Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Globo – Uh, Oh….

By Tom Winnifrith

16 July 2014 21:41

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It is no secret that I am not a fan of Globo (GBO) – perhaps I shall have to treck up from the Mani to Athens for another visit. I sense things are getting exciting. For the bears.

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Comments

Steve B

19 July 2014, 16:25

Tom – I draw your attention to this absolutely devastating critique below by ADVFN poster Tietjens, in response to Matt Earl’s latest ‘research’ article – suggest you discuss it with him, as it paints a picture not of a legacy business in decline, but one in fact going great guns, and currently it would seem that the value of the 49% Globo share is at least as high as the amount stated in the last accounts. In fact they may one day make a tidy profit on it.

‘In respect of the recent blog article regarding GTSA, I had a 5 minute look at the GTSA accounts for 2011 to 2013 using google translate. If you look at the subsidiaries consolidated it looks like Profitel was a subsidiary of GTSA prior to the disposal so included in its consolidation for 2012 but was retained within Globo post disposal i.e. it didn’t form part of the disposal group. This explains the revenue drop from 2012 to 2013 in that it relates to Profitel no longer being part of the GTSA group when it was disposed of in December 2012.

Adjusting for this, the revenue of the disposed of GTSA go-forward group (i.e. excluding Profitel) was €12m to 2 December 2012 (see discontinued ops notes in 2012 Globo accounts). So revenue in 2013 of €25m demonstrates some significant growth, rather than deterioration which was the main premise of the article. It could be argued GTSA is therefore a company that is growing quickly and investing in the future, rather than one crashing into the ground as was portrayed.’