Global Sources Ltd. (Bermuda) (NASDAQ:GSOL)
CAPS Rating:
The Company is a provider of trade information in print media, online media and face-to-face events, meeting the marketing and sourcing needs of its supplier and buyer communities.
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I've followed this one for years and I own shares in RL. This company is undervauled. Debt to equity is nearly nil. No Long term debt. They have 1/3rd of their current valuation is on the books in cash. Ridiculously low P/E for a tech stock and still low for a print media company...especially when cash, debt, etc are considered.
The elephant in the room is Alibaba inc, and to a lesser extent, there's the baby elephant that is the trade disparity between the US and China. If Alibaba continues to depress GSOL's revenue potential, then this company will need to continue to develop new products and into new markets. If the next two years proves that revenues can grow steadily alongside Alibaba, then we'll see an impressive increase in share price--2 to 3 times what we're seeing now.
Alternatively, with the low price and large chunk on cash on the books, this company could be a potential buyout target for the right company, unfortunately, many of the right companies are in the much maligned media business.
I liked this at 10 and I really like it at 6.50, so I've tripled my investment. It's worth taking a look.
Sold 40% of shares at 7.25, plan to keep 60% until $10, then reevaluate.
Holding til $13 or review of next financial statement.