Visiting Global Axcess (GAXC) and GelTech Solutions (GLTC) January 5-7th

I find it very useful to invest in companies that reside in warm climates, especially during the cold spell we’ve had here in PA the last few days   I’m going to be visiting one of my large holdings, Global Axcess Corp (GAXC) and an investment/advisory client GelTech Solutions (GLTC).  Both companies are based in Florida.  Thank God.

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GAXC: $0.90 ($19 million Mkt Cap)

I’ve posted numerous times about Global Axcess over the last few months as I believe it is setting up for a nice run in 2010.  I’ve always been attracted to companies that have a profitable and growing meat and potatoes business with blue sky upside potential.  This way your risk is really limited to the fundamental underpinnings of the core business while having a call option on the homerun.  GAXC fits into this mold.  The company’s core ATM business is profitable, growing double digits, and will most likely earn 13-14c in 2010 (doesn’t include any additional ATM contract wins).  GAXC’s newly announced DVD kiosk initiative is the homerun potential.  Coinstar’s (CSTR) RedBox brand of DVD kiosks is all the rage right now, as many analysts have CSTR as their #1 pick for 2010.  I think GAXC has a good chance to ride CSTR’s coattails.  I believe WallStreet will be all over GAXC at any sign of a major DVD kiosk win.  But even regardless of DVD’s this stock should be well north of a $1 based off its core business fundamentals.  I believe it is only a matter of time until the beast awakens.  I added more at 85/89c today.

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GLTC:  $1.90 ($26 million Mkt Cap)

GelTech Solutions reminds me a lot of ZAGG a year ago.  The right management team, a very buzzy product with the right share structure.  It’s very rare you get these three components at the same time.  FireIce is going viral in the fire fighting community which you can see by viewing the FireIce fan page on facebook. Fire fighters need FireIce and with the most highly regarded fire department in the world (FDNY) testing the product, the future couldn’t be much brighter.  I’m looking for increased distribution for FireIce as well a RootGel product lines with sustained profitability by Q2 2010.  I believe GLTC is going to be a very fun and volatile ride in 2010 as the float is very small.

Disclosure: LONG GAXC and GLTC. I’m also an Advisor to GLTC.