GPW.V TARGET PRICE: $0.42
UPSIDE POTENTIAL: 546%
SHARES OUTSTANDING: 75,461,278
MARKET CAP: $4,904,983
January 13, 2015 - Since the alert from TSX Tech News And Analysis at the start of the year on Grand Power Logistics Group Inc. (GPW.V), the stock has risen 18.5% from 5 cents to 6.5 cents. It has more than doubled from December lows of 3 cents, sparked by insider buying and a stock repurchase program. On December 29, GPW's CFO Alan Chan purchased 130,000 shares at 4 cents and followed that up with a 50,000 share purchase at 5 cents on January 8. Another insider purchased 200,000 shares at 6.5 cents during the summer according to CanadianInsider:
In December, the company authorized a share repurchase program of about 5% of the outstanding float or 3,773,000 shares, citing a strong cash balance and a belief that the shares are highly undervalued. The company has already repurchased and cancelled 502,000 shares according to the data above.
TSX Tech News And Analysis has a 42 cent target price on GPW. GPW has achieved a 2 cent EPS over the past year with 36% revenue growth so far for the nine months in 2014. According to GPW's stock quote on TMXMoney.com, the official stock quote site for TSX-listed stocks, GPW has a P/E Ratio of only 2.2 and a P/B Ratio of only 0.342 with much of that being in the form of cash.
Investors should expect a big move from GPW in 2015 because of the share repurchase program, strong revenue growth and very cheap multiples. With 502,000 shares purchased so far, the company still has 3,271,000 shares to repurchase on the open market.