Gear4music (holdings) Share Discussion Threads

[smokybenchod] 06/5/2017 22:20

Surely giving it the same PE rating as boohoo would involve doubling the current share price therefore automatically giving it a market cap of 240m anyway regardless of performance!

[cheshire pete] 06/5/2017 20:09

Agree Taurus, I don't think they are comparable now as Boohoo could struggle to become a 4 billion company in the short term, a lot more likely that the G4m Market Cap could increase to 240M IMHO.

[taurusthebear] 06/5/2017 19:17

But BOOs margins are higher than G4Ms. Everything in context. :0)

[thevaluehunter] 06/5/2017 19:00

BOO is a crazy valuation IMO: £2Bn on £300m of sales

[taurusthebear] 06/5/2017 18:55

I beg to differ, because Boohoo is now a 2 billion quid company, whereas G4M is valued at about 120m.

Smaller companies can and often do have a higher growth rate than larger companies, and hence can be afforded a higher rating. :0)

[smokybenchod] 06/5/2017 15:04

Taurus, I agree with your points however IMO this will never be rated as high as the likes of boohoo, as consumer spending on musical instruments is probably considered more of a discretionary spend than spending on clothing therefore slightly more susceptible to a downturn in the general economy. That said, hopefully the market will rate it pretty damn close after next week :)

[taurusthebear] 06/5/2017 10:45

Perhaps that's because those are wishy-washy companies which many investors might find confusing. A convoluted or misunderstood business model adds more risk to an investment.

The same argument can hardly be used with G4M. Flogging musical instruments and implements is as easy to understand as flogging clothes. And we all know about the ratings of successful online clothes retailers. :0)

[croasdalelfc] 06/5/2017 09:46

Except they don't always give high valuation to incredible growth stories. TAP growing at 75% with PER at 20 or less.UPGS Growing at 60% with PER about 15

[geheimnis2] 06/5/2017 09:40

Hahahahahaha just a thought TBear?

[taurusthebear] 06/5/2017 09:16

But given that the market is forward-looking, and is known to bestow very high valuations on companies showing credibly high growth, that share price may dawn a lot sooner. :0)

[croasdalelfc] 06/5/2017 09:02

£10 share price would need £5-6£m profit which probably isn't feasible in a year more like 2

[croasdalelfc] 06/5/2017 08:38

They ship to 196 countries have 19 websites and US web traffic is second to UK

[geheimnis2] 06/5/2017 08:34

Should hit 10 quid this year

Just a thought of course

[croasdalelfc] 06/5/2017 08:30

Growth in the eurozone is up and beating uk growth which will be good for expansion into Europe.I wonder if g4m might announce expansion into the US market? At least in a limited way.The last two statements talked about ROW rather than just UK and Europe, that seems the next logical step

[darola] 06/5/2017 07:16

Brexit will not turn us in to North Korea. Yes there will be some compromises, but restraint of trade will not be one of them - let's be honest if that happens the whole stock market will go through the floor - both sides would suffer if that happens and the outcomes will be win-win, not lose-lose.

[taurusthebear] 06/5/2017 06:18

Blue Prism sounds like the archetypical dot com blue sky story.

My main concern re G4M is what the potential collapse in Brexit negotiations will imply for the European side of the business. :0)

[darola] 05/5/2017 17:31

Related to PRISM, a senior IT head in my business posted this on the intranet today. We are one of the U.K.'s biggest users and have big plans to use it internationally across the business.

"By taking ‘the robot out of the human’ we can make life for our people easier, enabling them to focus on serving our customers. Increasing the amount of automation through Blue Prism is a key part of our Strategy and we are working to expand this to further processes"

[runthejoules] 05/5/2017 17:04

Yes, British outlook will be poor/uncertain, it all hinges on Europe & "Rest of World". As for PRSM @Taurusthebear, I wouldn't bet against a company whose job it is to sack loads of people, just as the Tories get into power with an increased majority, most of whose income is recurring contracts, and whose cash pile remains undiminished since IPO. However having just got out of PurpleBricks due to their crowded market I should do more research on their competitors!

[darola] 05/5/2017 17:03

Jumped in here after a couple of weeks of stalking! Nice looking company and seems I may have timed my entry well, with today's rise and results pending.

[aimingupward2] 05/5/2017 16:33

It will be interesting I'm sure, rathlindi, and I'm equally sure, Big Fella, that the share price will go through £6 on Monday.

As for Tuesday, it's not so much the results for the year recently completed that matter to me, but info on the potential market that is opening up to them and an optimistic forward outlook statement. I think, and hope, that they've got a really good next few years ahead of them.

[the big fella] 05/5/2017 16:32

Closed at the day high, so I expect these to go through £6 Monday.

[rathlindri] 05/5/2017 16:08

Good to see, next week should be interesting....

[the big fella] 05/5/2017 15:28

£7 by Tuesday? Looks like someone had a sneak preview of the results.

[pauliewonder] 05/5/2017 14:22

Yep. Can't believe that advfn record the trade volume as being "high" with only 22k of trades. Decent rise nevertheless