11-21-2021, 08:37 AM
Am I missing something with $GTIM?
<!-- SC_OFF --><div class="md"><p>I want to preface this by saying that I understand that stocks like these (60 millions dollar market cap, extremely low volume) are not this subs cup of tea. They are not mine either, but I came across this stock just kind of goofing around and now I’m seriously considering buying it. I trust this sub more than any other community on the internet when it comes to good DD and analysis, so please forgive me for posting about a relatively unknown company.</p> <p>I was screening for stocks in the restaurant sector that met my criteria for the industry (low PE, good margins, growing revenue and EPS, etc) when I came across GTIM, a company I’d never heard of before.</p> <p>The first thing that caught my eye was the extremely low PE at less than 4. I assumed that the companies growth must be non existent and/or they had a terrible debt/cash ratio. I was completely wrong. </p> <p>GTIM’s revenue grew 40% this quarter to 34,000,000 dollars. Their net income grew 4500 percent (no, that’s not a typo) this quarter to 13.6 million dollars. They have 10,000,000 in cash on hand and paid off all of their debt. </p> <p>The companies restaurants have great reviews at all 35 locations (based in Colorado and Wyoming) and are diversified in the types of restaurants they operate (some sit down, some drive thru).</p> <p>On the most recent earnings call (AUG 10th) the CEO said they plan on opening one new location in 2022 and only using cash to finance this restaurant as well as any restaurants GTIM opens in the future. I’m not sure how I feel about this, but it certainly provides a margin of safety that most low market cap stocks don’t have to offer.</p> <p>I usually stick to value or GARP investing but I feel like this might be too great of a buy to ignore. The only negative I could find was the extremely low average volume (30,000). Can someone tell me if I’m missing something here? I’m planning on researching the company further and potentially investing, but wanted to make sure I didn’t miss anything before I dove in deeper.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/MikeTouchedMyDitka"> /u/MikeTouchedMyDitka </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qykxlz/am_i_missing_something_with_gtim/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qykxlz/am_i_missing_something_with_gtim/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I want to preface this by saying that I understand that stocks like these (60 millions dollar market cap, extremely low volume) are not this subs cup of tea. They are not mine either, but I came across this stock just kind of goofing around and now I’m seriously considering buying it. I trust this sub more than any other community on the internet when it comes to good DD and analysis, so please forgive me for posting about a relatively unknown company.</p> <p>I was screening for stocks in the restaurant sector that met my criteria for the industry (low PE, good margins, growing revenue and EPS, etc) when I came across GTIM, a company I’d never heard of before.</p> <p>The first thing that caught my eye was the extremely low PE at less than 4. I assumed that the companies growth must be non existent and/or they had a terrible debt/cash ratio. I was completely wrong. </p> <p>GTIM’s revenue grew 40% this quarter to 34,000,000 dollars. Their net income grew 4500 percent (no, that’s not a typo) this quarter to 13.6 million dollars. They have 10,000,000 in cash on hand and paid off all of their debt. </p> <p>The companies restaurants have great reviews at all 35 locations (based in Colorado and Wyoming) and are diversified in the types of restaurants they operate (some sit down, some drive thru).</p> <p>On the most recent earnings call (AUG 10th) the CEO said they plan on opening one new location in 2022 and only using cash to finance this restaurant as well as any restaurants GTIM opens in the future. I’m not sure how I feel about this, but it certainly provides a margin of safety that most low market cap stocks don’t have to offer.</p> <p>I usually stick to value or GARP investing but I feel like this might be too great of a buy to ignore. The only negative I could find was the extremely low average volume (30,000). Can someone tell me if I’m missing something here? I’m planning on researching the company further and potentially investing, but wanted to make sure I didn’t miss anything before I dove in deeper.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/MikeTouchedMyDitka"> /u/MikeTouchedMyDitka </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qykxlz/am_i_missing_something_with_gtim/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qykxlz/am_i_missing_something_with_gtim/">[comments]</a></span>Kind Regards R