GLO - Why this hidden gem is a screaming BUY!!!

[littletee]

Everything points to this stock being a sensational medium-long term BUY.

Has an extremely profitable online gambling business going on and most people dont know and have never heard about it. It is also growing pretty fast.

It has only 44,484,497 shares on issue which puts it on a market cap of $5.8mil.

The latest figures show the casino business generating turnover of A$7.8mil and Profit of A$194k just in the month of February AND these figures are increasing according to the latest announcements.

Now on an annualised figure using the above numbers as a medium (even though they will definately be higher imho as the business is growing rapidly), the figures I get is Turnover of A$93.6mil and Profit of A$2.3mil. This means that based on the figures above GLO will have EPS at 5.1c - not bad for a company with a current market of A$5.8mil dont ya think!!! P/E of less than 3 based on the above figures so you guys can all work out how UNDERVALUED GLO is!!!

This is one of my tips of the year and I've recently bought a few at 13c - Good Luck All!!!

[thereslifeafter87]

Littletee, you are confusing profit with gross revenue. Out of that growth revenue they have to pay employees, directors, leases, data traffic charges, hosting fees, marketing fees etc.

You should read some books on analysing company fundamentals before ramping a stock. I can suggest 'The Intelligent Investor' by Benjamin Graham as a good starting point.

[Halebop]

Alas Littletee, TLA87 is correct. Similar to bookmakers, Global Approach books revenue not as the total volume of bets but as the net difference between wins and losses.

I wouldn't be too discouraged though. If you have a stomach for speculative investments those growth rates still look encouraging. I couldn't find any indication of their fixed cost base or operating expenditures and imagine 200k wouldn't leave much fat (if any!). A few more months of 20-60% growth would make the numbers look good though.

It does highlight the difference between operating a casino and being a bookmaker. Their numbers look far more promising than Canbet's last results.

Disclosure: Hold none and lack the balls.

[littletee]

My apologies TLA87 - you are correct! Nevertheless, I personally believe that A$200k profit per month and growing fast will enable them to turn an overall operational profit! The one thing about internet businesses such as GLO - is that their overhead costs can be more managed easily and traditional expenses tend to be less compared to traditional bricks and mortar business IMHO!!!

Anyhow.....these are the developments regarding this stock -

Called up David Barwick who is the chairman of GLO this morning. He can be contacted on (07) 3114 5506.

I asked him numerous questions on GLO.

Basically on the question on getting GLO known more in the market place he said they are onto it and they are starting broker roadshows in Brisbane, Sydney & Melbourne which begin in 10 days time. These roadshows will show all performance up to date including the month of March and an indication on how April is going. He also stated without giving too much market sensitivity away that they are VERY VERY happy with the way March went and from what I can get this means that as expected it again broker records and is growing extremely quick. He also said that before he starts the roadshow (in 10 days), he'll actually be releasing the investor presentation to the market which gives the update on performance for March and also April - he told me too check it out as I'll be impressed!

In regards to the SP recently, he too is dissapointed but he had a meeting with the board regarding this issue this morning and that is one of the reasons the roadshow is going ahead. He also stated that they will try and get the SP back to 15-20c shortly because he stated that it is in their best interests to do so cause they have a heap of unlisted 10c options that they (directors) want to convert and they will only do so once the SP hits 15c minimum. He stated that this is a win-win for all as the companie's balance sheet strengthens etc etc.

Basically, my confidence after I spoke to him is high and I'm rapt they're doin roadshows in 10 days time. Can't wait for the announcement soon as that will show that their casino business is growing very nicely and is extremely profitable!

[Alban]

quote:Originally posted by littletee
In regards to the SP recently, he too is dissapointed but he had a meeting with the board regarding this issue this morning and that is one of the reasons the roadshow is going ahead.

Warren Buffett could learn something from Mr. Barwick's methods, I'm sure. [:o)]


quote:Originally posted by littletee
He also stated that they will try and get the SP back to 15-20c shortly because......they have a heap of unlisted 10c options that they (directors) want to convert.

What can I say? :D

Well done Littletee for phoning Mr. Barwick. It makes sense to get a feel for the people who're running the businesses we invest in - and I must admit, it's not something I do often enough. :)

[littletee]

Hi Alban,

To tell you the truth I dont do it often either,

However, in regards to GLO I own 300,000 shares which were recently purchased at 12-13c so I have a fair bit invested.

I wouldn't call the depth sensational so I wanted to find out what exactly was going on down there at GLO. All I can say is that David was VERY helpful and EXTREMELY bullish on GLO's prospects going forward. After speaking to him, I know my money is in good hands and am very confident that GLO's will be 15c+ soon!!!

Can't wait for the announcement shortly which shows GLO's quick growth again!!!

Cheers and good luck to everyone!!!

[Alban]

quote:Originally posted by littletee


All I can say is that David was VERY helpful and EXTREMELY bullish on GLO's prospects going forward. After speaking to him, I know my money is in good hands and am very confident that GLO's will be 15c+ soon!!!


Hi littletee. Would you believe that during the dotcom boom, similar quotes were made by posters on this website? Ask Cloudnine about this. ;) I'm sure C9 recalls the company in question and the director he phoned. I hasten to add that this is one of the few bad calls C9 has made. Needless to say, most of these companies, C9's included, no longer exist.

I recall these companies also had presentations aimed at bolstering the share price. Boosting the share price in order to help directors with their share options rings alarm bells for me.

Compare with MHI.NZ which was recently at around 440c. No talk of boosting the shareprice. Just a director buying shares on the open market because he reckoned they were good value. He walked the walk rather than talking the talk. Price now 550c.

Readers are encouraged not to buy, sell, or hold on the basis of Alban's prejudices. I have no idea where the price of this particular stock will head tomorrow.

[littletee]

Yeah fair enough Alban!

I suppose keep an eye on it mate.