spread 47.50 v 48p

Since yesterday there is some sense of fresh air on the trading front, and though the closing price yesterday was still @ 47p one could see plenty of trades well above that.

today has started where late yesterday finished and the fruit of it is showing on the share price and also on the trades and much the same on the order book, very strong on the bid side

I would hope to see us edging 50p before the results on Thursday...

Well looking good for the Thursday's results as it reaches highs not seeing for some time

the order book continues strong and glad the sell order at 48.50p was not large and now over.

order book DEPTH 29 v 21

So perhaps today then!

GBO results due on Thursday

Forecasts
Year Ending - Profit(£m)- EPS - P/E - PEG - EPS Grth.
31-Dec-14 ------ 23.20 - 6.21p - 7.7 - 0.4 - +17%
31-Dec-15 ------ 28.08 - 7.51p - 6.4 - 0.3 - +21%
31-Dec-16 ------ 33.69 - 9.02p - 5.3 - 0.3 - +20%

Revenue (£m)
31-Dec-2015 97
31-Dec-2016 112
--------------------------
Last month ST covered GBO, 2014 eps expectation in line with Arthurlys:-

This news can only underpin prospects for this year and expectations that Globo will deliver on analysts’ pre-tax profit estimates of €50.7m on revenues of €122m, up from €34.3m and €99.8m forecast for calendar 2014. On this basis, EPS are predicted to increase by 11 per cent to 8.2 cents (5.8p) in 2014, rising to 11.9 cents (8.5p) this year.
This means that even after factoring in the near 10 per cent appreciation of sterling against the euro since the start of 2015, Globo’s shares are still only priced on 10 times likely fiscal 2014 earnings, falling to 7 times 2015 estimates assuming of course it delivers the robust growth anticipated by sector analysts.

The Company

Globo is an international leader and technology innovator delivering multi-platform Enterprise Mobility Management and Telecom software solutions.

Product offerings include:
Enterprise Mobility solutions including GO!Enterprise Office, GO!Enterprise Mobilizer, GO!Enterprise Reach, GO!Enterprise247 Cloud, and GO!Enterprise Mobility in a Box. Additionally, through several combinations of the GO!Enterprise Mobility Management Platform, the most comprehensive mobile application platform, Globo empowers enterprise developers and ISVs to create secure mobile applications by utilizing the patented technology of secure containerization for both corporate-liable devices and BYOD initiatives.

Consumer Mobility solutions including CitronGO! and GO!Social offering a unique smartphone user experience on feature phones, empowering MNOs and MVASPs to maximize ARPU, user retention and network utilization and efficiency.

Globo was founded in 1997 and is run through its head offices in New York, London and Athens.
Since 2007, Globo has been listed on London Stock Exchange’s AIM market as (GBO:LN).

The Group operates internationally through subsidiaries and offices in the US, the UK, the Europe, the Middle East and the South East Asia.
Globo mobile solutions currently operate in more than 45 countries and serve more than 6 million users on a monthly basis.
Globo has partnerships with industry leaders including Samsung, Fujitsu, Ingram Micro, Computerlinks, ASBIS and leading software and systems integrators who combine to support the industry’s broadest range of mobile devices.

Globo has received numerous awards for its innovative technology and superior financial performance and is recognized as one of the key players in its field in numerous Technology reports such as Gartner, VDC, OVUM etc.

Since December 2012, Globo has divested from its Greek legacy business (e-business software) operations and is focusing solely in its international expansion which today represents more than 85% of its operations.

with regards to "upenn "
Share price has not grown with profits
Share price now 48p

FY pretax up 30% to EUR 35.7m, above expectations. Strong momentum of 2014 has continued in first quarter. Perhaps today the start of a re-rating.

Astounding Results results with EPS of 6.70p so worth around 100p

52p +4p

GLOBO Plc ("Globo" or the "Group")

Preliminary Unaudited Results for the Full Year ended 31 December 2014

Strong revenue growth; third consecutive year of positive free cash flow1, of €7.3 million

Globo plc (LSE-AIM: GBO), the international provider of Enterprise Mobility Management (EMM), mobile solutions and software as a service (SaaS), announces preliminary unaudited results for the year ended 31 December 2014.

Financial Highlights

• Revenues up 49% to €106.4 million (2013: €71.5 million), ahead of market expectations
· GO!Enterprise revenue up 94% to €57.9 million (2013: €29.9 million)
· CitronGO! and GO!Social revenue up 11% to €38.5 million (2013: €34.8 million)
• Revenues from North America increased by 334% to €15.5 million (2013: €3.6 million) representing the 15% of the total Group revenues.
· EBITDA up 41% to €50.9 million (2013: €36.0 million), ahead of market expectations
• Profit Before Tax up 30% to €35.7 million (2013: €27.4 million), ahead of market expectations
• Earnings Per Share of €0.094 (2013: €0.074), ahead of market expectations
• Free Cash Flow1 of €7.3 million (2013: €5.2 million)
• Year-end cash position of €82.8 million (2013: €64.2 million) with Net Cash position (cash minus debt) of €40.4 million (2013: €42.8 million)

1 Free Cash Flow (FCF). Free cash flow is calculated by taking the net cash flow from operating and investing activities, adding back the cost of acquisitions.

Operating Highlights

Growth in Customer Base
• GO!Enterprise customer base grew to 834,000 business-to-employee device licenses (2013: 340,600) and 31.8 million business-to-consumer licenses (2013: 13.1 million)
• CitronGO! and GO!Social customer base increased to 3.50 million monthly active users (2013: 2.98 million)

Brokers target prices updated today: RBC 120p and Canaccord 90p.

This one has got to start flying, dirt cheap in my opinion.

Has beaten the EPS expectations and well ahead
with 7.40p

Fcast
31-Dec-14 - 6.21p

Does look good I must say at a first glance .......

Thursday, Apr 30 2015 by Paul Scott

Globo (LON:GBO)
Share price: 51p (up 7% today)
No. shares: 373.7m
Market Cap: £190.6m

(for the avoidance of doubt, I have no position in this share at the time of writing)

Preliminary results - for calendar 2014 are out today - rather late, four months after the year end. As usual, the headline numbers look amazing - revenue up 49% to E106.4m, EBITDA up 41% to E50.9m, profit before tax up 30% to E35.7m. EPS up 27% to E0.094, ahead of market expectations. However, free cashflow is stated by the company to be only E7.3m - so only 20% of PBT converts into cash.

Intangible assets - the P&L is safely ignored, as it's effectively fantasy, in my eyes. The E35.7m profit before tax is achieved by diverting an enormous chunk of debit entries (costs) from the P&L, and onto the balance sheet, mainly into intangible assets. These are mainly just payroll costs, so they're worth zilch. They're not an asset at all, but they sit on the balance sheet as if they were.

You can capitalise costs into intangible assets under current accounting treatment, if you call it development spending. As Dr Paul Jourdan of Amati pointed out at the UK Investor Show, sitting next to me on the panel discussion about value investing, many fund managers are dismayed with this new accounting treatment, as they had previously fought hard to stop companies capitalising costs into intangible assets. So in his view (and mine), such capitalised costs should be reversed by investors when looking at the accounts.

In this case, intangible assets (excluding goodwill) rose by E12.9m, so at the very least I would deduct that figure from PBT, to reduce it from E35.7m to E22.8m.

Cashflow statement - I find this far more revealing than the P&L, when looking at the accounts of companies that I suspect are indulging in creative accounting (several changes of auditor at Globo strongly reinforce that suspicion - one of many red flags with this company).

Several things jump out at me. Firstly, why is a company with substantial net cash paying substantial interest payments of E4.1m? Also, why did a company with substantial net cash repay E10m of borrowings, but take out E30.0m of new borrowings in 2014? That simply doesn't make sense to me. If you have a lot of spare cash, then you pay off your borrowings, to save interest. You don't take out new, larger borrowings. Very, very odd. Can anyone shed any light on that?

So the net cash from operating activities is E31.0m. Of that, most of it, E24.4m is spent on capex. Since tangible assets are negligible, what this means is that almost all of that money was spent on intangible assets - i.e. payroll costs! Add in interest received, and you arrive at free cashflow of E7.4m, which is near enough (after rounding) to the company's statement that it made free cashflow of E7.3m.

They also spent E9.1m on acquisitions, which is fair enough, it's fine to exclude that from free cashflow, as it's discretionary.

Therefore, the way I look at things, the free cashflow figure of E7.4m is effectively the real level of profitability the company is achieving, and the much higher P&L numbers are fantasy. You don't have to agree with me, this is just my opinion.

Valuation - so as I've demonstrated above, this means that the company isn't on a PER of 6 at all, as the E part of that calculation is a fantasy number.

As is often the case with companies that indulge in creative accounting, it can fool a computer model! So you can see that the StockRank is high, at 85, and the Growth & Value section is a sea of green.

This is where, in my opinion, you need shrewd human input, to spot the flaws that the computers can't necessarily pick up, because the computer has to assume that the reported accounts are perfect. I don't, and I know what to look for, to identify the imperfect ones!

The non-existent dividend yield is a big tell. Again, a hugely profitable company with pots of cash should be paying decent divis, right? Yes it should, but Globo has never paid a divi. Something just isn't right here, in my view.

Balance Sheet - I've covered intangible assets already, but the other odd items here are "other receivables" within fixed assets - it's very unusual to see any debtor figure up there. I think this might relate to the deferred payments from when the company inexplicably decided to sell 51% of a part of the business to its management, and gave them a cash dowry to enable them to "buy" the business back. There is only one reason to explain why that was done - it was to get the figures off the consolidated balance sheet. It's now an associate, which is a single line entry.

Debtors - this is always a warning sign, if it's more than the usual range of about 60-90 days turnover. In this case trade debtors are E50.8m, which is 48% of turnover for the year. That's way too high, and I don't care what the reasons are, it's just far too high. The ageing of it looks to have deteriorated somewhat too, see note 4 to today's accounts. Although it's easy enough to credit off old, unpaid invoices, and then re-invoice them anew.

A lot of the unpaid debtors are probably Greek Govt, or Greek corporate debts. Which with Grexit impending, what's the likelihood a lot of Globo's debtors will have to be written off? Very high I would say.

Furthermore, there's another E21.1m in other debtors, which relate to deferred income. So the company has booked sales (and hence profit) through the P&L, but not yet billed the customer. So it sits in other current assets until an invoice is raised, and then moves into debtors. So really, total debtors are E71.9m, which is the bulk of 2014's entire turnover!

Cash - the company says it has E82.8m cash, and it did raise a load from a Placing some time ago. So why does it also have E42.4m in bank borrowings? Are they masochists, who enjoy paying the bank interest unnecessarily? On the face of it this seems crazy, but maybe there is an explanation - is the cash marooned in one country, and the debt in another possibly, I don't know?

My opinion - the figures have never looked right with this company, and I strongly believe that sooner or later, there will be big write-offs from this balance sheet. I don't believe the figures, to be blunt. Nor does the market, or the PER wouldn't be 6, would it?!

That said, there does appear to be something here. If you do believe the numbers, and some people might, then there seems good growth in licenses sold, etc.

Anyway, as you might have guessed, it's not for me.

Funny how these people go to such lengths to tell us their side of the story . They also tell us they have no position at this time . There's arguments for and against any share . as people come out with alternate views . Just looking for quick in and out I dare say . Who's to say he won't buy in when it suits him . Detest these people . And shouldn't be given such exposure as if God sent .

Back up towards recent highs and ADR application filed. If we can reach/break the 60p level, might gather more momentum.

Globo announces Level 1 ADR listing in the United States
Fully-Sponsored Level 1 American Depositary Receipt (ADR) Programme Established on OTCQX

Globo plc (LSE-AIM: GBO), the global provider of complete enterprise mobility and application development platforms and services, is pleased to announce the establishment of over-the-counter trading facilities for its Fully-Sponsored Level 1 ADR via OTCQX. Globo has obtained a quotation on the OTCQX International over the-counter platform, which will take effect from today, 2 June 2015. This is complementary to Globo's LSE AIM quotation (LSE: GBO), which will continue to serve as the principal trading platform for the Group's ordinary shares.

Globo's Level 1 ADR will be quoted on OTCQX as GOBPY. A real-time quote may be accessed at www.otcmarkets.com/stock/GOBPY/quote and the stock trading code (CUSIP) is 37959C 106. The Bank of New York Mellon serves as Globo's ADR Bank and Principal American Liaison ("PAL") on OTCQX, responsible for providing professional guidance on OTCQX requirements. Canaccord Genuity Inc. will act as a market maker in the Company's ADR.

The Globo ADR represents a ratio of 20 ordinary Globo shares to 1 ADR, created using the existing issued share capital of the Group.

Globo has received increased interest from U.S. investors and has entered into the Level 1 ADR program in order to facilitate this interest and improve its reach amongst the U.S. investment community. The Group's recent international growth has been focused on the U.S, which now represents approximately 25% of its global workforce. The Group's Level 1 ADR is a step towards a greater commitment to the U.S. market, which represents the most significant opportunity for its enterprise mobility products.

Impressive progress....sp rise here as well....

19 June 2015

FOR IMMEDIATE RELEASE

GLOBO plc
("Globo" or "the Group")

High Yield Bond Investor Meetings

Globo plc (LSE-AIM: GBO / OTCQX: GOBPY), the international provider of Enterprise Mobility Management (EMM), mobile solutions and software as a service (SaaS), announces that it will be conducting a series of investor meetings in the US and UK commencing on 19 June 2015 in relation to a potential issue of senior secured high yield notes (the 'Notes').

Upon successful completion of the offer the net proceeds from the sale of the Notes will primarily be used to fund further acquisitions that support the Group's international expansion strategy in its key growth markets. Additionally, proceeds will be used to repay existing indebtedness and for general corporate purposes.

Globo's CEO, Costis Papadimitrakopoulos commented:
"Following on our US expansion and the successful acquisitions of both Notify Technologies Inc. and the services operations of Sourcebits Inc., we are looking to accelerate our expansion through additional strategic acquisitions in both the US and Europe. Our strong financial performance underpins our ability to access the high yield debt market for future growth and acquisitions without diluting our shareholders. We feel that this is the right time to accelerate our growth and execution capabilities as we continue to successfully build a leadership position in the Mobile Enterprise space."

HOW IS MOVING AT THIS LOW PRICE 39.25p
double bottom or further down to go?

negative comment 15 july 2015 - from value and opportunity
http://valueandopportunity.com/2015/07/15/globo-plc-value-superstar-or-too-good-to-be-true/

Analysis by Juicyshares some time back

Globo Plc – A high growth company generating cash.

Disclaimer: I am invested in GBO.L. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article or any affiliation with Globo other than being a shareholder.

Summary:

Cash analysis demonstrates strong operational and financial performance
Cash flows expected to accelerate
Bond issue and acquisitions a potential game changer

Globo’s revenue has grown at a compound annual growth rate of 38% since 2007.
Despite the rapid growth Globo trades on far lower multiples than its peers so looks undervalued and over the last 2 years it has been the subject of several persistent negative reviews and comments regarding accounting treatment, lack of cash flow, lack of online reviews, whether reported revenues are real, criticism over high debtor days and even questions over where it stores its cash.

So is Globo a good investment or a sham as some claim?

This investor ultimately only cares about cash, I want to know if the future cash flow generated by a company discounted to present value represents a significant premium to today’s market value. People say that cash doesn’t lie, so I have gone back to 2007 to see where the cash has come from and where it has gone.

Where has the cash come from?

Cash Generated by the business: From 2007 to 2014, Globo generated a net operating cash flow (after interest and tax payments) of €83.2m.
Cash from equity: In the same period Globo raised €67.9m from the issue of shares net of expenses.
Cash from bank loans: Globo borrowed €74.7m and repaid €27.8m of bank loans, net borrowings were €46.9m

So Globo generated €83.2m of cash internally and has received €114.8m through financing, giving a total cash in-flow of €198.0m

Where has the cash gone?

€93.0m has been invested in tangible and intangible assets (mainly intangibles) which includes capitalisation of R&D expenses. It is this that some commentators have been critical of although others have pointed out that Globo are only doing what is required of them under FRS. A further €13.7m was used to acquire businesses, €6.7m of cash was disposed of with the sale of 51% of the legacy Greek business.

€82.8m of cash remains on the balance sheet (as at 31st December 2014).

One way to think of it is that Globo has spent all the money it has raised through financing on transforming the business from a Greece focused business software company to an international enterprise mobility business. All the money Globo has generated internally is in the bank.

So the next question is, has the money spent been put to good use?

A lot has been made of the fact that Globo spends more money than it generates. Despite being free cash flow positive for the last three years, this statement is in fact true of every year going back to 2007. Free cash flow less acquisition costs has always been negative. Some of you may be familiar with the concept of Owner Earnings which is defined as the cash generated by a business after all expenses including acquisition costs. It’s termed Owner Earnings because this cash could if desired be returned to shareholders in one form or another, or a business could choose to reinvest if it believed it would generate a return on investment in excess of the cost of capital. Anyway, Globo’s owner earnings have never been positive.

But this doesn’t mean that Globo is a bad business or doesn’t represent a good investment opportunity. To answer these questions we need to consider the future prospects of the business. The trends in the financial data over the last 8 years reveal some useful insights.

Globo revenue has increased every year, in fact it increased 10-fold between 2007 and 2014 and appears to be growing exponentially. The one-off levelling out in 2012 was because Globo shed €12m of revenue with the sale of 51% of the legacy Globo Tech business.

The more mathematically minded will recognise that the growth in revenue is not following a straight line but appears to be accelerating. The fact that 2015H1 revenue (not shown) at €72.4m is higher than the entire 2013 revenue appears to corroborate this observation and is consistent with the high recurring revenues reported by Globo. This ‘sticky’ business is like a gathering snowball; the bigger it gets the more it accumulates. If this trend continues (even excluding further acquisitions), expect sales to comfortably exceed €500m within the next 5 years.

Growth in net operating cash flow is also accelerating. There has been a marked increase in net operating cash flow over the last 3 years since Globo launched GO!Enterprise and as a percentage of revenue, net operating cash flow appears steady at around 29% of revenue.

Capex (including capitalised R&D costs) has also been increasing year on year but importantly at a slower rate than operating cash flow.

The trend in capitalised costs as a percentage of revenue is actually decreasing. This is in contrast to the operating cash flow which is why for the last three years Globo has been able to generate increasing free cash flows.

The trend in free cash flow generation has continued into 2015 with €7.2m generated in H1 compared with €7.3m for the whole of 2014. Given that Globo’s revenue is normally weighted to the second half, the strong H1 result indicates that 2015 as a whole should generate free cash flow in the region €15-20m.

So there are 4 clear trends:

Revenue increasing exponentially consistent with Globo’s claims that they are winning new business while retaining spend from existing customers.
Net operating cash flow increasing in line with revenue (at 29% of revenue)
Capex decreasing as a percentage of the accelerating revenue
Free cash flow increasing year on year, probably at an accelerating rate.

My conclusion is that the €114.8m of cash raised through financing (and spent/invested) has been well invested in transforming Globo from a Greek software company to an international enterprise mobility player. The evidence for this conclusion is the increasing free cash flows. This year I’m expecting around €15-20m free cash flow or about 13 to 17% return on investment. I expect free cash flow to increase next year, and the year after, and the year after.

But what about the proposed $180m bond issue and subsequent acquisitions? Some have been critical about the high debt burden, the high interest charge (expected to be around 10%) and are sceptical because neither the acquisition targets nor time frame are known.

To understand why Globo want to raise $180m to buy businesses you need to understand Globo’s place in a rapidly growing but competitive market.

Globo’s strength is that it offers both EMM and MADP solutions, it has won large contracts (e.g. Milton Keynes) because of this. Additionally, the Mobility Business Solutions division (MBS) supports customers in their mobile strategies and implementation. IBM and SAP are the only other vendors recognised by Gartner in both EMM and MADP Magic Quadrants. EMM is becoming increasingly commoditised which is why Globo’s better known competitors like Good and Mobileiron struggle to make money. MADP is higher growth and higher margin and Globo is well positioned to be a one stop shop for companies looking to create, deploy and manage mobile applications.

The problem is that Globo’s brand recognition is low in the US which is the largest and most important market. Globo has strong products but versus the leaders in both EMM and MADP, Globo lacks both scale and the selling resources needed to be a leader. Hence the need to acquire a business or businesses that will provide that capability enabling Globo to rapidly expand its customer base and increase brand recognition.

Targeted acquisitions have the potential to transform Globo’s place in the industry, propelling Globo towards a leadership position. If executed correctly, the acquisitions should accelerate cash flows and increase shareholder value. Given management's track record of strong execution I’ve no reason to doubt they will deliver this time.

Despite the undeniable operational and financial progress (the above analysis is based on cash which does not lie), Globo trades on a substantial discount to its peers. Like some other AIM stocks, Globo has been the subject of short selling which tends to drive prices down. Additionally, some commentators are persistently insinuating that something is wrong, there are too many red flags and no doubt these persistent negative comments have had an effect.
This cash analysis supports my view that Globo is a well run, high growth company that has managed its cash resources well in a difficult climate striking the right balance between growth and cash generation. My discounted cash flow model indicates a fair value model of 114p verses a share price currently of 42p.

The author is a private investor in Globo.

https://docs.google.com/document/d/1r_jrhnZZr1cGd982p_Tf1IXB2a8o-k04_SI87xgh_ZY/edit