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Gatekeeper Systems Inc V.GSI

Alternate Symbol(s):  GKPRF

Gatekeeper Systems Inc. is a Canada-based provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. It uses artificial intelligence, video analytics, and mobile data collectors to inter-connect public transportation assets within a smart city ecosystem. Its platform-as-a-service business model is centered around wirelessly enabled mobile data collectors which forms the foundation of its data company evolution. It engineers, manufactures and distributes high-definition mobile video and data solutions for a range of markets including school districts, law enforcement, public transit authorities, as well as the United States military. Its video management and video analytics software may be used in mobile or desktop applications for managing video evidence of incidents. Its solutions include Purchek, Business Intelligence, CartControl and CartManager Ultra.


TSXV:GSI - Post by User

Comment by BoardAddicton Mar 02, 2021 1:54pm
213 Views
Post# 32696400

RE:RE:RE:Agreed Boardaddict

RE:RE:RE:Agreed Boardaddict

Buyers generally want to see 3 years of tax returns that show year over year revenue growth which puts us on the sidelines for approximately 2 more years.  Saying that, offers could come in at any time as some companies already know the market.  In the meantime DD has been taking our capital and compounding it at an impressive rate year over year, therefore I am in no hurry to sell as I fully expect this to carry on.

A few examples of acquisitions by Motorola:

Avigilion $1,000,000,000 USD (video analysis software)
Vigiliant Solutions $445,000,000 (license plate reading technology)
Axon $13,800,0000 (body cameras)

"Motorola has a lot of niche markets in mobile and makes a wonderful partner for us". - DD  Us Small Caps Discovery interview Oct 2, 2020.

IMHO: Motorola is a high potential buyer as they have had at least 8 acquisitions since Feb 2016.  A few companies they acquired appear to be similar to Gatekeeper.  Doug has mentioned that Motorola is seen as a partner, but I question if they would stay partners to someone willing to buy Gatekeeper.   Complete speculation only time will tell. What we do know is the numbers to which some of the comparable companies were bought for.

I do not know Doug's age or when he would like to retire, but I do know of his publicly stated goal of a $1Billion evaluation and he seems like the personality that doesn't quit until he reaches his goals.   I have never met the man, but out of complete respect for what he has done with this company I would follow his advice on any buy out offer whether it be to take an early offer or to decline and wait to grow the company to $1Billion.

It's safe to say everyone would be happy with a $3 buyout as that would leave us all in the green, but a lot of us would be disappointed selling early due to the fact of the market being over heated.  It would be tough finding a company as secure.  Many company's are trading at high multiples or completely trading off speculation.  This is why I am not in a hurry to get rid of this stock as this company is a safe haven for investors - Contract Revenue, undervalued multiple as we are currently based off hardware and not cloud based software and data management, multiple products sold to essential services, products that not only save customers $millions on legal fees but also offer products that generate customers money - TIMS and the lane infraction coming into play - ticket revenue, then add increasing margins and government funding that will accelerate sales that much faster.  

Gatekeeper Systems has a built some unique products, but what impresses me the most about this stock is the economics built around it.  It's not always enough to have a great product, it has to be affordable.  Between saving legal fees, generating revenue, improving ridership, and improving foot traffic the customer base will only expand.  Potential government funding will help customers that much more.

 

 


 

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