Healthy PullbackHere are a few notes as to why I think this pullback is happening:
a) The $11.8M contract is not all guaranteed - 3 years for sure at $2.36M with a possible 2 year extension
b) Reminder - Last PP a long time ago to get all the cash on the balance sheet was at a $0.20 cent finance. There may be some taking some profit on the recent run up from news
c) Fundamentally, GSI is accomplishing positive EPS. This is good. However, sometimes the market requires a breather for things to catch up.... such as financials, verified contracts, execution, COGS etc....
d) In the last 3 months, the price is up approximately 135% on the news releases from the company. So I think it is doing extremely well in a short period. (Also... note it reached as high as 40% return from last PP of $0.20)
I am long GSI and have been for close to 3 years. IMO, this small pullback is healthy. As long as Doug and management can continue to execute on contracts, and keep EPS positive, GSI should do well.
In conclusion, I think the info released in Q4 Financials will be a big determining factor in where the new base in price will form.
Good Luck to All,
FI4