I know guys what a disappointment here…… The markets been so volatile this once 28% gain turned into an unexpected slim to nothing in just 2 days after they reported a record quarter.
They’re forward PE is currently at 12.21x which seems conservative now being that they reported such a strong quarter. In the case of no growth and GSB reports .12 for the next 4 quarters they would report annual basis of .48 eps making their forward PE a multiple of 8.43x instead of the current estimated 12.21x. The industry average for the business software services is currently a 35x earnings multiple making GSB look very undervalued. Fair value estimates for GSB’s future share price is 11.9 - 15.4 $/share making a lot of room for growth into the future as GSB is trading at just 4.15 at todays closing price.
Technically price has retested the breakout zone near $4/share and is coming up on the 50ema as se7en pointed out that could be signs of support. Of course this stock looks cheap here but the general market is beating down everything regardless, So i close below $4 i’ll most likely sell this position off and maybe buy some even cheaper if i get the chance and the market seems to be rebounding.
GlobalSCAPE (AMEX:GSB), leading the market in the integration of Managed File Transfer and Wide Area File Services technologies, today announced its second quarter results.
Revenue for the quarter ending June 30, 2007, grew to $6,418,025, or 162% over the $2,445,327 registered in the 2nd quarter of last year. Net Income increased by 323% to $2,114,876 or $.12 a share on both a basic and fully diluted basis for the quarter.
“I am especially excited about the way our core business, Secure File Transfer and File Sharing continues to explode,” commented Randy Poole, President and CEO. “At 60% growth, we would have had a great quarter without the Defense Department order. Since inception in ‘03, our server-side business has more than doubled each year from $600 thousand in ‘04 to $2.9 million in ‘05, to $6 million in ‘06, and we’ll exceed $13 million this year,” stated Poole. “Those core products are fueling our steady, if not dramatic, growth and making it possible for us to participate in the very large order arenas that are not as predictable. We’ll take advantage of those opportunities as they occur while focusing on the day-to-day activities that have gotten us here,” concluded Poole.
