Wednesday, July 25, 2007

GSE Systems Inc.

GSE Systems Inc. is an AMEX listed security that has been trading in a range between $3.11 and $8.70 over the past year. With 13,115,620 shares outstanding, a recent price of $6.95 gives a total market capitalization of $90,497,779. While there are certainly larger companies, GSE Systems Inc. has definitely earned its place in the pack. Last year, GSE Systems Inc. created $0.06 in earnings for every share outstanding.

GSE Systems Inc. is currently priced by the market at 113.40 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, GSE Systems Inc. could be an interesting value proposition.

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