GeoTeam Attends 2009 Taglich Brothers Annual Small Cap Equity Conference

The GeoTeam® attended the 2009 Taglich Brothers Annual Small Cap Equity Conference on May 5th, 2009 where Orchids Paper Products(AMEX: TIS) and Gulfstream Intl Group Inc (AMEX:GIA) presented their growth stories to analysts and potential investors. Both companies gave articulate presentations outlining recent accomplishments and future goals.

Orchids Paper Products

Orchids Paper Products' presentation has confirmed what the GeoTeam® discussed in previous research notes. In particular, the company’s primary goal centers around maximizing its conversion roll capacity.   Recall that the conversion line has higher margins than the parent roll division. With its present capacity, the company will embark on gaining market share in its current geographic market. When asked about expanding its geographical reach the company stated that there are still significant market share gains to be captured in its current markets.

Going Forward

The company has scheduled projects to re-build certain conversion lines which should increase productivity and projects to improve the flexibility of certain conversion lines. Orchids Paper Products will also focus on the optimization of the $4.7 million conversion automation project that was completed in February 2009 and anticipates increased year over year production in the paper mill.

Gulfstream International

Gulfstream's company presentation has shed further light on the growth opportunities that lie ahead for the company arising from recent restructuring moves and industry trends.

1. Larger carriers are exiting smaller markets where it is just not efficient for its large capacity planes.  The company is also abandoning domestic markets to focus on international markets.  These abandoned markets are a good fit for Gulfstream's smaller 19 passenger planes.
   
   
2. Smaller markets are also being abandoned by regional airlines as they continue to gravitate toward larger jet aircraft in the 70-100 seat range and away from smaller regional jets and turboprop aircraft.   Many of these smaller carriers, known as hub feeders, derive their business from partnerships with larger carriers and tend to follow the larger carriers as they exit smaller hubs.
   
   
3. Gulfstream is further along the curve than many of its competitors with regards to restructuring efforts.  The company has a chance to exploit this situation and purchase assets at reduced prices materializing from the global economic recession while capitalizing on new enter new markets.
   
   
4. Barriers to entry are even more prevalent today than ever.

The end result for Gulfstream is an opportunity to use its strengths to capture abandoned markets while facing little competition.

What will be the key to driving Gulfstream's share price?

The airline industry is not necessarily one that investors flock to due to a myriad of uncontrollable factors.  While delving into the Gulfstream story it can be surmised that the company is not your typical airline. The company ultimately needs to 1) relay this message to Wall Street and 2) continue to deliver improved financial results, two tasks that the GeoTeam® believes the company is keenly aware of.