Gear4music (holdings) Share Discussion Threads

[pauliewonder] 04/2/2017 20:42

Run, I must have bought your shares. This wasn't on my radar until 550p but glad I decided to buy in. This has momentum and seems well liked by the market. Going to hold these for a long time, unless the company gets bought by someone

[runthejoules] 04/2/2017 19:44

I sold out at 560... what. a. plonker. Would it be silly behaviour to buy back in now, with the Markit PMI going down? Or would a recession just mean more smashing of smaller music outlets?

[johnyee 7] 03/2/2017 13:07

Don't they have an analyst meeting on Monday.

[rathlindri] 03/2/2017 11:40

and away we go again... :-) One or two chunky buys, £7 before the end of February?

[cheshire pete] 01/2/2017 09:16

Agree Croasdalefc. Have seen this sort of growth before with fledgling companies. There are only 20 million shares in issue with a M Cap of c£114 Mill, hence the spread of 10p on buy/sell.

[croasdalelfc] 01/2/2017 08:54

When it hit £6 - my long term target - I considered top slicing.I reran my numbers last night and soon realised that that this is so hard to value just because it's growing so fast - then I asked myself - if it's growing so fast why topslice?? Do I have somewhere else to put the profits? No! Not really , I can't source another growth stock of this quality!So staying put for now and will look again at £7 which is only £20m on market cap.One percent of extra margin via a greater blend of own brand products or savings on delivery, warehousing, etc adds about £0.5m to profit and 2.5p to EPS.

[bigbigdave] 01/2/2017 08:17

Pause for breath or onto 7 quid? The latter I reckon!

[pauliewonder] 31/1/2017 17:45

Fantastic potential. Great to see the rise today and long may it continue

[bamboo2] 31/1/2017 17:36

Looking good

[rathlindri] 31/1/2017 16:51

I had a wee top up mid morning. Lucky I guess but wished I'd bought more a few weeks ago. Fantastic share this is turning out to be...

[shauney2] 31/1/2017 16:42

Here is me thinking about slicing some this morning.The dog walk saved a few bob there.

[nurdin] 31/1/2017 16:29

What happened there? Tipped somewhere?

[johnyee 7] 31/1/2017 16:19

The trend is your friend.

[ksharlandjiev] 31/1/2017 16:12

£6 :) cheers!

[homebrewruss] 28/1/2017 09:20

Fair point che7win, if growth slows it will get hammered.

I've bought some Chinese audio equipment and there is value to be had but the quality you get is a bit of a lottery and there is always the issue of how easy the returns process is.

G4m sell a lot of branded stuff too and are building a solid reputation which is obviously part of peoples purchasing decision.

[che7win] 28/1/2017 08:42

It's a winning strategy until one day the company slightly misses and then falls 50%.

Take BOO for example, surely SGP is much cheaper on metrics and growth prospects?

People I know are buying cheap top quality violins through Chinese websites like Banggood, a cheaper alternative to G4M:

[homebrewruss] 28/1/2017 08:19

Do you need an app if you have a website that works responsively across all devices?

[staverly] 28/1/2017 07:26

Anyone know why they don't have a downloadable app?

[gnome3] 25/1/2017 02:24

Good post Paul and I think there are quite a few of us here that share your belief in this company. As you say, there will inevitably be bumps along the road and one that I'm looking out for is price competition with Thomann. As G4M continue to make inroads, there will surely come a point when the two companies begin to compete more directly on price and this will have, at least short term, some impact on margins. I've been keeping an eye on the relative prices and so far, doesn't seem much between them, perhaps G4M slightly cheaper. I havn't noticed much downward pressure on prices overall.

Looking further forward, I wonder what the opportunities are for breaking into the US market. “The Guitar Center” is the biggest musical retail store group in the US and they own “Musicians Friend,” the biggest online retailer. The company was bought by Bain Capital (of Mitt Romney fame) and took on a huge amount of debt. That, coupled with a mis-guided big box retail store strategy left the company close to bankruptcy a couple of years ago. They seem to have got the focus onto online retail now but they still carry a lot of debt. A more nimble and IT-savy G4M may be able to gain market share over there. Make a big enough impression, and we get bought out by American private equity for your measly 500m Paul :)

[paulypilot] 24/1/2017 22:06

This is the way I look at things.

With 20m shares in issue, the mkt cap is now just over £100m.

G4M is one of the fastest-growing niche eCommerce businesses on the UK stock market. It's not only done very well in its UK market, but now we're also seeing fabulous growth % into Europe too. That suggests to me that the company has competitive advantages - I believe these are great IT, great customer service, and developing own-brand products. Also, entrepreneurial founder management - never under-estimate this.

Roll things forwards, and we could have a business with >£100m sales, and maybe £5m+ profits, still growing fast in Europe. The end game might be to equal Thomann perhaps? £600m rev business, making maybe a 10% margin? That would be worth £500m+

We could have growing pains, that's normal for rapidly expanding companies, but to me this seems a great long-term business.

There are very few great eCommerce businesses on the stockmarket. So things like this are likely to command a big premium.

People like to bank profits along the way, I understand that. Personally I backed up the truck at 180p, and have not sold any. I'm buying more on the dips actually, as I think the valuation stacks up.

It won't need to dilute at all. Fully funded now. That matters a lot.

You can't value stellar growth companies on a PER basis, that completely misses the point.

Look how many big winners most of us missed because we though they were too expensive at the time on a PER basis - Asos, Boo, FEVR, Rightmove, 4Imprint, etc. The list goes on & on. At some point you have to realise that avoiding great companies because the PER looks too high is a losing strategy!

Regards, Paul.

[multibagger] 24/1/2017 06:42

Hi Bamboo2 !

...Looks like you are developing quite a following with the colour, energy and vibrancy of your trading charts.

Banksy Bamboo has a ring to it....you never know !

Good luck as always :)

[bamboo2] 23/1/2017 23:27

DD4, pp,

lol, they're not exactly user friendly or what you might call traditional TA!

I'm using a pattern based approach to trading.

I post them mainly for my own reference, as searching through the chart manager is really time consuming. Once they're on the thread I can refer back to a date-stamped copy of how things looked to me at the time. I hope that others can also benefit from them

Will look at making them more accessible.

[11_percent] 23/1/2017 23:12

Pauiy,

Don't know, but I will be top slicing.