GLB - Globe International

[VSntchr]

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....

 

[So_Cynical]

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....

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:

 

[So_Cynical]

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

 

[So_Cynical]

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)
~

 

[So_Cynical]

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.

 

[So_Cynical]

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

 

[So_Cynical]

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.

 

[piggybank]

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!!

 

[piggybank]

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

 

[So_Cynical]

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
~

 

[So_Cynical]

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.

 

[So_Cynical]

(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.

 

[Huskar]

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

 

[galumay]

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.

 

[So_Cynical]

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.

 

[Smurf1976]

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?

 

[galumay]

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!

 

[Huskar]

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 ?

 

[galumay]

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

 

[galumay]

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.