Gamma Communications Share Discussion Threads

[senseibull] 03/5/2023 17:53

I'd like to see a clean break, without that it's still either in a sideways trend or further downsideI also agree it could be a buy out target but not at this price

[disc0dave45] 24/4/2023 12:03

Hope it works for you.I'm still sitting on my hands.

[senseibull] 21/4/2023 13:11

I did, I'll trade a breakout past £13 if it happens

[disc0dave45] 20/4/2023 18:07

Each to their own, personally I'm more interested in the future.Did you sell up?

[salpara111] 20/4/2023 16:40

I'm a pessimist, I don't work with forecast figures!

[disc0dave45] 20/4/2023 12:05

HiAccording to Stockopedia it's forecast eps for FY23 puts it on a PE of 15.8, and falling to 14.7 for FY24.Looking at the last 7 years or so it rarely (apart from now as you say 20x) falls below a PE of 25x.That said the sector (Telecoms) median at the moment is only 12x.

[adamb1978] 20/4/2023 10:44

Hi Salpara

How do you get to your 20x PE? Market forecasts from what I see are 74p so a PE in the 15x-16x range

Adam

[salpara111] 20/4/2023 10:34

One of the biggest attractions with GAMA is the unleveraged balance sheet and the fact that it generates a lot of income from recurring revenue.
On the flip side is the fact that there has been a global re rating of tech stocks and GAMA still trades on a P/E of around 20 which is not cheap.
I do consider it a possible takeover target but given that the share price has been depressed for about a year and no one has come knocking would suggest otherwise. Having said that I don't doubt that as soon as I sell there will be a bid!
I've set a limit order for £12 so will see if it gets executed in the next week or so.

[disc0dave45] 19/4/2023 16:08

Heading for 12 again?

[wjccghcc] 18/4/2023 23:50

IMHO they tick most of the boxes for a PE takeover bid.

[wad collector] 18/4/2023 20:48

For the last year it has bounced between £10 and £12. I bought at about £14 , and am always impressed when PIs take a loss, we generally avoid that option and watch the share price drop further and still not sell.
I am still holding , thinking back to that £22 peak. Surely it will do better than now?

[salpara111] 17/4/2023 15:40

Well, I think its time for me to take my loss and exit. I've been in for a while from £15, I was hoping that the last set of results would provide the catalyst to move up but that hasn't been the case.
I still like the business but as others have said, in a high inflation environment there are more attractive yield plays out there when there is no capital appreciation here.

[adamb1978] 05/4/2023 16:34

I dont hold though looked at Gamma recently. Metrics are very strong - ROCe, ROE, FCF yield etc. surprised its not more highly rated

They could use their balance sheet more. The cash level for a stable business like this seems unnecessary - could easily gear up to 1x-2x EBITDA. Divi feels a bit stingy too

[senseibull] 29/3/2023 15:58

Looks like IIs are offloading

[bulltradept] 21/3/2023 20:26

I feel your pain. Sometimes buys can be sells and vis versa. Plus, the market makers have up to two hours to post large trades, i.e. enter on level 2 with the time stamp.

[senseibull] 21/3/2023 15:15

I still don't understand how massive volume on one end of the books seems to have the opposite effect on the price.Buying earlier today was dropping the price and now quite large sells on the ticker appear to have provided some support. I stepped away for lunch and the volume went from 75k to over 500k shares traded so far today

[senseibull] 21/3/2023 12:04

Looks like your gonna get it today

[disc0dave45] 21/3/2023 11:29

Good luck. Guess others are doing likewise.Looks like the typical sell the news, although the drop in reported pbt (due to impairments) may also be a factor.Rather than getting in on breakout above £12, may be better bottom fishing around 1020 and / or RSI in oversold territory (which isn't far off now).Seems like the sector isn't in favour at the moment, but the overall fundamentals here are ticking all the boxes IMO.....maintaining decent gross margin, high recurring income stream, net cash, earnings growth, low rating, etc etc,.

[brucie5] 21/3/2023 10:42

I'm temporarily out, given its refusal to break up beyond 1200' and my preference in current circs for larger, higher div paying stocks.
Likewise out of DOTD.
But I will almost certainly be back into both!

[senseibull] 21/3/2023 09:44

The business impact of ChatGPT and Voice AI on contact centres in general also needs to be well understood as they continue to pursue growth in Europe

[theoldcodger] 21/3/2023 08:56

A top quality company, the shares could easily be £20+ in a bull market. However, I wouldn't expect short term fireworks, so holders will need patience (probably quite a lot of it) and to let the company get on with what it does best and the return of healthier markets to get there.

[salpara111] 21/3/2023 08:43

Not sure what to do here. I've been a holder for some time at a price of £15.
Results look fine but clearly not enough to give the share price some upward impetus.
I guess I will give it a few more days before deciding whether to take my loss and move on.