Global Payout Inc. (Pinksheets: GOHE) has some people behind them that want you to stand up and notice the penny stock. With the growth in PrePaid Debit cards, GOHE executed an agreement with iGlobal Worldwide, Inc. to offer complete management consultant services in launching their prepaid debit card program. What does it mean to traders?
Shares of GOHE are thinly traded. Global Payout Inc. is not an SEC filer but they did report revenues to the tune of nearly $61 thousand for the year ended December 31, 2011. The agreement should be a decent accounting entry for the top line of Global Payout since the agreement calls for 10,000 active prepaid cards within the first 12 months.
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GOHE Stock Chart:
Market Cap: 6.25M
Price/Sales (ttm): 102.51
(Aug 5, 2011): 0.25
(Apr 2, 2012): 0.03
Avg Vol (3 month): 13,174
Avg Vol (10 day): 27,688
Shares Outstanding: 69.41M
This is the first announced deal for Global’s consulting services. The deal is significant in that it’s a domestic contract. Although no numbers are reported as to how much this contract is worth, a few thousand is most likely to be the case, not a few hundred of thousand, in the first 12 months. Depending on the sign-up rates, a couple hundred thousand is not overly optimistic.
Global Payout Inc. is a payment solutions provider offering U.S. and International companies electronic payment and prepaid debit card solutions. Through the Company’s processors and solution providers, GOHE offers an international payment platform allowing account holders to move money to personal bank accounts in over 200 countries. Global Payouts also provides debit cards allowing account holders that do not have bank accounts to access funds worldwide.
As a program manager and re-seller, GOHE, is a provider of prepaid debit cards in the U.S. for payroll and general spend programs.
Bottom Line: The penny stock of GOHE is so thinly traded that, other than trading a couple hundred dollars maximum, warrants no chance for an investing opportunity. However, if it gains some volume and begins to build apattern, it would be a good one to have on the radar for a day trading idea.