Gateley (holdings) Share Discussion Threads

[2vdm] 10/7/2020 09:59

Sphere, that leaves a 14% uppside if I've understood you correctly, which although not extraordinary is not bad in these hard times. Views appreciated.

[sphere25] 07/7/2020 15:41

Ok folks, break higher confirmed with the stock closing up 4.8% at 141.5. FinnCap edged down to offer 143 toward the end with abit of a stock, but that got cleared out very rapidly so possibly setting up for another similar move tomorrow with minimal stock about at various price points.

I very much doubt that W pattern will complete. A move to test strong resistance at 160 looks on. Almost a textbook 50% bear retracement to 160 recently, but found it too much of a challenge and then dropped off, so that's where the real battleground is.

[jonwig] 07/7/2020 13:38

How interesting!

Our biggest sector of work is housebuilding, which explains a bit.
But there's also gov't infrastructure which involves a lot of planning, compulsory purchase, change of use, etc. All related stuff.

[nerja] 07/7/2020 13:31

A little top up, hoping that’s a W double bottom leading to a breakout

[sphere25] 07/7/2020 08:21

Been trying to buy @136 but the market makers have closed the book off.

Stock could breakout shortly.

[sphere25] 06/7/2020 14:42

Edging up this. Just watching for a breakout to add.

[petewy] 03/7/2020 19:14

Yes. Same position with WIN

[ny boy] 03/7/2020 13:13

Did you buy at 120p then?


petewy2 Jun '20 - 15:16 - 346 of 353
0 0 0
Well I quit. May come back in dividend news but with no div then it could sink to 120-130

[sphere25] 02/7/2020 15:15

Naked Trader buys. Followed him into this one - nibble a few here and average into weakness. 160 -180 would be nice!

"I bought into Gateley (GTLY) something I hadn't come across before but this one popped up on a screen we looked at during last week's zoom seminar. (That one sold out, so an overflow event scheduled for the 15th July - see above somewhere for details)

If profit forecast are anywhere close, after some recent falls it looks like it
has headed into bargain territory. After all it has halved since highs well
into the 200s.

That means there is plenty to aim for with an initial target of 160p-180p looking
a reasonable one.

This legal and professional services group reckoned recently it was doing pretty well, virus or no virus. It's been buying up other companies to grow.

Debt levels are low but it has £20m extra to work with should the need arise.

Looks like a good chance to pick up quality at a bargain price! For me
it is also handy that it is very liquid so it is easy to buy and sell quite
big amounts."

[jonwig] 27/6/2020 05:34

Yes, debtors is a problem. Before all this, they were changing their charging policies away from 'billable hours' and doing more contingency-fee work. They have the financial strength to manage through this provided activities such as construction get back on track quickly.

A lot of weaker housebuilders will have to sell off land, so stronger ones will be getting bargains. That's a bigger volume of legal work. (Taylor Wimpey have raised funds to take advantage of just this.)

[robsy2] 26/6/2020 17:05

Ok so the divi has been cut/ delayed- this si a negative but maybe there is something else to explain why the share price has been so weak. Maybe the problem is they are not getting paid fopr the work they do . They had 45m GBP debtors balances which seems a lot . I think someone else raised this point before.If they normally do a lot of work in the property space then maybe they are not getting paid?

[petewy] 19/6/2020 20:55

All sells today surprised the price held up.

[robsy2] 17/6/2020 17:10

This is starting to look quite cheap again.

[petewy] 09/6/2020 17:10

well 130 still wait a bit. Someone sold 175000 shares

[petewy] 02/6/2020 14:16

Well I quit. May come back in dividend news but with no div then it could sink to 120-130

[bbluesky] 26/5/2020 17:31

Thought it was pretty terrific actually. They are the last people to shout from the hilltops. One man's meat as they say..feast ahead!

[petewy] 26/5/2020 12:56

Cheerful update not quite convinced so cut my holding.

[bbluesky] 24/3/2020 19:04

Divi: That's my pub money gone, er except that has gone too!

Glad for the conservative approach, as that at the end of the day reflects management style.

Big picture: Potential beneficiary of the Brave New World that is going to have to be built. Still for me in the right place and their right time will come. GLA

[jonwig] 24/3/2020 07:08

Not unexpected statement:

Gateley is prudently managed for organic and diversified growth, with low levels of debt and a focus on long-term success for its stakeholders. Following a solid first half performance and further diversification by completing four earnings enhancing acquisitions, the improvements in the economic backdrop and Brexit clarity following the general election resulted in growing demand for our services in the second half of the financial year to 30 April 2020. Trading until the end of February was in line with the Board's expectations. Activity has, understandably, reduced since 1 March 2020, as a result of the disruption caused by the COVID-19 pandemic to our clients and to our staff. When the Board has visibility on the impact of the virus on the Company's full year performance, we will provide a further trading update.

The Group remains highly resilient, with a strong client base and a well-balanced and diversified service offering. We have successfully mobilised our staff to work from home in line with all Government guidelines and many parts of the business are currently busy assisting clients with COVID-19 related issues as well as other ongoing matters. The Board has, nevertheless, given careful consideration to the rapidly evolving Government guidance in respect of the COVID-19 pandemic and has concluded that it is presently impossible to predict the Group's likely trading performance in the short-term. The Board is, therefore, taking the prudent step to suspend financial guidance going forward until both the impact and duration of the COVID-19 pandemic becomes clearer.

The Board also believes that it would be prudent and in the best interests of all stakeholders to maximise the Group's short-term liquidity. With this in mind, it has decided to cancel the Group's interim dividend of 2.9 pence per share, which was due for payment on 31 March 2020.

The FRC was recommending these sorts of measures.
Incidentally, the shares went xd on 20 Feb, so the shares should rise by 3p this morning. (Just joiking.)

[robsy2] 06/3/2020 07:53

Absolutely. It looks purposeful and sensible to me and beddable-in if that makes any sense. Just hook them all up to the same computer system and watch the cross selling take place!

[robsy2] 03/3/2020 12:08

Thanks for sharing that. Gtly looks good-sensible, steady and purposeful.

[jonwig] 03/3/2020 07:04

Citywire:

Shares in legal and professional services group Gateley (GTLY) are looking attractive after its acquisition of reputation management and media law specialist Tweed, says Shore Capital.

Analyst Rachel May retained her ‘buy’ recommendation on the stock, which rose 3.2% to 179p yesterday.

‘This looks like another small but sensible acquisition in line with Gateley’s strategy to acquire legal and professional services businesses offering complementary services,’ she said.

‘Shares have been weak in recent weeks, trading at 174p – a c.13% discount to the (200p) price of the placing announced on 18 February. We think the shares look attractive at current levels, trading on a full-year 2020 price-earnings of 12.4 times and a dividend yield of 5%.’

[skyship] 02/3/2020 15:39

jonwig - message for you over on your AEWL thread