Gatekeeper Systems Inc V.GSI

Dating myself but recall the famous quote

[davewho]

from Joe Friday in the Dragnet series of the 50's

"Just the facts, ma'am."

537k school buses on the road everyday in NA
30k just here in Ontario

our competitor states they are the LARGEST provider with 20k school buses equipped. This is in their latest NR about the new funding of $300mUS.

meanwhile back at the ranch

GSI states they have 3500 customers, have 50k+ MDC's installed and need to build a new data center to handle all the incoming.

is something amiss here? Just wondering.

[kidl2]

Just wondering … Is a comparison between 20,000 school busses and 50,000 MDCs valid as every school bus has multiple MDCs?

[Ciao]

This NR from last year shows that GSI had equipped 45K buses, so it appears that they have more buses equipped than the 20K that Bus Patrol has. It appears that one MDC/bus seems to be the norm. "Gatekeeper has recently launched several new school bus solutions within its Platform-as-a-Service product suite such as AI Dash Cam, Mobile Wi-Fi, 360 Surround Vision and Student Protector. Under

[davewho]

Thanks Ciao, I was looking for that bus number but couldn't find it. 

[Ciao]

No worries, I had to thumb back through a number of NR. If Bus Patrol ever wanted to almost 4X their install base, they could do a roll up with GSI. That would also give them an exchange listing making it easier to raise capital as well.  There's been some consolidation in the business with Safe Fleet buying Seon in 2014 and then private equity Oak Hill bought Safe Fleet in 2018

[kidl2]

Potential (hostile) takeunder / takeover ... I don't see it. DD holdings plus a huge long term, patient and trusting shareholder base. Maybe a mutually beneficial businss combination isn't out of the question. Knowing what I know about GSI, it would only happen if beneficial to GSI and its shareholders, Rarely have I put as much trust in a CEO. DD has earned this trust in my books.

[Ciao]

There's been quite a number of takeovers in the CDN micro-cap space. TrueContext has been the latest. I'd hate to see GSI as a "victim" given the current low valuation as a baseline for a premium and the fact it is not "distressed" [ besides it's valuation  :-)  ] {^youtubevideo|(width)425|(height)264|(rel)False|(url)https://microcapnewsletter.substack

[davewho]

for anyone who hasn't seen that NR they do make some pretty bold statements. I'm sure DD has issue with parts of it. With the $300mUS investment if they wanted GSI thats $4C / share that they could offer. Just not sure GSI would be interested. BusPatrol Announces Significant Strategic Growth Investment (globenewswire.com)

[kidl2]

Ciao ... MANY thanks for clearing this up.

[Ciao]

No worries. It get's confusing when there are changes in the units of measurement from buses to MDC's.

[davewho]

thanks for the reply I was wondering about that, maybe that explains the difference. Has GSI ever said how many buses they have cameras on? Or is that one of the things DD likes to keep away from the competition?