December 27, 2005
SpeculatingStocks.com Stock Pick: Gainsco, Inc. (GAN)
Stock Price: $7.35 (long-term strong buy)
Gainsco, Inc. is a Dallas, Texas-based holding company. The Company's nonstandard personal automobile insurance products are distributed through retail agents in Florida, Texas, Arizona, Nevada and California.
This company is relatively unknown and just had its IPO on November 21st. Volume has yet to trade over 50,000 shares while there are over 20 million shares outstanding. The trend is up throughout GAN's sparse history.
The bad news is behind this company as the Hurricane claims trickle in less and less. Net income for the first nine months of this was $3.4 million. Revenue in the first nine months came in at $66.86 million. We expect Gainsco's market cap to increase from its current $148.47 million value.
SpeculatingStocks.com Target Price: We expect GAN to reach $10 within the next 2-4 months with possible strong upside surprises.