Gb Share Discussion Threads

[pj0077] 05/6/2019 10:51

Sorry to rain on your parade, but the re-rating has already occurred. The next change in rating will be a de-rating. Check out the valuation - it's well ahead of the fundamentals.

[pj0077] 05/6/2019 10:48

Net cash flow of £23million. What's the right valuation for that? A generous 20x multiple would be £460million. Yet the company appears to be valued at £1200million (!) A clear case of asymmetric downside risk.

[barnesian] 05/6/2019 10:33

GBG have a very healthy widely based free cash flow. It is very CAPEX light, so even after CAPEX and tax, the net cash flow is over £23m compared with dividend payout of just over £4m.

It will be able to rapidly pay down debt, or finance more acquisitions and also finance a growing dividend policy. It is in a good place.

[hotfinance14] 05/6/2019 10:01

I expect we will have a re-rating soon which should move the share price further north.

[togglebrush] 05/6/2019 09:52

Market reaction to Results, so far, looks promising

[chasbas] 05/6/2019 08:20

PJ0077 Suggest you look at page 10 of the announcement stating GBG's KPIs with definitions on previous page. You pays your money...I like the jump in Deferred income to £28.3m which may underpin management's confidence in future organic revenue growth

[barnesian] 05/6/2019 08:06

"PBT up only £1.3million (+10%). Confusing"

No not really. This is after depreciation of acquired intangibles and one-off acquisition costs. Adjusted profit gives a more useful picture.

[hotfinance14] 05/6/2019 08:03

The GBG webcast regarding the results will be available at midday today.

[hotfinance14] 05/6/2019 07:47

Fantastic results.

We now have EBay as a customer which will be huge.

I like the statement that they are confident to deliver double digit
organic growth.

[pj0077] 05/6/2019 07:43

Revenue up by £23.8million (+20%), but PBT up only £1.3million (+10%). Confusing. Where is the operational gearing?

[barnesian] 05/6/2019 07:39

Expect to "continue to deliver double-digit organic growth."

Looks like a solid performance. Integrating acquisitions well.

[sweenoid] 05/6/2019 07:23

What a super read!
Confident, bullish, acquisitions settled in nicely, good new customer wins, I particularly like Revolut a dynamic and very interesting company that I have been watching closely.
The market likes good dividend growth and that’s what we got.

It’s also obvious that new acquisitions are onthe way, that’s ok as long as management are not distracted

A tremendous growth story, I look forward to seeing the presentation and listening to the audio later

A keeper

The reaction today is likely affected by the geopolitical situation , but given the markets this company supply are global, and growing, given the exponential rise in the digital world and the opportunities for fraud that enables combined with the need for security and ID verification I expect very strong growth to continue

Off for a dog walk :-)
S

[gswredland] 05/6/2019 07:20

Yep!
Been a long term holder here and will add on weakness from now

[nigeldoug1] 05/6/2019 07:19

Couldn't have asked for more. Fabulous.

[togglebrush] 05/6/2019 07:14

Results on first reading look good
'
Strong performances, underpinned by solid underlying organic revenue growth of 11.5%
'
Dividend of 2.99 pence (2018: 2.65 pence), paid 23 August 2019, XD 18 July 2019.

[hotfinance14] 03/6/2019 19:52

Surprisingly the sellers won todsy.

[hotfinance14] 01/6/2019 08:36

I don't think they win next week.

[sweenoid] 31/5/2019 17:22

The sellers win today

[sweenoid] 31/5/2019 07:21

As I outlined yesterday, last nights close was an all time high for this stock, surpassing the 627p close on 31st August last year, therefore an initial closing break of a pivotal resistance point,any sustained move above that level with the chart as it is, screams a momentum BUY

I had a look at bar chart last night, a purely charting site, and this is their opinion



I have to say analysis on this site ‘blows with the proverbial wind’ but many Chartists, PI’s ( especially momentum buyers)take it very seriously indeed, even with the contained caveat ;-)

Rather a lot of green optimism,let’s see how we do today, maybe some profit taking, maybe not

S

[davemac3] 30/5/2019 21:10

yes Sweenoid :-)

I only came here after noticing the chart and dipped a toe in, the more I read about about them though, the more I like them. Listened to their last results call and they exude quiet confidence.

IQE will have its day (I think!)

[sweenoid] 30/5/2019 16:42

UT trade 631p
So that starts us out tomorrow 4p above the previous high set on 31st August 2018.
In other words it’s a Chartists dream! And showing potential signs of a big break out, since we are likely to have good news in stall , things could get very tasty.
Need a good volume UP day and this may ( and I think will) take off

Good sentiment, great momentum is the holy grail for an investor
S

[hotfinance14] 30/5/2019 16:12

Thanks Sween.

We are near your 635p pre results tatget.

[sweenoid] 30/5/2019 16:03

DaveMac3
We seem to like the same shares ;-)
Gotta say GBG is a major league distraction from IQE, very exciting indeed, short and long term.
However IQE is still very much my biggest ‘bet’

:-)
S

[davemac3] 30/5/2019 15:57

is that a classic cup and handle I see before me?

[sweenoid] 30/5/2019 15:45

Gee, come on Hotty...
Go to investor part of GBG site , go to ‘financial statements’ and ONTHE DAY you will see a link to the Conference Call
If you do that now, you will see the link to last year’s, they can’t link in something that hasn’t appeared yet
S