Combined gsi group excel review
Download
1 / 12

Combined GSI Group + Excel Review - PowerPoint PPT Presentation


  • 90 Views
  • Uploaded on

Combined GSI Group + Excel Review. Dr. Rama Rao RRCM.COM. Combined GSI + Excel. Reshaping Laser Industry Solid Historical Performance Market Valuation of Profitable Laser Companies GSIG Stock – most undervalued Assessment of Fair Value of GSIG Great Opportunity

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Combined GSI Group + Excel Review' - hope


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Combined gsi group excel review

Combined GSI Group + ExcelReview

Dr. Rama Rao

RRCM.COM


Combined gsi excel
Combined GSI + Excel

  • Reshaping Laser Industry

  • Solid Historical Performance

  • Market Valuation of Profitable Laser Companies

  • GSIG Stock – most undervalued

  • Assessment of Fair Value of GSIG

  • Great Opportunity

  • Internal Growth Opportunity

  • External Growth Opportunity

Dr. Rama Rao

RRCM.COM


Solid historical performance of gsi excel normalized annual sales of 450 m with net income of 30 m
Solid Historical Performance of GSI + ExcelNormalized Annual Sales of $450 M with Net Income of $30 M

Dr. Rama Rao

RRCM.COM


Annual sales comparison now combined gsi excel ranks 3

Annual Sales ComparisonNow Combined GSI + Excel Ranks # 3

Dr. Rama Rao

RRCM.COM


Market valuation of profitable laser companies
Market Valuation ofProfitable Laser Companies

  • Most Profitable Laser Companies trade at Market Valuation ≈ One Time of Annual Sales (P/S =1).

  • The combined company of GSI + Excel is an exception! Trades at 1/10th of its annual sales.

Dr. Rama Rao

RRCM.COM


Market valuation profitable laser companies
Market ValuationProfitable Laser Companies

Dr. Rama Rao

RRCM.COM


Gsig stock price most undervalued
GSIG Stock PriceMost Undervalued

  • The combined company of GSI + Excel has outstanding shares of 41 M.

  • The stock trades at $1.

  • Market Valuation of $41 M.

  • The combined company has normalized annual sales of $450 M with net income of $30 M

  • GSIG trades at P/S ≈ 0.1 and P/E ≈ 1

  • GSIG paid $350 M cash for Excel ($32/Share)

  • GSIG has $96 M in CASH ($2/Share)

Dr. Rama Rao

RRCM.COM


Gsig stock recent performance last year this year
GSIG Stock Recent PerformanceLast Year & This Year

Acquisition of Excel

Year to date

Dr. Rama Rao

RRCM.COM


Fair value assessment of gsig stock
Fair Value Assessment ofGSIG Stock

  • Market Valuation should be one time of annual sales as other peer profitable laser companies.

  • The combined company should have a market valuation of ≈ $450 M (P/S =1).

  • GSIG should trade at ≈ $10/Share with 40 M shares outstanding.

  • This is the kind of stock – what Peter Lynch calls: “10 Bagger”!

  • Risk/Reward Ratio: 1/10

Dr. Rama Rao

RRCM.COM


Great opportunity game plan
Great OpportunityGame Plan

  • Take advantage of undervaluation of the combined company (GSIG) for a possible future investment appreciation.

  • Interact with Mgmt/Board in order to enhance the share holders value.

  • The combined company can become a nucleus - $2B industry consolidation – Excel Dream!

  • Established a monopoly in the Laser Industry – control/enhanced gross margins – further appreciation of stock price.

Dr. Rama Rao

RRCM.COM


Gsi internal growth opportunity
GSI Internal Growth Opportunity

  • New Products:

    • Fiber Laser/ Disc Laser/ Diode Laser (New Generation – Compact & Efficient)

  • New Emerging Asia Expansion:

    • Asia – China/India – Industrialization (Legacy Products)

  • North America & Europe Market Share Expansion

    • With New Compact /efficient Products

  • New Emerging Applications:

    • Solar Panel

    • Nano Structure/Semiconductor fabrication

  • Dr. Rama Rao

    RRCM.COM


    Gsi external growth opportunity
    GSI External Growth Opportunity

    • Now GSI + Excel with normalized annual sales of $450 M ranks #3 behind Coherent ($600 M) and Rofin ($500 M)

    • Consolidate other small players (ESI : $280 M– semiconductor, II-VI: $280 M – optics, IPG: $180 M – industrial)

    • Strategically buy small niche players with new product & technology – Silicon Valley, China, India etc.

    • Use the Marketing & Sales distribution net work and efficient manufacturing capabilities of the combined company to promote the new products globally.


    ad