Saturday morning musings....GSI, a profitable company, dirt cheap at $ 28 million market cap presents itself as an attractive takeover target. I was just reading the MD&A from another corporation who have verticals in road, bridge tolls and ITS (intelligent transportation systems), and could see GSI as a really nice tuck in.
Here is a cut and paste from part of their MD&A statement:
Strategy
We have focused our business on seeking out acquisition opportunities in the ITS industry that provide a foundation for growth and that have reasonable valuations, recurring and re-occurring revenues, predictable cashflows and gross profit, intimate customer relationships and dedicated management teams among other considerations.
We believe that if we increase the share of our revenue derived from reoccurring sources we will also increase the predictability of our revenues and cash flows. This will allow us to better scale our operations to ensure we meet our strategic mandate of operating profitably regardless of the prevailing economic market conditions as we grow both organically and through acquisitions...........
Intelligent Transportation Systems Segment
Our businesses are focused on enhancing safety, mobility, efficiency and environment performance across road and rail transportation infrastructure by providing intelligent transportation systems, products, solutions and services. Based on market research, we believe the global ITS industry is expected to exceed US$69 billion by 2025, influenced by major driving factors such as infrastructure spending, public safety, traffic congestion, smart city development and environmental impact. We believe that we are well positioned to capitalize on these trends.
Our businesses are leading providers of essential ITS products, solutions and services with more than 60 years of combined experience in areas such as commercial vehicle enforcement and tolling. Our customers include government transportation and tolling agencies, traffic engineering operators and industrial, mining and transportation service companies worldwide. We have predictable and reoccurring revenue streams derived from selling ITS systems, products and solutions through long-term customer relationships and renewable service contracts. Our businesses offer a portfolio of integrated hardware and software to detect, measure and analyze a variety of transportation metrics which produces a valuable source of analytics and telematics for users. With a variety of product and service offerings throughout our operations in North America, Europe and Latin America, we believe there is an abundance of opportunity to create scale and efficiencies...........
NOW, after reading that, does GSI not come to mind as a nice target? Lol, Saturday morning musings.....have a good weekend guys.
PS. the company is Quarterhill Inc, was talked about by Steven Takacy on BNN marketcall yesterday.