Gatekeeper Share Discussion Threads

[barnetpeter] 22/8/2008 13:20

So the company will buy back your shares at 20p even though you can buy them well below this price in the mkt. The majority holder will not tender so the float is quite small and most will get their cash - net.

[barnetpeter] 22/8/2008 13:17

Gatekeeper Systems, Inc. ("Gatekeeper" or the "Group"), the leading global provider of intelligent shopping cart solutions, announces
that it is offering to buyback up to 2,500,000 of its issued and outstanding Common Shares (the "Maximum Repurchased Shares") by way of a
tender offer, at a price of £0.20 per Common Share, net to the seller in cash (the
"Buyback"). Pursuant to this offer, holders of Common Shares as at 15 September 2008 (the "Record Date") may sell their Common Shares to the Company upon the terms and subject to the conditions
set out in the Tender Offer to Purchase contained in a circular which is today being posted to shareholder (the "Circular" which constitutes
the "Offer"). Tendering Stockholders will not be obligated to pay brokerage fees or
commissions pursuant to the Offer.

[barnetpeter] 15/8/2008 11:19

Yes indeed. Bought more today at 14p. Bargain. Will apply for the 20p. I reckon I will get that price for 50% of my holding and that will reduce my average to single figures.

Very good statement today with up to 4p of earnings. With sterling falling like a stone, could get better. I hear what you say about other forecasts etc but all that is in the price and then some.

[masurenguy] 15/8/2008 10:54

So you're a buyer for this stock then ?

[masurenguy] 15/8/2008 09:29

"Masurenguy - 11 Aug'08 - 554:Well the first step toward regaining credibility will be at thr H1 Interims next months. To be on track for a pretax profit of $4m in the current year they will need to post H1 sales of circa $12.5m and a pretax of at least $500k. If they can achieve that then their current year forecast would appear to be more credible and sentiment might improve !"

Well sales came in at $1m lower and the pretax was minus $500k - so how credible is $4m for the full year - that now requires $4.5m in H2 compared to $1.5m in H2 last year before interest and currency gains !

The 20p tender offer has hardly had much positive effect on the share price either - just two transactions so far - a Sell of 20k @11p and a Buy of 1.5k @13p !

[masurenguy] 15/8/2008 08:51

Well that establishes and funds a good asset base with greater future profit potential that could potentially enhance shareholder value in any subsequent trade sale !

[hugepants] 15/8/2008 08:47

Incidentally for a company that always makes a profit but has never paid a dividend where has all the cash gone they raised at floatation? The answer is on acquisitions.

[hugepants] 15/8/2008 08:44

The reason the share price doesnt reflect the value of the company is because they keep missing forecasts. Profit of at "least 7 cents" has now changed to "between 6 and 7" in the space of a few months. And theres still 4 and a half months of the year left so good chance profit will end up at 5-6 cents. They never seem to learn.

Shareholders may only end up getting 20p for 20% of their shares if everyone (excluding the majority shareholder) tenders their shares. A chance though that long termers wont take 20p so that should allow others to tender a higher percentage.

[davidosh] 15/8/2008 08:33

All sounds rather scammy to me....Take advantage of Aim market whilst raising funds then never do what you claim nor meet forecasts. Then disappear into the sunset ??

[masurenguy] 15/8/2008 08:12

The company raised circa £7.5m net when they listed in Dec 2004 which valued them at circa £21m. Their market cap is now 75% lower at circa £5.5m and they have been missing forecasts. If they delist - insiders who retained, but did not buy, shares will not have really not lost out here and they can then look forward to a trade sale at some point in the future !

[scburbs] 15/8/2008 08:08

Barnetpeter,

I can. Their actions are cheap. They are trying to force shareholder to accept a low ball tender offer (by scaring them about delisting) and the majority shareholder isn't even prepared to step up and make a proper offer. The majority shareholder is going to be given near to effective control by the company making a small tender offer purchase.

Very poor and very unprofessional in the companies actions towards minority shareholders and a worrying trend for AIM stocks. IMV a blatant attempt to rip off minority shareholders. Just my view, but I find it hard to interpret in any other way.

[barnetpeter] 15/8/2008 08:02

Good and bad news. You can sell your stock for 20p - about 5 times earnings. But they want to delist from Aim. Who can blame the company? Valued at about three times earnings ....

[masurenguy] 15/8/2008 07:58

Credibility still on the line IMO !
..................................

Gatekeeper optimistic about FY earnings despite H1 loss $0.5 mln

LONDON (Thomson Financial) - Gatekeeper Systems, Inc., a global provider of
intelligent shopping-cart solutions, said it is optimistic about its future
prospects and sees full-year 2008 profit before tax at between $3.6 million and
$4 million and EPS of $0.06 to $0.07. But the company slipped to a pretax loss of $0.5 million in the six months to June 30 from a gain of $47,000 a year earlier with gross margins slipping to 44% from 49% a year earlier attributable to a "product mix associated with increased CartManager and CartLock sales, which carry a lower profit margin", the company said.

Gatekeeper Systems also tendered an offer to buy up to 2.5 million shares of
its own shares at 20 pence per share.

[masurenguy] 11/8/2008 15:49

Well the first step toward regaining credibility will be at thr H1 Interims next months. To be on track for a pretax profit of $4m in the current year they will need to post H1 sales of circa $12.5m and a pretax of at least $500k. If they can achieve that then their current year forecast would appear to be more credible and sentiment might improve !

[hugepants] 11/8/2008 14:22

OK points taken. Surely though theres a degree of "once bitten twice shy". No-one likes to look like a complete idiot more than once (at least no-one I know). They even said profits of "at least" 7 cents. They are setting themselves up if they are wrong again.

[masurenguy] 11/8/2008 12:40

Yep - management credibility over last years performance shortfall is also an issue which is probably a significant factor in keeping the share price down.

[scburbs] 11/8/2008 12:09

What more idiotic than they looked last year? (see below the drastic change in just two months) This years profit forecasts are good to see, but management have not done enough to earn the benefit of the doubt given last years failure. Therefore, I don't think the share price will react until the results are in the bag.

"Gatekeeper Systems, Inc
08 November 2007

Gatekeeper Systems, Inc.
('Gatekeeper' or 'the Company')

TRADING UPDATE

Gatekeeper Systems Inc., ('Gatekeeper') announces that it expects total revenues
for the current financial year ending 31 December 2007 to be in the range of
U$31.0 to U$32.0 million (compared to U$29.6 million in 2006). Net income is
expected to be in the range of U$2.2 to $2.5 million (compared to $2.4 million
in 2006)."



"Gatekeeper Systems, Inc
18 January 2008

Gatekeeper Systems, Inc.

TRADING UPDATE

Gatekeeper Systems Inc., ('Gatekeeper') announces that for the full year ended
31 December 2007, total revenue is anticipated to be at least U$28.0 million
(compared to U$29.6 million in 2006). Net income is expected to be at least
U$1.0 million (compared to $2.4 million in 2006)."

[hugepants] 11/8/2008 09:09

I think it would be prudent given current conditions to assume GKR dont meet their expections. However they did make the statement "...our profit before tax
for 2008 is expected to be at least U$4.0 million with an EPS of $0.07.." on 5th May which was 1/3 of the way through their financial year. They must have had decent visibility to make that statement. They are setting themselves up to look like a shower of idiots if they dont meet these numbers.

[scburbs] 08/8/2008 17:49

Masurenguy,

They can be traded online. Unless they have changed policy, TDW were offering trades in this company. I was holding shares in GKR through them, although these have been sold and replaced by sb's.

I don't expect much of a share price move until the next results. If they deliver on their profit forecasts then it should be a very positive move. However, there recent track record on such forecasts is not great as you know!

[masurenguy] 08/8/2008 15:25

Masurenguy - 7 Apr'06 - 138 of 547: Hope your right. First bought in for 42p on January 23rd, added at 37p towards the end of February and topped up toward the end of March and again today.

Masurenguy - 29 Jan'07 - 397 of 547: I also sold out a couple of weeks ago and took profits. Not much newsflow and still a difficult share to trade - impoosible to trade online - always have to phone the broker. Back on my Watchlist again - might look to get back in later in the year.
...............................................................................

Held these throughout 2006 at an average cost price of 41p and sold out at 52.5p in January last year for a good 28% profit over 12 months. Been keeping a cursory watch on them again recently especially after their huge decline over the past 10 months. Agree that they now look extremely undervalued but they are a very illiquid small cap in a bear market and that category is really suffering from negative sentiment at the moment.

Will keep a closer eye on them now and could be tempted back in again if sentiment improves. Wish they could be traded online as that would help to improve liquidity !

[hugepants] 08/8/2008 14:51

This is where we are.

At share price of 11.25p and 38.8M shares then market cap = £4.36M.

From results to year end December 2007:

earnings = $1.2M = £0.6M = 1.5p
Forecast for ye 2008 (see final results statement) = 3.5p

Balance sheet:
Net working capital = $11M = £5.5M = 14p
Cash $5.5M = £2.75M = 7p
NAV = £21M = £10.5M = 27p


But there have been post balance sheet events:

4.6M shares bought into treasury. Cost approx £0.6M
Then $2.5M (£1.25M) spent on 30% stake in small tech business.

Result of above is cash (and net liquid assets) reduced by £1.85M = 4.75p.
But if we assume results on track and profits equate to cash flow then we can add 1.75p for H1 which gives

Cash = 4p
Net liquid assets = 11p

But on top there is an investment worth 3.25p.
And forecast earnings of 3.5p.

Only a severe profit warning can justify current share price IMO.

[hugepants] 08/8/2008 11:49

Last results earnings forecast to be at least 3.5p this year. Buybacks at 50% higher than this price. Strong balance sheet with excess cash and recent investment. £5M market cap.

GO UP!!!

[hugepants] 10/7/2008 12:43

Im assuming buyback on hold because now in closed period before interims?

[hugepants] 06/7/2008 14:39

Share price heading back down into bonkers territory.