Am I Missing Something - LONG!!! - GAXYNot Financial Advice - Just perfecting a process...
Galaxy Next Generation, Inc. manufactures and distributes interactive learning technology hardware and software that allows the presenter and participant to engage in a collaborative instructional environment. The company's products include private-label interactive LED touch screen panels, communicator bells, paging, and classroom audio, school PA, intercom products, and accessories, as well as various other domestic and international branded peripheral and communication devices. It also provides installation, training, and maintenance services. Galaxy Next Generation, Inc. was founded in 2001 and is based in Toccoa, Georgia.
Idea:
Price Target: $0.03 - $0.06 cents
- Bullish
Pros:
MACD crossing - charts
Increasing volume - charts
EXTREME Bullish divergence on the RSI
Cons:
High number of shares outstanding (creates too much supply in the market)
Let's hope these shorts get squeezed soon.
Not Financial Advice - Just perfecting a process...
GAXY
Gaxy to 0.135 very soonWe have likely bottomed out at 0.02 and huge reward potential going to 0.0135 , almost 7x
GAXY - Has GAXY consolidated for a new up trend? Let's examine .GAXY has been trending down for awhile and I thought I would try examine more closely as to what GAXY may be doing in the short term.
I am a newbie at technical analysis but have given this a fair go using bollinger bands and moving averages as indicators to understand price movement versus volatility.
Apologies if the image is a little squashed -tried to fit alot of info on .
Instructions:
Read my notes in numerical order.
Symbols are colour coded to match colour of notes.
WARNING:
This information is an estimated guess on what I may think could happen not what will happen.
Please do your own research and feel freel to offer your comments or ideas.
Cheers,
Ampy-Bullish This a company that will survive this pandemic and will see the highest oil prices on record in the coming times. Literally no put options on because it will be dumb to short something that is undervalued. It is understood debt levels are there but they are no where near the point to have conversations of bankruptcy. Made alot money on this stock. Its got heavty rise coming very soon. Hold time for day trade one month.
GAXY boasts +117pct Increase In Sales & $6.00+ Price Target!
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GAXY (Galaxy Next Generation Inc.)
Current Price: $2.28
Float: 2M
Analyst Price Target: $6.00 <---
(Small Cap Consumer Research)
Must Watch Video Presentation
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Members,
Earlier today we promised you another great trade idea in a sector that has proven to be highly profitable for our members in the past.
So without any further delay, we ask that you please turn your immediate attention to GAXY (Galaxy Next Generation Inc.).
This U.S. distributor of interactive learning technology hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment, is currently flying under the radar, but appears to be an all around winner to us.
Listed on the OTCQB, GAXY is in possession of game changing technology in an education space currently valued at $240 billion, and expected grow to $994 billion by 2024!
Education as we know it is seeing an incredible change at the moment. As a result of technological innovation and a drive to teach and learn more, better, faster… efficiently, we're seeing a shift in classrooms and board rooms, bringing a fully collaborative interactive classroom to the table. Projectors, chalkboards, and whiteboards were the center of attention in virtually every classroom just a decade ago. Today, these seemingly archaic technologies are being traded in for up-to-date information technology that is driving a revolution in the education and learning market.
Today's classrooms are picking up smart technologies that lead to an enhanced learning environment for students through the creation of a concise view of educational materials. Today's classroom is getting smarter, and stocks like GAXY that represent the companies behind this evolution present a compelling investment opportunity.
We've been paying close attention to this rapidly growing sector, and have already developed a keen eye for spotting the winners.
In fact, our last trade idea in this space nearly doubled in price in a very short amount of time.
Based on our research, we believe that GAXY has "winner" written all over it, and has the potential to more than double from today's alert price of $2.28.
But don't just take our word for it...
Small Cap Consumer Research, a leading company-sponsored research services firm, recently reiterated their BUY rating, and slapped on a $6 price target.
We did the quick math, and a run up to $6.00 from today's alert price would show traders up to +163% in pure profit!
Let's also not forget that in their most recent earnings report GAXY reported a backlog of $358,000 and October 2018 revenue of $491,000, both of which point to strong growth in the second quarter of fiscal year 2019.
Technology sales increased 117% to $351,545 in the first quarter of fiscal year 2019, up from $161,927 in the fourth quarter of the prior fiscal year.
These numbers also don't reflect GAXY's LOI to acquire KLIK Communications, which could add another $3 million in annual revenue to the company's growing operations.
“We’re pleased to report a strong start to the fiscal year,” stated founder and CEO Gary LeCroy. “While gross margins in the first quarter were 13.4%, if we factor in our accounts receivables balance, back orders, and strengthening sales since the quarter close, gross margins are closer to our target range of 35%. In fact, we’re now tracking positive EBITDA for the year through the end of October and remain confident this will translate to positive net income for the full fiscal year as sales continue to accelerate.”
GAXY's CEO's bullish outlook has us excited heading into the Company's Q2 report, which by chance is just a few days away.
GAXY expects to release it Q2 operating results on or before February 15th.
You'll also be happy to know that GAXY has reduced their consolidated debt by $5 million, an act that their CEO stated was "among the best things that has occurred for the company since we became public as it is, in essence, a new beginning that allows us to target all of our energies into what we do best.”
With its tight float of just 9.65M, we can only imagine the type of jump in share price that GAXY could have if they deliver another blockbuster quarter.
We love everything about this Company at the moment, and we believe it could be our next big winner in the rapidly growing education technology space.
As such, we are urging all members to read our full profile, start their research now, and consider grabbing up a position in GAXY this morning at 9:30AM EST!
About Galaxy Next Generation Inc.
Galaxy Next Generation (GAXY) is a U.S. distributor of interactive learning technology hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales. GAXY became a publicly traded entity via a reverse merger with FullCircle Registery, which was remamed Galaxy Next Gemeration and listed on the OTCQB in October 2018.
Small Cap Consumer Research Reiterates "BUY" Rating for GAXY.
Slaps On $6.00 Price Target!
In their report released on Feburary 5th, 2019, Small Cap Consumer Research, a leading company-sponsored research services firm, reiterated their Buy rating, $6 price target and estimates for 2Q-4QFY19 and FY20 after Galaxy reported 1QFY19 (September) results which registered solid top line growth, with bottom line results obscured by initial public company and panel business startup costs as the company successfully shifted from a reseller to a value added distributor of touch screen panels with their exclusive manufacturing partners. We believe, with a healthy backlog and continued strong demand for the company's products, that Galaxy is poised to drive material top and bottom line growth for FY19 and beyond. As such, and with GAXY trading at under 6X our FY20 EPS, we believe the risk/reward remains impressive and with GAXY emerging as one of the few pure plays in the educational technology space, they reiterate
our Buy rating and $6 price target.
Key Points From Report
1QFY19 (September 2018) revenue of $719,400 easily exceeded our projection of $500,000. More granularly, technology sales of slightly over $500,000 were up 108.1% YoY, reflecting the company's shift from a fledgling technology player (the SAM line of touch screen panels was rolled out in June 2018) to a full fledged value added distributor with 22 reseller partners.
Gross and operating margins reflect multiple start up costs; view as not a precursor of operational efficiency going forward. Operating loss of $623,100 was below our projection of basically break even operating income for 1QFY19. That said, we view the results as not indicative of future performance: 1) the gross margin was materially affected by a pilot rollout for a key school district to prove the overall value and strength of the company's panels; this rollout, which was approximately 45% of total panel sales in 1Q, was at a materially lower margin; we note, going forward, management is confident they can achieve a close to 35% grossmargin, which is above all of our projected gross margin rates; and 2) the impact of the reverse merger in terms of one-time administrative expenses, including accounting and financial advisory costs, was a material drag in the quarter; we note in 1QFY18, Galaxy registered G&A costs of $235,000, less than 30% of the FY19 G&A results; given that the company added only one employee over the last twelve months, we project a material decline in administrative costs from 1Q levels going forward. As such, we view 1Q operating margins as transitional and note our projections continue to conservatively reflect a materially higher level of G&A spending than in historical periods.
Demand for touch screen panels remains strong. Based upon October panels sales of almost $500,000 and a backlog of approximately $400,000 (the vast majority of which will be recognized in 2QFY19) management remains confident that 2Q will register material top line growth at solid overall margins. Further, based upon conversations with their reseller network and preliminary feedback, the overall market for touch panels
remains robust and overall pricing is very rational. We remain confident in our 2QFY19 revenue projection of $3.0 million.
First Slim line product shipped in November. The company shipper their first new line offering in November; we note the Slim line, which is lighter and offer a higher level of app support, will potentially allow for Galaxy to register higher overall gross margins going forward.
Operating structure to be cleaned up soon. 1QFY19 results also included the Indianapolis movie theater operations, which registered a small operating loss of $67 thousand. Management expects the theater operations,
which include over 85% of the company's approximately $6.2 million in debt, to be spun off by calendar year-end, creating a pure play touch screen panel play for the education market.
KLIK deal remains on track. In September 2018, Galaxy signed on as the exclusive distributor for the KLIK wireless presentation product for the educational market. Galaxy management remains optimistic they will close
the KLIK acquisition by calendar year-end; we note Galaxy will register an incremental $3 million in revenue and higher overall margins in the first year of operations post the KLIK deal. We continue to conservatively exclude the impact of the potential KLIK acquisition in our projections.
No change to our 2QFY19-4QFY19 and FY20 projections. We believe, with the costs structure post the recent reverse merger normalizing and the company set up as a pure play touch panel screen value added distributor going forward, that Galaxy is set to register material top line growth at compelling margins.
Reiterate our Buy rating and $6 price target for GAXY. Given the relative insignificance of 1Q, we would view any post earnings weakness in GAXY as a key buying opportunity. We believe the company remains fully on track to become a pure play in the burgeoning touch screen panel marketplace and, with a solid manufacturing partner base, the ability to drive market share gains in the educational marketplace. Further, we believe Galaxy remains fully on track to add both new products and relationships going forward which can drive top and bottom line upside. As such, and with GAXY trading at under 6X our FY20 EPS, we believe the risk/reward in the name remains impressive and we reiterate our Buy rating and $6 price target.
Recent Developments
Galaxy Next Generation Reduces Consolidated Debt by $5 Million
Last week, the Company announced that effective February 6, 2019 the Company completed the transfer of the common stock of its wholly owned subsidiary, FLCR Entertainment, Inc. The transfer was made in fulfillment of and in compliance with the terms of the Merger Agreement it entered on June 6, 2018, as reported on its current report on 8-K filed with the SEC on that date.
CEO Gary Lecroy was excited by the news saying “This is among the best things that has occurred for the company since we became public as it is, in essence, a new beginning that allows us to target all of our energies into what we do best.”
The Company expects to release Q2 Earnings on/before February 15, 2019.
Market Outlook
In 2017, the education & learning market was valued at about $240 billion according to Allied Market Research. By 2024, that market is expected to grow to $994 billion with a compound annual growth rate of approximately 22.7% from 2018 through 2024.
Moreover, the educational content segment, a segment that you will soon find GAXY to be highly active in, accounted for the highest revenue share in the market as a whole. Key drivers of the expected market growth are interactive displays and active learning. We're also seeing strong growth in the mobile learning space.
Much of the growth in the segment is expected to come from the United States market. This is ultimately the result of strong infrastructure as well as increased adoption of innovative smart technologies designed specifically for the education and learning industry within the region.
Investors poured more than $8 billion into education technology companies in 2017, according to Metaari, a quantitative market research firm focused on the space.
Interactive flat panel displays were a $9 billion market in 2015 and are expected to reach $27 billion by 2022, according to research from Markets and Markets.
New installs are expected to be the primary driver of near-term market growth with additional demand driven by early adopters entering replacement cycles.
In addition to the education market, interactive flat panel displays are gaining traction in healthcare and corporate enterprise markets as well.
The global education technology market surpassed $17.7 billion in sales in 2017 and is expected to grow to $40.9 billion, an 18.3% CAGR, by 2022.
Technical Analysis
GAXY is currently trading at the lower end of its price channel.
The Company appears to have strong support at these levels, having only closed under $2.00 on one occasion since its stock split in September.
This leads us to believe that GAXY's upside potential far outweighs its downside risk at the current share price.
The float on GAXY is also very thin at just 9.64M.
With a float that tight, GAXY has the potential to break out for significant gains, should it see a sudden burst in trade volume.
Shares of GAXY were trading as high as $5.43 in late October.
A run back to those highs from today's alert price would show traders gains of up to +138%!
As we stated above, we love everything about this Company at the moment.
Our last trade idea in this space nearly doubled in price in a very short amount of time.
We believe that GAXY has the potential to match, or even exceed those gains.
As such, we are urging all members to start their research now, and consider grabbing up a position in GAXY this morning at 9:30AM EST!
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
Best Regards,
The TopMarketGainers Team
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