GOHE Set to Soar

While things have been relatively quiet over the last month, we believe that a flurry of news, including new business, will be announced over the near term which will move the stock close to the $0.10 level. Separately, GOHE and other industry players have made strategic moves which should drive GOHE's valuation significantly higher. GOHE's management is extremely sharp and they are building a company that we believe will dominate the international prepaid market and will ultimately result in the sale of the Company.

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GLOBAL PAYOUT, INC.
GOHE Shares Set to Soar

 

Rob Goldman                                                                                                                    June 20, 2012

[email protected]

 

GLOBAL PAYOUT, INC. (OTC:PK – GOHE - $0.055)

Price Target: $0.16

Rating: Speculative Buy

 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

 

 

Global Payout, Inc. is a payment solutions provider offering U.S. and international companies' electronic payment and pre-paid debit card solutions. Through its processors and solution providers Global Payout offers an innovative and unique international payment platform allowing accountholders to move money to personal bank accounts in over 200 countries. In addition, the Company provides U.S. and international debit cards, enabling accountholders without bank accounts to access funds worldwide. As a program manager and reseller, Global Payout also offers prepaid debit cards in the U.S. for payroll and general spend programs.

The Bottom Line: While things have been relatively quiet over the last month, we believe that a flurry of news, including new business, will be announced over the near term. Separately, GOHE and other industry players have made strategic moves which should drive GOHE’s valuation significantly higher. We reiterate our Speculative Buy recommendation and our $0.16 price target.

What’s New: The Company just retained the highly regarded investor relations firm Wolfe Axelrod Weinberger.  We view this move as a sign that GOHE management wishes to spread the gospel about the Company’s prospects, which will be a boost to its investor outreach initiatives and should result in increased volume.

Coming Down the Pike: Global Payout may be the best-of-breed in the international prepaid debit and payments arena. News specifically regarding its efforts in this fast-growing, high-margin international segment should act as near-term catalysts to drive the stock higher. Plus, key pending, domestic business developments fortify the Firm’s model and serve as a major signal of its progress.

Major Developments: The stocks in the space are primed to move higher. Key comps such as Green Dot (NASDAQ – GDOT), NetSpend (NASDAQ – NTSP), and Bill My Parents (OTCBB – BMPI) have all made major moves to enhance distribution and deployments.  In the case of GDOT and NTSP, the entrance into the dollar store business is a great one, and NTSP’s stock buyback indicates management’s belief that the stock is undervalued even though it has the highest valuation in the industry! With these moves and the pending domestic and international business development steps by GOHE, attention on the space and the Company should rock the sector this summer.

Stock is a Bargain: At current prices, GOHE is a bargain and we expect the stock to approach $0.10 this summer. Timing is everything and we believe that renewed attention due to a flurry of pending news makes GOHE a must-own for the summer season.

 
 

KEY STATISTICS

Price as of 6/20/12

$0.055

 

52 Wk High – Low

$0.25 – 0.0264

 

Est. Shares Outstanding

83.4M

 

Market Capitalization

$4.6M

 

3 Mo Avg Vol

39,500

 

Exchange

OTC:PK

 

 

COMPANY INFORMATION

Global Payout, Inc.
1835 Sunset Cliffs Boulevard
Suite 202
San Diego CA 92107
619-564-7811
www.globalpayout.com
[email protected]

 

Analyst: Robert Goldman
Rob Goldman 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.

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