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Bullboard - Stock Discussion Forum 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... see more

TSXV:GSI - Post Discussion

Gatekeeper Systems Inc > Comparison
View:
Post by Ottawa10 on Nov 18, 2024 7:00pm

Comparison

Since we are on the topic of valuation, I decided I would share the following.

 

Zedcor  (ZDC.V) is a company that does mobile industrial and commercial surveillance solutions. From their recent earnings report:  Zedcor generated revenues of $9.2 million and $22.7 million for the three and nine months ended September 30, 2024, respectively, and Adjusted EBITDA of $3.4 million and $8.0 million.

 

We have a much cleaner balance sheet.

 

Their market cap?

$315M

 

We are $58M!! 

 

We are severely undervalued relative to so many of our peers.  Truthfully if there is manipulation, I wonder if it’s because Doug refuses to bend the knee by doing a financing with the banks.  I’ll explain what I mean…

 

There are many examples out there of companies that do financings and their share price will rip higher. When I say this, I’m referring to companies that have actual revenue and product, not the many pump and dump scams that exist.

 

After the financings, you’ll suddenly see analysts doing reports on Seeking Alpha etc.  which gets even more eyes on the company.  Doug, with good reason, refuses to do a financing and part of me wonders if we are being “punished” in a sense for it.  Perhaps this seems far fetched but look at our SP!  We are expecting roughly $37M rev, profit on that, no debt, cash galore.  It’s nuts, and we all know it.  

 

I do believe that at some point gatekeeper will get its due respect and the share price will rocket higher and we will all be pleasantly rewarded for our patience. I don’t know when that is going to happen, but the company is growing and has to eventually get noticed for what it is.  My position is huge, I add on weakness and am betting on this horse because I see tremendous value at this price.  

 

I believe we will all look back one day and kick ourselves for not buying when we completely had the opportunity at this price.  The numbers speak for themselves.  

 

 

Comment by cablong on Nov 19, 2024 11:00am
Great point on the ZDC financing. I don't usually like to see the shareholders get diluted, but the ZDC May 2024 PP financing at $1 for 15 million raised seemed to work out for ZDC. 52 week low of .50 and todays high of $3.40. We are so undervalued. I'm totally all in and overweighted GSI. Cheers
Comment by Ciao on Nov 19, 2024 11:37am
That's where Doug fails in understanding the capital markets. I think we've discussed here how a token financing would give much needed institutional interest and support to give the share price a fairer valuation.
Comment by Gulliver1909 on Nov 19, 2024 2:13pm
I respectfully disagree on the need for a financing! If you do not need the money - doesn´t make sense to dilute shareholder at a price significantly below the intrinsic value of the stock. Zedcor did not go from 1 CAD to 3,5 CAD because of letting some institiions into the stock. ZDC.V went up that much because.... -they have a track record of growing the revenue and ebit substantially ...more  
Comment by Ciao on Nov 19, 2024 2:27pm
It's easier for a $90M market cap to secure a $30M contract than it is for a $60M market cap company. IMHO, a token 7M (7% dilution) share financing at .70 raising say $5M earlier in the year would have done wonders for the company. Doug has said, he would take care of the business and the share price would take care of itself, has it? There's obviously something missing here and it's ...more  
Comment by Ciao on Nov 19, 2024 2:30pm
  correction: should read "and it isn't just the need to overcome lumpy revenues"
Comment by Gulliver1909 on Nov 19, 2024 3:11pm
Credit to Doug that he brought GSI from 8 million cad revenue and no profit in 2018 to 37 milion cad revenue and 5 million cad profit (my expectations) in 2024 without any financing. SO I think the current balance sheet and the underlying profitability is strong enough to fund further revenue growth to 50 million cad. Growth from 2018 to 2024 was harder to achieve..... Of course I think Doug is ...more  
Comment by ramman1 on Nov 19, 2024 6:48pm
''Credit to Doug"' ????  . --WOW: Have another drink my friend,enjoy your selection. --Shares are at .62 , ''are you fully ALL  peachy and content' my friends '. ?? ----- WHO: I might add ,is making money , other than those excersizing cheap options  at very low prices./Give EM another 1 million bonus/ USE up some of that huge cash on hand doing ...more  
Comment by Ciao on Nov 19, 2024 7:18pm
Based on 2024 preliminary results with rev up 35% and net earnings likely up about 80% why is the share price essentially flat for the year? Why has the share price failed to be on the "winners" list?
Comment by ramman1 on Nov 19, 2024 7:42pm
''WHY has the share price failed???  Read ,my posts .(1) declaring losses on Q , when there is no loss) (2) No communications on company staus/news) ,(3)  Failure to even be interested in filling empty directors vacancy,who could provide great contacts ) (4) NEVER, 1 cent of insider buying,),(5) Frigid atmosphere with capital markets ,(6) No path forward on holding massive cash ...more  
Comment by Ciao on Nov 19, 2024 7:49pm
Ramman1, yes, I was hoping to get some other opinions :-) 
Comment by Tropicalsun on Nov 20, 2024 1:11pm
Indeed Ciao, why isn't GateKeeper on the winners list. It certainly checks off all the boxes and DD has stated that he has had many conversations with institutional investors. It's very frustrating, but I believe we will be on that list one day soon and become that overnight sensation that Brent Todd speaks of. What I continue to struggle with is that we should be on that list already ...more  
Comment by Ciao on Nov 20, 2024 2:29pm
TS, I believe those other companies woke up due to rev growth and profitability after finally getting traction. GSI has been doing it for a few years now. IMHO the other companies give more visibility to rev growth providing a firm path towards it. We hear how this will be a data company but we don't even have updated MDC subscription data, we hear how the upgrade cycle is upon us but don' ...more  
Comment by Tropicalsun on Nov 20, 2024 4:37pm
 Ciao, as always I appreciate your insight. Yourself and ramman1 and others have expressed valid points and concerns about DD's management of Gatekeeper. We are just retail peons that at the end of the day Doug could careless about. However that being said there clearly is some investment experience amongst some of the posters on this board, which only matters to us. I know that many of ...more  
Comment by CryptoCurrency on Nov 19, 2024 6:45pm
Gulliver, your comments on Zedcors success are very accurate. I hope Doug implements a few of their strategies as it would be hugely beneficial.
Comment by Tropicalsun on Nov 20, 2024 12:57pm
Gulliver, good post with good points to back up your statements. I also agree that doing a financing at these levels would serve no purpose, except to allow institutions the opportunity to buy cheap shares for themselves and their clients. Doug has repeatedly stated that he would not dilute his shareholders at these levels just to please the pro's. There is a time and a need for a PP when it ...more  
Comment by ramman1 on Nov 20, 2024 1:19pm
Dilution: (''to thin down or weaken as by mixing with water''.). ''(WEBSTER'S)       I agree 100% there is absolutely NO reason to do a PP ,and dilute,/with money in kitty,share price already well under proper value.---------   That being said,   Is  taking a  1 million dollar bonus, and excersizing cheap options, and ...more  
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