Looks to be hitting this short term bottom. Should be heading north from here forward. Go Long's!
Hi Mark, every quarter that has gone by has been a record yoy quarter. The company now has seven times the sales per quarter that it did ten years ago and 20 consecutive profitable, dividend paying quarters. (Check me on the dividends, it might be 18 or 19, I didn't verify it. But same difference (and count the annual special dividend as four quarters since they paid out a large dividend at year end versus doing it for 4 quarters. So that way it's prob over 22 quarters of dividends.)
They began selling Kenetix in June, but it has a trial period I believe of 3 weeks, so I am not looking for any real sales of it to go toward the May - June 2017 quarter. The organic growth they have going is very strong and Q2 is always a typical strong quarter, and I'm expecting another record quarter in sales and earnings will be good, maybe a record, I can understand if there is some extra marketing or a small amount of increase in sales team salary expense, because these are the kind of expenditures that generate sales and earnings going forward. In valuating companies it's very important to understand the benefits of each expense, so these are expenses that add value to future expectations, immediate future expectations in the case of Kenetix (Q3 2017 sales and forward) and SC Insight module is a bonus as current sales staff and channels just add that onto their list of modules for customers to buy and it's easy to install with the modular system of their EFT platform.
The stock is a good candidate to increase its dividends because of the continued increase in sales and earnings, the continued increase in major partners, the real-money HPE-Versatile deal, the 12 new data integration channel sales MANAGERS they hired solely for selling Kenetix. So thus far we are awaiting the strong surge in sales from Kenetix and you can rely on that because of how and why and for whom it was created and all of which cuts out the guesswork on the marketplace demand for Kenetix. I'm telling you, this is really a big deal software and it belongs to Globalscape; they didn't have to buy it, partner for it, license to get it. It's theirs lock, stock and barrel. Like EFT. And they have the pathways to upsell it to current customers and to market it to new customers who want the best in data integration out there. Each of the channel sales MANAGERS is considered a data integration expert and has been in data integration channel sales for at least five years with a long list of prior customers and channels they have worked with, so this is going to expand the total number of channel resellers and distributors of Globalscape.
The CFO is going to need to add another computer just to keep up with the sales figures coming in. Lol. JK. This is really good and I look forward to a great conference call and they will be giving us a lot of information about everything just like the last call was strong and detailed.
Glad to be on board. By the way, $6 is just a whole number but it confirms the $5 and above price for more institutions to enter. They may have a 60 or 90 day waiting period and then go by the average before they enter with strength. Others may enter as they choose once it hit $5.00. We should have no problem taking out the old high in the near term quarters. It's just so jam packed with good things happening where do you begin to pick which one. I'm very glad for us all that Kenetix came out when it did; it's an amazing platform; few of us really realized what they were going to make it into. It could have been just another module. I think the CEO & President Matt Goulet and Peter Merkulov probably are responsible for just taking it to the level of a whole new platform rather than an EFT module. And this begs the question, if they did THIS with their current engineering department, then what else are these guys capable of and what else are they then working on? Because my experience is they just went from 1st Degree, 1st Dan Black Belts with EFT to 2nd Dan Black Belts with Kenetix, and that calls for the next one to likely be their 3rd Degree Black Belt they are working on. I mean, people go from Associate of Arts, to a BA, then an MBA or MA, to a Ph.D. They usually progress. Companies are similar and the history of Globalscape has been very progressive, making better and higher milestones along the way.
You all remember when we were flat at $5 million annual sales for 4 or 5 years? $1.25 MM a quarter on average? With 10 million shares outstanding? So yes we are undervalued looking forward with the thinking cap on. Soon we will have the conference call for Q2 which is just weeks away now.
Nice wedge on the 5 day. Moon, meet $GSB
Does anyone know the date for the 2nd qtr earnings report? Does this concern anyone else that it has not been announced yet and would appear to be later than recent qtrs?
Good week. Another high. My guess is another dip amd then 5.50 to 5.75 by 8/1. Hopefully, 6+ by 9/1
Well boy's (and girls)it looks like we are in the pre #'s trading pattern.
Happy Monday, I posted something over the weekend but it vanished. I can blame yahoo for now. I just was sharing that it isn't fair that all the good work the company has been doing lately to increase shareholder value could be undone by an unforced error. They reduced holidays and vacation days without offsetting with salary, effectively giving the whole company a pay cut of about 3% They are replacing developers with interns and recent college grads and that is reducing costs. They are also training people in their way, and that has benefits as it eliminates grass is always greener thinking. Again a win for shareholders. Morale is in the toilet, but a lot of people are afraid to leave or it takes too long to find the next opportunity so they can replace as they go with lower price talent. Again a win for shareholders.
But now these upcoming 8ks are an issue. They could spin them in such a way that no one really notices there is a problem. But they are 2 very ethical people by all accounts doing something ethical, and 90% of the people in the company think they were ordered to do it from the top. I do not know what to believe, but it could bring the stock down to 4, or have no effect at all, keep on trucking. It isn't enough money to really matter in the grand scheme of things, but do you catch people the first time they do something, or just the time you catch them. I cannot say. I am hopeful they get a package to keep their mouth shut, or are sufficiently threatened, because of they spill beans it could be extremely bad for the stock. The board would never let that happen.
Good luck, and set your stop loss mechanisms in case the stock drops fast. I am sure it will recover most of the drop, and you can get back in lower.
Hasta la Pasta
Big move up on more than average volume for only 30 minutes of trading! Hopefully people are starting to notice this stock now!
Recalculations of monthly revenue streams are in order. UPWARD! The ones I made earlier were based on $899 implementations. But there are actually 4 levels of implementations from Starter for $899 monthly to Custom for over $6000 monthly. Check it out. One sale does not equal $899 a month necessarily, but it depends on the size of the organization that is integrating their applications. So this is much bigger than what I was calculating. If you are selling into a large enterprise, you're going to have to ratchet up that amount by much more than even 6 times as much. Six times as much is for Architect. For a custom version, you can be talking 1000 users, not 25 users. Man is this a big deal or what. And it's functional, operational, going onto the shelves, being marketed for sale by the whole sales force and resellers and distributors as we speak.
Apparently it's not been figured out by the market because we still haven't seen but small volume of a under 200,000 shares. This seems to me to be on the order of news that garners some million share trading days. IMHO. Tells me we are ahead of the learning curve of the market, my friends. Hold or Buy but don't sell is my attitude. I've got to go now and relax, kick back and try to digest this.
Thanks Rob. You brought this to our attention.
Starter $899/month* Connectors: Standard set 5 Connections/Tables 5 Users phone, email & chat support
Integrator $1999/month* Connectors: + advanced set 10 Connections/Tables 10 Users phone, email & chat support
Scale enterprise data integrations with Kenetix software packages from Globalscape. Discover the advantages of data integrations with your free trial today!
Okay, so if you have 50 states covered, and some 200 resellers and distributors in each state: If each reseller/distributor makes just one sale a day for the 22+- business days of each month, that's some 200 sales per day, and per month some 4,400 sales. That sales would go on contract for 1,2,3 year terms, probably, and so repeat because you don't make such a purchase with just one month of service in mind, but more likely a year or three in mind.
That means month two you get the same payment from the prior month's purchasers; an automatic 4,400 sales recorded again, so to speak. But your sales teams have been active and again this second month produced another 4,400 sales. Guess what? You have to add those on top of the repeat 4,400 sales from the first month. So your total second month sales would be? 8, 800 sales. You guess right. With each reseller only selling one per business day on average, assuming 200 resellers across 50 states. Now the third month you go into it with 8,800 subscribers who are paying another month's payment and your sales team once again performed at 1 per reseller per day per 22 business day or 4,400 more sales. So that third month you have a total of 13,200 sales. For that quarter, the sales would total 4,400 + 8,800 + 13,200 sales which equals 26,400 sales. Each sale is $899. Therefore, for such a quarter, your sales would be $23,733,600.00.
That is just if each reseller averages 1 sale per day over a quarter and there are 22 business days per month those three months.
I do not know how many resellers they have, but two years ago or three, it was 200. Then you have giant resellers and not so giant resellers. So we have some things to think about. This is a very high quality product, they tell me. It is very competitive. Matt Goulet, the CEO & President boosted sales for Kaspersky. He's got a great team including Peter Merkulov with him on it. Do not be surprised at what this team produces! Do not be surprised. Or, go ahead, be very surprised. And celebrate. However you want to look at it, but be very positive. This is the real deal.
Not much logic in this trading pattern,it's actually funny watching either this manipulation or just plain stupidity!
Not sure whats going on today but I LIKE IT!.The $5 mark mark, maybe?Thoughts
whats going on here?Is it the visability of the $5 mark?the high percentage attracting investors?the Gold and Silver award?All of that above PLUS eyes open to the pipe?So should we expect shorties to jump in?I say all aboard shorties and clinch up for 2nd Q release!I hate to get overly excited but dag gam it I DESERVE it!
I simply have top critique a recent 'positive' article on Globalscape because I object to some of the ideas and conclusions and concerns expressed under the Risk category in the article. I do appreciate a shareholder writing on GSB in a positive manner, but a public article is fair game for criticism when you feel it is warranted. Myself I see little risk to GSB and from my vantage point the risks described below need to be classified as unwarranted fears of the unknown. If a writer feels the need to include a safe harbor announcement, let him write it as such, but to try to fit it into an article which I must say the points of which were easily countered, that's not good writing, certainly not good research and aggregation of all the pertinent facts and details. I hope I clear up anything that anyone needed if you had read the article.
Micro-cap – The company has a market cap of just over $100M [which comes after 20 very stable years in business selling into the IT markets]. While market liquidity has improved, [since the company has never boosted outstanding shares except on a conservative basis the last two decades, with only 23 million shares outstanding, and tightly held by insiders, their friends and families, and institutions, naturally] there are days when volume is low [especially when a new product like Kenetix comes out to major fanfare and promise of immediate rewards with a dozen new channel sales managers hired to supercharge sales of it by hitting the ground running]. This can contribute to beta movements that are higher than the overall market, [especially so when Globalscape releases a major new platform that's been in demand and in their request cue from major customers for a couple of years now, and especially when you consider that Globalscape and Ipswitch have been leading their MFT market as the only two with growth, the rest being in negative growth, which means they have something the marketplace wants].
New product uptake – While sounding [extremely] promising, only the future will determine the success of any new product and its magnitude. In addition, there will be some incremental opex expense to support the product roll-out. [Excuse me! But demand determines the success of this new product and it's so powerful Ingram Micro already has it loaded on their website; the development of it came exquisitely FROM demand stated to the company directly by its regular customers of whom they boast an extremely high retention rate! And naturally when you hire one dozen, twelve channel sales managers to sell the new product, there is their salary, but they are hired as proven data integration experts with large client lists, channel partner lists, and the company said they are hitting the ground running. To not see what is coming as to sales of Kenetix, one would have to be a well-practiced pessimist, especially given all the statements in the last conference call by the CFO and CEO, in that order!]
Overall (macro) Market is fully priced and may correct. (Again, if one would simply read the investor presentation that shows the overall market, one would have known that while the overall MFT market players were losing customers and thus becoming overpriced per their relationship to that market, Globalscape and Ipswitch were doing enormously better and the only two to produce strong gains in the space. So naturally those other companies, as their revenue may depend on MFT, would either see their stock price scale back or come to be considered a bit higher priced that they were before, relatively speaking. So, looking at the context correctly, we see that Globalscape is gaining customers and revenues/earnings in MFT while the others have been losing. So unless you can't see straight, Globalscape is a solid 20-year microcap steadily gaining ground, revenues and earnings and cash via the MFT space, which is a standout among its peers. So why on earth would you want to consider their peers' losing ground as relevant other than to say how great it is to be holding GSB?)
3.5M stock options plan has been approved going forward. Approximately 15% dilution over the next 3 years. This was deemed necessary to attract and retain talent. [Globalscape has always used a good method to calculate stock options and to vest them according to performance, and has never been known to throw options around whimsically. If you calculate their growth rate based on MFT/EFT alone, over the next three years, if you only had 15% dilution, there would be more earnings per share and more revenues per share times a higher growth rate when you add in the fact that they've just added a major platform in Kenetix. I've only been in this stock since it was formed, like some of us here, so I would know or I wouldn't sit here and speculate. But I can't let someone even who is positive on the stock say these things without me making some counterpoints in reply, in this debate. I understand the fear a person can have when they recommend a stock that they want to throw in a lot of blue sky statements as if they were going into a conference call, but a good writer on stocks has to stand his or her ground and make a call, and not hedge their bets when they really don't know all about it, and admit that they need to study the issue further. Consider this a lesson, then. ]
Competitors both established and emerging are rife in the market. Large and emerging competitors can access larger resource pools. Market is rapidly changing which will require companies to continually add functionality to compete. [Again, should I say it again? Wow. Okay, I will. Out of all the companies leading the MFT space, only Globalscape and Ipswitch advanced share of the market while the others (see Globalscape's presentation) lost market share. Yeah, those 'established' competitors don't have the best MFT product either. EFT is #1. Why do you think they've been making offers for Globalscape? Based on EFT! And now there's Kenetix to offer about. And who would be offering to buy Globalscape except their major competitors or a very large partner like HPE or F5l? Listen, if one of those RIFE competitors doesn't watch where they step, Glbaoscape will take their business right out from under them. They haven't and won't stop Globalscape from progressing forward as they have been doing with their EFT and now with Kenetix, it's a whole new ball game.]
Acquisitions & integration The company may attempt to acquire companies in the same space to gain market share. Targets would have bought at a favorable price and successfully integrated. [This is some serious speculation about an acquisition coming on the heels of Globalscape actually proving they have the metal, the intestinal fortitude, the high capacity to create a top of the line, best of breed data integration platform, Kenetix, without playing the merger and acquisition card. Fact is, frankly, they've got the serious talent it takes to create their own product lines, and they can partner with technology enterprises out there rather than buy their company outright. But, it IS also an opportunity that they may be able to make a great purchase, which is a positive option. But they have tasted how good it is to create Kenetix and I'm sure everyone with their thinking cap on realizes just how fast they did it, how successfully they did it. See, whoever is making the offers, those are likely friendlies, who have access to not only the known products of Globalscape but also access to the fact of Kenetix being developed. Data integration was on the roadmap for some time. They have some expertise in what not to do as for acquistions, learning the hard way not to take the bait that may look good and they have a real top expert in technology alliances in Peter Merkulov overseeing any would be technology or company acquisitions based on their technology. They have shown such a great cost benefit, risk reward analysis on their ability to develop Kenetix that it will only serve to make them more careful to avoid a faulty acquisition because they can simply keep developing their own products, platforms as they just did. Kenetix is a major success on all fronts. It really is.]
San Antonio’s Globalscape launches product to help businesses do business
San Antonio’s Globalscape launches product to help businesses do business
The integration-platform-as-a-service solution lets businesses tap into a library of connectors to more than 120 applications such as Salesforce, a customer relationship management platform. Kenetix is designed to be intuitive enough for nontechnica
OK folks, let's get real here. It seems the market this morning has absolutely no appreciation for the potential of Kenetix. Bottom line....if they just sell 3300 units a year at the minimum price point, that would DOUBLE the annual revenue. Given their 90%+ customer retention rate, this could represent explosive annual growth going forward. Yes it takes a while to roll out a new product, but consider the potential if Kenetix can be wrapped into the HPE agreement. WOW! This organization has so much going for it, I just can't understand the absence of market interest.
Globalscape just hired a dozen channel sales MANAGERS for this: Globalscape launches Kenetix, its new integration platform as a service (iPaaS) solution.
Kenetix is a markedly different kind of data integration platform, focused on bringing rapid digital transformation to businesses with the quick connection to, and integration of, new and existing technologies like cloud-based applications, Internet of Things (IoT) devices and third-party application interfaces. With Kenetix, customers are empowered to rapidly create complex application and data integrations in the cloud, with the utmost security, reliability, transparency and control.
This is the one we've been waiting for, the new platform they hired a dozen channel sales managers for. Read my past posts and comments to catch up on it. This is a big deal.
GlobalSCAPE, Inc. Launches Kenetix: a Simple but Powerful Way to Integrate Cloud Data
Globalscape unveils Kenetix: its new integration platform as a service (iPaaS) technology to connect cloud data in a simple yet powerful way.
After hours I see $5.65 with a bid (showing on Yahoo) of $5.50 for 5,000 shares.
Shorts on attack.ALL ABOARD the more the eventual merry
GlobalSCAPE, Inc. Launches Kenetix: a Simple but Powerful Way to Integrate Cloud Data