GGL. Under the the markets Radar

Yesterday's half yearly report of a $2.5 million loss is attributable to the takeover of Exoma Energy. However there is still $2.5 million in the bank with no debt. The dreaded CR IMO áint going to happen.

Management have just cut costs saving an estimated $1.8 million and are predicting from here on in a monthly revenue of $1.3 million. This is largely due to their success with Government contracts representing 27% of their revenue and a total of $4.73 million. Furthermore with a newly established office in Canberra they are confident of winning even more Government contracts. Gov'contracts are worth their weight in gold for the obvious reasons.

Management IMO is very conservative by nature, indeed the recent MobileDen tie up with Red Rooster was not even mentioned directly but referred to as 'Food and Hospitality'. If you check how Red Rooster are now massively investing in home delivery (a la Domino's Pizza) then it's clear how and why MobileDen will boost earnings.

The Net Asset Value is 0.28 cents.

Looking to the future the Co says
"We expect further revenue growth this year with strong sales in the pipeline.New contracts with on going clients will be completed soon."
Talking of management the directors, and in particular the CEO Tim Parker, reads like the who's who of the advertising world.

So why is this stock at 2.4 cents?
Simple.
Nobody looks at it, it's not a HC special and it's still in it's infancy having been around for just 1 year. Stockbrokers won't research or follow a Company until after at least 18 months to 2 years as they need historical earnings.

Don't try and punt this stock. IMO , invest in it , lock it away and revisit every quarter. DYOR and all IMO.