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.
- Forward PE of 5
- PEG of 0.15
- Insider Buying Actively Occuring
- New CEO James R. Morris in Place
- New AS2 Module Announced - http://biz.yahoo.com/bw/080729/20080729005110.html?.v=1 - which is excellent for the meeting the required credit card, banking, & financial institutes secured transactions standards
- New File Transfer Website Announced - CuteSendIt.com - http://biz.yahoo.com/bw/080701/20080701005208.html?.v=1 - easy to use for non-IT folks = nice revenue channel
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 (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.