Gamma Communications Share Discussion Threads

[senseibull] 09/5/2024 11:46

Yeah I'm going to buy up a portion of my previous holding now, looks like the breakout is soon back to ATH

[xamf] 08/5/2024 20:31

Nice move on today. Well done all holders.

[crazycoops] 03/5/2024 09:21

I understand that Deutsche Bank initiated coverage this morning with a Buy recommendation targeting 2250p

[nhb001] 26/4/2024 08:56

Any theories as to what Liontrust are up to? 2 days ago they up their stake and today they sell it back down!

[xamf] 25/4/2024 10:26

Just taken the plunge based on fundamentals (eps growth/strong net cash position etc). Historical and forward growth estimates are fantastic!

I'm hoping we could see a reversal soon (and certainly by early May). I can't see a fall back to 1250 as this is such a high growth stock (and we have the continued support of share buy back). Any views?

[senseibull] 23/4/2024 13:31

Completing share buyback but the price goes down again, a little odd to see

[wad collector] 07/4/2024 10:07

Tipped as a BUY in IC @1349p FWIW.
Although the PhoneLine+ net growth has been slow, only 12000 customers out of 1M total GAMA customers, this is partly as the existing landline providers have kept the service running for now, and GAMA say the growth will be steady not rapid. They quote the Peel Hunt broker note and point out the asset light software makes it good at generating cash as the numbers rise and PH predicts 88.5P eps for 2025 would give P/E of 16 , low for a software company.
Their last opinion on GAMA was a BUY in Sep23 and they were right as it was 1083p then.

[tole] 26/3/2024 07:18

https://citywire.com/funds-insider/news/expert-view-rolls-royce-entain-virgin-wines-pennon-gamma/Market underestimating Gamma, argues Peel HuntThe market is failing to reflect the potential at Gamma Communications (GAMA) despite another year of growth, says Peel Hunt.Analyst James Lockyer reiterated his 'buy' recommendation and increased the target price from £13.80 to £16.50 on the telecoms group, which rose 0.7% to £13.60 on Monday.Full-year 2023 results were in line with expectations, with earnings up 9%, ahead of the 8% rise in revenues thanks to operational leverage. Following acquisitions, Lockyer increased full-year 2024 and 2025 revenues by 1% and earnings by 3% and 4%, respectively.'At 9.7 times full-year 2024 embedded value to [pre-tax profits], we think the market fails to reflect the growth potential and profitability Gamma has to offer versus peers,' he said.'Another encouraging year of growth and significant cash generation leave Gamma with £13m of net cash in the bank.'Lockyer said the £35m buyback presents a 'shrewd allocation of capital given the current valuations, but the priority remains investing in organic growth and acquisitive activity to bolster exposure in underpenetrated markets.'

[salpara111] 25/3/2024 21:54

Well, I'm happy to hold although I think that any further movement up will be artificially driven by the buybacks.
If it gets close to £15 I would be tempted to take some profit.
They have always impressed with their cash generation.

[74tom] 25/3/2024 10:59

I suggest you review the source of your 'consensus' figures john, as they are incorrect, they actually came in slightly ahead on PBT, hence why shares opened up.

[slopsjon2] 25/3/2024 10:40

Progressive Equity Research note.

"Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m in acquisition spend. Perhaps the most anticipated element of today’s news is the statement regarding the £35m share buyback programme, alluded to in the January trading update. On an operational basis, Gamma is making good progress in Business, Enterprise and Europe. For those looking at ‘undervalued’ UK equities, Gamma’s growth stands out."

[johnrxx99] 25/3/2024 08:41

Hericsaba, they missed the consensus figures I posted.

[xamf] 25/3/2024 08:22

I thought the same but assumed I'd missed something. Regardless of the semantics it's still a good set of results imo plus (unlike the normal rhetoric in these matters) a decent outlook.

[hericsaba] 25/3/2024 08:10

That was their update in January: "The latest known sell-side analyst estimates for the full year ended 31 December 2023 are adjusted EBITDA GBP113.8m - GBP116.0m and adjusted EPS 74.2 pence - 77.4 pence."The results exactly in that range. What did they missed?

[johnrxx99] 25/3/2024 07:46

Missed concensus statutary PBT by GDP4m and eps by over 20p. If the market accepts the "alternative measures", may be OK today at open.

[c3479z] 25/3/2024 07:34

results look fine, flattered somewhat by working capital unwinding, good progress in Europe is excellent.

[xamf] 25/3/2024 07:18

Great set of results. Revenue and eps up 8%. Net cash up 46% to £134m! Div up. Positive outlook.

[blueball] 21/3/2024 11:16

Outlook is negative.

[salpara111] 18/3/2024 13:42

Off to the races!
Everything will hinge on the upcoming results.

[llygad] 14/3/2024 17:59

High volume and new recent high.

[salpara111] 27/2/2024 14:11

I don't care how long it takes I'm just glad I didn't sell out at £12 again.

[mesb48] 27/2/2024 11:25

has to get the award for the slowest breakout ever...

[fruitninja84] 14/2/2024 11:55

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price"