GSI Group, Inc. (USA) (GSIG)

jango06 (< 20) Submitted: 9/29/2008 4:30:12 PM : Start Price: $3.57 GSIG Score: -82.26

It has positive NCAV. Lot of margin of safety.

Demesne (77.57) Submitted: 9/26/2008 11:40:45 PM : Start Price: $3.67 GSIG Score: -78.17

At $3.60, GSIG is trading at an adequate discount to liquidation value.

Glasscurtain (< 20) Submitted: 9/22/2008 2:50:42 PM : Start Price: $3.94 GSIG Score: -77.10

GSI Group is a real Grahm & Dodd value story with $4.00 of net cash per share and no debt. Insiders are buying.

TMFDitty (98.90) Submitted: 9/17/2008 12:48:44 PM : Start Price: $3.53 GSIG Score: -78.75

Here goes nothing: Post-merger with XLTC, and pre-restructuring, the combined operations of GSIG and XLTC should have:

* About $45M in combined annual FCF ($20M from GSIG, $25M from XLTC)

* Estimated profits growth of about 15% for each pre-merger company

*Assuming GSIG had $180M in cash at the time of the purchase, and paid $350M, it should now have $170M in net debt, so an enterprise value of $320M

*So call the EV/FCF ratio 7x. A nice value at 15% growth.