Gear4music (holdings) Share Discussion Threads

[taurusthebear] 17/11/2016 09:18

Stop deramping, Paul. Anyone can see this will get to a tenner (a mere 200m market cap.) by late January 2018. :0)

[geheimnis2] 17/11/2016 07:53

With you on that one Paul

I'm long KOOVS too - unlike you - however

[paulypilot] 17/11/2016 03:43

This stock is going to 1000p in a couple of years in my view.

Muppets will trade in & out.

Long term - mark my words.

pp.

[geheimnis2] 15/11/2016 10:28

Should be five quid by January in my view

Room to hit a tenner next year

Just a thought of course?

[bigbigdave] 14/11/2016 16:08

Plenty of stock around now, Glad my top up was at 8.02am :o)

[taurusthebear] 14/11/2016 15:28

This is music to my ears. :0)

[bamboo2] 14/11/2016 12:53

Order eventually went through just before 10am. Not sure, but don't think I ever had to wait this long before.

[panic investor] 14/11/2016 11:58

Yes RCN will get back to 130 ish pretty fast - that astute Griffiths piled in as soon as the rns droppedSorry for off topic - anyway I've added in here today

[larva] 14/11/2016 11:07

RCN getting bought

[battlebus2] 14/11/2016 09:08

Yes well called bamboo2.....back to highs again.

[bamboo2] 14/11/2016 08:44

Difficult? I couldn't buy any on-line, so put an order in earlier, but still not filled.

I guess it must be a busy morning!

[bigbigdave] 14/11/2016 08:39

Nice call bb2, pushing for new highs and very difficult to buy in quantity.

[bamboo2] 12/11/2016 22:55

Started averaging back in last week.
Sp has moved back into Rising Wedge
A close above the recent ath opens up some juicy targets.

[dan_the_epic] 11/11/2016 00:24

Oh you have so much conviction Paul....

oh wait you wrote this a few weeks ago: "Just a short report this morning, as I am heading into the city for a meeting at Panmures with management of my favourite GARP share at the moment, Gear4Music (G4M). As this is at noon, combined with me oversleeping, that leaves very little time to write much here this morning. Then I've got meetings all afternoon, so am out all day."

Let's just say, I have come across a hell of a lot of small cap companies that have loose lips. All too many give a slight wink that the opaque, paid-for broker forecasts are too light just so the can beat them and say "we beat the market!". Some management teams just guide the brokers to whatever they want them to put simply because the brokers are pretty damn bad at research and there is no market consensus to hug to.

It's plain wrong, but that's corporate greed for you, and not something I will ever take advantage of. No accusations of course, just observations from tracking the personalities and sneaky tactics behind many management teams of the past.

[paulypilot] 11/11/2016 00:00

larva,

I think it's a mistake to focus on PER for rapid growth companies such as G4M. This is because revenues & earnings are now rising so fast, that growth will quickly make previous years' earnings irrelevant. Also, broker forecasts tend to be way too conservative for stocks like this.

Based on the excellent H1 figures, and taking into account the H2 weighting, I reckon post-tax earnings this year could be around £2m (or more). That equates to about 10p EPS, for a 2015 PER of about 40. That's much lower than your figure of 75.

At this point in the year, we should of course be looking at next year's earnings. Broker forecasts are currently about 11.4p, which again I think is much too conservative. I reckon we could be looking at 15-20p EPS for FY2017/18. At just under 400p per share, that makes the PER around 20-27.

So on this basis, delivering 73% top line growth & profits in H1, a fwd PER in the twenties is a bargain in my view.

You're not comparing apples with apples by looking at a much bigger, more mature business like SGP. Totally different.

Regards, Paul.

[interceptor2] 10/11/2016 16:03

Indeed, it shows that investors are rather excited by growth prospects for G4M, I estimate that the PER figure of 75 will come tumbling down as further trading updates are released, as low as mid 20s imo.

[larva] 10/11/2016 14:52

SGP on a PER of 15 cimpared to G4M on a PER of 75

[alphabeta4] 10/11/2016 10:25

OT - Well Trump did wrong foot the market - on IG at the start of the count he was at 16% chance which went as low as 9%. From the early results I could see the risk from the higher white vote turnout and shorted the FTSE 100 from just under 6900 to protect my portfolio. Closed when the probability of a Trump win was at 95% for a profit of 4% of my portfolio. Happy days :)

[bones] 09/11/2016 23:05

Hydrus, ROFL! Mind you, it was more like the Rustbelt North that made the difference this time. What instruments do they play up there?

[hydrus] 09/11/2016 19:38

Maybe shot up on prospects of large number of banjo orders from Deep South for celebration party music?

[roscodagama] 09/11/2016 10:11

An advantage that no(AFAIK) sales to the US. All companies with US exposure marked down today. [edit: Drugs excepted]

[allstar4eva] 09/11/2016 10:00

Saw drops in a few shares leading up to the election so perhaps it was priced in? Trump won't affect the coming trading update...