Overlooked Stock Offers Great Entry Point

Investment and Company Research
Opportunity Research
COMPANY UPDATE

Some investors like to buy on momentum while others prefer to bottom fish. Yet, some of the most successful investors are those that find value in overlooked stocks, and buy them as success is achieved, while the rest of the investing world ignores the opportunity. A company we have covered for some time is in that exact situation today and given the spate of very favorable news of late, we believe that current prices offer an unusual entry point.

Not only has the Company introduced new and innovative products, but management has trail-blazed into large, new markets with first-of-its kind offerings that will generate revenue beginning in 2Q15.

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GLOBAL PAYOUT, INC.

Series of New Developments Mean Higher Prices Ahead

Rob Goldman
[email protected]

March 18, 2015
 

GLOBAL PAYOUT, INC. (OTCPK – GOHE - $0.046)

Price Target: $0.45 Rating: Speculative Buy
 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

Global Payout is a leading provider of comprehensive, customized electronic payment solutions for domestic, international and multinational businesses, organizations and government agencies worldwide. Global Payout implements payment solutions tailored to a client's specific needs, which may include MoneyTracTM, the company's Consolidated Payment Platform (CPG), domestic and international prepaid cards, chip and pin cards, and custom and co-branded prepaid cards. The company targets an estimated $3 trillion market including the estimated 60-70 million unbanked, under-banked and unhappily banked adults in the U.S. and the estimated 2.5 billion around the world.

 

KEY STATISTICS

 
Price as of 3/17/15 $0.046  
52 Wk High - Low $0.41 - $0.0233  
Est. Shares Outstanding 158.5M  
Market Capitalization $7.3M  
3 Mo Avg Vol 44,000  
Exchange: OTCPK  
 

COMPANY INFORMATION

Global Payout, Inc.
1835 Sunset Cliffs Blvd, Suite 202
San Diego CA 92107
Phone: 619.564.7811
Website: www.GlobalPayout.com
Email:     [email protected]

GOHE Shares Outstanding Reduced by 34%. Management recently announced that is has entered into a rescission agreement with the heads of Maxie Mobile, Inc., a company in which GOHE had elected to acquire in August 2014. Following a mutual agreement regarding direction of the two firms, approximately 83.1 million shares have been returned to treasury, thereby decreasing the shares outstanding by 34%. That means the share price should reflect a 34% increase to nearly $0.06. Our take is that the Company and its shareholders are better served focusing on its current target markets and that the dramatic outstanding shares reduction is a nice plus for shareholders.  Moreover, GOHE will no longer spend resources on markets and projects that are not near term revenue winners. 

Timely Tax Refund Offering. Although much of 2014 has seen GOHE emerging out of the development stage, new initiatives are truly exciting. For example, the Company has signed timely agreements with providers in the tax preparation business whereby the GOHE MoneyTrac line of prepaid cards can be used to load tax refunds.

First to Market Gold Monetization Card. Yesterday, GOHE announced that it has completed the formation of a joint venture that will launch the world's first, self-directed, and gold-backed currency hedge mechanism in connection with a debit card specifically for use by consumers and investors. This gold-backed and gold-based liquidity mechanism is the first of its kind and preliminary indications of interest are reportedly running extremely high.

 

Background

The AUX Prepaid Gold Card will give gold investors the instantaneous and seamless ability to convert their gold bullion investments into the OFAC compliant, FOREX currency of their choice when making ATM cash withdrawals or merchant purchases. It is essentially a gold bullion monetization vehicle through a prepaid card. GOHE expects to earn a substantial share of revenue from the joint venture company with initial revenue to commence in 2Q15 and could increase significantly thereafter.

Many investors consider gold investments as a "flight to quality" during times of economic uncertainty, market unrest or political crisis. The AUX Prepaid Gold Card offers capable investors and consumers the ability to back their own paper currency values through the use of their own gold creating a self-directed, 100% gold backed currency mechanism. Plus, the AUX Prepaid Gold Card provides instantaneous liquidity of deposited gold as an alternative to fiat currencies and the ability to convert that gold into the currency of their choice on demand through the swipe of their card. The card will initially be launched in non-U.S. countries meeting OFAC compliance requirements.

The AUX Prepaid Gold Card is made possible through an executed joint venture agreement with Credit and AUX Technology Pte Ltd (AUX), based in Singapore. Global Payout received a 33% equity ownership in this financial technology (FinTech) company. The gold and currency platform developed by AUX allows consumers and investors to invest in gold coupled with International Prepaid cards provided by Global Payout the mechanism giving instant liquidity to gold investments. AUX has initiated a paradigm shift in gold investment and utilization by allowing investors the ability to invest in physical gold bullion and access its value when needed 24/7 in any designated location worldwide. This highly secure system allows the users to deposit funds, execute trades in gold and FOREX currencies, and withdraw funds with access to Global Payout's international prepaid cards.

Conclusion

Gold may not be in favor at the moment but this innovation is likely to be broadly accepted in Asia and as inflation concerns begin to occur globally, and the price of gold rises, this card could be a niche game-changer. We continue to rate these shares Speculative Buy.

 

RECENT TRADING HISTORY FOR GLOBAL PAYOUT, INC.

(Source: www.Stockta.com)

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer

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