A Mathematically Imminent and Explosive Growth Inflection

Record Backlog. Expanding Pipeline. Trough Valuation.

GSI.V had been on an unending but largely unnoticed string of new contract wins in recent months, with an unannounced major award from the MTA, available here, doubling the stock before the write-up was ready to go out.

Fortunately, an even more compelling idea hit my radar: a mathematically imminent growth inflection, backed by a record backlog that closely tracks next year’s revenue. The stock trades near historic lows and at a fraction of peer comps and precedents.

Further tilting the odds, the company has already received large customer deposits without yet fulfilling the associated performance obligations, in addition to an increasing recurring revenue mix, strong industry tailwinds, and an expanding pipeline.

What would typically be an already priced in setup is instead met with skepticism due to management’s past failures in meeting guidance. But this time, it’s not about promises. This time, triple-digit growth is all but guaranteed.

Scroll down to download the investment write-up along with its accompanying model.