Bit of an over reaction? |
The share price is down on open over 5%. Not sure what is so negative in the results. |
I agree plus there will be good revenues from cross sales with acuant clients. |
You would expect this report to at least underpin the current share price and invite more investment! Tie-ups with new & major clients would also get them back in favour! |
All looks good to me.
Lots of new large customers
Crpto does not seem to be a major issue :
The start to the second half of the financial year has been in line with our expectations despite macroeconomic pressures impacting some of our end markets. Year to date, cryptocurrency and internet-economy customers have seen the greatest slowdown, with customers in traditional financial services such as banking, pensions and insurance more stable. We note that the second half has so far seen cryptocurrency customer activity normalise at a similar run-rate to the second quarter and for the remainder of the year we expect these customers to account for around 2% of Group revenue. |
Interims tomorrow? Fingers crossed. |
I think it has been prioed in by the big drop on Friday and this will rebound as it will not have a huge impact as new cross sales totally outweigh this. |
@hotfinace, Would agree that the update seems to suggest that the impact of crypto will have little impact albeit the growth is lower than if crypto was going gangbusters. However since that update the crypto world has suffered a further setback with the FTX blowup which could have a further negative impact on GB. The fact is I don't know what that might be.Until I have a better understanding I'm not buying.
There is a good chance I'm overly cautious and missing an opportunity but that would be nothing new for me. The movement in The share price seems to suggest that the market is also taking a cautious approach. |
The Group expects to report first half revenue of £133.8 million1 (1H FY22: £109.2 million), representing growth of approximately 22.5%. Growth in the half year included contributions from the recently acquired Acuant and Cloudcheck businesses. This more than offsets a tough prior period comparative that included a c.£8.8 million benefit from unusually high and non-repeating transaction volumes driven by the US stimulus project and cryptocurrency trading.
This suggests to me the crash in crpto will have little impact. |
They get revenues off crypto https://www.investegate.co.uk/gb-group-plc--gbg-/rns/half-year-trading-update/202210200700034582D/ |
I thought this was an ID fraud prevention company etc what's crypto got to do with it ? |
Cheers muscle my early post on here did ask exactly that question . Prob why I've been sitting on the fence |
Why the drop box ex divi until next week ? I will buy if gets much under £3.50 |
The NT bought into GBG recently at around the current price saying it was undervalued and with a target of 450. |
GuruFocus reckons GBG is 'significantly undervalued'.. gives a 'GF value' of £8.88 based on P/E, P/S, P/B & P/FCF + a GF adjustment and a rather vague 'estimate of future business performance'.
Not sure how much weight can be given to this valuation, but as a GBG holder it makes me feel a little better.. |
Well now that crypto has crashed that might be an understatement but hopefully it gets offset with better than expected figures from other revenue streams |
If you read the below recent trading statement you will see comments regarding crpto currency :
It states they expect revenues from Crypto to fall. |
Been looking at this share can I ask does or will the crypto crash effect earnings on this share ?? I see GBG reports end of November so do fancy the share as it seems bombed out but worried about the press on Crypto Thanks in advance |
A nice rise today with USA inflation down to 7.7% which is lower than the concensus. Hopefully this is the start of inflationn coming down significantly. |
Good point, JakNife |
Used to be a given that such announcements would be positive but that is not the case anymore with GBG - we are in a little window of uncertainty but still remains a good growth stock |
We have the half year final results on 29th Nov so hopefully this is very positive. |
Pushing beyond 4quid will perhaps keep GBG on an upward trajectory & with NY closing favorable this should happen! One would think a firm offer must still be on the cards at some point and in the meantime some reassurance statement from the Board although recent statement was not altogether a disaster - far from it in fact! Still for share price to progress from here I feel there would need to be some positive news flow & of course anything negative you can flush ur remaining chips down the toilet bowl! How I've played GBG is in a previous post & I've stuck with that - even if its put some strain on my cohonas! |
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