Garda World Security Corp. (GW.TO) Buy, Sell…

Garda World Security Corp. (GW.TO)

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DON'T BUY

Security Company. He is negative on this and has a small Short on it and will probably look to increase his Short position. Significant amount of debt. Some of their businesses in Iraq, Afghanistan, etc are winding down. You could easily see a 50% haircut in the type of market he is expecting.

PAST TOP PICK

(Top Short Oct 7/10. Down 3.62%.) Grew very quickly in the last decade by issuing a lot of debt and making a lot of acquisitions. Banks are now rolling over the death with tighter covenants. Thinks there is a chance of slippage going forward.

DON'T BUY

Refinanced the bulk of their bank debt but haven’t paid it down so the debt load is still heavy at a little over 5X current EBITDA. Very low margin business. Had a weak earnings report. He is Short this stock.

WATCH

Was in the penalty box. Had got itself pretty levered and there were concerns about growth. Rapidly getting out of the penalty box now by looking after its debt. At the top of his Watch list right now.

TOP PICK

Top Short A classic and successful “growth through acquisition” over past decade. Now at about 5X debt to EBITDA, a level where he doesn't think banks will fund any more funds for growth. Competitive business and margin for error is very small. (Short is roughly at $9.)

DON'T BUY

Security business. A little bit cautious on this one. Company has been successful in growing aggressively, primarily by acquisition. Levered up the balance sheet to grow the business and he is very cautious on businesses with high debt to EBITDA.

COMMENT

Leading security provider. A disaster over the last 12 months. Growth by acquisition story. Have been worries about their ability to manage growth. Recent pop indicates a good quarter. On his radar screen. If they can integrate their acquisitions, they’ll have a very steady growth in earnings. Hopes management doesn’t make other acquisitions until they have settled down.

PAST TOP PICK

(A Top Pick Mar 7/06. Down 8.9%.) Have done a great job of consolidating a very fragmented industry. Should do well this year.

BUY

The easy money has been made. Likes the company and its cash flow. A growth by acquisition story. Have a competitive advantage.

TOP PICK

This stock hit its 52 week high today. Garda World Security is a great growth story through consolidation in Canada. Involved in cash handling, security, airport security and background investigation checks. Doubled its revenue over the last couple of years. Managment would like to double its size through acquisitions. He has owned for quite some time, average entry price was about $7-8.00. He is continueing to sell it on the way up just through appreciation, maintaining his weighting.

BUY

If he were to pick a fairly junior company that is on the expansion trail, this would be about the most solid. The demand can only increase. They seem to manage their operations very well as well as acquiring them.

BUY

Ranks in the top 5% of his database. Estimates have popped up by 23% in the last 90 days. Year over year earnings growth is up 50%. For year-end Jan/07, earnings are expected to grow from $0.50 to $0.74 against a 19 P/E.

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Garda World Security Corp. (GW.TO) Frequently Asked Questions

What is Garda World Security Corp. stock symbol?

Garda World Security Corp. is a OTC stock, trading under the symbol GW.TO (previously GW-T on Stockchase) on the (). It is usually referred to as or GW.TO

Is Garda World Security Corp. a buy or a sell?

In the last year, there was no coverage of Garda World Security Corp. published on Stockchase.

Is Garda World Security Corp. a good investment or a top pick?

Garda World Security Corp. was recommended as a Top Pick by Robert McWhirter on 2005-12-08. Read the latest stock experts ratings for Garda World Security Corp..

Why is Garda World Security Corp. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.

Is Garda World Security Corp. worth watching?

In the last year, there was no coverage of Garda World Security Corp. published on Stockchase.

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Garda World Security Corp. (GW.TO)