Tag Archives: Greek Stocks

Globo Plc – Value superstar or too good to be true ?

Management summary:

At a first glance, Globo PlC looks like a highly profitable, strong growing and incredible cheap software company suffering only from overall bad sentiment against anything which is related to Greece. A second short look however shows clearly that there are a lot of issues in their accounts (capitalization of expenses, revenue recognition) which in my opinion already raises a couple of red flags.

Additionally, some of their behaviour like taking on expensive loans despite a comfortable cash position does make no sense at all.

As for me, value investing is foremost about protecting the downside, Globe PlC is not something I am interested in as a potential investment and not worth additional analysis.

Among value investors, Globo PlC, a UK listed mobile phone software company is no stranger. Almost any screener will have Globo as one of the top investments.

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Here are the current ratios which clearly look attractive:

Market cap 186 mn GBP
P/E 7
P/B 1,5
EV/EBITDA 4,3
ROE 22,2%
ROIC 19,3%
Operating margin 35%
yoy revenue growth +49%
yoy EPS growth +27%
Net cash 40 mn EUR

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