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Visibility is Improving for Shares of Global Investor Services
By Michael Markowski (May 11, 2010)

Last week the price of the shares of Global Investor Services (OTCBB:GISV:$0.06), a company which I have been recommending increased by over 50%. This occurred while all the gains for the major indices of the U.S. stock market including the Dow 30, S&P 500 and the NASDAQ which were made for the first five months of 2010 were wiped out after the three major indices fell for the last four consecutive days of last week.

The recent move up in Global’s share price did not surprise me because the company’s visibility has improved significantly. On May 6, a New York based independent research firm, Proactive Research issued a research report and recommended its shares with a target price of $.12 to $.15 per share.

Additionally, Global’s visibility is likely to continue to increase considerably for the two following reasons:

  • On May 6, 2010, the company announced that it was holding a conference call for investors on Wednesday May 19, 2010 at 1:00PM. The call is to update investors and shareholders on the recent developments regarding the company’s business activities and marketing campaigns.
  • Global also announced that it would be attending the Money Show in Las Vegas during the week of May 10, 2010. The company’s CEO will be a speaker at the show and its sales personnel will man a booth at the show.

I suspect that the reason why the company is holding the conference call is because the word is probably starting to get out that its marketing efforts are producing results. Its management may want to make sure that all of its shareholders do not have to wait until the company reports its year end numbers at the end of June or its first quarter financials in mid August to get a progress report. Its average share volume has been trending up and its current daily volume of almost 300,000 shares per day is at an all time high. The last thing that any officer, director or lawyer wants to have happen is for existing shareholders who sell just before the shares trade higher on good news. Why do I believe that there will be good news? I have been analyzing stocks for over 30 years and can not recall even one instance when a the management of a company with shares trading for pennies went to the expense and trouble of holding a conference call to make a negative announcement. If the news were bad they would just close up shop.

I recommend that current shareholders and investors alike take the time to attend the conference call because Global provides them an opportunity to participate in a business which could scale quickly because its generates leads and fulfills it customers online. Attending would give them the opportunity to ask questions and come to their own conclusion as to whether or not the company has developed a successful online marketing cookie cutter. If the company’s model is getting traction its shares could potentially multiply in value.

Investors and shareholders should not be quick to discount Global because its shares are trading for pennies. In 2003, I purchased Think or Swim (formerly Investools) shares for my wife at $.19 per share. Months later I recommended them to OPS Newsletter subscribers at $1.14. Note: OPS Newsletter had a policy of not recommending any shares at prices below $1.00. After its shares peaked at over $18.00 in 2007, Think or Swim was acquired by Ameritrade for $10.43 in 2009. Additionally, all three of my other 2003 recommendations in the online financial sector, all at single digit share prices, were acquired for considerable gains.

Recommendations in Online Financial Sector which were acquired

Name

Date Rec.

Price Rec.

Price Acq.

Change

BankRate

10/28/02

$2.44

$28.50

+1081%

Multex

02/10/03

$4.75

$7.35

+55%

Marketwatch

03/31/03

$7.44

$18.03

+142%

Think or Swim

11/10/03

$1.14

$10.45

+816%

Note: Global Investor Services is also a member of the online financial sector.

For a better perspective on Global investors and shareholders should take a look at my May 4, 2010 update “Shares of Pure Play in the Online Investor Education Industry Up 40%” and my November 11, 2009, update “Deal with Canada’s Fastest growing Online Broker Validates Emerging Company’s Business Model”. For additional information on the online financial sector go to http://www.onlinefinancialsector.com/.

For information on how to attend Global’s conference call go to: http://finance.yahoo.com/news/Global-Investor-Services-Inc-iw-2816174451.html?x=0&.v=1.

 
Disclosure:  Michael Markowski and family members have held shares for the past several years and currently hold shares in Global Investor Services and may sell them in the future.