SwingTrade Member Forum

[Rawnoc]

Hold nose and dive in?

I still gotta do my write-up on GAXC.....been slacking.

Short version -- they have a profitable and consistent ATM business. They are copying CSTR's Red Box with their own version called Insta-flix. Rollout has been pretty good so far for this tiny company. Speculation that it will accelerate and the Insta-flix business will grow and make the whole company much more profitable as each individual Insta-flix, on average, is profitable. Like CSTR's coinstar kiosks, GAXC already has business relationships for their ATMs so they know how to get customers interested in their Insta-flix.

In the mean time, the balance sheet is pretty good and the share price is trading for less than book value and less than tangible book value making the risk/reward ratio a no-brainer long term IMO even if the speculation on the DVD biz fails to bear as much fruit as expected the ATM business alone is worth more than the current share price IMO.