SwingTrade Member Forum

[MikeDDKing]

GAXC is one of my favorite holdings. They have two businesses including an ATM busines and a DVD kiosk business. They hit a few bumps in the road in the rollout of their DVD kiosk business but I think they will recover nicely. One valuation issue right now is that people are valuing the company based upon the bottom line which doesn't count for the fact that the ATM business is quite profitable despite losses in the DVD business. IMO the ATM business is worth $0.75-$1.00/share. I think that the DVD business will be profitable in Q2 of this year after the new management cleans things up. In particular I think that the new Tejas Video Partners acquisition will greatly improve the financial performance of the DVD business along with the closing of unprofitable locations in their original DVD business. One other thing about GAXC is it is trading substantially under book value.