Have a look at this one and you must agree that the price has been allowed to drop too much considering the potential future sales for this company .
I believe that one of the reasons for the sp is the lack of announcements and updates from GRK.The company is not on anyone's radar screen as it is relatively new to the market and falls in a niche area.
The enormous cost savings to supermarkets,plus the availiability for tracking
stocks,thieves and trolleys that the rfid tracing system permits means that all modern supermarkets should be using Gatekeeper trolleys in order to help already tightly squeezed margins.So there!
If someone would like to put up charts etc.I would be very grateful,as I am no good at that.Thanks and lets have some feedback...I bought these at the top price.
This is not a ramp,IMHO they are worth supporting.
Ethel

Gatekeeper Systems (GKR)

Here is my take,for what its worth,

Gatekeeper was formed in 1996 in the US and designs, sells, installs and services products aimed at combating shopping trolley loss as well as trolley-based shoplifting. Trolley loss, where shopping trolleys are stolen or removed from retail premises, is becoming an increasing problem, not only for retailers but also for customers and the environment. According to a recent survey, shoplifting costs US retailers over US $10 billion per year in lost revenue, while in Europe, the directors of Gatekeeper believe the figure is around Euro3.2 billion per year.

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From Interim Results for the six months ended 30 June 2005 (15 September 2005):

Our expansion has been well received and the Company has made substantial progress towards positive results. The Company was recently appointed as the provider of trolley security systems for a major European retailer with over 5,000 stores worldwide. This is particularly significant since the Company was selected over the incumbent supplier, a major competitor of Gatekeeper.

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Cash of at least 5.5m ($9.35m),which almost equates to a third of the Market cap (at 37.5p) at 16.55m ($28.1m).

The company appears set to continue for strong growth,with Turnover increasing at 65% to 70% per year from 2003 onwards (Turnover :2005 $20m : 2004 $11.7m: 2003 $7.1m).
Note 2005 results not released as yet,but results for 2005 now known from the Trading Statement of 09 February 2006 (see below).

Profits are on the increase and again from the very recent Trading Statement of 09 February 2006 (see below),profits EBIT for 2005 at $2.5m will have doubled from the previous year (2004) at $1.2m.

Historic (last year to Dec 31 2005) PE ratio (EBIT) =11

Historic (last year to Dec 31 2005) PE ratio (EBIT) if you take into account 5.5m cash =7.3


Now presuming they make a profit of $4m,(which seems possible on their past earnings growth)for 2006 that would put GKR on a:

PE ratio (EBIT) =7

PE ratio (EBIT) if you take into account 5.5m ($9.35m)cash =4.7


Not seen a Brokers note,but could be one released shortly,what with the very recent positive Trading Statement.

Note:1.7 USD to the .

Downside: The shares are AIM listed but are not on crest.

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Historic info

*Turnover : 2005 $20m : 2004 $11.7m: 2003 $7.1m (growth 65/70% per year)
*Profits : 2005 $2.?m: 2004 $1.0m : 2003 $0.1m loss
*Profits EBIT: 2005 $2.5m: 2004 $1.2m : 2003 $0.1m
*Gatekeeper penetration of Continental European market following opening of Strasbourg HQ


Shares in issue =44.1 million Ordinary Shares.

Market cap at 37.5p =16.55m

Cash = 5.5m

Historic (last year to Dec 31 2005) PE ratio (EBIT) =11

Historic (last year to Dec 31 2005) PE ratio (EBIT) if you take into account 5.5m cash =7.3


Gatekeeper will announce its preliminary
results for the year ended 31st December 2005 on 10th April 2006.

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Trading Statement

Gatekeeper Systems (GKR) I Gatekeeper Systems sees FY results to exceed market expectations (09 February 2006):

LONDON (AFX) - Gatekeeper Systems Inc said it expects results for the year ended Dec 31 2005 to exceed current market expectations.
The company, which makes shopping trolley containment systems and anti-theft devices for retailers, anticipates group revenues to be at least 20 mln usd (11.75m) compared with 11.7 mln usd (6.9m) in the same period in 2004 and pretax profit to be at least 2.5 mln usd (1.5m) compared with 1.2 mln (0.7m) in the same period in 2004.


Any comments welcome.

Website:

http://www.gatekeepersystems.com/

Interesting article on GKR yesterday.The site is free to register and very useful for research.

http://www.proactiveinvestors.com/registered/articles/article.asp?GKR

Are these on your checklist for investment decisions ?

1 Blue Chip Customers in Europe and the US
2 Profitable
3 Clean Balance Sheet
4 Significant cash on hand
5 High Margins (55%)

If they are, then Gatekeeper Systems may deem a closer look.

Gamekeeper Systems Inc was admitted to AIM in December 2004 with a placing at 48p. The company is based in California with offices in Strasbourg, Ontario, London and Hong Kong. Their share-price has disappointed since due in part to a loss recorded for the first half of 2005 and a pretty low profile in the UK.

I've just taken the plunge today having watched for a while and gratified to see the SP up 2p already :-)

Can't see anything wrong with this one.If they keep this up in 2007 financial year they will be underpriced at 53p.My problem is that I cannot find any broker notes and the company keeps very quiet.As far as the technology goes I think they have won an Italian railway station contract recently but there are other supermarket opportunities. I think they can track trolley movements in store.This is very useful as you need to place the high margin products in the trolley path so knowing the routes taken helps in the layout.We are all gullible,at least if you don't know the tricks.