MIDAS SHARE TIPS UPDATE: GlobalData proves global knowledge
Companies thrive on knowledge. The better they understand economic, political and social trends, the better they can assess what customers want today and what they might want tomorrow.
No one can predict the future, but companies are willing to pay handsomely to learn as much as possible about market conditions and industry prospects – and Global data works hard to provide exactly this kind of information.
The group scans the world for data, not only collecting what is freely available, but also diving deep into certain sectors and conducting in-depth research and surveys.
This makes most data exclusive and that appeals to large and small companies. Businesses pay an average of £20,000 to access GlobalData’s information, while multinationals spend up to £3 million a year on top of the line equipment.
Midas recommended GlobalData in January 2023, when the stock was at £11.75. The company carried out a share split last summer, so investors with 14 shares worth £164.50 would have received 100 new shares for £1.64½. This move was intended to boost the price and today the stock is at £2.08, but there should be plenty more upside potential.
CEO Mike Danson is driven, determined and has a track record of making money for shareholders. He also owns 57 percent of the company, so he’s incentivized to do it.
Valuable: Companies are willing to pay big bucks to learn as much as possible about market conditions – and GlobalData works hard to provide exactly this kind of information
Recent actions prove the point. When Midas last looked at GlobalData, Danson was in the middle of a three-year growth plan, which is expected to end this year. The plan achieved its goals early, so a new program was launched last month.
This aim is to increase turnover from £273 million to £500 million by the end of 2026, by selling more to existing customers, adding new ones, investing in technology to make data more attractive and easier to use and by helping businesses take over complementary areas. Danson also reorganized the group into three divisions: healthcare, consumer and technology. His goal is to increase the value of each section and late last year he agreed to sell 40 percent of the healthcare business to investment firm Inflexion.
Healthcare accounts for a third of GlobalData’s turnover, but the deal values this division at £1.15 billion, while the entire company is valued on the stock market at £1.8 billion. Not surprisingly, Danson believes this is unfair.
GlobalData has grown consistently over the years – 80 percent of its turnover comes from annual subscriptions and the market for data in the sectors it covers exceeds £20 billion.
Midas judgment: GlobalData shares are up 26 per cent in 15 months, but at £2.08 the price should continue to rise. That makes this share attractive for new and existing investors.
Traded on: Goal ticker: FACTS Contact: globaldata.com or 020 7936 6400