RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Something going on ??? ramman1 wrote: I am looking at .08 eps for the year,and that (could )be '' low''. This April is a huge month . The LG conference ,new investors piling in/increased positive exposure , a possible P/R of contract mixed in , and a steller Q at the end of the month should put this $ 1 plus by end of April. ---- Focus going forward of course is a second large contract with a transit operator, and the continuing growth of MDC 's getting hooked up via contract for re-occur rev's . All good.
I'm in agreement here and would be curious to hear what others think, but Q2 results and any insight into the business in H2 will change our thoughts on projections for rev in 2024 and beyond.
On a "conservative" basis, rev growth of 20% would take us to about $35M in revenue. Doug had mentioned he wanted to keep margins as he saw in Q1. Let's say that overall
net profit margins for the year are 20%, that puts net income at $7M or about .08 EPS. What is interesting is that the company can be at the Rule of 40 for a software company (rev growth and
EBITDA margin totalling 40%). GSI could very meet the Rule of 40 and we can expect valuation expansion.
Anyway we cut it, it's undervalued here by PE / PEG. Money Mark put
here and now price based on a 2024 earnings, a PE of 20. We are far from that and even if we were at that price, the PEG would be under .20. It will be interesting to hear Money Mark's valuation for GSI after Q2 is released and his projections for H2 and 2025.