UK 21:42 Wednesday, 23 September 2026
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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.
Shares in Globo plc (GBO) currently trade higher, at more than 50p, today on the back of an update reporting “a strong financial performance in the first half of 2014, ahead of market expectations” and that “we remain confident about our future prospects”. However, what about decisive cash generation?
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Comments
craig macfarlane
As I have asked Tom W. What cash situation do you want from a company in the growth stage. There is no cash burn and they are holding it flat during a period of high growth which is in stark contrast to many growing businesses. Just some thoughts from yourself on what sort of cash position you would like from them. In terms of matt earls piece all those questions were comprehensively answered by amd individual amd sent to tom and matt who choose to say within 10mins of receiving thr information. “Close but no cigar” having blatantly not taken the time to read it. Have you read this response ?
Just trying to stimulate some debate because at present its one sided and whenever a question is asked it is ignored by the share prophet writers. Makes folk like myself think something a bit whiffy is going on with you guys.
Stephen Reilly
Hi Steven. I was looking at Monitise’s accounts. Different aspect of tech buisness but arguably similar growth profile, but with material negative ebitda and cash flow. Are globo and monitise both overpriced ? Or is there something else that differentiates them? More importantly, would you please comment on globo 2013 final accounts ageing of trade receivables note 4 -dont these on their face suggest good but slow collection? Or are perhaps these figures open to manipulation? Many thanks
Mustafa Khder
A sensible way to judge a company is not by what it says but what it does. In the case of Globo, they say a lot (“ahead of market expectations” is not a phrase you want to hear from a CFO over and over – what the market expects is not his within his remit, especially where so few brokers actually dare publish on the company).
What Globo does however, is suck in money (despite the “positive free cash flow” they talk about). It has raised equity on 5 occasions since its IPO in 2007. It has also drawn down E55m in credit lines on which it seems to be paying extraordinarily high financial charges for a cash rich listed plc (10-13%). And it is now trying to issue a $180m junk bond for which it is willing to pay 10% annual interest. All the while claiming a E90m cash balance and positive free cash flow.
While it is fine for a growth company to require growth capital, the fact that Globo’s revenues, profits and cashflows look suspicious is consistent with the behaviour of the company. There are no sure things in life or in the stock market, but if it quacks like a fraud…