GBIT UPDATE (for newbies and loyal shareholders)...Michael, your info is accurate but doesn't go far enough to answer the critics (many of whom are shorters) of GBIT. They claim that the eps numbers are mostly tax credits from the DEC quarter when GBIT closed down some unprofitable divisions. They worry that when the tax credits go away, the eps numbers will go down. Let me address that in a post I made to them on messages.yahoo.com today.
REVENUES ARE UP!
Revenues are up, that's a key! Look at how many big NASDAQ companies out there
whose revenues are DOWN. The only reason THOSE companies are
posting decent eps numbers is by cost cutting. GBIT is still increasing
revenues, a very healthy sign. I am surprised you guys are not picking up on
this.
And what is amazing is that the DEC 97 numbers show that after they took
the big one time loss for closing down unprofitable divisions (an obvious smart
move) they STILL increased revenues. NOw that's impressive! Closing off
your other revenue sources to concentrate on your main strengths and
STILL beating revenues!
Mar 1997 = 7.931 mil
Mar 1998 = 9.328 mil
Jun 1997 = 10.518 mil
Jun 1998 = 11.993 mil
Earnings also increased over last year, even without the tax credit, while the
stock price is 1/3 of where it was. Hardly overvalued. You guys are really
really impatient. The trend is healthy.
*** From Briefing.com
GBIT provides system integration and information technology services and
assembles and supplies build-to-suit
computer equipment for corporate clients, governmental entities, institutions,
professional users and resellers. For the
6 months ended 6/30/98, net sales rose 15% to $21.3M. Net income from
continuing ops. applic. to Common totalled $1.2M vs. a loss of $1.1M.
Results reflect additional sales efforts and staff, and higher margins.
REGARDING SHORTERS:
Much more is being done than 95% of you realize. The major shareholders of IGHS and GBIT and management are working with yet another HUGE THIRD PARTY (Penn Merchants, a major investment advisor firm) to orchestrate a merger between 2 or likely 3 companies that, if successful, and that is not yet guaranteed, will make shareholders of GBIT and IGHS very happy.
There is always a risk, so do your homework if you decide to invest. I like the odds, but there is risk and I am not trying to talk anyone into anything. This stock will not succeed or fail based on buying from SI folks. SI folks are a small part of will happen if the deals go through. |
