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Global Axcess Corp. Message Board

  • TheDawgfool TheDawgfool Jun 29, 2009 2:43 PM Flag

    Sales Activity release

    It appears from action today that with the exception of the Board's clown most of the rest of the market is correctly assessing the information. $110/month of gross profit should equate to $30-40 of net or another couple cents per share. More promising than that is the apparent robust pipeline McQuain alludes to. With operating cash flow now looking like roughly $1M per quarter and debt to be paid off somewhat rapidly thereby reducing interest expense, GAXC could be looking at 15-20 cents per annum not including the potential add from pipeline. It is not out of the realm of possibility that we could be looking at a 50 cent stock near term and potentially a buck within a year.

    I only wish the clown was actually shorting so we could all appreciate his pain.

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    • yes, including pjv2xyw

      maybe we need to get together to vote a block

      RT

    • That includes my 3%, and dawg's 5%?

    • You think they should not put out earnings either and no more conference calls ? Maybe no news at all would make more sense, now that I think about it.

    • I add up 11% so far, including yours and mine

    • RT, I like your posts and respect your opinion. I do not wish to offend you But, to "Promote" your stock requires a major time allocation from executives and not just the CEO, also the CFO, operations leader and sales staff. Paid for reports are quite ineffective and road shows are a waste of time if management is not in the travelling circus. I still appreciate your view that promotion is valuable but lets not try to suggest it is not taxing on management time. Regarding your comment about Global people working a little overtime like the rest of us, let me share the following. My companies office is roughly 3 miles from Global's headquarters and my company (which is private) is in a tangent though noncompeting business. We have explored some joint opptys with Global though none have panned out. I can make the following statement about McQuain and the rest........... They work more overtime than I do. Patience with this stock is gonna be rewarded. My 4.9% is in no hurry.

      Dawg

    • I agree 100%. This 3% holder thinks they need to get out there, and tell their story. They've done a great job with their press releases, in terms of "tasteful and appropriate" promotion, but should also consider being part of investment conferences and other "roadshows." (My recollection from the last conf. call is that they said they are going to spend most of their time on growing the company, and holding off on "formal promotion" for now.)

    • I wasn't talking about mgmt time, I meant a firm to write a research report and do some road shows. Maybe co mgmt could particpate let's say 1 day per month. I don't think the limited amt of mgmt time reason makes sense, heck they could work a little overtime like the rest of us.

      Using the excuse about not wanting to spend the money doesn't fly since they have plenty of it and will have plenty of bottom line to absorb the cost. Again, when the previous Co had 70%s of the revenues, projected bottom line of about 1mm (current co run rate is over 2mm/yr), and a shaky balance sheet, with a second rate promoter the stock price was $1.25-$1.50.

      The most important aspect is with a higher stock price, there would be access to equity markets with secondaries that would be successful due to the near term prospects at no interest cost either. Now is the time for a successful ISO to expand the placements.

      Anyway, that's how I see it and thanks for your opinion.

      RT

    • I understand and respect your point. I disagree with you. IMHO management at companies this size (really small) have a very finite time allotment. Time spent on promotion is by definition time not spent on business management and growth. I believe their time is more wisely spent on the latter. However, I also understand the issues associated with your opinion.

    • Not mentioned, but the cost of capital is low and will also impact earnings positively.
      Many banks are also making money because money is cheap to borrow...lending rates are still the same.

    • The $110k net gross profit should basically all go to the bottom line since the costs below the line are admin, interest on LTD, and depreciation. The only marginal cost would be some depreciation on the additional equipment if it is a contract where the ATM is leased (maybe only 15% of the revenues). All other costs should remain the same like the payroll and other admin. Any new equip they might purchase can be bought for cash that they have plenty of.

      The problem with your analysis is that the news release stated that the $110k includes renegotiation of current contracts. The only additional new ATMs they show are 126 new ATMs at estimated $5k/yr/machine with a gross margin of $2,300/yr/machine less depreciation est of $500/yr/machine or $1,800 per machine per year x126
      = $227k to bottom line or 1cent/sh.

      My best guess and opinion here
      DYODD

      Good luck

      • 1 Reply to roadtoad45
      • Well, any way you slice it, the news is bullish. With the CAMOFI, Cole, etc. matters behind them, the Street, I believe, will increasingly view this outfit as a GROWTH story, and put an appropriate multiple on those earnings, to boot. Meanwhile, with a boatload of NOLs, expect cash flow generation, as others have pointed out, to be stupendous.

        I was delighted to add to my 3% stake in this company today, from .375 through .42. I'm thinking 60-70 cents over the short to intermediate term, and $1.00-1.25 over the long term (12 months), is a realistic target. Over the very long term (2-3 years), if they are successful in growing, and higher interest rates don't "clip their wings," this could be a 25 cents in EPS stock, and a $4-5 stock.

        The great thing is that the balance sheet is going to go from weak to STRONG, in just a matter of a 2-3 year period (starting a year or 2 ago, and ending a year from now).

 
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