Mr Market8 Sep 2015 15:16
we all know that the Market is usually right but we also know that there are occasional price disparities which throw up great bargains-which is where I believe we are at with GBO.I have again increased my fairly large stake & will continue to do so ahead of Results if our SP continues to weaken.
Our US competitors are valued at substantially higher levels than us despite being loss making & requiring substantial amounts of capital to continue ,with Good Technology having now been acquired by Blackberry for $425mill(more than double our current value).
Our SP has more or less halved since our recent high of 62p,despite announcing strong growth in respect of Q1 which accelerated into Q2,resulting in our figures exceeding expectations.The Greek problem,while remaining,is less critical than it was a couple of months ago & the only blot on our copybook appears to be the news regarding our proposal to issue high yielding bonds to fund earnings accretive acquisitions in order to accelerate our growth.
Results in 3 weeks will be excellent & there is no reason not to expect the trend to have continued into the third quarter.Directors should be able to buy again following results( & the close period) which I am sure Costis will do.
He,along with the rest of we longs here,must be extremely frustrated at our abysmal SP performance which must be impeding our growth plans,currently.
GBO must currently represent a substantial price disparity which could be rapidly eliminated following the Interims & as much our lowly SP is disappointing I have decided to view it as an opportunity.Of course it is high risk,but I am prepared to take that on & I will have to live with the consequences,which I hope to be very positive.
3 weeks !