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Agree, stock pumper not needed. The company is rounding into shape but spending money like this, or more sinister the comp is in stock, is not a good move. Take the money reduce the debt or pay some severence, managment is too top heavy, key positions filled from within people have no experience running a public company. To say it another way, stock pumper not needed because there is nothing to draw attention to...yet.
The company has not repositioned itself, they're no different than the day before the press release. The saying something doesn't make it so. Second, they aren't growing, they've made sales but they've also lost placements, you should always ask for the net, not the increase. Hayden's comments are just words, notice any metrics? anything he can be held to in the future, any example of substantive change? Saying they aren't in the same "industry" as banks, ATM's are electronic transaction machines not ATM's? What functionality did they add? what new relationship did they sign? The company, with some changes, is still a good company but this is not the time for a stock pumper.
The company, no make that the speculators, are tired and want the stock to jump to 20 times earnings. Wrong attitude. They should stay conservative, pay down debt, offer or create new services and place machines, increase earnings and real investors will move in.
Ps.until the debt is paid the question will still be asked and the story will be told continuing the spectre of risk and creating investor uneasyness around a solid business.
Why is it "wrong" to market our company in an appropriate, respectful way? To argue against it is just ludicrous. It's like you all are PATSIES or something. The Street is just like the grocery store. Companies have to compete for "sizzle" value. The risk to a company is that if it "promotes" itself, and then has a horrible story, the class action lawyers come in. The FACT that GAXC is willing to hire an IR firm shows that the near and intermediate term future is BRIGHT.....which is just one more reason to buy the stock.
I thought about "taking" as much as the market would offer at 44 cents, but somebody else did that today, and my excess capital is pretty light right now, with recent market declines.
I'm thinking we could see 60-65 cents, frankly, in the next market rebound. Market has been weak, and NO sellers have been coming in here. That's a good sign!
If you compare GAXC to the other two public players, TRMM and Cardtronics, they are DRAMATICALLY outperforming....and they deserve to be recognized for it. There is a story to be told, facts to be presented....AND THEY OUGHT BE PRESENTED, since the Street is still considerably mispricing this security, IMHO.
I EXPECT my management team to care about that, and the board and executives have my full support in their choices.
REMEMBER: A higher stock price means the possibility of using it as a currency, the possibility of getting listed on Nasdaq and getting MORE visiblity and a higher multiple, etc., etc. It's a "virtuous cycle"!...and I'm pleased to see a management team of a "sleepy" OTCBB stock willing and understanding the need to be PROACTIVE about that.
Like blin said, they are in such less than average condition that they should really delist and not put out any news at all for quite some time. No news is good news.
And when the ATM industry ultimately collapses, the shareholders will be holding the bag.
What does everyone think about this ?
Just my best guess,
STRONGLY disagree with both of you. This 3% holder supports the move 100%. I thought the press release was TOTALLY classy, and shows EXACTLY WHY our company needs a IR firm. Pointing out that we are selling at little more than 3x last year's free cash flow is EXACTLY the kind of thing the market needs to hear.
My own belief is that management BELIEVES that there is a story worth telling here, which is why they did a turnabout, and are now going with an IR firm, despite talk pooh-poohing the concept in the most recent conference call.
Frankly, I consider that turnabout to be incredibly bullish, just simply reading into what I think it must mean. Specifically, that their confidence level has grown, even since the most recent earnings release, and they don't believe that telling the story is going to results in a whole class of "disappointed" new investors, or that the company is at risk of "falling on its face."
I bought more last week in the 40-42 cent range, but, considering the lack of follow through buying by the broader market, and recent market weakness, and waiting for "sub 40 cents" before nibbling more, as we have had a bit of a run recently, and would hardly be shocked if we got the chance to buy more in the 34-36 range again. (Then again, would hardly be shocked to see 40 cents hold as a support level.)
Bottom line is, they have every reason to be able to pay off virtually ALL of their debt, over the next year or two (if they should want to), while meanwhile, increasing their earnings, by probably 15-25%, year over year, going forward. The Street is going to value a growing GAXC, without the previous earnings "noise" we have seen, at a much higher multiple, especially when you consider that the balance sheet is going to go from "weak" (a few years ago), to adequate (currently) to "strong" or even "bedrock" a year or 2 from now.
My 6 month target is 60-85 cents, and my 12-18 month target is $1.00-1.50.
One of the reasons I'm so impressed, is because I think this is an EXCELLENT and fair-minded summarization of the GAXC value proposition. It's not the job of management to directly play "huckster." That's the job of an IR firm. To "market" the aspects of GAXC's story to the relevant "niches" in the investment community, and make those segments aware that GAXC, as a company, just for example, that sells at only 3x last year's free cash flow, and yet is GROWING, exists.
The bottom line is that if the Street starts to see GAXC as a long term double digit grower, EVEN with a return to higher interest rates, and the drag on profitability from that, they could EASILY put a 15 multiple on the stock, and we could be selling for as much as $2-4 in 2-3 years, I believe (assuming earnings increase as much a I think they can).
Simply put, this is a GREAT STORY, with the "sword of damocles" of CAMOFI off their head, and the announcements portending GROWTH of the last several weeks. Why SHOULDN'T management, and we the shareholders, want to get that story out there. I don't think of this as "hype" in the least; I think of helping the Street to "discover" the value that I personally discovered here a year or more ago...and took advantage of in the IRRATIONAL sell off of last fall and this most recent winter.