Gatekeeper Systems Inc V.GSI

Let’s be honest

[Torontojay]

The latest financials  focuses on the revenue growth number which is misleading to investors. Not all revenue should be treated equally. I would much rather invest in a company that improves its gross profit all else being equal then to improve its top line number. They highlight the top line because they don't want people to know the bottom line. 

The bottom line is that the quarter was pretty bad. It's cash flow is negative and the only relevant metric to look at.

[voile]

Please sell your shares so I can buy them. You're seriously calling 81% revenue growth a "bad quarter"? Wow.  And, Q2 is already set up to be the best Q2 ever....

[Torontojay]

  Listen snowflake.  I was once a shareholder and frequent poster on these boards. I was the first to call them out on their poor gross margin excuse the last time it happened.  Btw, I sold my shares a long time ago and I'll tell you what. I didn't sell it below todays current price. The company is probably worth what it's trading at. Nothing more, nothing less

[voile]

Their Q4 (which was highest revenue ever) had gross margins of 49%, and the blended Q1 over the past 2 years was 43%. How about a bit of perspective before you start "calling them out" on your skewed gross margin theories.

[Torontojay]

  In the latest year end financials, 2 out of the 4 quarters had negative operating income. The first quarter was flat and they had 1 great fourth quarter. Overall, the year was a move in the right direction. However, to get to the next level, they have to show investors they can be consistently profitable and with revenue streams that are more predictable and recurring. We are off to

[voile]

So you only invest in consistently profitable companies, yet you're hanging around microcaps on the TSXV and openly criticizing their performance as they grow. Noted. 

[Torontojay]

  Yes, some do exist. You need to find them.  I can tell you off the bat that the majority of venture stocks are losing money. Perhaps as high as 90% of companies have not turned a profit.  I think Gatekeeper is fairly valued at this time. It's not expensive but it's not cheap either.