GuestLogix (GXI.TO)

A major onboard payment processor. They have deals with Panasonic and Thales, the 2 biggest seat back manufacturers, and NCR to do their payment processing. Have a really interesting deal with China Southern. When there are Business Class seats available after take off, they have an auction for them, and GXI processes the payment. They are just at the inflection point where they’ve had all these projects that they are trying to implement and numbers haven’t come though yet, and we are about to get there right now. Won’t be this quarter, but the quarter after. Stock is trading $1.15-$1.20, and feels that when they report the next quarter, you’ll see the stock north of $2.

Great technology. Airlines need the technology to help them generate more free revenues. Have been signing up great partners in the last few months. There is a lot of promise in generating a lot of revenues. The key thing is execution, which he feels they need to continue to demonstrate.

Base business was built on processing credit card transactions while traveling on an airplane. They built that platform and have about 80% market share in North America. A big new thing is they are now selling in airport kiosks rental cars, etc through NCR. Also, have a deal with Panasonic by putting in one-touch purchase systems in the back of airplane seats. Now have 22 new deployments which is more than double what they have ever had previously. Sees growth in the next 2 or 3 quarters and they are going to deliver some big-time growth numbers.

Bought more when it was higher since the financing. Really likes this stock. One of his larger small cap holdings.

Whether you are on a plane or train, this company allows you to buy stuff. This has been long on promise and short on delivery but this has changed because of new management. Have now broadened out beyond food. Margins on airlines are extremely skinny so they are looking for opportunities to make additional money. Thinks there are very good long-term growth opportunities. Expected to earn $0.10 in 2014 which gives you a 14X PE and earnings growth could be significant.

Loves this one. This is going to drive growth into the “on premise” payment transaction that they are doing. Not just on-board flights now. They have a deal with NCR (NCR-N). In the trial areas, there is a 50% uptick in transaction volumes. He could see this easily doubling or tripling their business over the next 2-3 years.

Likes the business model. They do the electronic backbone transactions on planes, etc. when using credit cards. Had a pretty good run recently. Recently signed a 10 year deal with Thales out of France, which will ramp up their business. He prefers Flyte Aerospace Solutions (FLY-X), which has better long-term opportunities building black boxes for planes..