Member Info for Ash68

However, if you buy the right people drinks, you end up with contacts and possibilities. I never said you had to buy everyone in the bar a drink.

Some of the bulls quietening down makes for a better BB? ......if you are in to shorting maybe. Do you use the need for FCF as your excuse to be last to the bar to buy the drinks? Whilst cash is always king, keeping too much of it can actually stunt a business' growth unnecessarily. Like the situation in the bar, having an obsession with maintaining FCF can make you unpopular. So to summarise, there is a balance to strike. Having too much cash could be considered just as bad as having too little. Apple for example went through a phase of having too much cash and it led to them losing important market share to Samsung.

The bit I don't get with China's wobble is why the markets decide every single listed company's share needs to be marked down or sold off, irrelevant of whether it has any exposure to China. Yesterday's drop was totally overdone in my view and shares (including Globo) will quickly bounce back.

Yes but like when the price drops if normal holders sell, the price also drops or is depressed when shorters choose to sell the shares they have borrowed. If you look at how many shares are being sold each time, they are nice "big" round numbers at regular intervals to keep the price depressed. I therefore do not share your view that the price is not being affected by shorting activity.

In a normal market place, the price would only be affected by supply and demand. However, if you seriously think the movement on globo's share price over the last two years has nothing to do with shorters, then you really are blind to all the shenanigans and mind games that people play on here. Only until all the disclosed shorts are closed will Globo's share price return to normal "supply and demand" behaviour. I am happy to sit it out until the shorters all get bored and move on. I am in no rush and certainly don't need the significant money I have invested in Globo. If it takes years, so be it as there are very few companies as good as Globo worth investing in at the moment.

Well I hate to spoil the party here but from my point of view, the use of "let's see" in this context is nothing more than yet another feeble attempt at reverse psychology to try and make us all think Globo is a sinking ship, which by the way, it is far from it.....in fact I would describe it more as a hydrofoil.

No real surprise that you are defending Jolly, you both seem to sing off the same hymn sheet i.e. you make out you are investing long but every post you make is always about why Globo is doomed to failure. For all I know you are both either the same person or you are probably sitting on the same desk opposite each other on a trading floor somewhere with a common goal to make money out of a falling share price.

Jolly and his cronies do NOT have a point on anything to do with Globo until ALL, yes ALL the disclosed shorts are closed. Only then it is a level playing field and can we all see what this company is REALLY worth through normal buys and sells. You can believe the shorters' posts if you want (and trust me, they are posted in many ways and disguises on here), but that is exactly what they want you to believe so that they can profit from panic sales.

I think it has been obvious for a long time that our resident Jolly is a member of the TW clan. In fact, Jolly's acid response below just further proves it. As I said, the sooner Globo can cut the rope on these idiots the better in my view. We can all then start to see some real market forces at work here. P.S. Jolly. I am not your mate.

It would be interesting to see where the price would quickly climb to if all the shorts were forced to close today. It really has been like a lead weight holding a balloon down over the last two years. Markets should reflect natural supply and demand forces, not constant manipulation by manufactured oversupply.

Yawn. Same old shorter's dribble. Can't wait for the day Globo can finally cut the rope on all the jokers that come on here with sad attempts at trying to drag the price down.

Where did you pluck 20% return requirement from? Bank loans come with all sorts of covenants and caveats. The bigger banks are risk averse these days and want companies and individuals to jump through all sorts of hoops before they will lend money. If Globo waits around for same faceless bank head office department to make a decision to lend, they will no doubt miss out on important market share growth which is more important than expecting any acquisition to make 20% return from day 1, a clear 10% profit over any cost of capital. I think we are all sick and tired of the shorters here. They are nothing but parasites that go around trying to suck the life out of any company that is pioneering and bold enough to break in to new markets. My respect only goes out to those that invest in Globo for long term growth, not shorters that use the internet to spout the same old defamation rubbish in the hope of making a quick profit. If shorters are prepared to take the risk to borrow somebody else's shares, why can't a company be allowed to take the risk of borrowing money to actually BUILD something, yes BUILD something, not destroy it?

It is so easy to wind up the folks in the offices of Ennismore. I invite anyone to have a go :-)

Really? I don't think so. It was Warren Buffett after all who said "Be fearful when others are greedy and greedy when others are fearful". That quote kind of poos poos what you have just said.

Yes, and they became cash rich because they took risk in the earlier days of growth. What is your point?

Pointing out the risks of borrowing is like teaching us all how to suck eggs. Most companies listed on AIM are high growth companies that require cash to grow and so only a fool would invest in AIM without first understanding what the risks of borrowing are. Market share is only rewarded to those companies that take risk. Companies like Coca Cola and American Express were once upon a time companies that had to take far greater risks than they have to take today because they did not have huge mountains of cheap cash readily available to them to give them market share over their competitors. However, if Warren Buffett listened to all the negative style advice being pumped on to this board by shorters on a daily basis about AIM listed companies, he would not be one of the wealthiest people in the world today......fact. That said, please don't let me stop the shorters entertain us all with their words if wisdom about how we should all sell up and stick what cash we have left under the floor boards.

I think we can all spot the difference between intelligent discussion and blatant attempts to de-ramp on here.

If you used to buy and sell risk for a living, I can't imagine you were very good at it :-) You and Jolly are like a couple of posh clowns short of a circus on here. However, I hope you both keep up the posts as your continued attempts to de-ramp this share are very amusing to us all.

At the end of the day, Globo is a classic high growth company that needs cash to grow market share in an industry where the early bird catches the worm i.e. if they don't spend any cash, they will inevitably get left behind. Shorters can speculate all they want about where the cash is being spent. As you said, knowledge is power and so if Globo gave updates to the market every 5 minutes on where their cash is being spent, then they would hardly have much of an advantage over their competitors if Globo kept telling them regularly what they were buying or planning to do. In terms of being able to afford the cost of any financing required, Globo like all other well managed companies would have done their maths to ensure it was sustainable. To summarise therefore, I am more than happy with my holding in Globo. Are you? From your hang up about free cash flow, you sound like a risk averse type of character to me where you believe companies should keep all their cash in a bank account all the time where everyone can see it. You can do that if you want but like most things in this world, you have to speculate to accumulate in order to grow which requires the need to spend cash.

Trading transparency is key if the AIM is to ever gain any form of trust and positive feedback from private investors. Otherwise, what was the point of George Osbourne opening up the AIM to ISA investors if it is only a small select club that benefit from the racket that is very evidently going on at the moment? If a lot more genuine private investors challenged and asked questions about what is going on, then maybe, just maybe, something might get done to improve transparency of trading.