(GBO) Globo

http://www.4-traders.com/GLOBO-PLC-4007810/news/GLOBO-Plc-GO-Enterprise-adds-SmartOffice-functionality-16869330/

Eagle - A note or two of caution never does any harm, but on the whole
Globo is pushing ahead at great lick.
ws

I think it would be wise to take some time to study the accounts in detail just to confirm you understand and are happy with what some perhaps more cautious investors might regard as an above average level of risk. I am not being negative - just drawing attention to the position. In particular, the amount tied up in the Globo SA (the subsidiary sold to manage) is around $20m (€9m of net assets and €11m of debt), with that company still trading (I imagine) mainly in south east Europe (Greece?) and only achieving break even last year so far as I can tell.

Provision against trade receivables appears to be €115k euros in total (these debts are said basically to be bad) when only €14.4m of trade receivables out of €16.6m are said to be 'fully performing'. I accept that debts are looked at on an individual basis and we are therefore reliant on management judgement (backed by a nod from the auditors that none of the €2.4m non-performing debt will go bad.

With no disrespect whatsoever intended for any of the incumbents, there is still no fully qualified accountant anywhere on the premises at senior level and this may well cause a 'perception' problem if it comes to (for instance) a NASDAQ listing. As far as I am concerned it is an 'actual' problem, but I seem to be in the minority. Generally, at least one of the NEDs would be expected to be a qualified accountant accountant with relevant experience, but not here.

I don't understand the comment about extending the term of Littlejohn's (the auditor's) tenure from 6 to 7 years. The auditors' appointment is on a shareholder vote at the AGM each year, as far as I am aware. Again, no criticism intended, but Is Littlejohn a recognised name in the US (for instance).
http://en.wikipedia.org/wiki/Auditor_independence

I have a significant (for me) investment in the company (not as big as at one time because I am mindful of the risks). I am not unhappy about this because hopefully all will turn out as planned. The risks should not be ignored however - particularly (IMO) the risk of not getting paid in the event of the new associate company under-performing in what is a difficult part of the world and will be for some time to come. It will have to generate a fair bit of cash if GBO is to be paid what it is due. The security of the shares themselves is not much consolation because if it had to be enforced, it would be because the company wasn't performing and QED the shares wouldn't be worth much.

There are many positives and the absolute level of trading performance has been exceptional. We need to see evidence of a successful roll-out of GES in the US to maximise SP performance via more improvement to the bottom line (and in cash generation, which was disappointing in 2012). I am optimistic the update next month will provide evidence of this. I won't mention the significant increases in directors' pay because they probably deserve it!!

Eagle

Enhancing the GoE offering. I expect to see a couple of articles leading up to a buoyant trading update....

"Mobile software specialist Globo (LON:GBO) has a struck a licensing deal, which will enhance the functionality of its GO!Enterprise office technology.

GO!Enterprise is the company's flagship product in the rapidly growing Bring-Your-Own-Device (BYOD) market and enables employees to bring workplace email, data, and applications securely onto their personal smartphone or tablet.

The licensing deal with SmartOffice Technologies - a subsidiary of Picsel International - means users will be able to securely create, view, edit, annotate and print documents such as MS Word, Excel, Powerpoint, PDF, Text and images, from their smartphones and tablets running Android or iOS operating systems

Trevor Goldberg, director of strategic allinaces at Globo, said: "SmartOffice is one of the most popular enterprise-grade secure productivity solutions, based on technology already delivered to more than 700mln mobile devices and its addition within our GO!Enterprise Mobile Client will extend the user experience and productivity and increase our product value."

Doubled up again today. 4th tranche in this share - awaiting trading update in early June.

Every Number up aside from total liabilities which is down....how good can it get !!

And I think the point that will not be missed by Globo's customers is that the savings to be made in supplying a much smaller number of "Company Mobile Phones" are enormous, hence the attraction. We haven't even scratched the surface yet !

Here's Ruffer's April European Fund newsletter which discusses increasing their GBO holding to 2.7% of the fund:

"...UK-listed software company, Globo; although this was already a key contributor to Q1 performance, we felt comfortable taking this weighting above 2.5% given absolute valuation metrics that continue to look extremely attractive in the context of Globo’s exposure to the fast growing Bring Your Own Device (BYOD) market. This market is growing with the proliferation of smart phones and tablet devices, which individuals are increasingly expecting to use to access their corporate IT networks, rather than being tied to corporate ‘hand-me downs’ such as the once ubiquitous Blackberry..."

http://www.ruffer.co.uk/cmsfiles/reports/REF_Monthly_report.pdf

(tks to esfsadfa)

http://www.iii.co.uk/investment/detail?code=cotn:GBO.L&display=chart&it=le

How beautiful does that chart look from March 2013 to date. Just waiting for that break and blue sky!

I'm tempted with another tranche to help push it along.

Stretch

Thought provoking BBC article on the widespread global use and massive installed base of feature phones which suggests that rumours of the demise of CitronGo! & Go!Social are somewhat premature:

'2013 will mark the first time vendors ship more smartphones than feature phones... IDC estimates 918.6 million smartphones will be shipped this year - 50.1% of the global total of mobiles...

..."The key is to look at the installed base of devices - actually devices in hand - rather than the sale of new devices," he says. "In many emerging markets, handsets are reused, resold or passed down through the family."

We are in an era of developers obsessing over "bigger, better, faster, more" when it comes to mobile phone apps. You wonder whether "small, simpler, slower, less" might be an equally good mantra...'

Reassuring that Globo have a firm foothold in both markets.

http://www.bbc.co.uk/news/business-22390444

It would also be interesting to know who bought the other 1,470,000 shares @42.75p on 1st May.

They have 15 billion under there management

kk

Good to see Ruffer buying an 490k more shares to take their stake over 5% !

Should be an interesting month in the evolution of GBO.
We should receive a trading update with the AGM which will hopefully continue the theme of strong growth & there could be another major deal to be announced,apart from the prospect of a Nasdaq listing.
Assuming all remains positive our SP should rerate substantially as we are currently rated on a PE ratio more akin to a dreary Midlands metal basher or a company in terminal decline,rather than a company at the forefront of the technological revolution with a rapidly growing global presence.
I bought more @ 37p for T20 which I could close today for a decent profit-but I wont because our SP could easily be double where it is now over the next few months
AIMHO

Thanks for the compliment -I've not had much visibility of the market today but sounds like there's been a bit of activity!

Stretch

I was referring to Tues 11:17 New Highs Coming.
Then firs thing this morning 2m Buy.
Had you down as one of the family.

Just thought it was really good.

T

I was referring to Tues 11:17 New Highs Coming.
Then firs thing this morning 2m Buy.
Had you down as one of the family.

Just thought it was really good.

T

You've got me confused unless my iPad isn't updating (likely). Looking like a breakout soon either on fundamentals, reratings or rising markets. The recent consolidation has set up the next rise nicely IMO.

You've got me going now.

How did you call all that.

I've not really looked into charting but that was very convincing.

RBC out today with update rec, outperform, target 70p

Some body knows something we don't.

Profshares

Please read my comment again. I did not say it was a crime or even a negative. I just said that it was not, in my opinion as positive as others do.

I agree that the directors have done a great job. This is my largest holding and I am sitting on a large profit with prospects of a lot more.

GLA

Trabucan

Click the link below and vote for the CTIA Award. Its simple and it adds to our investment.

http://ctiait.ctia.org/etech/2013/public/index.cfm/signUp/?PID=754

Check the names of the finalists here. Globo is competing against AT&T, Verizon, etc

http://ctiait.ctia.org/etech/2013/public/index.cfm/viewScores/

Getting shares for free???
Have you seen what the directors are getting paid?
Study the previous Annual reports and you will understand that for the level of work that these directors have delivered, their salaries are next to nothing.
As I read from the announcement they exercised options which were granted at the end of 2010 !!!!! at a price of 12.5pence (they have made an announcement back then). They sold some of these new shares to cover the cost. This is not a crime. After all they have bought shares previously which they haven't sold.
Its a shame to criticize without studying the data.
Well done Globo.

I take your point entirely Trabucan,but they could also have sold all options in the market & generated a very decent cash profit for themselves.
Hopefully the company will issue a trading update with the AGM which will demonstrate a continuation of our growth story & ,who knows,there could be another decent deal announced before then.

GCCR

Agree about fundamentals but I do not agree that directors getting shares for free is a positive. If they had put up some of their own money to fund the options that would have been more of a positive.

I think that the analysts are underestimating the potential sales of Go Enterprise so there is still plenty of upside.

GLA

Trabucan

Fundamentals and todays RNS also suggest just such a move.

Nice inverse head and shoulders coming for break-out into new territory...

Good to see Directors taking up a substantial number of options,which could have been disposed of for a decent profit

Keep voting: we're on the leaderboard!

http://ctiait.ctia.org/etech/2013/public/index.cfm/viewScores/

Visit
www.ctiashow.com/awards
to vote for Go! Enterprise.
It's a simple process

Globo says it is "thrilled" that its GO!Enterprise Box has been named a finalist in the CTIA Emerging Technology Awards.

Investors also welcomed the news and shares were up in early deals.

The competition honours the most innovative new wireless and service products and the Globo product is featured in the mobile cloud category, it said.

GO!Enterprise Box allows small and medium businesses to run up to 150 workforce devices through the firm's cloud infrastructure.

Globo will be demonstrating GO!Enterprise BOX during the competition in Las Vegas between May 21 and 23.

"We are thrilled to be recognised as a finalist in the CTIA Emerging Technology Awards for innovation in Enterprise Solutions - Mobile Cloud," said Costis Papadimitrakopoulos, founder and chief executive.

"Our Enterprise Mobility in a Box solution is a tremendous advance for the enterprise mobility space, addressing a critical need of SMBs to provide secure and undisrupted connectivity in and outside of the office."

Shares rose 0.91% to 41.50p.

6 x 800k trades and 2 x 300k trades in the last couple of days.

Something interesting going on...?

http://www.barchart.com/opinions/stocks/GBO.LS

ditto and the same goes for the "advice" of a Stockbroker !!

Wouldn't pay a 1p for their rubbish as commented below, the Company's IRO agreed....

these are available but you typically have to pay good money !!

As is typical of this company I had a response within 30 minutes of my email from the extremely helpful IRO.

Unfortunately small companies are victim of a mix of broker politics, mis-selling regulations and a present gap (which the company is trying to address) in the Private Client/ retail broker market. DS and Merchant no longer follow the company and there is not the trading volumes to attract other independents, so we won't see analyst input that would otherwise keep retail investors better informed.

We are likely to get some form of update around the AGM (last year 28 May), which I'm sure will not disappoint.

I have posed the question and will report my findings - the company are usually very good at responding.