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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