GlobalSCAPE Ready for Major Rebound

Includes: CVLT, GSB
by: Philip Obal

GlobalSCAPE (GSB) is a software development company that develops products such as file transfer protocol [FTP] client programs, including CuteFTP, CuteFTP Pro, and Secure FTP Server. GlobalScape also develops Enhanced File Transfer [EFT] Server and Data Replication Products for Wide Are File Systems.

I believe the company is undervalued and is ready for another of it's growth spurts. GlobalCAPE has healthy financials with zero long-term debt and a good pipeline of new products.

The real challenge with GlobalScape is that it is a small-cap,therefore, it can swing rapidly up (or down) with good news (or bad). The last few quarters earnings have been flat - thus the share price has fallen to a low point. But the pipleline has been growing with new products.

GlobalScape Positives:

Based on announced new products above, upcoming new products, new partnerships, FIPS certfied products for secured file management, very low PEG, and a past history of growth,  I perceive that the next 4 quarters the stock will move from it's current bargain share price of 1.35 to 4.00 or higher!

GSB should be trading at a Forward PE of a 15. A good comparison is the larger competitor Commvault (NASDAQ:CVLT) which has a forward PE of 15. GlobalScape should partner more with international ISVs like Commvault does.

Disclosure: Long position in GSB

As always, be diligent in your own due diligence on any investment that you make.