All good informative posts above. I bought in just after Christmas and see this as a one way win when the move to the main market happens. I will be buying more in the run up to that. |
Be careful of forum information online. AIM index's outflows that have not started are much smaller than FTSE250 index inflows. Keep the faith and I will certainly be buying.
I should add one of the reasons possibly for the fall is that Gamma Communications offers a range of products that cater to both office and home use. Blackrock may be seeing major companies scale back on working from home and this may impact the bottom line growth. Some how I am skeptical and the selling if this was the case is well overdone and GAMA should continue to grow. |
“They had to reduce the price to attract a buyer, but the Blackrock Thornton Trust operates as a long/short trust. I doubt they will exit GAMA with significant losses, assuming their actions remain legal. Admittedly, the practice they’re engaging in is complex and wasn't entirely clear to me when it was first explained, but I am aware that it does occur. |
They had 7.55% of the shares, now it's only 7.15%.That was a big purchase... Or selling? :) |
Reports of the Blackrock purchase I imagine was the trigger for the substantial rise in share price late this afternoon. |
Nice bounce off the 500DMA. I strongly suspect that a lot of the fall here was an unfortunate combination of weak technicals + very negative UK market sentiment. There is also likely some IHT selling in advance of the 250 move. Either way, one to accumulate on any further dips IMO. |
Pretty sure it will recover over time, just a case of how long.
The problems in Europe are way beyond worries about tariffs. Major competitive and consumption problems for the industrial heartlands.
Going off piste but if CNY drops by much it will offset any EU tariffs on the Chinese car industry and BYD, SAIC, GEELY ++ will have a field day. Becoming better quality very quickly.
Also off piste, I see Chinese deflation as potentially one of the biggest threats as it can spread if the CNY collapses and Chinese exports explode irrespective of tariffs. However, something like 40% of all Chinese enterprises are losing money - but that's another big impetus to export until they go under.
What's happening in China deserves more focus than it is receiving as it could hit all markets with a deflationary downdraught. Will at least help inflation. |
European stocks have had their slump and should recover somewhat given that Trump's bark is greater than his bite over tarrifs that he now admits will more gradual... The valuation on GAMA are at such a level I don't mind buying any more and start seeing a loss as I pound cost average. The move upwards when it happens will be as violent as the move downwards ahead of the FTSE250 inclusion. |
Yes pink, that's a good point re Germany.
I've held here previously and have it on a watchlist again, but tbh I do not like the lack of director buying. Might expect the non execs to add a few at these levels, but not a sausage atm. |
General state of German business sentiment may be playing a part too.
Paying a decent multiple for a business in an economy that is flat-lining might be seen as doing so at a less than opportune time. |
The recent trading statement was reassuring - the only downside is the relatively high price they are paying for the latest acquisition. Having said that they state it will be earnings enhancing.
RSI down well below 20 which suggests a bounce is due. |
Looks like I will be taking a stake again!
As per my previous posts, I've traded this twice selling at 1490 last year. I like the business but felt that the share price had got a bit ahead of itself.
At £13 it looks interesting again, particularly with the move to the main market. |
Although I missed out by not capturing the post-Xmas slide with a downbet, I did place a frivolous fun-size one towards the end of the day, as there seemed to still be enough downward hour-by-hour momentum to play games with in the final hour or so.
Made enough to buy myself a drink!
;-) |
grabster, BB boards can be very low information resources and your findings that can also be true of ALPH as it did underperform after going up 50% plus. Another observation is that those that drop out of the index see the most gains the quarter after moving down see Burberry, ORIT etc...
Right now I am glad to see everyone bullish on GAMA as this is what is expected from past data and sure I will be selling to those index buyers and perhaps like ALPH I will get back in after another dip. I post here so that no one sells as many are doing sadly because that is human nature. Hopefully doing some good to compensate for my greed. |
MrScruff - I remember, 2 decades ago, reading a study of how prices moved before/after an index change. That was about promotion/relegation within the main market, not moves to it from AIM. But it showed that as a general rule (always exceptions of course) share prices - contrary to expectations among many BB posters - tend to do worse in the quarter after promotion than in the quarter before. And there were logical reasons why that happens. |
With the company definitely going for a main-market listing, some of those trackers required to then buy would preferably love it to stay at this dipped level awhile - but that's too many (6-10) weeks away I guess.
5pm EDIT: I frequently go in for downbets and came here poised to do so on Jan 7, but couldn't convince myself that this should drop any further. Missed out! It's now on my Where Next list which sits between my Uplist and Downlist. |
...negative news should be in the RNS. "Something else"...well that would be ramping. Only another -3% before hitting the 0.618 fibonacci retracement point. I am adding on every 3% fall even if that means daily! |
Or something else on the runway. |
It may seem an oxymoron but you got *assume* some *certainty* if your looking for +50%. I fully understand many would be happy for less volatile steady eddy moves. The RSI is in the lows so pound cost averaging is prudent with only a 6-month view for large gains. Part of the reason stocks behave so volatile or as put "casino-like," according to Buffett, is simply that buying and selling stock has never been easier - or more fun - due to the rise of online trading applications. As the billionaire put it: “The casino now resides in many homes and daily tempts the occupants.” However, for us, more experienced investors they are like sheep and the reversion upwards here should be rather violent.
Silence from the BOD or an lack of RNS is a clear indicator to me they know who the seller is rather than something fundamentally wrong with the business. |
MrScruff, Nothing is certain in the stock market.
Silence is golden from the BOD on any buying of this now sharp correction. |
The net cash position would become a problem of drag on the share price as cash generation is high. GAMA is not ready to become a boring dividend paying company with no growth until perhaps it gets to the FTSE100 in many years time. The capital deployed has been excellent. While we do not know how low the share price will go, we can be certain the share price rise will be very strong. |
"Gamma potential not priced in, says Berenberg"
hxxps://citywire.com/funds-insider/news/expert-view-hollywood-bowl-games-workshop-jd-sports-gamma-hostelworld/a2457729?page=4 |
* just noting the rapid change in net cash to a net debt position, rather than the extent of debt.
Gearing will be modest, as you highlight.
I don't see the BOD falling over themselves to buy following what is a pretty rapid derating of the share price |
Fair enough, it's a chance but it's hardly their first acquisition. They also have a decent track record on acquisitions and have always focused on these rather than dividend payments. Net cash used is worth c£1.35 a share and the company was on a similar pe so not dilutive. Technically with net cash at a close of £153.7m the £40m debt facility is more of a precaution / short term working capital option that cash should clear with 6 months.
Considering the cash position of many in the sector I would think this compares rather favourably? |
The acquisition eats up their entire net cash, they better made the correct call on this. Net cash position gone, hello a chunk of net debt.
Might question why this deal was needed.. |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
