I cam across Globo PLC a few days ago and as a follower of Robbie Burns (The Naked Trader) this stock seems like it has everything going for it.
I would love to know if there is anyone out there who disagrees with me and why!!
The downside is exemplified in the three thumbs down to your entirely reasonably question, together with the first two comments which provide almost no argument but leave the reader with no doubt.the company should be considered beyond consideration and have each collected, at the time of writing, 3 thumbs up. Not statistically relevant but typical of pretty much everything I read in the PI blog-sphere. Paul Scott - whose work I respect greatly - absolutely hates this company and has explained he does not try to provide a balanced analysis as he is more concerned to ensure his readers are in no doubt he believes it a wrong-un (though recently he has acknowledged the ongoing earnings growth rate). I have no problem with this though some others are much less transparent and I suspect more self serving in their comments.
I disagree, albeit rather quietly because any positive comment I make is generally yah-booed down and no useful argument follows. Most of the derogatory comment has centered around two things; the accounts and related reporting, and unwillingness to lie down and behave as expected by the normal industry institutions. For example the high age of debtors has continually been cited as a sure signal of doom yet they have recently achieved a positive cash position (unlike their competition). The much criticised change of auditors was prompted by what seems like blackmail and for me at least it was refreshing they refused to take it and were prepared to take the consequences. I am not surprised, I have experienced much the same thing from an even bigger accounting firm working as FD in a small cap company. That is not to say I think the GBO board are angels, recent reports by Carmensfella that the CEO ducked questions at a recent presentation is a worry, foolhardy if nothing more sinister. I can understand he may have been worried about the presentation being hi-jacked given the huge negative press in the last few years however.
Looking at the bull tack one need look no further than the Stockopedia financial summary page, glance over the annual reports and read some of the industry comment, in particular their performance against their peers. Their core technologies seem particularly well respected although the functionality on offer is less rich than some of the competition. To achieve such remarkable success it is no surprise to me some of the journey has been a bit rough but it is worth noting they appear to be in a much stronger position financially than three, or even two, years ago. In my view they have also provided plausible answers to emailed questions raised about debtor ages, financing cost auditors and others. Mike Jeremy their CIO remains particularly responsive to questions from individuals.
Of course all must decide for themselves and I acknowledge that while much of the criticism over the last few years appears groundless, the share price has suffered big time. Neither can I state that nothing is currently possibly going wrong, I have no indication it is but everything is a question of probability, and the factors are much harder to understand with confidence in the small cap world than with larger companies. However, looking at growth and profitability achieved to date (and cash flow!) a prospective PE of about 4 (WTF?) the probability looks massively to the upside to me. I have held for some years and remain long. I am also slightly intrigued to see how many down votes this post collects.
