Gatekeeper Share Discussion Threads

[asparks] 25/9/2008 12:30

why is this not at 20p?

[scburbs] 22/9/2008 16:27

No thanks. I will take 20p for 39% of my holding and then hold the rest. Makes a lot more sense than taking around 12p for the lot (even if there were sufficient liquidity).

[asparks] 22/9/2008 15:49

get out while you can

[scburbs] 22/9/2008 15:46

Now they have their cancellation approved they have decided not to bother to increase the tender offer. Continued very poor investor relations!!

[asparks] 22/9/2008 08:35

All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[hugepants] 20/9/2008 12:46

20p is a very good deal. I dont beleive this is a great company. As I said before this shower always post good profits but where has all the cash gone from the floatation? They should have much more cash now but instead they have very little. What they are doing is making regular acquisitions (using cash) that only succeed in keep profits broadly flat. Well they cant keep up that trick forever.

[barnetpeter] 20/9/2008 12:07

Depends on your average scburbs. If it is around the 9p then you get all your cash back and are left with an investment at zero cost.

I am not sure why so many here are scared about this exit. My idea position would be for the company to take 70% of my stock for the 20p leaving me with an investment that cost zero in a clearly undervalued US company that I will just forget about. Either a deal will be agreed to take out minority shareholders at a much higher price or it will float again. Sure it may take 5 years but so what? If the management builds earnings up to $2 a share and it relists at $80, you will look on it rather differently! In some ways, it is not so bad that it delists. How many would jump out if it went to 30p?

I have looked at this company in some detail and I reckon it could be a big winner. Given time. I started a thread on ASOS when it was just 4p and I sure wish that had delisted shortly afterwards and was coming back to the mkt now!

Sometimes making a lot of money takes a little time.

[scburbs] 17/9/2008 08:33

Morning Barnetpeter,

I certainly hope that they are! It would still represent a takeover on very cheap terms, but having heavily topped up at around 9p an exit at 20p is ok for me too.

On the other hand selling 40% of my investment at 20p and holding 60% in a private US non-dividend paying company would be far from satisfactory!

[barnetpeter] 17/9/2008 07:05

Strip out all the shares that are held by the majority shareholder and directors etc, and you are left with approx 10 million. My guess is that they are looking for exrea investment and a way to force holders to sell at 20p - less than half the floated price. Fine by me.

[scburbs] 16/9/2008 08:09

At current counting just 40% of tendered shares will be matched. This may go up if the offer is increased, but it is likely that additional shares will be tendered in the extension period.

[scburbs] 16/9/2008 08:08

At last some sensible behaviour by the company. Leaving the shareholders high and dry with a far too small tender offer would have been appallingly bad investor relations and entirely unprofessional IMV. If you are going to do a takeover by the back door at least allow the private investors a proper opportunity to sell.

It was a ridiculous plan to force most private investors to sell (due to the take private), but then to provide vastly insufficient liquidity for them to sell!

"Gatekeeper has extended the Offer to provide its Board of Directors additional time to evaluate increasing the number of Common Shares subject to the Offer in order to accommodate stockholders who have tendered their shares or desire to tender additional shares."

[masurenguy] 03/9/2008 21:11

"In addition, the Board believes that the costs associated with being a company listed on AIM are disproportionate to the benefits of such a listing. The Board believes that there would be significant cost savings from the Common Shares not being listed or traded on AIM."

If they're looking to save money then any relisting in the US under Sarbanes will cost them double at least ! You can "guess" that they will get taken over in 6 months but that is just wishful thinking at this time especially after their previous failures to achieve profit forecasts. Realistically, any stockholders here can only sit and hope for a trade sale in due course - no free money here, just money tied up indefinitely in a privately held vehicle based in California !

[barnetpeter] 03/9/2008 20:56

The company will either relist in the US or get taken over. At a much higher price than the stupid AIM price. My guess is within 6 months.

[masurenguy] 03/9/2008 20:40

Hmmm......well if you spend £7.5k and buy say 50,000 @15p and then sell double pro rata the tender quantity - say 13% or 6500 @20p - then you will have made a profit of £325 (£1300/£975) and will be left with 43500 costing £6525.

Deduct your £325 profit on the 13% that you sold @20p and you are left with 43500 costing £6200 or 14.25p each ( or $0.25). Now do you really think that some really generous guy in California is going to buy then off you at that price as a 'matched bargain' or are you now going to be stuck with them indefinitely hoping that a trade sale at some point in the future will enable you to finally liquidate your investment at a small profit !

[barnetpeter] 03/9/2008 20:29

This is my view. Gatekeeper is at a crazy price; way below its true value. It has bought a load of stock back but the price has done nothing. So I think the directors are right to abandon AIM.

So you take the 20p and probably get that for around 40% of what you hold. That means you have some stock left at a really low price. If you can forget about the shares for a while either they will get listed in the US or a deal gets done for the company. Probably at 5 times the current price imo.

With the pound falling away, the value of your investment in the US will also increase.

What else can the directors do? A PE of 4 for a leader in its field?

[barnetpeter] 03/9/2008 20:08

You can buy at 15p and sell (at least some) at 20p. Seems to me to be a fair deal?

[scburbs] 03/9/2008 17:23

The tender offer represents 20% of the shares available for tender. Not that I am claiming that this is a positive, but it is better than 6.5% which is the percentage of total shares of which a large chunk are not available for tender.

[asparks] 03/9/2008 14:05

Well - look what I said on 27th Aug. Anything P Greensmith touches fails BADLY. See FBG board for details. Sorry for all investors here. You have lost everything

asparks - 27 Aug'08 - 11:30 - 567 of 568 edit


All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[asparks] 03/9/2008 14:05

Well - look what I said on 27th Aug. Anything P Greensmith touches fails BADLY. See FBG board for details. Sorry for all investors here. You have lost everything

asparks - 27 Aug'08 - 11:30 - 567 of 568 edit


All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[asparks] 03/9/2008 13:55

Well - look what I said on 27th Aug. Anything P Greensmith touches fails BADLY. See FBG board for details. Sorry for all investors here. You have lost everything

asparks - 27 Aug'08 - 11:30 - 567 of 568 edit


All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[masurenguy] 03/9/2008 13:45

Well if your already owned or subsequently bought shares in the company then I wish you good luck in trying to sell them via their 'new USA matched bargain facility'. The tender at 20p only applies to circa 6.5% of the issued shares so once you have cashed out the pro rata portion of your existing holding you will be left with the rest in virtually an illiquid scenario !
....................................................................

Gatekeeper Systems, Inc.
Proposed Delisting from AIM

IRVINE, Calif. - 3 September 2008 - Following the announcement by the Company that it was launching a tender offer to buy back up to 2,500,000 of its Common Shares on 15 August 2008, the Directors consider that it would be in the best interests of the Company to seek a delisting of its Common Shares on AIM..... The Board believes that, due to relatively inactive trading and the low profile of the Company in the market, the value of the Company in terms of its business and growth prospects is not adequately reflected in the price at which the Common Shares are currently trading.

The Directors are aware that Stockholders may still wish to acquire further or dispose of Common Shares and, accordingly, intend to use reasonable endeavours to create and maintain a matched bargain settlement facility. The intended matched bargain facility will be provided by the Company and administered by the Company Secretary, Aaron Neilsen. Under this facility Stockholders or persons wishing to acquire shares will be able to leave an indication with the Company Secretary that they are prepared to buy or sell at an agreed price. In the event that the Company Secretary is able to match that order with matching sell or buy instruction, the Company Secretary will contact both parties and, subject to compliance with applicable state and federal securities laws in the United States, effect the order. Further details concerning the matched bargain facility to be provided by the Company will be made available to Stockholders on the Company's website in due course.

Under the AIM Rules for Companies, it is a requirement that any delisting from AIM must be approved by not less than 75% of Stockholders voting in general meeting.....The Company has notified London Stock Exchange plc of its preferred cancellation date and, if the resolution is approved, it is expected that cancellation of dealings will take effect on 1 October 2008.

[masurenguy] 03/9/2008 13:43

So much for 'free money' !

If your already owned or subsequently bought shares in the company then I wish you good luck in trying to sell them via their 'new USA based matched bargain facility'. The tender at 20p only applies to circa 6.5% of the issued shares so once you have cashed out the pro rata portion of your existing holding you will be left with the rest in virtually an illiquid scenario !

Will the profit on the proportion that you might be able to sell via the 20p tender offer outweigh the loss on the balance that you are left with after they delist and become they then become almost impossible to sell ? The only residual buyers will probably be insiders who will be unlikely to want to pay you top dollar for the balance of your holding !
....................................................................

Gatekeeper Systems, Inc.
Proposed Delisting from AIM

IRVINE, Calif. - 3 September 2008 - Following the announcement by the Company that it was launching a tender offer to buy back up to 2,500,000 of its Common Shares on 15 August 2008, the Directors consider that it would be in the best interests of the Company to seek a delisting of its Common Shares on AIM..... The Board believes that, due to relatively inactive trading and the low profile of the Company in the market, the value of the Company in terms of its business and growth prospects is not adequately reflected in the price at which the Common Shares are currently trading.

The Directors are aware that Stockholders may still wish to acquire further or dispose of Common Shares and, accordingly, intend to use reasonable endeavours to create and maintain a matched bargain settlement facility. The intended matched bargain facility will be provided by the Company and administered by the Company Secretary, Aaron Neilsen. Under this facility Stockholders or persons wishing to acquire shares will be able to leave an indication with the Company Secretary that they are prepared to buy or sell at an agreed price. In the event that the Company Secretary is able to match that order with matching sell or buy instruction, the Company Secretary will contact both parties and, subject to compliance with applicable state and federal securities laws in the United States, effect the order. Further details concerning the matched bargain facility to be provided by the Company will be made available to Stockholders on the Company's website in due course.

Under the AIM Rules for Companies, it is a requirement that any delisting from AIM must be approved by not less than 75% of Stockholders voting in general meeting.....The Company has notified London Stock Exchange plc of its preferred cancellation date and, if the resolution is approved, it is expected that cancellation of dealings will take effect on 1 October 2008.

[asparks] 27/8/2008 11:31

All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[asparks] 27/8/2008 11:30

All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here

[asparks] 27/8/2008 11:30

All - I would suggest you tread very carefully here. One of the Directors is Peter Greensmith. He has been responsible IMO for the demise of other companies such as LNR (now FBG). Also EVER. Check out EVERGREEN SECURITIES. It changes its name every 5 minutes. V dodgy. IMO you have lost your entire investment here