GLB - Globe International

[dj_ajay]

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.

 

[RichKid]

Re: GLB - Skate and Surf Wear

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.

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.

 

[dj_ajay]

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.

 

[ob1kenobi]

Re: GLB - Skate and Surf Wear

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.

 

[dj_ajay]

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

 

[dj_ajay]

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....

 

[dj_ajay]

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

 

[Young Gun]

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.

 

[dj_ajay]

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.

 

[dj_ajay]

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

 

[Young Gun]

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 ....

 

[dj_ajay]

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.

 

[transit]

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?

 

[nomore4s]

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.

 

[transit]

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.

 

[BlingBling]

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????)

 

[kevien]

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

 

[So_Cynical]

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.
~

 

[BigLeon]

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.

 

[So_Cynical]

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.