Q: Hello 5i Could you comment on Gatekeeper as a company to invest in and why the recent spike in the share price
5i Research Answer:
GSI is up 141% this year, bringing market cap to $132M. The company won some contracts in June, but specifically in response to its stock move GSI noted this press release outlining a potential other contract. GSI is debt-free and cash flow positive, but earnings have shown volatility. It has no analysts covering the company and valuation is up there at 5X sales. There are execution and small company risks here, but it is growing nicely and has a good niche of business. Insiders own 12% but have been net sellers this year.