SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

X    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 FOR THE QUARTERLY PERIOD ENDED August 31, 1998

                                       OR

     Transition  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934 from the transition period from ____ to _____

                          Commission File Number 0-9987


                            GLOBUS GROWTH GROUP, INC.
             (Exact name of registrant as specified in its charter)



             New York                                        13-2949462
   (State or other jurisdiction of                           (I.R.S. Employer
   incorporation or organization)                            Identification No.)


   44 West 24th Street, New York, NY                         10010
   (Address of principal executive offices)                  (zip code)

                                 (212) 243-1000
              (Registrant's telephone number, including area code)




     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 12, 13 or 15(d) of the  Securities  Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. Yes ____  No ____



                      APPLICABLE ONLY TO CORPORATE ISSUERS:
     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as the latest  practicable  date:  2,499,000(including  151,743
held in treasury)


<PAGE>


PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements

GLOBUS GROWTH GROUP, INC.

CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                         August 31,         February 28,
                                                                           1998                1998
                                                                       -------------       -------------
                                                                       (Unaudited)         (See Note 1)
<S>                                                                     <C>                 <C>         
ASSETS 
Cash                                                                     $  526,000          $  840,000
Investments in Securities (Note 3)                                       $2,039,000          $1,880,000
Demand Loan Receivable                                                   $   75,000          $        0
Other Assets                                                             $    9,000          $   10,000
                                                                       -------------       -------------
TOTAL                                                                    $2,649,000          $2,730,000
                                                                       -------------       -------------




LIABILITIES AND STOCKHOLDERS'  EQUITY

Liabilities
  Accounts payable and accrued expenses                                  $1,055,000          $1,028,000
  Loans payable to officers/shareholders                                 $  357,000          $  364,000
  Demand loan payable to related party                                   $  391,000          $  385,000
                                                                       -------------       -------------
Total Liabilities                                                        $1,803,000          $1,777,000
                                                                       -------------       -------------


Stockholders' equity (Note 2)
Preferred stock - $.10 par value, Authorized - 450,000 shares
     None Issued
Series B  convertible  preferred  stock - $.10  par  value  
     Authorized  - 50,000 shares, None issued
Common stock - $.01 par value, Authorized - 4,500,000
     shares, Issued 2,499,000 shares at 8/31/98                         $    25,000         $    25,000
Additional paid in capital                                              $ 2,747,000         $ 2,747,000
Treasury Stock, 151,743 shares at 8/31/98                               ($   41,000)        ($   41,000)
Accumulated earnings (deficit)                                          ($1,885,000)        ($1,778,000)
                                                                       -------------       -------------
Total stockholders' equity                                              $   846,000           $ 953,000
                                                                       -------------       -------------
TOTAL                                                                   $ 2,649,000          $2,730,000
                                                                       -------------       -------------
</TABLE>



(See Accompanying Notes to Financial Statements)


<PAGE>


GLOBUS GROWTH GROUP, INC.

STATEMENT OF OPERATIONS
     (Unaudited)

<TABLE>
<CAPTION>
                                                             Three Months                           Six Months
                                                           Ended August 31,                       Ended August 31,
                                                        1998            1997                  1998             1997
                                                     -----------    -------------         -------------     ------------
<S>                                                   <C>              <C>                   <C>              <C>      
Gain (loss) on investments:
   Realized                                            $      0          $73,000              $      0         $ 95,000
   Unrealized                                          ($32,000)        ($12,000)              $46,000        ($154,000)
                                                     -----------    -------------         -------------     ------------
Total                                                  ($32,000)         $61,000               $46,000         ($59,000)
Dividend Income                                          $2,000           $2,000                $3,000           $8,000
Interest Income                                              $0           $4,000                    $0           $5,000
Consulting and other income                              $6,000           $9,000               $12,000          $18,000
                                                     -----------    -------------         -------------     ------------
TOTAL                                                  ($24,000)         $76,000               $61,000         ($28,000)

Expenses:
   General and administrative                           $78,000          $44,000              $157,000          $96,000
   Interest                                              $6,000           $7,000               $11,000          $15,000
                                                     -----------    -------------         -------------     ------------
TOTAL                                                   $84,000          $51,000              $168,000         $111,000

Income (loss) from operations before taxes            ($108,000)         $25,000             ($107,000)       ($139,000)
Benefit/(Provision) for taxes                                $0               $0                    $0               $0
                                                     -----------    -------------         -------------     ------------
Net earnings (loss)                                   ($108,000)         $25,000             ($107,000)       ($139,000)
                                                     -----------    -------------         -------------     ------------


Net (Loss) per share of common stock                     ($0.05)           $0.01                ($0.05)          ($0.06)
Weighted Average Number of shares of
    Stock Outstanding                                 2,347,257        2,364,860             2,347,257        2,364,860
                                                     -----------    -------------         -------------     ------------
</TABLE>

(See Accompanying Notes to Financial Statements)


<PAGE>


GLOBUS GROWTH GROUP, INC.

STATEMENT OF CASH FLOWS
      (Unaudited)

<TABLE>
<CAPTION>
                                                                                               Six Months
                                                                                             Ended August 31,
                                                                                           1998            1997
                                                                                      -------------  ---------------
<S>                                                                                      <C>              <C>       
CASH FLOWS FROM OPERATING ACTIVITIES:
       Net Income (loss)                                                                 ($107,000)       ($139,000)
       Adjustments to reconcile net income (loss) to net cash provided by
            (used in) operating activities:
            Depreciation and amortization                                                       $0               $0
            Realized (gain) loss on investments                                                 $0         ($95,000)
            Unrealized (gain) loss on investments                                         ($46,000)        $154,000
            Increase/(decrease) in accounts payable, accrued expenses and
                accrued interest on loans                                                  $38,000          $53,000
            (Increase) decrease in prepaid assets                                               $0          ($2,000)
                                                                                      -------------  ---------------

            Net cash (used in ) operating activities                                     ($115,000)        ($29,000)
            --------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:

       Purchase of investments                                                           ($113,000)       ($500,000)
       Issuance of demand loan receivable                                                 ($75,000)
       Proceeds from sale of investments                                                        $0         $128,000
                                                                                      -------------  ---------------

            Net cash provided by (used in ) investing activities                         ($188,000)       ($372,000)
            --------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Repayment of loans payable to officers/shareholders                                ($11,000)        ($94,000)
       Increase (decrease) in loans payable to officers/shareholders                            $0          $30,000
                                                                                      -------------  ---------------

            Net cash provided by (used in) financing activities                           ($11,000)        ($64,000)
            --------------------------------------------------------------------------------------------------------

Net increase (decrease) in cash                                                          ($314,000)       ($465,000)

Cash - beginning of period                                                                $840,000         $512,000

Cash - end of period                                                                      $526,000          $47,000

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
       Cash paid during the year for:
            Interest                                                                            $0               $0
            Income Taxes                                                                    $6,000           $3,000
       Stock received for consulting services                                              $13,000               $0
</TABLE>

(See Accompanying Notes to Financial Statements)


<PAGE>

GLOBUS GROWTH GROUP, INC.                                        August 31, 1998

  Notes to Condensed
Financial Statements
    (Unaudited)     

     Note 1 -  Basis of Condensed Information

               In  the  opinion  of  the  Company,  the  accompanying  unaudited
               condensed   financial   statements   contain   all   adjustments,
               consisting  of  only  normal  recurring  accruals,  necessary  to
               present fairly the financial  position as of August 31, 1998, the
               results of  operations  for the three and six months ended August
               31, 1998 and 1997, and statement of cash flows for the six months
               ended August 31, 1998 and 1997.

               The results of  operations  for the six months  ended  August 31,
               1998 are not necessarily indicative of the results to be expected
               for the full year.

               Certain  information and note  disclosures  normally  included in
               financial   statements  prepared  in  accordance  with  generally
               accepted  accounting  principles  have been condensed or omitted.
               These   condensed   financial   statements   should  be  read  in
               conjunction  with the  financial  statements  and  notes  thereto
               included in the  Company's  annual  report filed on Form 10-K for
               the year ended February 28, 1998.

               The balance  sheet at February 28, 1998 has been derived from the
               Company's  audited balance sheet included in its Annual Report on
               Form 10-K.


     Note 2 -  Earnings Per Share

               Per share data are based on the weighted average number of common
               shares  outstanding  during the period.  Common equivalent shares
               (options and warrants) would be  anti-dilutive  and are therefore
               excluded from the calculations.


     Note 3 -  Investments

               As of February  28,  1998 and August 31,  1998,  investments  are
               carried at fair value, which, for readily marketable  securities,
               represents  the last  reported  sales  price or bid  price on the
               valuation   date.   Investments  in  restricted   securities  and
               securities  which are not readily  marketable are carried at fair
               value as determined  in good faith by the Board of Directors,  in
               the exercise of its  judgment,  after  taking into  consideration
               various indications of value available to the Board.

               (Continued on next page)


<PAGE>

Note 3 - (Continued)

<TABLE>
<CAPTION>
                                                         August 31,                                 February 28,
                                                           1998                                        1998

                                               No.                                        No.
                                             Shares       Value         Cost            Shares         Value          Cost
                                             ------       -----         ----            ------         -----          ----
<S>                                      <C>            <C>            <C>            <C>            <C>            <C>       
Common Stock
Catamount Brewing Co.*                       23,215     $  176,000     $  176,000         23,215     $  176,000     $  176,000
Interface Systems Inc.                          775     $    2,000     $    7,000            775     $    3,000     $    7,000
Kimeragen, Inc. Cl A                        108,827     $  609,000     $  219,000        108,827     $  609,000     $  219,000
Kimeragen, Inc. Cl B                         35,000     $  196,000     $   75,000         35,000     $  196,000     $   75,000
Repligen Corporation                        100,468     $  163,000     $  190,000        100,468     $  116,000     $  190,000
Thermaphore Sciences, Inc.                    8,333     $   13,000     $   13,000                    ----------     ----------
                                                        ----------     ----------
Total Common Stock                                      $1,159,000     $  680,000                    $1,100,000     $  667,000
                                                        ----------     ----------                    ----------     ----------

Preferred Stock
Catamount Brewing Co.* - Pfd                  4,286     $  150,000     $  150,000          4,286     $  150,000     $  150,000
Genitope Corp. Series A Pfd                 420,858     $  210,000     $  210,000        420,858     $  210,000     $  210,000
Genitope Corp. Series B Pfd                 332,992     $  420,000     $  420,000        332,992     $  420,000     $  420,000
Thermaphore Sciences, Inc. A Pfd             66,667     $  100,000     $  100,000                    ----------     ----------
                                                        ----------     ----------
Total Preferred Stock                                   $  880,000     $  880,000                    $  780,000     $  780,000
                                                        ----------     ----------                    ----------     ----------


Total Investments - Fair  value                         $2,039,000     $1,560,000                    $1,880,000     $1,447,000
                                                        ----------     ----------                    ----------     ----------
</TABLE>


--------------------------------------------------------------------------------

*Note: The Company also loaned $75,000 to Catamount  Brewing Company on a demand
       loan basis during April and June, 1998.


<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition
and Results of Operations

Analysis of Results of Operations

     Prior to fiscal 1987, the Company was engaged in the camera and photography
business.  On February 28, 1986,  the Company sold its operating  business to an
affiliated company and since that date the Company's principal activity has been
the making of investments in other companies.

     At August 31, 1998, the Company had total assets of $2,649,000  compared to
total assets of $2,730,000 as at February 28, 1998.  Included in total assets at
such dates were  investments of $2,039,000 for the six month period ended August
31, 1998 and  $1,880,000  for the year ended  February  28,  1998.  Shareholders
equity at such dates was $846,000 for the six month period ended August 31, 1998
and $953,000 for the year ended February 28, 1998. Gain on investments  amounted
to $46,000 for the six month  period ended August 31, 1998 as compared to a loss
of ($59,000)  for the six month  period ended August 31, 1997.  Included in such
gains (losses) were no realized gain or loss and unrealized  gain of $46,000 for
the six month period ended August 31, 1998  compared to $95,000 of realized gain
and  ($154,000)  of  unrealized  loss for the six month  period ended August 31,
1997. Operating expenses,  including interest charges,  amounted to $168,000 for
the 1998 six month  period and $111,000  for the 1997 six month  period.  (Loss)
from  operations,  both before and after provision for taxes, was ($107,000) for
the six month period ended August 31, 1998  compared to  ($139,000)  for the six
month period  ended  August 31,  1997.  Net (loss) per share was ($0.05) for the
1998 six month period  compared to ($0.06) for the comparable  1997 period.  The
weighted average number of shares of Common Stock outstanding at August 31, 1998
was 2,347,257 and 2,364,860 at August 31, 1997.


Analysis of Financial Condition

     The  Company's  cash  position as at August 31, 1998  (i.e.,  $526,000)  is
offsetable  by the  indebtedness  that is owing to members of the Globus  family
described  below.  The near term  liquidity of the Company,  as well as its near
term capital resources position,  are presently  principally  dependent upon the
continued willingness,  as to which there can be no assurance whatsoever, of the
members of the Globus  family who have made loans to the  Company  not to demand
full or substantially full repayment of such loans and to continue to make loans
to the Company,  if necessary.  Thus,  loans  payable by the Company  (including
accrued  interest)  to Messrs.  Stephen E. and  Richard D.  Globus  amounted  to
$357,000 at August 31, 1998, a decrease of $7,000 from  $364,000 at February 28,
1998.  This  decrease  was due to a loan  repayment to Stephen E. and Richard D.
Globus of approximately  $11,000, which was somewhat offset by a $4,000 increase
in accrued  interest.  As at August 31, 1998, loans payable to another member of
the Globus family, to wit: Ms. Jane Globus (the mother of Stephen E. and Richard
D. Globus),  amounted to approximately $391,000,  including accrued interest. As
at August 31, 1998,  unpaid salaries owing to Messrs.  Stephen E. and Richard D.
Globus aggregated  $1,004,000;  so that at such date the total of monies owed to
Messrs.  Stephen E.  Globus,  Richard D. Globus and Ms.  Jane Globus  aggregated
approximately $1,752,000.


     There  are in  fact  presently  no  known  events  that  can be  considered
reasonably  certain to occur which would materially  change favorably either the
short term or long term  liquidity  (i.e.,  ability of the  Company to  generate
adequate  amounts  of cash to meet its  needs  for  cash) or  capital  resources
position (i.e.,  source of funds) of the Company from that in which it presently
finds itself,  and, absent  continuation of the presently existing loans without
call for payment,  or  additional  loans,  from the Globus  family,  the present
liquidity and capital resources  position of the Company  necessarily  adversely
affects  the  financial  condition  of the  Company  and its ability to make new
investments.  In such connection it must be noted that: the  profitability  of a
BDC, like the Company, is largely dependent upon its ability to make investments
and upon increases in the value of its investments; and a


<PAGE>


BDC is also subject to a number of risks which are not  generally  present in an
operating company,  and which are discussed generally in Item 1 of the Company's
10K Report for its fiscal year ended  February 28, 1998 to which Item  reference
is  hereby  made.  Reference  is also  hereby  made to Item 1 and Item 7 of such
Report and to the  Financial  Statements  and notes  thereto  contained  in such
Report for  information  concerning the Company's  investments and its financial
condition.


The Year 2000 Problem

     The fact that most existing and unmodified computer systems may not be able
to  distinguish  the year 2000 from the year 1900 has created  what is generally
known as the "Year 2000 Problem" (hereinafter "Y2K"). The full extent of the Y2K
problem  is not  yet  known,  and it is  generally  agreed  that  if not  timely
corrected, it could adversely affect many businesses.

     While the Company does not believe  that its own  internal  systems will be
materially affected by the Y2K problem,  there can be no assurance that: (a) the
computer  systems and  applications of the Company's  various  investees will be
converted  timely,  or, (b) that a failure to so correct by one or more material
investees  would not have a material  adverse effect on the Company's  financial
condition.

     The  Company is making what it  believes,  under the  circumstances,  to be
diligent inquiry of its investees in an attempt to ascertain: (i) the opinion of
each  investee as to whether any of its  business  or results of  operations  or
financial condition,  is or will be, or could be, affected by a Y2K problem; and
(ii) the extent, if any, of related Y2K matters.

     As of the date hereof the Company has received  responses from three of its
investees  which   responses   answer  inquiry  "(i)"  above  in  the  negative.
Necessarily,  the Company cannot make any  representation  as to the accuracy of
any of the responses it receives.


Item 3. Quantitative and Qualitative Disclosures About Market Risk

        Not Applicable.


PART II - Other Information

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibit 27 - Financial Data Schedule

          (b)  Reports on Form 8-K

               No  reports on Form 8-K have been filed  during the  quarter  for
               which this Report is filed.


<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
     registrant  has duly  caused  this report to be signed on its behalf by the
     undersigned thereunto duly authorized.

     Date: October 15, 1998

                                                   GLOBUS GROWTH GROUP, INC.
                                                   (Registrant)


                                                   s/ Stephen E. Globus
                                                   -----------------------------

                                                   STEPHEN E. GLOBUS
                                                   Chairman of the Board,
                                                   (Principal Executive Officer)
                   


                                                   /s/ Richard D. Globus
                                                   -----------------------------
                                                   
                                                   RICHARD D. GLOBUS
                                                   President, Director