GTSI Presentation_netnet-3

GTSI Presentation_netnet-3 - inventory levels have been...

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1 Analysts: Nguyen Bui James Zelnick Ram Basnet
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2 We recommend: Hold Pros: Net-net valuation of $5.28 – $6.30 per share, current price of $4.44 Cons: Unclear turnaround strategy Inefficient use of resources High management turnover Non-compete agreement with Small Business Administration (SBA) Investment Thesis Sources: 10-K, 10-Q, Morningstar
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3 Industry is very volatile with the market Year to date through September 16, the S&P Technology Distributors Index decreased 4.6%, while the S&P 500 declined 3.5%. In 2010, the sub-industry index rose 10.8%, versus a Over the past five years, the technology distributor industry has experienced rapid consolidation. During the financial crisis, inventories were severely cut. As these
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Unformatted text preview: inventory levels have been rebuilt, it has lead to strong growth for many companies within the sector. Industry Overview Technology Distributor Sources: Bloomberg, NetAdvantage 4 Company Overview GTSI offers IT products and solutions to U.S. Federal, state, and local governments, as well as prime contractors working directly with government contracts Contracts range from single agency contracts to those dealing with the entire U.S. Federal Government or state governments Products include a service component. Some examples of GTSIs value-add services are: Hardware integration Sources: 10-K, 10-Q, Morningstar, Bloomberg 5 SWOT Analysis Sources: Bloomberg, Morningstar, NetAdvantage 6 Valuation...
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GTSI Presentation_netnet-3 - inventory levels have been...

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