Globo: report on presentation given by Chief Executive. Exciting prospects!
Globo (LON:GBO) (32.75p and 2.2% of JIC portfolio) I attended a brief presentation by Costis Papadimitrakopoulos, the Founder and Chief Executive of Globo on Tuesday. I left with a greater understanding of what the opportunity is for the Company. It is all about "BYOD", or" bring you own device". Increasingly people are using their own smartphones for personal and business use.
Globo's principal product, launched last year, is Go!Enterprise which allows a company to control what an employee can access on their smartphone; emails, spreadsheets etc. As far as the individual is concerned it is just another App on their smartphone. The other most important aspect of this product is "containerisation", which means that the corporate keeps its information secure on its own servers with the administrator deciding what each employee can access; all good for security.
Currently there are about 700m smartphones in circulation or c. 15% of the total number of phones. By 2016 the number of smartphones is forecast to rise to over 1bn with 200m employees expected to BYOD. For the 3.5bn "ordinary" phones in circulation, Globo has a product, Citron Go which when downloaded transforms an ordinary phone so that it gains many of the characteristics of a smartphone.
The main driver of Globo should be the take up of Go!Enterprise. For the largest companies the route to market is through partners such as McKinsey and ATOS, the mid-market will be served through mobile network operators, distributors and channel partners and Globo has a solution for the massive SME market which it should be revealing soon.
The Company says that its main aims for 2013 are to increase its market footprint in BYOD, increase its exposure in the UK, US and Western Europe, sign up new distributors and partners and execute selective acquisitions of technology firms that operate in similar fields of the mobile market, focusing on the US & UK.
Conclusion: I wrote about the Company last week following its trading statement including some valuation metrics. The statement went down well as the share price has risen some 15% since then. I was impressed with Costis Papadimitrakopoulos and with the prospects for the Company . Despite the 50% rise in the share price since I purchased the holding on 28th December I am not tempted to sell. In my view the shares still look good value and although they struggled at this level last April it now looks like there is some momentum in the business. Happy Holder!
The presentation is available on the Company's website and is well worth a look. www.globoplc.com
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Globo Plc is an investment holding Company. The Company provides mobile, e-business and software products and related services.. It operates in four segments: third party goods, software products and services, telecom service and Mobile products and services. Third party goods, which resells third party goods, to its customers, consisting of hardware to complement a software project; Software products and services, which sells its own software products and services to its clients both in the private and public sector; Telecom services (S.a.a.S.), which combines telecom services with its own software products that are then sold on a software as a service basis, and Mobile products and services, which sells its own mobile software products and services to its clients. On November 11, 2011, the Company acquired the remaining 65% of ReachFurther Communications Ltd. On February 8, 2012, it acquired Dialect Technologies Inc. more »
2 Comments on this Article show/hide all
I am a holder who has been disappointed in the market's view of Globo for two years. In my view it has suffered some harsh judgements; principally the existence the Greek business and capitalisation of development cost. The former is gone other than as a receivable and the latter is well below the profits. Its not risk free, of course, but I believe the downside has been overstated. In crude terms they have put themselves in a position to attack the next phase of the commercial mobile market having consumed relatively little external investment. The BYOD technology can be considered disruptive (for RIM at least) and is paid for (albeit a chunk of it in the balance sheet). The value is in the code which is essentially IP - the modest size of the company should not constrain it's ability to satisfy demand, delivering through integrators. On the other side of the ledger, the upside for a £110M cap company is massive.
Hi Monty9, Thanks for the feedback. It is one I have been watching for the last year but luckily held off buying until December. It just seems that we are at a tipping point with Go!Enterprise and if the orders come in this year I agree with you that the upside should be huge. I was impressed with the Chief Executive at the conference I went to and think he has put the infrastructure in place to build the business. John