# GLB - Globe International



## dj_ajay (10 January 2006)

Hi All,


The success of Billabong and a tip from a stock broker has got me intersted in Globe INternational...surf and skate wear - Globe, Stussy, Mooks, Element etc.

Has anyone done some research or analysis on this stock and do you think it has the potential to be the next Billabong??

Lets hear your thoughts.


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## RichKid (10 January 2006)

*Re: GLB - Skate and Surf Wear*



			
				dj_ajay said:
			
		

> Hi All,
> 
> 
> The success of Billabong and a tip from a stock broker has got me intersted in Globe INternational...surf and skate wear - Globe, Stussy, Mooks, Element etc.
> ...




What has your research shown thus far dj ajay? Are they diversified globally or just an Aussie outfit atm? Billabong stands out as an international brand with excellent marketing strength and has a presence in many markets, that's one thing that sets them apart. Not sure where Globe is in that sense.


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## dj_ajay (10 January 2006)

*Re: GLB - Skate and Surf Wear*

Richkid,

They are a global company with operations locally, Europe and North America.
After a terrible aquisition in 2001 or 2 (not 100%) not alot of marketing effort was put in place hence the company operating at a loss for w few years however last year a major marketing campaign was conducted which included sponsorships of key skate and surf events as well as sports ppl.

Locally the retail market hasnt been performing as well as it could however I would be keen to get my hands on some stats from the US.


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## ob1kenobi (10 January 2006)

*Re: GLB - Skate and Surf Wear*



			
				RichKid said:
			
		

> What has your research shown thus far dj ajay? Are they diversified globally or just an Aussie outfit atm? Billabong stands out as an international brand with excellent marketing strength and has a presence in many markets, that's one thing that sets them apart. Not sure where Globe is in that sense.




Rich, I agree with you. It would take an extraordinary marketing campaign to turn this company into another BBG. I do hold shares in BBG and so was interested in this topic. Out of interest I drew a chart that compares the price movement of BBG to GLB for the YTD. The other charts (Volume, RSI and ROC) all refer to GLB. Makes for interesting reading.


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## dj_ajay (12 January 2006)

*Re: GLB - Skate and Surf Wear*

True.
But Marketing is performed for long term growth of a company..however In the short term it may improve revenue slightly. Apparently GLB bought some retail stores in Melbourne a couple of months ago - not sure what the strategy is there however Billabong also operate via their own retail store in some capital cities.

Anywayz...1/2 year financial results should be out next month.

Very Interested


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## dj_ajay (14 January 2006)

*Re: GLB - Skate and Surf Wear*

Just out of curiosity...

Who has/wears some Of Globes Prop. or lic. brands:


Globe 
Gallaz 
Mooks 
World Industries 
Almost 
Darkstar 
Sista 
Enjoi 
M-One-11 
Speed Demons 
Blind Tensor
Stussy
Paul Frank 
Freshjive 
Independent 
Mossimo 


Outline which ones....


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## dj_ajay (8 April 2006)

Very interested to see the findings and recommendations from the SAGE business consulting currently underway...


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## Young Gun (20 July 2006)

Purchased some GLB about a month or so back , I think this stock looks like it has potential , oviously something is in the works , with the company jumping about 25 % roughly over the past month or so. Although the stock can be volatile it has kept is share price after the price query after a 20 % run in a day and continuing another run of aprox 10%. Previously this company has not be as affected by consumer sentiment and retail spending slow downs as the majority of the company products that they produce and distribute are to the under 18 demograhics. 

For those looking at purchasing this share I would hold for for now. The company has employed an American consultancy group called "Sage" to presents stratergies to the board. Personall I think the group will tell the compny to submit to a take over. The company has distrubution rights for a number of clothing brands however they have also found it dificult to maintain steady returns. Without any massive upgrades in earnings per shares or a take over bid , I think this company is valued fairly at $0.25c.

 I bought this stock at $0.26 the day after it soard 20% . Even so I have still managed to maitain an 13 % increase in the price. The stock is very sensitive to information. Undoubtly Solomon Lew must see an interest in this company to hold a 6% stake. Keep your eyes on this share as I im certain that we wll see a move on this share in a month or so no doubt.  

At the moment hold as speculative buying has pushed the share price up 30% in the last month or so as a result I think its slightly overvalued. However if the company chooses to accpet a takeover bid from a number of contenders including billabong we could see some strong movement in the share price.


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## dj_ajay (17 October 2006)

I received the Annual report this week and I must say I'm really confident of a sharp turnaround...it's been a long time coming. 

A cocktail for success - Brand recognition, increase in sales, internal cost reductions, etc

If you own Globe shares...what are your thoughts?

btw: Nice 10% increase today...my opinion share still way undervalued.


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## dj_ajay (18 October 2006)

Interesting....Pacific Brands to purchase Globe streetwear brands like Stussy. Announcement avail on asx.


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## Young Gun (22 November 2006)

From a technical aspect this stock looks like its ready for action in the next couple of weeks. Looking at moving averages partculary 5 and 15 days (simple moving average) , the 5 day moving average crosses the 15 days on an upward move. 

Historically , this has indicated a surge in the price of the stock. Furthermore added to this is the increased trading volume of late and the cash injection the company has recieved from pacific brands ....


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## dj_ajay (4 January 2007)

hey Young Gun - yeah...cash injection~ 40 mil. Lets see what they do with it! I'm assuming Globe retail outlets and greater push globaly. Intersting one to watch.


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## transit (5 June 2007)

What happened to GLB? I just read that there was some 'share consolidation on a 1 for every 10 basis'. My holdings in comsec now says i have 2,000 shares of GLBDA. How do i work out my entry price? I originally paid .27 for 20,000 shares. I'm now guessing my entry price should be edited to $2.70 because of the 1 for evry 10 thingy... or  ...am i wrong?


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## nomore4s (5 June 2007)

transit said:


> What happened to GLB? I just read that there was some 'share consolidation on a 1 for every 10 basis'. My holdings in comsec now says i have 2,000 shares of GLBDA. How do i work out my entry price? I originally paid .27 for 20,000 shares. I'm now guessing my entry price should be edited to $2.70 because of the 1 for evry 10 thingy... or  ...am i wrong?




Transit the best thing to do would be to divide the total outlay by the number of shares you now have to get your per share price.


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## transit (5 June 2007)

Thanks no4's, you're right. I just realised that my entry price will not change regardless of any dilution of shares(doh!). It's still the same but with a decimal point moved one over (being 1 for every 10). What threw me was that the share price dropped a lot at the same time. I'm guessing this must be related to these dilution thingys. Total value went from $5400 (20,000 x .27) to todays close of $3800 (2,000 x 1.90). dammit.


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## BlingBling (6 June 2007)

Been watching to see what would happen with them. That's a big drop eh.
In pre dilution terms the shares are now trading at .19c which in my opinion is pretty cheap and I'd be snapping them up. (Is it wise to look at it that way????)


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## kevien (6 December 2007)

GLB looks pretty cheap now. What happened from July to August? The earning forecast turned into positive next year.


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## So_Cynical (16 April 2011)

After many weeks of patient waiting i was able to get a decent sized piece of GLB today  Globe is a very thinly traded stock with 87.5% of the company held by the top 20...this is a great little business and the #1 skate-wear and equipment manufacturer and distributor in the world (i think :dunno, and a no brainer investment as far as im concerned.

Hers why


 Market cap 19 million
 Cash 12.4 Million
 Debt 0
 Annual revenue 90 Million (approximately)

The market is saying that a business that has no debt and can generate annual revenue of 90 odd million is only worth 6 and a half million bucks....its a joke and simply cant last...am happy to wait and collect dividends until the market catches up with (my thinking) reality. 

Lots of post GFC support at around this level too....in today @ 0.44 CPS.
~


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## BigLeon (18 April 2011)

GLB's been on my radar for some time but I've hesitated personally.

They've got definite value qualities although weakness of the USD has got to be hurting margins this HY.

One positive is the strength of the operating cash flow of $5m which is pretty good, if they can keep earnings stable over the next couple of reporting periods I may look to take a position.


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## So_Cynical (7 June 2011)

So_Cynical said:


> Lots of post GFC support at around this level too....in today @ 0.44 CPS.
> ~




Got some more today @ 0.475 in fact my trade was the only GLB trade executed today, i feel so special :1luvu: but seriously its nice to finally have a position above the minimum size i require...also nice to see the support the SP is getting at around the 46 > 47 cent level.


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## VSntchr (7 June 2011)

Net profit ($million)	9	25	-59	7	0	0	-3	-24	-8	1

Profit over the last 10 years is hardly enticing!

What were the reasons for such big losses?
How can we know that these losses wont continue to occur? While globe is a predominant brand within their target markets, I can't see it expanding any faster than the industry itself...which would lead me to believe that these figures may not change in the future. Unless of course there were reasons causing losses which have now been rectified....


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## So_Cynical (7 June 2011)

VSntchr said:


> Net profit ($million)	9	25	-59	7	0	0	-3	-24	-8	1
> 
> Profit over the last 10 years is hardly enticing!
> 
> ...




From memory they tried to go down the retailing road and do some vertical integrating a few years ago...needless to say it didn't work out to well for them, strange cos others have made that model work well...BBG are currently heading down that path in a big way. :dunno:

Anyway i didn't and in general don't buy into company's based on what they have done before (thou its taken into consideration) i buy for what they are now and where the potential can take them, as i have stated in my first post in this thread.

Globe has 12+ million in cash, no Debt, manufactures off shore in a low cost environment, has established brands with 90+ million in annual sales, selling into a market (youth) that likes spending money on clothing etc...at the bottom of a negative discretionary spending cycle.

All the above floats my boat. :bowser:


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## So_Cynical (18 August 2011)

Globe has released there preliminary end of year report today    all smiles from me....a 5 CPS fully franked dividend giving me a gross yield of over 13.8%  

Overall a set of pretty good numbers with local currency revenue growth across all non Australian markets, with north America and Europe as stand-outs!!! ~ in constant currency terms, net sales grew by 5%. 

Read all about it.

http://globecorporate.com/files/announcements/Jun11-Media release-FINAL.pdf


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## So_Cynical (24 January 2012)

Found this funny video on http://www.globe.tv/us/, Darkstar is one of Globes brands.

Ah kids these day are crazy, f&*#ing crazy....(language warning for those easily offended)
~


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## So_Cynical (23 May 2012)

I decided to do a bit of a dividend reinvestment/average down into Globe today...some nutter selling 16000 shares @ 0.36 so i thought id take a few of them off his hands, 100% of today's GLB traded volume.

This Has reduced my average price per share a little and increased my holding to an appropriate size, looking forward to another juicy dividend come Spring...GLB has 9 million in cash and even a 4 CPS dividend will only cost them 1.7 million.


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## So_Cynical (29 November 2012)

I decided to sell a few today to free up some capital to help me with a real estate purchase, i have 4 parcels and have decided to take 1 winner and 1 loser for a total 2 trade loss of 2.06% however when dividends are taken into consideration its actually a 2% win overall....meh. 

4 parcels @

0.48 Sold
0.44
0.36 Sold
0.31

Good thing is my average holding price has now come down from 41c to 39c so a little easier to live with going forward..still lots to like about GLB even though the take over by Mariner has a snowball in hells chance of going thru...i figure that when the offer is withdrawn the SP will promptly fall back into the high 30's


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## So_Cynical (9 October 2014)

So_Cynical said:


> Good thing is my average holding price has now come down from 41c to 39c so a little easier to live with going forward..still lots to like about GLB even though the take over by Mariner has a snowball in hells chance of going thru...i figure that when the offer is withdrawn the SP will promptly fall back into the high 30's




2 Years later and  today Globe traded above 60c per share, first time in 44 months, i have parcels priced at 44c and 31c purchased 2011 and 2012 ~ a long time to wait for a trade and average down to come good, 51.9% open profit now, 2 big dividends in 2011 and 12 as well.

Pretty hard to imagine not doing well out of investing in a company with Cash, no debt, solid revenues and a global business...some nice volume today as well, for such a thinly traded stock...everything comes around.


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## piggybank (9 October 2014)

I wouldn't like to be in this stock should the wheels suddenly come off.

Last Traded	 - 9/10/2014 - 10:46:31 AM & NO there wasn't a trading halt!!


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## piggybank (9 October 2014)

I wouldn't like to be in this stock should the wheels suddenly come off.

Last Traded	 - 9/10/2014 - 10:46:31 AM & NO there wasn't a trading halt!!

View attachment 59769


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## So_Cynical (10 October 2014)

piggybank said:


> I wouldn't like to be in this stock should the wheels suddenly come off.
> 
> Last Traded	 - 9/10/2014 - 10:46:31 AM & NO there wasn't a trading halt!!





Very very thinly traded, no volume at all today and that's not at all unusual, Globe is one of those sweet little stocks that require patience...the big wheel turns and everything comes around.

According to the recently released annual report, with 11800 shares im probably in the top 100 share holders.  less than 500 holders all up with Marketable parcels...this is a little stock.

http://www.asx.com.au/asxpdf/20140925/pdf/42sfqxx58kpt1s.pdf
~


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## So_Cynical (17 October 2014)

Sold all of my 44c parcel and a few of my 31c parcel for a trade profit of 30% ~ 100% of today's volume 

just wanted to free up some money and take some profit...happy to hold the remaining shares for whatever may come, reading a report today on Bell direct, the GLB SP is beating 86% of the market over the last month..comes a time hey.


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## So_Cynical (4 March 2015)

So_Cynical said:


> (10th-October-2014) Globe is one of those sweet little stocks that require patience...the big wheel turns and* everything comes around.*




As prophesied above , everything has come around with Globe closing at $1.05 today...open profit of 200% for my remaining shares, wish i had hung on to a few more now, remember that i did toy with the idea of selling a heap of low performers and taking a big punt on GLB.


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## Huskar (5 March 2015)

So_Cynical said:


> As prophesied above , everything has come around with Globe closing at $1.05 today...open profit of 200% for my remaining shares, wish i had hung on to a few more now, remember that i did toy with the idea of selling a heap of low performers and taking a big punt on GLB.




Yes if only I had have been able to load up on some more 
I should have been more persistent and not worried about the spread you kind of have to forgo on the unattentioned small caps 

Interesting though that one of the directors, Stephen Hill, has just bought $40k at ~$1.05


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## galumay (21 August 2019)

GLB is a business i discovered while turning over microcaps rocks earlier this year and I took a smallish initial postition. The AR released today wasn't as good as I hoped, but I still see a significant discount to value in the current price so I have decided to stay invested, I won't increase my position at this point in time, but happy to continue holding.


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## So_Cynical (21 August 2019)

Yield is exceptional at around 7% ,pity they ran out of franking credits a couple of years ago, SP going sideways for the last 6 months, i would be interested if they dipped down to 1.50 again.


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## Smurf1976 (11 July 2020)

Not a stock I own or have done any real research into but it has come to my attention as having gone nowhere at all after the overall market plunge in March.

No bounce, no trend up or down, just straight sideways in a fairly narrow range since the market lows.

Just drawing it to attention and pondering whether it's due for a bounce?


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## galumay (11 July 2020)

Its fairly illiquid so that may be part of the reason. I suspect reporting season will see a lot of movement in prices - any business underperforming will get dumped and anything that improved financials over Covid will be pumped hard. 

As GLB haven't updated the market since early April its hard to know how its 2nd half will look. I would be betting poor!


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## Huskar (5 December 2020)

Smurf you really must have brought it to someone's attention as it has more than doubled from $1.10 to $2.50! Directors also buying. I've owned some for years and always liked as a decent business in a niche area with mgmt-alignment because of large insider holdings. I had an order in to buy a lot more at $1.10 and I chased it all the way up to $1.30 but it never filled 😓


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## galumay (5 December 2020)

The strength of its run has surprised me, I significantly increased my position in early October.


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## galumay (18 January 2021)

Up 35% today on news of the scale of the plaguey boom in sales. Totally insane. Nearly a spiffy pop for me. This is a clothing retailer, who in their right mind is bidding this up 35%? (rhetorical question, dont answer.) Oh well it moved the needle on my SMSF in a meaningful way - on a day nearly everything else in the portfolio was red.


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## galumay (19 January 2021)

Wow. Up another 17% today. Its like owning a stonk, but its a clothes horse.


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## Trav. (19 January 2021)

@galumay I am interested in your thought process for this one mate.

You hold in your SMSF and presumably thinking long term investment. You have a couple of extraordinary days and share price up ~ 60% on no news etc

a. Hold and go with the flow
b. Set trail stop to lock in gains
c. Exit / Take partial profit.
d. Other

Any feedback appreciated mate.


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## finicky (20 January 2021)

Jaw dropping chart for a retailer.




__





						History – Globe International Limited
					






					globecorporate.com


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## galumay (20 January 2021)

Trav. said:


> Any feedback appreciated mate.




I would be lying if I said it hadn't given me pause for thought! I have thought about whether selling all or some of the position would be a good idea. So far I have taken no action. Historically I have nearly always been wrong when I sold part of any of my winners, they have kept on winning and I missed out on further gains.

The way I see GLB is that the market is now pricing it as if the growth and resultant earnings will continue indefinitely - instead of as a one off lollapalooza of Covid & mania for roller skates, this is clearly insane and at some point in the future the market will reprice it to a more sensible range. 

The benefit for my holding is that I very much doubt it will retrace to anywhere near the price I paid for it, it was cheap based on its pre covid earnings IMO. Secondly I am going to be earning a massive dividend yield while the boost in earnings flows through. 

At this stage my inclination is to do nothing, I find as a default position it more often than not turns out to be right over the long term! 

The HY accounts will allow a better understanding of what is actually happening inside the business, and then seeing how management allocate capital will inform my longer term view on the business.

As @finicky says, its just jaw dropping for a clothes retailer!


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## Trav. (20 January 2021)

@galumay thanks for taking the time to respond, and pointing out a couple of the longer term investment points that you consider.


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## basilio (20 January 2021)

galumay said:


> I would be lying if I said it hadn't given me pause for thought! I have thought about whether selling all or some of the position would be a good idea. So far I have taken no action. Historically I have nearly always been wrong when I sold part of any of my winners, they have kept on winning and I missed out on further gains.
> 
> The way I see GLB is that the market is now pricing it as if the growth and resultant earnings will continue indefinitely - instead of as a one off lollapalooza of Covid & mania for roller skates, this is clearly insane and at some point in the future the market will reprice it to a more sensible range.
> 
> ...




Honestly galumy I would seriously considering taking the money and running. I think you recognised this immediately

_The way I see GLB is that the market is now pricing it as if the growth and resultant earnings will continue indefinitely - instead of as a one off lollapalooza of Covid & mania for roller skates, this is clearly insane and at some point in the future the market will reprice it to a more sensible range._

Perhaps wait for the dividend declaration and striking date and say thank you ?  Just my opinion ( from  too many times waiting too long to take the  profits ) These are also unaudited results .  Is there a chance a closer look will highlight inconsistencies in the figures ? 

This wouldn't be the first time such things have happened.


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## galumay (20 January 2021)

I think maybe the reason I see it differently to some investors is that I am not really concerned either way about volatility, my focus is on the business I initially became a fractional owner of, and whether I am comfortable still owning that business. At this stage nothing has come to light to change my view that the business is a well run, profitable business, debt free, strong free cash flow and high ROIIC. I believe it will continue to provide a sufficient IRR such that I am rewarded as a part owner. 

For me the concern with thinking about selling just because the price has gone up, is that I stop thinking like a business owner/investor and start thinking like a speculator/gambler, focussing on the share price rather than the business, and thats a dangerous habit IMO. 

As I said previously, when my cost base is so low, I really dont worry about the volatility, it could drop by 50% tomorrow and my returns would still be very good. I realise not many would share my mindset - but thats what makes markets functional - participants with different strategies, processes and objectives.


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## basilio (20 January 2021)

I'm going to guess that Globe like many other companies made out like bandits on the Job Keeper subsidies. I'm thinking they managed to  get millions of dollars of wage costs paid the Feds and this has sharply increased this years profits becasue they still managed to continue selling.

It would be interesting to see if there is a realistic long term plan for continued sales and profits at the current level evn if that takes a couple more years to properly establish. That goes back to Galumy confidence that the company is indeed well run with a good future.


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## galumay (20 January 2021)

Not sure about the quantum of JK payments, they did get a PPP hardship 'loan' of $1.5m from the US Gov. which is likely to be forgiven, but sits as a liability on the balance sheet at the moment. They got JK early on, but I doubt they qualified from EOFY onwards given the steep growth in revenue. They didn't break out the JK payments in the AR so its impossible to quantify at this stage.


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## galumay (25 February 2021)

H1 2021 results out today, surprised me with just how strong the report was. Who knew that hippies flogging skater fash & roller skates would be such a massive business in a pandemic??!! 

As it turned out global assistance for the pandemic, including Jobkeeper accounted for less than $1m in total, so insignificant in the results.

Crazy times, I never had any expectations of these sort of returns when I tentatively took a small position 2 years ago, luckily I added as I saw the business performing beyond what I initially expected. My view was that it was a good little retailer, well run by the founders and likely to provide a satisfactory divvy and low single digit growth!


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## galumay (10 June 2021)

Update for full year 2021, looks like the second half has exceeded expectations as well. Now a triple bagger for me, looking forward to see the Annual report in detail in August.


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## galumay (18 August 2021)

Well I think that blew anyone's expectations out of the water! Amazing for a bricks and mortar clothes horse. I haven't read the report in detail yet, but the headlines are great! Divvy up nearly 200%!


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## So_Cynical (19 August 2021)

I sold out 3 years ago at 2 dollars to then watch the price bottom out around 1.20 and now 6.60 so goddam, you're right then you're right then your wrong.


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## galumay (29 August 2022)

GLB results for 2022 released, not surprisingly the incredible positive impacts on the business from Covid have dissipated and there is a fair reversion to the mean! Will be interesting to see how the SP holds, they did maintain the divvy at the same rate.

As explained in the annual report, as well as the expected downturn, other factors impacted cash flow and earnings, including inventory build, property purchase and extra tax liabilities. The outlook from the board was muted, clearly expecting continued headwinds in the short term and telegraphing a likely drop in dividends for 2023.

When looking thru the last 3 or 4 years of results its clear there is still a fair growth pathway allowing for the aberration of 2021, I am sure the market will react negatively, but I am happy to continue to be the part owner of what I consider a good little business.


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## omac (16 November 2022)

Any opinions / info on the spill at the AGM? Trying to understand who voted against the remuneration as the brothers own 68 % of the co. and the vote was 56 % against adoption.

Keen on the FXD brand and potential for overseas growth but less keen on the board setup, could be more professional. also anyone have any idea on what year FXD expanded internationally? I can't find any Rev / Brand / Region break downs in the AR.


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