This company/stock reminds me of CHKP. I traded it 3 years ago back when the net was ramping up, and YHOO, AMZN et. al. were the glamour stocks. I was going for infrastructure, however, convinced that was safer than B2C retailers. While the tulips grew like weeds, little ol CHKP couldn't get out of it's own way, even after putting up quarter after quarter of stellar growth. It felt like the market didn't "get it", just like now with GX. There was a perceived risk that MSFT would enter the space and crush them...at least that was the best excuse anyone could come up with. So, frustrated, I moved on.
Well just look at little ol CHKP now. It sports a greater market cap than GX and is a Wall Street darling. What happened? There was a perceived risk of failure with the company that was too daunting for most investors. Most firms on the Street like to follow the herd when the coast is clear. Once it became apparent that CHKP would come to dominate their space and flourish, everyone piled on. So it will be with GX IMHO. My advice would be to buy it now, put it in a drawer and look at it in a year or 2. I know we all want instant gratification, but until the Street is convinced GX will make money one day, the stock will underperform. Remember, perception is everything. |
