GTK - Gentrack

[King1212]

Posted 08-04-2019.
The the write off of the CA Plus acquisition was $14.6 mil.

Lucky GTK has zero debts eh....otherwise these will be caned very bad.....future growth still promising....with forecast second half strong and NPAT slight a head than 2018...

[BlackPeter]

Lucky GTK has zero debts eh....otherwise these will be caned very bad.....future growth still promising....with forecast second half strong and NPAT slight a head than 2018...

Mmh - they have low liabilities, but while a total of $47.6 million are low compared to a total of $242m in assets, it is still more than zero. But yes, low debts certainly help when you have to make write offs to compensate for bad past management decisions.

Their current PE is quite stellar (37 based on FY2018 earnings) and this in combination with a quite low earnings CAGR (only 6% historically). Sure, their historic revenue CAGR is higher, but this is only bought with capital rises - anybody can increase their revenue that way, but no real benefit to the shareholder.

And even the revenue growth of this reporting period (5%) has stalled and is even below analyst expectations. This used to be a company with a PEG around 0.8. At this stage they sit at 2.8; The thing with the PEG is - more is clearly NOT better ... ;

Not sure I share your enthusiasm ... good industry, but GTK has in my view first to demonstrate that their recent stumble was just that - are they still able to walk straight and return to a faster pace? If not, than they are just another overpriced "once we've been a growth company".

[sb9]

Couple of big parcels being crossed at $5.50 this arvo.

[King1212]

Yes...saw that. GTK will do well as the company has no debts....companies that has low or no debts will do at the current market condition

[MauroNZ]

Yes...saw that. GTK will do well as the company has no debts....companies that has low or no debts will do at the current market condition

I see that in Direct Broking show shows EPS: -3.38 cents and PE: -162.72. I haven't followed the company in a detailed way but I saw the price fluctuations. Would you mind sharing more what do you know?

[King1212]

Big buyers in the last couple weeks...

[sb9]

Big buyers in the last couple weeks...

https://www.nzx.com/announcements/336379

Blackrock has been adding to their kitty and now have more than 5% of the stock.

[King1212]

Great run....!

[RupertBear]

Great run....!

Yes it is now that I sold out typical

[sb9]

Yes it is now that I sold out typical

After doubling down recently from my original lot from last year, sold out half my current holdings. Got top price of $6.03 on Friday and reminder slightly lower today.

Just needed to rebalance my portfolio, as current (macro) times getting very interesting.