Gamma Communications Share Discussion Threads

[mrscruff] 24/6/2025 16:56:48

No holding RNS! C'mon this is the FTSE250! Suspect the large seller still around. No recent director/PDMR sales have been reported in 2025. Still likely selling pressure is from AIM-era holders (VCTs/IHT investors) exiting around the FTSE inclusion, not from anyone within Gamma.

Remind everyone that it is about the performance of the company, not the share price, even though the two have been heading in opposite directions for well over six months and the frustration it brings.

[mrscruff] 23/6/2025 15:15:52

I like to sell if I can put the money into something better. The issue with GAMA is finding anything that gives you the same steady growth, strong cash generation, and no debt without adding more risk. You can easily end up swapping something reliable for something more speculative, and that’s not always worth it.

And honestly, I suspect from here there’s +40 to +50% upside over the next 6-12 months when the market starts to wake up. That would put it around 1650–1750p on a rerating to 20–22x — which is entirely reasonable for a UK tech business with a clean balance sheet (see KNOS, thats is cheap but nowhere as good value as GAMA for the implied growth). Even modest beats in Germany or organic growth could push EPS to 110–115p.

[fuji99] 23/6/2025 14:30:11

Ess: This was what I wrote: "I am convinced when the recovery starts on here, the share price will move upwards very quickly."

Yes, I am still convinced WHEN the recovery starts, it will spike upwards sharply.

[essentialinvestor] 23/6/2025 13:56:32

fugi, from last week.. I'm convinced this is the low..

How were you defining 'this'.

[p1nkfish] 23/6/2025 13:33:00

The only 2 ways to get a buy within 5% of the bottom is luck or hindsight once in a confirmed uptrend after.

[fuji99] 23/6/2025 13:07:07

If one is not patient enough and if the investment is not for the medium to long term, it's better to just day-trade.
Blips along 12 to 24 months are normal.

[xamf] 23/6/2025 12:52:21

I've had enough. The fundamentals here are great but this has hit my 5% loss limit and I have sold.

[74tom] 23/6/2025 12:41:20

I've seen this before when ONT joined the FTSE250 last year - short sellers took the other side of the forced tracker buy. Looks to be the same play here. Keep an eye on short tracker this evening IMO.

[mrscruff] 21/6/2025 15:30:12

Yeah we can speculate Inheritance Tax avoiders including Venture Capital Trusts. We won't know for sure until we see some holding RNS's next week.

[p1nkfish] 20/6/2025 22:48:20

IHT wind down finally finished?

[mrscruff] 20/6/2025 22:28:56

I recon the £49m UT was a sell keeping the price down. Should get an holding RNS on Monday to explain things. I hope. Someone big is out. Strange one this. Let's hope today marks a line in the sand.

[fuji99] 20/6/2025 19:10:33

MrScruff: You are right. This is the first time I saw a volume of more than 6.5 million shares exchanged hands.
A volume of half a million used to be the peak.

[fuji99] 20/6/2025 14:30:54

I am and will continue to add if they drop.
I have even sold elsewhere to add Gamma.
Not easy to find a UK top quality tech company not taken over ... yet.
Then I will be puzzled if a 50%+ profit margin will be missed for long by the "vulture funds".
I was lucky with Spectris and made a bit over there.

[essentialinvestor] 20/6/2025 14:17:14

You must be fully loaded here, eh ;

[fuji99] 20/6/2025 14:15:19

IMO if Gamma expands its growth a bit more in Europe, particularly in Germany as it is the biggest economy, the next numbers will be stellar.
It is very rare to find a tech company with 50%+ profit margins.
I checked a few UK tech companies including software providers such as:
Sage, Computacenter, Softcat, Knos, GB Group,
Renishaw, Spectris, etc.
Apart from Sage and GB Group with profit margins within 22% - 24% all the rest is below 20% while Gama has increased its profit margins from 51% to 52%.
To me this is an amazing and unique cash generative company.

[shared24] 20/6/2025 13:36:01

Europe including Germany is doing well.htTps://www.cnbc.com/2025/06/20/european-markets-on-fri-june-20-stoxx-600-middle-east.html

[fuji99] 20/6/2025 09:05:27

As any sound investment is for the medium to long term, one has to be just patient and get fully rewarded.

[mrscruff] 19/6/2025 15:07:52

Expect the passive trackers to do almost all of their buying in tomorrow’s closing auction, with only clean-up trades spilling into Monday morning.

Potential time lines:

Tomorrow (Fri 20 Jun) 16:35 is when you’re most likely to see a volume spike and a 1-3% after hours in the "auction pop".

Before the auction: only small flows from institutions who spread trades to reduce impact.

Monday open: any tidy-up buying (or selling, if Friday’s auction over-filled) usually clears by 10am

Feel free to trade it but I have my asset allocation set and look towards a 6-18month growth period if all is OK with the UK and German economy.

[fuji99] 19/6/2025 08:46:24

A good assessment 74tom.
In addition Gamma is not affected by any geopolitical issue thus supply-chain bottle neck as it is wholly based in Europe.

[74tom] 18/6/2025 22:38:54

Worth noting the impact of the ongoing buyback on EPS - current forecasts on sharepad are for 92.7p, based on £88.8m post tax profit (88.8/95.7), however adjusting for the ~2.7m shares bought back since the final results in March this EPS figure should rise to ~95.5p. So current year PER falls from ~12.5x to 12x.

I like the set up here as I think there is a solid chance someone makes a bid in the medium term + even if markets fall I can't see where material downside risk lies? It's a quality business with a stellar track record, huge FCF and a balanced capital allocation policy.

What's the bear case at 12x PER?

[xamf] 18/6/2025 09:57:55

Just topped up. Official entry to FTSE250 on 23rd June.

[shared24] 17/6/2025 15:02:33

Agreed, it's only a matter of time.

[fuji99] 17/6/2025 11:10:31

I am convinced when the recovery starts on here, the share price will move upwards very quickly.
This is due to the sensitivity of its share price movement due to the reduced number of issued shares (with the share buyback helping too).
Any news on business improvement in the UK and further growth in Germany will take the share price to $18 - £20 within 6 to 12 months.
I am convinced we are dealing with a sound and solid company with an excellent business model that really makes money - Basically a cash cow with profit margins over 50% .

[shared24] 16/6/2025 23:00:26

Yes, really good points. It does feel like sentiment and technicals (those UT trades especially) are driving the short-term weakness rather than anything fundamental.

Good to hear you're adding, I'm staying patient and holding tight too.