GTSI Presentation_netnet-4

GTSI Presentation_netnet-4 - 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 14.2% increase for the S&P 500. 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 GTSI’s 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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  • Fall '11
  • BryanSudweeks
  • Valuation, Federal government of the United States, Morningstar, Unclear turnaround strategy, High management turnover, technology distributor, technology distributor industry

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