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.

icon Download Report in PDF Or Scroll down to read the complete report below.

GLOBAL PAYOUT, INC.

Series of New Developments Mean Higher Prices Ahead

Rob Goldman
rob@goldmanresearch.com

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:     ir@globalpayout.com

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)

You Might Also Like

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

This Opportunity Research report was prepared for informational purposes only.

Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm's internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro-cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. Goldman Small Cap Research was compensated by the Company in the amount of $10,000 for a research subscription service. Since 2012, GSCR has been compensated $12,000 for a series of research reports and updates. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This report does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor's decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com