Gamma Communications Share Discussion Threads

[brucie5] 07/9/2023 14:35

Thanks - I look forward to it and may reciprocate in turn!

[thorpematt] 07/9/2023 13:22

Brucie,
Yes with so many companies showing strong divi yields it can detract from the value of those without.

In terms of companies I like on a quality basis, I will take a look at my holdings and watchlists and send you a DM later.

[brucie5] 07/9/2023 10:04

Thanks Thorpematt, good forensic analysis. Stocko's algorithms appear to picked up its Quality attractions - at 99 - with no fewer than six screens passed.

Maybe they should be considering a special dividend to reward shareholders and alert others to the opportunity of buying their story at these levels?

For me, interested mainly, though not exclusively in dividends the story is mainly on the chart and break over 12 - though equally, someone did well to buy at 10 and hold.

What else do you see with similar potential?

[thorpematt] 06/9/2023 20:52

Brucie,
I used to subscribe to IC....but not anymore. Their summary for GAMA on the "free to access page" when I searched it looks about right (1.45% yeild).

What I see as more significant (when you see how low that is) is that this is despite them hiking it to the tune of a 5yr CAGR of over 12%.

When you drill down further you can see that it is covered more than 5x

That 12% divi growth is however dwarfed by the growth figures for book value, normalised earnings, revenues and profits, all of which have seeen CAGRs of around twice that of the divi growth.

Historic performance is of course NOT necessarily to be matched by future performance, but those numbers indicate significant room for error.

...which brings us nicely back to the IC - who (intermittently at least) is not immune to the odd significant error of its own (it would seem).

[essentialinvestor] 06/9/2023 18:12

Rightly so as it looks a country mile out,
closer to 1.2% from what I see.

[brucie5] 06/9/2023 15:21

EssentialInvestor6 Sep '23 - 15:02 - 416 of 417
0 0 0
You're not buying this for income Brucie, capital growth.
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Clearly. But I was just querying the IC report.

[essentialinvestor] 06/9/2023 15:04

Does anyone have a view on what the IC say re that possible huge market potential..?

Need a telecoms analyst to give a view, don't be shy if you happen to be reading.

[essentialinvestor] 06/9/2023 15:02

You're not buying this for income Brucie, capital growth.

[brucie5] 06/9/2023 14:51

IC gives it a 5% dividend yield, is that right?

[essentialinvestor] 05/9/2023 16:54

Appreciate the reply Matt, many thanks

[thorpematt] 05/9/2023 16:32

EI

Looking at my notes on GAMA, one of the first notes I made was:

"... The only issues are it s not a circle of competence for me and that the divi payout is poor."

So I definitely cannot help you by way of a strong knowledge in their end markets BUT I am pretty confident that this is a high quality company, on the metrics I see as important...despite the lowly divi.

I liked the TS - looks all in order and contrasts the chart which looks like it priced in that it wasn't.

I have bought some more today as a consequence (I had what I regard as a half position previously bought at similar price.)

[essentialinvestor] 05/9/2023 13:54

I have to be transparent and say I do not have any great knowledge of their end markets.


Is there a suspicion that growth will hit a wall or their business is open to a competitive threat or future technologies impacting their offering or end markets..


Are developments in AI a threat..




IC view

[essentialinvestor] 05/9/2023 13:42

IF (emphasis on) they keep delivering Gamma looks interesting.
Premium rating is gone, net cash. AIM or MCX..?

[adamb1978] 05/9/2023 13:35

I think they avoid AIM as they believe that a large % of their holders own GAMA due to the inheritance benefits from being on AIM. I do agree that moving to FTSE250 would help them though, and possibly bring in enough holders to offset any churn from IHT focussed people

[not a holder]

[salpara111] 05/9/2023 11:20

As I mentioned in an earlier post they could improve the share price by moving to the FTSE 250....having said that price multiples there are poor as well which is a big part of the reason that most new businesses that are large enough are choosing to list in the USA for more attractive valuations.

[essentialinvestor] 05/9/2023 11:10

Pretty savage recent de-rating, bought a very small amount.

[74tom] 05/9/2023 10:49

Net outflows from Liontrust, Jupiter & Abrdn are a large part of the problem here - same as at ALPH. This is on a FCF yield of >12% now and <2x sales. Profit more than doubled since the last time it traded at these levels in 2019. It's a microcosm of the UK market - no funds buying, a steady trickle of funds selling, no matter how the company performs! Of course it will change at some point, but unlikely in the next 6 months IMO.

[johnveals] 05/9/2023 10:43

Solid stress free LTH with the ability to compound over time imo.

[salpara111] 05/9/2023 08:50

Well, everything was up but the share price is not really interested.
Still happy to be back in again and will wait for the share price to hopefully continue its random walk back to £12.

[brucie5] 05/9/2023 08:13

14% increase on an albeit, small dividend. but this is surely impressive-?

Recurring revenue (being revenue which is recognised "over time" as per note 3) in the period grew to GBP229.7m (H1 2022: GBP208.7m) remaining high at 90% (H1 2022: 89%) of total revenue.

[indiestu] 05/9/2023 08:08

The dividend is a little mean considering the cash pile and the interest accruing on it. Fingers crossed for a share buyback.

[disc0dave46] 04/9/2023 12:49

Interims tomorrow

[wad collector] 03/9/2023 22:31

Interims Tuesday

[salpara111] 03/9/2023 17:15

Having bought years ago at £15 and then sold for a loss at £12, I have recently bought back in again at 1030. It's a pretty solid business and if they can just keep trading in the 1025-1200 range there is decent money to be made by buying the dips.

[brucie5] 26/8/2023 11:48

GAMA appears as no. 2 in the IC's Fund Managers' Best Ideas - based on top 3 overweight holdings in small caps.

Alpha Group International 8 (-1)
Gamma Communications 7 (+1)
4imprint Group 5
CVS Group 5 (-1)
OSB Group 4 (-1)
GlobalData 3 (-1)
Serco Group 3
FD Technologies 2 (+1)
Franchise Brands 2