Gear4music (holdings) Share Discussion Threads

[the big fella] 09/5/2017 07:53

Up in pre market

[runthejoules] 09/5/2017 07:48

EPS of 11.5p, according to Stockopedia that's a beat. "we have recently been appointed as the Scandinavian distributer for Behringer, one of the world's largest music equipment brands. We expect to open our German showroom by Autumn 2017." No dividend but that's not a surprise, maybe next year.

" gross margin improving from 25.9% to 27.0%,"
Marketing expenses as a percentage of revenue reduced from 8.7% to 8.3%.
Total labour costs as a percentage of revenue reduced from 7.8% to 7.6% and this will increase in H1 FY18 based on current labour cost run rates.

Lots of Amazon-style investing but profits still up. Profits will be worse H1 this year but better H2. I'm confident Paul Scott will, but will the market look forward that far?

[ksharlandjiev] 09/5/2017 07:47

You tell me the news did not leaked.

[hydrus] 09/5/2017 07:30

I haven't read it like that at all but hey takes two to make a market

[villarich] 09/5/2017 07:26

Also no real mention of sales growth so far this year, unless I missed it?

[villarich] 09/5/2017 07:24

Great results but as expected. Outlook statement is muted though. Trading inline with expectations. I think this, coupled with a lot of commentary about increased costs in H1 due to investment activity and the debt taken on to purchase the new office will lead to a fall in the share price today. Feels like they are setting us up for disappointing H118 figures. I hope I'm proved wrong.

[mrx001] 09/5/2017 07:23

Results look good to me, with a good outlook. Lets see what the market makes of it.

[darola] 09/5/2017 07:11

As expected. Cracking set of results. Could do with some profit taking today and a brief dip so I can buy some more! :)

[thevaluehunter] 08/5/2017 20:44

Yep FY17 should be good because the board have already mentioned this in the trading update on 3rd march:
" Board is now confident of delivering profits for the year marginally ahead of our increased expectations signalled in January."

The key in the release will be the sales growth rate so far in FY18 and going forward.

[the big fella] 08/5/2017 17:26

The results will be good, it is the outlook statement that will determine which way this will go.

[mrx001] 08/5/2017 17:21

The market currently seems to have people selling out on results, no matter how good, resulting in a falling share price. Have consequently sold half of mine today since at the moment not sure which this is going to go, results are also for me somewhat of an unknown. Anyway will see what happens tomorrow.

[geheimnis2] 08/5/2017 14:06

10 quid by the end of the month?

just a thought of course?

[the big fella] 08/5/2017 14:03

Breakout this time?

[runthejoules] 08/5/2017 10:10

It does not want to break 600. The market is taking the tp seriously!

[bamboo2] 08/5/2017 09:32

janeann, no particular timescale.
Obvs a close above 608.5 today would be nice, but by no means a requirement.

acso, great chart, but looks to be nearing tp for now. thanks for mentioning.

[bigbigdave] 08/5/2017 08:21

Breaking out here, looking forward to tomorrow's results.

[aimingupward2] 07/5/2017 20:36

That's encouraging, carbeta. Thanks.

[corbeta] 07/5/2017 19:54

Still getting consistently high ratings on Trustpilot :-

[taurusthebear] 07/5/2017 13:51

Sometimes too much analysis can be detrimental. I bought BOO at about 30p and, apart from top-slicing, still hold. I don't lie in bed at night sweating over the PE. The market likes it so I leave it up to the market to decide, just as I should've done with ASOS 12 years ago... :0)

[janeann] 07/5/2017 09:13

Interesting bamboo. how soon do we need that eod close above 608 - is it time limited?

thanks - and have you ever looked at acso?

[bamboo2] 07/5/2017 09:05

Last Friday price hit upper trendline resistance, but closed above 50 sma for the first time since March 8th.

Price is coiling in a Symmetrical Triangle

The recent chart pattern also resembles a Double Bottom. [a&e]

Using Bulkowski's stats, an eod close above 608.5 suggests a tp of approximately 675.

[dan_the_epic] 07/5/2017 08:30

Forget PE.

Look at cash flow.

[smokybenchod] 07/5/2017 08:22

Thanks for the explanation. I agree that it would be easier to double G4M at current levels keeping the PE (relatively!) sensible based on forward PE of around 40 ish. We are currently at 36.7 assuming end of Feb 19 is 14.5 EPS. Obviously my preferred method of increasing the market cap and share price would be more biased towards actual earnings upgrades and less weighting towards PE upgrades (aware the two tend to come hand in hand!). Appreciate that a very high forward PE usually equals a very highly rated stock, but IMO this brings extra risk as management (e.g. Boohoo) have much smaller margins for error. Also as an investor I guess I'm usually more cautious to ultra high forward PE stocks which is why I'm not in boohoo but am in here. Boohoos current forward PE is an eye watering 57.9! Therefore you currently pay a 63% premium for Boohoo stock when compared to G4M. IMO (my original point) G4M will always be on a slightly lower forward PE than boohoo due to the nature of the business although currently I think the 63% premium is too large currently so I'm hoping for a rerating next week. Think outlook statement will be key as others have mentioned. GLA

[cheshire pete] 07/5/2017 07:37

"It's easier to double an ant than an elephant"

That's where I was coming from Taurus.

CP.

[taurusthebear] 07/5/2017 06:48

Here's the thing.

A PE rating can be historic (last financial year), current (this fy) or forward (next fy). For companies doubling sales each year there is therefore clearly a wide range between a very high historic PE and much lower forward PE.

Which figure is the market looking at? Brokers and analysts look at current PE, but many investors probably also consider forward PE. Those who just look at historic PE come over all queasy (or self-righteous), and probably don't invest.

As G4M is comparatively small there is a lot more range in these PE values, and thus their analysis and prediction is clearly more fuzzy. Hence I don't much care if the current PE is 20 or 50. It's easier to double an ant than an elephant. :0)