I've read posts here.
I was buyer early on, read the past posts, so i'm well ahead in the game, first in first out scenario.
That said, I'd like to touch on some points, someone has to stick up for the company right? haha
1. a) Contracts are rarely binding - In SaaS most contracts "signed by the user" are to lock in prices/fees/charges for themselves for a time period. I think people are getting a bit confused by how it works in software land. People haven't done their research which is common in online betting/gambling/share buying.
1. b) GSW provided "estimated" or "anticipated" delivery numbers. The dialogue was very clear in that they provide guidance on what the "users" forward looking deliveries looked like numbers wise.
Do you think they get the numbers from the user?
They also state very clearly in the prospectus regarding trial periods and the like, if people cant or dont bother to read them then that is not GSW's fault.
2. The only company that should be sued is the investment group stumping up $75m of their member's hard earned cash. They bought at the top, they are idiots, and did not conduct their due diligence, it's pretty simple.
The revenue figures and cash receipts were/are all there to see, nothing to hide, so they stumped up $75m at $4 share based on current and hopefully future income streams, that's again not GSW's problem is it?
Your arm is not twisted, they are an investment firm, they make the decision. Not sure how binding the contracts are, find out, ask questions, do your research, From memory they approached GSW, not the other way around? Not sure? Ask management, I have, I do my research!
3. It seems to me a lot of people buy stocks without doing any due diligence, just like the $75m investor/s. It is actually a disgrace.
How many here have ever spoken to management?
Id guess and say i'm the only one here? at best less than a handful, exactly, disgraceful.
4. Revenue and cash receipts are different amounts for a reason, it's called terms of trade, if you don't understand then stop investing in anything, you have no clue.
5. Startup valuations (esp software and tech) are based on potential forward looking, not today's income. Again please do your research.
6. Yes there seems to be some loose compliance at GSW, I give them some credit however for getting a group to invest $75m .....there seems to be noone patting GSW on the back for such a result early on in listing, i think it's been a marvel effort personally.
7. Management do NOT set share prices or market caps, the market does. They don't tell you to buy or sell, so why blame them if you win or lose. I was in under $1, should I kick and scream too? The SP at say $4 is a large market cap compared with current earnings, so you are buying on potential, again that's of your choosing, no-one else.
GSW Price at posting:
$2.92 Sentiment: None Disclosure: Held
