on ihub.
EGMI: My Post Shareholder Meeting Thoughts http://bit.ly/2WBRTq
Yes..wrote about this on saturday
http://iancassel.com/2009/09/12/egmi-1-65/
Anyone else like the American Idol "example" bundle pack. Yu could tell that just wasn't an "example".
China
9 billion lottery scratch cards sold in china per year. We get 5% of the market do the math on 10-15-20c profit per card. They expect chain deal to be closed in the next 30 days.
If anyone came away negative on the stock after this meeting then you were obviously in another meeting. I couldn't disagree more with this being a one man show and when the lord croaks the stock does. Almost all of he current deals they are working on are because of Kevin and Lee's contacts. Steinberg is the grandpa with the guiding hand and deep pockets.
I'll be at the shareholders meeting so we can shmooze thr.
If you look at the financials the company is basically on a 11-12c operating income rate right now. Just gets skewed because they took a one time $450,000 hit in Q1 that makes it look like they didn't earn that much. I'm also expecting some growth 10-20% yr/yr in 2010 that will likely get them to around 15c on the ATM side alone in 2010. Obviously fed funds rate changes also effect them but I don't expect the fed to increase rates anytime soon.
I won't be able to make the 5pm meeting cuz I have another meeting at the same time. Many thanks for the invite tho.
Yes there is still a meeting. Proxy materials are going to be amended to reflect changes as per my blog post. In NYC right now.
ZAGG..cleverrox...I had dinner with the managment team a few weeks back. It has all the ingredients of a major run for later this fall..not to mention revs and net income should double again in 2010 http://bit.ly/mMy4P
will hold off writing the report til Oct ..will wait closer to DVD roll out.
I view the trip as a success since many of my thoughts and expectations were reinforced by meeting the management team. I arrived around in Jacksonville around 6pm and met the CEO, CFO, and Chairman for a wonderful dinner. We didn’t really talk about business that night since it was rather loud in the restaurant so we kept the conversation to sports, travel and other unrelated topics. During this evening I did get to see that they were very honest guys with great backgrounds. The type of resumes you normally see on Nasdaq traded companies. The next day I went to their offices and George (CEO) introduced every employee to me (approx: 25). You could really see the team work ethic and genuine happiness in every employee to be working there. George told a little story about every employee as he introduced them to me and made sure to get the point across to me and to the employee that he appreciated their hard work. After this we went back to the board room where I asked questions on the business model, ATM’s, DVD Kiosks, Other Kiosks, M&A, Fed Fund rates, Debt repayment, etc.
This company is a winner especially at todays prices. Any success with DVD's will get them to 20c+ next year in EPS which is why I want to wait for my initial report until I can get a firmer grasp on the roll out...The other reason I'm holding off on my report is because I'd like to buy more stock but don't' have the cash at this time but will in another few weeks...that said the company is starting to get the word out..roadshow next week in Atlanta and NYC so who knows..the stock might move up anyway. But thats okay too. No one is looking at this name and when a couple other new large investors "get it" like me, the sub $1 stock will be gone. I'm sure of it.
looking forward to the meeting on tuesday. not looking fwd to driving into NYC again. Me and budbart/gurupup getting drinks monday night. He is one mean bastard ;)
had a great meeting with gaxc management. I will try to write a blog post on it over the weekend. I will be out most of the day today running errands.
Posted a few thoughts: http://bit.ly/Rwkmk
I bought the only shares that ever traded publicly below $1.00 just days after the IPO in 2006. Great story, great move. Kudos to investors.
it is fuel for the fire..as annoying as it is to see this trade at a stupid cheap level, it has formed a nice base and even I have to remind myself that this does have 62m shares out so it just takes a bit longer to churn before the next leg up. I'm also looking forward to rubbing shoulders with lord steinberg next tuesday at the meeting.
visiting the company on thursday. looking forward to it
company did roadshow fri afternoon. was very well received..hopefully this will start to trade a a respectable multiple as new institutions take notice
no, gaxc trading at less then 10x my 09' EPS estimate and probably trading at 5x next years eps.
Yes, I believe the ATM biz will do 15c+ in 2010 and the DVD biz will do 5c+. Meeting the management team next Thursday.
Global Axcess Corp Signs Five-Year, $550,000 Annual Contract With Regional Convenience Store Chain for 52 Additional ATMs
- Global Axcess' Industry Leading Uptime and Proven Customer Service Results in Chain Transitioning From In-House Solution to Outsourced Management -
JACKSONVILLE, Fla., Sept. 2 /PRNewswire-FirstCall/ -- Global Axcess Corp (OTC Bulletin Board: GAXC - News; the "Company"), an independent provider of self-service kiosk solutions, today announced that it has signed a five-year contract, valued at more than $550,000 per year, with a regional convenience store chain in the Southeastern United States for ATMs at 52 locations. This is a new customer for Global Axcess Corp and under terms of the contract, the Company will install, maintain and conduct transaction processing for ATMs in 52 of the customer's convenience store outlets.
Mr. George McQuain, Chief Executive Officer of Global Axcess, stated, "By transitioning from a processing only system to a turnkey solution managed by Global Axcess, this customer has enabled their managers to focus on serving their customers and not managing ATMs. The customer indicated that our Industry leading customer service, ATM up-time and on-time residual payments were the deciding factors in winning the account. Our value proposition to grocery and convenience store chains is that we remove the headaches of managing ATMs and allow businesses and management to focus on customers, not ATM issues. This message resonated with this customer and we are pleased to have won their business."
The Company expects to begin delivering the ATMs to the customer in September of 2009, with full installation to be completed in October of 2009. The Company expects to begin generating revenues from these installations in September of 2009.
yes this is stupid cheap here. I know the company will be going on some roadshows this month. Should help with getting the word out. Also looking fwd to meeting Steinberg in NYC on Sept 15th.
was emailed out by agoracom..they did this too with EGMI a month back or so
Prob what lead to last fridays uptick:
Flash Buy: This OTC Play Is a Cash Machine…
The first automated teller machine was installed at a New York City bank in 1939. It was removed just a few months later, because customers just weren’t using it.
That’s certainly not the case today. In fact, it’s difficult for the average person to imagine life without 24-hour access to his bank account. More than half of American adults use ATMs an average of eight times per month. That’s millions of transactions every single month…
Cash machines are also big business. Technology, installation and maintenance are all a part of the game. We’ve found one penny stocks that’s posting consistent profits with its ATM business. It’s been so successful recently that it’s now preparing to expand its business into other types of self-serve kiosks.
In addition to its stellar fundamentals, if this stock continues its hot streak, you could very well see triple-digit gains in as little as eight-12 weeks…
Plenty of Positive Momentum in the Cash Business
Global Axcess Corp. (OTCBB:GAXC) is a bulletin board company in the ATM business. The company owns and operates around 4,300 ATMs and other self-service kiosks across the country.
Global Axcess stock is so small that it’s not on most investors’ radars at all. But even though its market capitalization is less than $20 million, it is beginning to attract some attention. The Jacksonville, Fla.-based company’s local business paper is even catching on to the company’s consistently stellar performance…
“Earnings have nine quarters of positive momentum, and in the last quarter were up nearly 24%, to $557,000, with less debt and more cash,” according to the Jacksonville Business Journal. “Management thinks the company is finally in good shape.”
We think so too. All it takes is one look at Global Axcess’ fundamentals. The consistent profits are impressive for such a small company. As is its steadily growing cash position. The company has also nearly doubled its net profit margin in only one year. On top of these numbers, the company is trading at a low multiple considering its growth potential, only 0.8 times sales.
While we don’t expect any big increases in the cash machine business as a whole, it’s stable and lucrative…and that’s all we need it to be.
Despite the maturity and relative stability of the ATM industry, GAXC continues to add to its ATM customer base, and the company has additional plans to grow the company and shareholder value that we’ll reveal in just a minute…
In fact, just last week, Global Axcess signed a three-year contract to place ATMs in 51 stores in a national grocery store franchise. The company values the contract at more than $750,000 per year.
This new deal should easily make up for the 8% decrease in revenue GAXC posted in Q2 due to the loss of an account.
The Ground Floor: A New Generation of Automated Service Machines
We are entering an ideal time frame in which to purchase Global Axcess stock. Its far-reaching ATM business is the company’s backbone, providing strong revenue and cash flow to support expansion.
Then there’s this secondary growth opportunity…
Global Axcess is in the midst of a multiyear effort to ramp up profits from its core business and expand into other self-service niches. Following in the footsteps of Redbox, the Coinstar-owned DVD rental booths, Global Axcess has begun a DVD rental kiosk pilot program on its home turf in Jacksonville, Fla.
We like this foray into the kiosk rental market. It’s a niche that has the ability to perform very well during almost any economic climate. DVD sales are down double-digits this year as consumers continue to tighten spending habits. But rental revenue is up more than 8% across the industry. Spending $1 a night on a DVD rental from a kiosk is an easy choice compared with what a consumer would spend buying or going to a theater.
Expect to see more positive news about this DVD kiosk pilot program in the near future. The company has already announced it has expanded the program from nine to 24 locations. Management has also been touting an aggressive ad campaign set to begin soon…
“Management continues to invest in our sales and marketing capabilities with the goal of expanding our network,” GAXC CEO George McQuain told the Business Journal. “Simultaneously, we are focused on adding additional services to accelerate our growth. We continue to focus on leveraging our ability to deploy, manage, maintain and process transactions from a wider range of self-service kiosks beyond the traditional ATM.”
This Rally Is Ready to Continue…
Global Axcess’ chart looks attractive right now, as well. The stock has been unstoppable since the beginning of 2009 -- and has rocketed an amazing 513.8% since January.
But that doesn’t mean that GAXC’s rally is over…
Right now, the stock is in a sustained uptrend -- a sign to technical analysts that there’s still plenty of room for growth despite the impressive numbers the stock has returned.
In May, all signals pointed toward higher share values as the company’s 50- and 200-day moving averages crossed over each other. And now, with share prices riding up the 50-day moving average -- the company’s average stock price over the trailing 50 days -- the indication continues to be that we have a way to go before we see this stock slow down.
The way that Global Axcess shares rose in 2009 is also significant for investors. As the chart above shows, the stock jumped up several times this year, followed by a leveling off. Unlike a fast and volatile nonstop climb, this stair step pattern provides what technical analysts refer to as support -- a level that a stock usually keeps from falling below.
Despite the colossal run-up the stock has already given its investors this year, the company’s chart indicates that things are still full steam ahead. And the company’s fundamentals back that up in a big way…
Action to Take: Buy shares of Global Axcess Corp. (OTCBB:GAXC) for 82 cents per share or less.
Remember… GAXC is a true penny stock. Its trading volume can be sporadic. Some days, thousands of shares exchange hands. Others are quiet. Remember to always use a limit order, and do not chase the price. Check the stock's share price before you put in your order and set the limit accordingly…
Be sure to exercise the utmost caution when purchasing shares. We recommend you test the waters with a small position. Then you can add to your position over the course of several trading sessions if you desire. If the price gets out of reach, walk away and try again the next trading session. The market should give us plenty of chances to buy this stock at a price we want.
Best,
Greg