Gatekeeper Systems Inc V.GSI

$1B valuation, a story to unfold

[Ciao]

There are a lot of CEO's who say that they want to see their company garner a $1B valuation.

Doug has mentioned his goal to move GSI into a $1B valuation in a 10 year time frame. He's started the narrative with a good story on how he will attain this goal in broad terms.

1) move GSI from a hardware to a data analytics company
2) grow top and bottom line without dilution
3) fire up 100K MDC units (we have 50K units now) which can produce $50M / year in recurring rev (based on $500/year in SaaS revenue / MDC)

The valuation: a 10X plus multiple on the $50M / year recurring rev + a 2 - 3X multiple for hardware sales

Doug will tweak the story as it unfolds; is a $1B valuation possible, probable or plausible? As the story moves forward can we see this move from being possible to probable and then plausible. Maybe a $1B valuation is a stretch, but how about $500M, but to get to $1B you'll need to hit $500M first.

For those interested Google: Aswath Damodaran, who is a prof at Stern NYU, he has a number of videos on YT about valuations.

[Torontojay]

Very possible Ciao. If anyone can do it in the nano cap space it's probably Doug. He's very tight fisted with his money and invests it wisely. 

[Ciao]

A lot of us here would be content to see a 3 to 4 bagger from here. The key to getting these type of returns is to grow rev and earnings without diluting. Doug keeps on stressing this and if the assets already in place (MDC) can generate those recurring revenues we are on the way. For me, hearing about activating MDC unit no. 10K, 20K, 30K ...is more exciting that SEPTA contracts, but until we get