Globo (39.00p and 2.7% of the JIC portfolio) is up 8% today following its announcement that it has signed a North American distribution agreement with Ingram Micro for its new product GO!Enterprise - Enterprise Mobility in a Box (GO!Enterprise BOX). In my note of 31st January I described the GO!Enterprise product ; this new product is aimed at small businesses with up to 150 devices and is hosted in the "cloud". The Company says it is a plug and play solution requiring zero IT resources and will be available on an annual pay-as-you-go licensing model with minimal up-front costs.
Conclusion; this deal makes eminent sense. Globo seems to have a good product and now has a distributor aimed at authorised resellers in the massive North American small and medium business market. We now need to see sales come through during 2013. On consensus forecasts the shares are valued, at 39p, on a PE Ratio of 14.3x 2013 earnings (21% growth) falling to 9.6x 2014 earnings for 50% growth. The shares are up 90% since purchased for the JIC portfolio on December 28th but I am going to resist the temptation to sell as in my view the shares still look good value. Run your winners!
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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 »
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Run your winners indeed - though one should consider top slicing a bit (I haven't yet).
The reason I bought was that they showed remarkably profitable international growth for a young tech company, even allowing for the capitalisation of development costs. Given the sector there seemed to be the possibility of hitting the big time.
Yes a potential stellar share. I brought twice in early January when GBO appeared in 5 Stockopedia screens. The numbers and news showed little not to like. It has excellent re-occuring income and new software products launched. I see Shares Mag extract below (14th Feb; GBO at 33.3p) likes them too, but strangely didnt flag them as a Buy. On recent news and the house broker forecast I am going to sit and wait.
...“Globo already has 200K active users from earlier European and Middle East launches, from which the firm earns around $11 per user per month. Its revenues have risen by an average 50%plus over the last 4 year and the business has generated a pre-tax profit for the last 4 years. Analysts at house broker RBC Capital Markets anticipate 2012 sales of €46M increasing to €60.3M 2013 and €81.2 in 2014. That would imply EPS doubling to 4c in 2012 before hitting 6c and 9c/share over the next 2 years. Such growth leaves the stock on just 6.4x for 2013 and 4.3x for 2014”
Ian
I'm always wary of doing an "ASOS"! Bought 100,000 shares at 16p in March 2004. Thought I had done really well, (which I suppose I had) and sold them all in July 2004 at about 60p! Now £27.81. I agree with iwright7 that Globo still looks good value.
However it has run up extremely quickly and I could be tempted to sell a 1/3 of my holding. Greed and fear!