GLB

[galumay]

Bought initial parcel of 2166 @ $1.78

click here to view decison journal notes on GLB

Why will this business be around in 10 years? - Because people will still be buying cool street clothes, skater gear, and the business has been successful at servicing those trends as they develop. Also its been around for 35 years. Lindy effect.

[galumay]

FY2020, another business impacted by Covid, still had a pretty good year and FCF was significantly increased. Couldn't find a breakout of the value of Jobkeeper payments to the bottom line though. Probably worth looking at increasing postion size in the dips.

[galumay]

2/10/20 added a significant size parcel in GLB, the more I look at it I think its a solid business, my conviction has increased so happy to add.

[galumay]

H1 2021 - very happy that I added significantly to my position as I saw management execute and the business improved, this half it has gone absolute gang busters, a huge tailwind from Covid.

[galumay]

Finished FY 2021 with an amazing increase in all metrics, the question is when does the Covid worm turn and how big will the negative be?



Dividend almost tripled as well!

[galumay]

Well we have some of the answers to the questions above! H1 2022 has been tough, another business with increased revenue, decreased profit and negative cash flows. All the same reasons given! Im starting to sound like a broken record. At least the dividend has not been decreased. Iguess the point is we all enjoyd the benefits of the totally unexpected retail boom in 2020/21 during a pandemic, now we are taking the medicine of the also unexpected drop in retail despite the continuation of covid, and in fact with horrific infection and death rates across the country.

[galumay]

GLB results for 2022 released, not surprisingly the incredible positive impacts on the business from Covid have dissipated and there is a fair reversion to the mean! Will be interesting to see how the SP holds, they did maintain the divvy at the same rate.

As explained in the annual report, as well as the expected downturn, other factors impacted cash flow and earnings, including inventory build, property purchase and extra tax liabilities. The outlook from the board was muted, clearly expecting continued headwinds in the short term and telegraphing a likely drop in dividends for 2023.

When looking thru the last 3 or 4 years of results its clear there is still a fair growth pathway allowing for the aberration of 2021, I am sure the market will react negatively, but I am happy to continue to be the part owner of what I consider a good little business.

[galumay]

GLB H1 2023 report somber reading, I did expect a significant downturn in the business, but this was on the lower end of my expectations.  Tough times for these sort of retail businesses.