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!
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.
