Gear4music (holdings) Share Discussion Threads

[blueball] 05/2/2017 19:26

On the basis I will be buying on Monday joules.

[allstar4eva] 05/2/2017 17:42

Also looking at the recent large trades taking place I am guessing funds are accumulating now the mkt cap is well over 100m. I would also guess they will be buying on a longer term view than most pi's and as such will be worried about the share price in a year or two's time - not a day or two.

[cheshire pete] 05/2/2017 17:39

Only 20.16m shares in issue. BOO has 1123m in issue.

[runthejoules] 05/2/2017 17:37

On what basis, Blueball?

[taurusthebear] 05/2/2017 17:36

On comparative Internet metrics, it's cheap.

Look at ASOS, for example - an elephant on a high PE.

OTOH G4M is an ant on a high PE. Higher % growth in users, revenue and profits. And hence should be on a higher rating.

Don't ask me to justify Internet ratings. I'm just playing the game, others set the rules. :0)

[croasdalelfc] 05/2/2017 17:36

Also note the last line : Operating from an office, showroom and distribution centre in York, and distribution centres in Sweden and Germany, the Group sells Own-brand musical instruments and music equipment alongside premium third party brands including Fender, Yamaha and Gibson, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and, more recently, into the Rest of the World.

[croasdalelfc] 05/2/2017 17:34

I thought it interesting that in the TU they said ' Europe and the Rest of the World' - the first time RoW has been mentioned - are they planning to sell to the US? On Alexa 3% of web page views are from the US.Also G4M is ranked higher than in late November and the monthly page views for Jan were much higher than October

[blueball] 05/2/2017 17:07

I predict 700p Monday.

[nurdin] 05/2/2017 16:18

Hi TTB.....my question was genuine and not intended to catch anyone out.Yes I have always thought the stock looked expensive and have been astonished at its rise and rise.Just saying its cheap is not an answer though,on what basis is it cheap? As I have said above, the margins are poor (at present),earning growths going forward are lagging the PE (high PEG) and there appear to be few, if any, barriers to entry from what I can see.

However,having said all that, the top line growth is just amazing and as you say the company could easily be generating PBT of £12-£15m in a few years time on a turn over that could easily reach £300m and over,with fair wind.I think the market has been factoring in that prospect.Cant argue with the market, and thats why I have a holding!

[allstar4eva] 05/2/2017 15:56

One of the oldest sayings is run your winners. Not that easy to do in practice though...

[taurusthebear] 05/2/2017 15:42

You were saying the PE was high at circa 4 quid, nurdin. And I answered you then!

Look back if you don't remember. In essence, it's easier to double an ant than an elephant.

And I don't expect £20 "anytime soon", but rather, with continued growth and visibility, over the next 2-4 years. Look at the overseas growth in the last statement, and bear in mind that the Swedish hub is up and running, with the German one by year-end.

Market cap. of 400m producing PBT of circa 12-15m doesn't strike me as excessive, should growth continue in good double digits. :0)

[nurdin] 05/2/2017 13:31

I will try to answer my own question.I think for stocks like these, market looks for top line growth which in the case of G4M is running at stupendous 45% CAGR ! The stock is trading at just 1.6x forecast 2018 revenues which does look very cheap on that metric.At some point the revenues will flow into high margin profits purely from economy of scale.Reasonable?

[panic investor] 05/2/2017 12:56

That's the beauty of the market - everyone has a different view - support/resistance wouldn't exist otherwise !Good Sunday everyone !

[loveandmoney1] 05/2/2017 12:09

pe x55

Remember the saying

Bulls make money
Bears make money
Piggies get slaughtered.gl

[nurdin] 05/2/2017 12:06

I hold G4M but I am curious to know why you think they are cheap TTB? Operating margins, which are indicative of competitive advantage, are poor at 4.35% and the pe has now mushroomed up to 55x.In fact forecast net profit margins are estimated at only 3.3%. Where is their competitive advantage apart from their apparently excellent service level?

I am going into hiding after this :o)

[taurusthebear] 05/2/2017 11:50

Never buy a stock for a takeover, IMO. Buy it for the value of it's own business. And on comparative Internet metrics, G4M is still cheap. I don't anticipate selling under 20 quid. :0)

[runthejoules] 04/2/2017 22:38

Who apart from Amazon would buy this in your opinions? Alibaba?

[runthejoules] 04/2/2017 22:37

Sad thing is, I liked the look of these back in August when SHARES first plugged them, but have been messing round with long-term lithium mining play Bacanora when I could have 6-bagged with this or Sopheon! Never trust a stock that moves sideways. Sad! Still, I'm a novice, I'm sure over the next 40 years I'll learn...

[sah54] 04/2/2017 22:17

can't get a much better uptrend to hop back lnto

[geheimnis2] 04/2/2017 20:44

10 quid this year in my view

[pauliewonder] 04/2/2017 20:42

Run, I must have bought your shares. This wasn't on my radar until 550p but glad I decided to buy in. This has momentum and seems well liked by the market. Going to hold these for a long time, unless the company gets bought by someone

[runthejoules] 04/2/2017 19:44

I sold out at 560... what. a. plonker. Would it be silly behaviour to buy back in now, with the Markit PMI going down? Or would a recession just mean more smashing of smaller music outlets?

[johnyee 7] 03/2/2017 13:07

Don't they have an analyst meeting on Monday.

[rathlindri] 03/2/2017 11:40

and away we go again... :-) One or two chunky buys, £7 before the end of February?