Gatekeeper Systems Inc V.GSI

Insider Buys and Dilution

[Gulliver1909]

Some complain about dilution and the absence of insider buys but I do have a different view on this topic.

After several posters criticised "dilution" and "cheap stock options"...

When reviewing the year end results of the last view years one can notice that GSI already had 90 million shares fully dilued at the end of 2020. 

Now it is about 98 million shares. Dilution of 8 million shares in 4,5 years means 2 million shares per year or just 2 %. That is not worth mentiong and very modest. While the cheap options are somewhat annoying it is a relict of the very past.

No financing since 2017!

Same thing with insider buys. While I would appreciate Doug to buy some stockI think his holding of 10 million shares without selling a single one is a statement in itself. This is probably the vast majority of his net worth and he has not done any diversifying so far....

Some parallels to CDXC (Nasdaq) a stock I bought in late 2023. The CEO held a significant amount of shares and constantly proclaimed the stock to be significantly undervalued without buying additional stock  (valuation 1.2 times ev/sales, 10 times ev/ebitda with 20 % revenue growth and the stock moving sideways for 2 years ). It went to 7.8 $ per shares (600 % higher now) last week....

[ramman1]

2 ways to look at dilution from ''cheap options'', our fello poster says are insignificant. If the shares were trading higher ,and the company was much larger,dilution from cheap options would be a non-factor. --That being said, 500000 options at .12 , compared to 500000 shares bought at .60 ?? = $ 240000. --Put that into perspective , that was litterally half the investment in our

[Ciao]

I took a quick look at CDXC. Poor parallels between CDXC and GSI. CDXC had 2 major spikes, one in March after 2023 results were announced and one in Nov. after earnings were reported. Moving from negative to positive earnings and inclusion in the RUSELL 2000 (with roadshows as well) is a major influence in getting the investment community to buy into the company to spur the share price. GSI has

[ramman1]

Yes Ciao: You are precisely correct , as is usually the case.--My point? . As a small company ,healthy ,''yes'', growing ''yes'' , we must continue to ''button down the hatches'', and be as prudent as possible with the question of dilution, and more importantly ,how we report results, how ,and where from, our funds, are required  , as a