Gear4music (holdings) Share Discussion Threads

[barnetpeter] 14/1/2019 13:00

As I said....big sellers. Someone wants out here and they don’t seem to care about price.

[tsmith2] 14/1/2019 12:52

Bid down to 165p - another dump in background it would seem

[tsmith2] 14/1/2019 12:52

Read the update carefully

[s1zematters] 14/1/2019 12:36

The last interim results the company admitted margin erosion, this was way before the RNS a couple of week back.

I am penciling in a full year loss of 1.7-2.6 mill. target price 80p and placing within 3 months.

aimho

[s1zematters] 14/1/2019 12:29

I tell you what Mr Smith, when attempting to rebuke actual points in individuals posts it may be helpful if you actually set out why you believe them to be incorrect when saying they are so!
Otherwise people could easily be forgiven for forming the opinion you are ventilating nonsense!

[s1zematters] 14/1/2019 12:28

Really smith. I can't read accounts hey?

Revenue 42,521

Cost of sales (32,885)

Administrative expenses (9,967)



Operating (loss)/profit MINUS -GBP331,000

If you still depute these figures in any way whatsoever please tell me and i will explain (break them down) into anyway you can understand them

[tsmith2] 14/1/2019 12:28

435k. Hopefully that was the seller dumping..

[tsmith2] 14/1/2019 12:27

Some large trades probably fromFriday reported

[niggle] 14/1/2019 12:25

Yes - I hope it isn't a large investor dumping - something whacked a hole in the price. It is as yet unreported and people may have been misled into thinking they were picking up a bargain.

[tsmith2] 14/1/2019 12:23

May well see delayed trades reported later

[niggle] 14/1/2019 12:20

There will clearly be a short-term margin squeeze as they have stated but those prepared for the ride will see growth 'long term' - they have a clearly stated that too.

Hard to explain why the MMs knocked 15p off the bid between 10:36 and 10:38? Unless there was a huge sell which hasn't been reported yet?

[tsmith2] 14/1/2019 12:10

Read this slowly - they are grabbing market size and it's planned investment that has impacted margins short term...We are pleased to have delivered strong sales growth of 41% over the last four months, building on the 36% sales growth achieved in the first half of the year. In addition, our strategic initiative to expand in to Europe has shown further good momentum, with sales growth of 47% in the Period, an increase from 39% at the half year.We have seen high levels of consumer demand alongside positive margin momentum, but sales growth has been constrained by our UK logistics operation reaching maximum capacity during our peak trading period between Black Friday and Christmas. This capacity limitation means that sales growth during the Period has not fully compensated for the lower product margins as we hoped. We are already working on plans to further expand our UK distribution capacity ahead of our peak trading period next year and we are confident that this can be achieved by Autumn 2019.During the Period we successfully relocated our Swedish operation into a larger facility, and now have significant capacity headroom at both European locations, supporting the strong consumer demand we are seeing. We expect this high consumer demand and strong sales momentum to continue over the remaining three months of the financial period and into the next financial year.Our focus has been on gaining market share in what has been a highly competitive environment, and in support of this target and following a period of planned investment, margins during the Period began to return towards historical levels. We are confident of further improvements as we progress through FY20.We remain confident that our approach of building a larger business as quickly as possible will put us in a strong position, as the market undergoes further consolidation going into FY20 and beyond. We will also continue to invest in building scale and improving our customer proposition with planned investment in our logistics, systems, products and websites. We have a clear strategy of targeted expansion and remain confident of the continued long-term growth opportunity alongside an expectation of a return to increasing profitability."

[tsmith2] 14/1/2019 12:08

Clearly you can't read a set of accounts properly

[tsmith2] 14/1/2019 12:07

Who are the big sellers? possible a big seller in blackrock but nothing since thurs and they are prompt at notifying

[niggle] 14/1/2019 12:05

Weird that the directors bought at 228-240. Of all people they should know what's happening.

[barnetpeter] 14/1/2019 12:01

All that matters at the moment is that the price tanks daily. You can buy below 180p and no sign of a bounce. Big sellers waiting to dump as much stock as they can. So no idea of the bottom. I bought a few at 250 thinking cheap...wrong. Will buy more at 150 if this continues

[s1zematters] 14/1/2019 12:00

Fundamentals.
This from the interim resulsts;- (which reading the last rns overall trading margin has since deteriorated.)
Look at the turnover of £42 mill and then look at the cost of sales £31.2 mill. The margins are woeful, that on its own is worrying, but then look at the ADMIN costs circa £10 mill.
Basically in common parlance, add the admin and the cost of sales and this is loss making! Why the hell is is valued so highly on a p/e of over 26?

Sizes target remains the same 80p.

[tsmith2] 14/1/2019 11:55

The notion of a mezzanine floor is beyond OnJohn

[saracen3] 14/1/2019 11:44

Warehouse mezzanine floor already under construction as planned so no problems next year. Cost already budgeted for.

[onjohn] 14/1/2019 11:11

yes and will still be when it hits 100p on a placing

cash is tight

[saracen3] 14/1/2019 11:10

Have known this company since IPO. They have not explained their profit warning well causing confusion. They had expected margin pressure from troubled competitors to ease but it intensified over Xmas trading period. Blackrock has been a seller and lots of private investors have bought too early, cut their losses and are now slagging off the company with ridiculous uninformed comment.

This is a one off buying opportunity for the patient.

[tsmith2] 14/1/2019 10:56

Sh*te talk

[onjohn] 14/1/2019 10:55

Margins have collapsed


Lots of uncertainty with stuff stuck at ports


Will touch 140