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.
