Gear4music (holdings) Share Discussion Threads

[tsmith2] 14/1/2019 19:38

Only after you've bought..

[s1zematters] 14/1/2019 19:37

Would you like me to formulate a defense of G4M for you and we can pretend you posted it so we can have a real debate? This is embarrassing!

[tsmith2] 14/1/2019 19:29

Even PH have a £5 target and that's on back of some very conservative assumptions etc..

[s1zematters] 14/1/2019 19:28

"Those comments" were seen as so positive they sent the share price down over 60%
I have completely addressed twice already the flaw in that price match policy, it is just buying turnover at a net loss. Sales are booming of low margin expensive branded goods, but cash in hand profit and ebitda are all falling!
They are keeping the show on the road as a 'growth stock' by offering high end branded goods at a price that make the net profit and ebitda shrink!
Great plan!

Why do you never ever respond to any point in my post?
Are you really that scared you dare not challenge anything i write?
Trying to have an adult debate about G4M with you is like trying to play darts with fish, Pointless!

[tsmith2] 14/1/2019 19:28

you really struggle to detach the past from the future in your mind...those comments are prospective..and that's precisely why you can't spot the obvious opportunity..the company has been investing disproportionately to gain market share..competition can't live with it - fold; consolidation, leading position, scale, breadth of product etc..ease of marketing spend, buying power, less competition so increased margin etc etc..

[tsmith2] 14/1/2019 19:24

Lol.So you will base your comments on short term share price movement. I guess you would have been a big bull at £6!

[s1zematters] 14/1/2019 19:23

The really funny thing here is that you claim other can't read accounts but then despite 9 opportunities refuse to point out what figures are incorrect, then you illustrate clearly that you yourself can't.

Everything i have posted figure wise is from G4M own results.,
How can margins be improving but ebitda be falling?
the companies own figures show margins shrinking!!

Look at them FFS higher sales has in the last 2 years given way loss or lower net profit from the previous year.!!!



tsmith2
14 Jan '19 - 19:15 - 1990 of 1993
0 0 0
Lol.

so increased sales and improving margins will be another profits warning and the company said so too..

comprehension..

[s1zematters] 14/1/2019 19:20

Smith, if the shares rise and go above the 260pfrom when i first started posting here i will be the first to post i got it wrong here!

I haven't got an agenda, it's my opinion based on previous like companies that have come and gone over the years.
I was rather hoping someone was going to debate the case for g4m, but you seem unable to even but one sentence in your own words up in defense of G4M!
i am fully willing to expect i get things wrong and my opinion isn't 100% fixed in stone so much i smear and ignore others options.

Try it!

[tsmith2] 14/1/2019 19:18

I'm expecting a bullish broker note or two..

[tsmith2] 14/1/2019 19:15

Lol. so increased sales and improving margins will be another profits warning and the company said so too..comprehension..

[tsmith2] 14/1/2019 19:13

as I said my average is £1.9 and I expect to make a multiple of this in due course.In the meantime when the share starts to rise I fully expect you to being spouting the complete opposite of the drivel you are posting now to make your 10%, probably under a different ID too..you simply don't understand how you grab market share in a fragmented market. You may be well served by Paul Scott's background. I happen to disagree with him on SOS, as I've commented on it before..Unlike the cretin ONJohn I don't have to resort to calling it a fraud without actually having the balls to actually such just to try and get in a little bit cheaper for a quick 10%

[s1zematters] 14/1/2019 19:12

WAREHOUSE ISSUES???
I am sorry, but sales are up 41% and 43% the year before. None of that sale growth has lifted net profitability one iota , indeed the antithesis of profitability has occurred.

Why did they not give space in the warehouse to high margin goods and not stock teh low margin ones?
That would be what any normal business would do.

I put it to you that ALL the sales growth is unprofitable at a net pretax stage and has come from selling branded goods at discount or price match or via Ebay or amazon.

[s1zematters] 14/1/2019 19:08

Smith. The company told us the impact two weeks ago in the very same RNS you lifted that from.
A profits warning!
------------------------------------------------------------------------
tsmith2
14 Jan '19 - 19:02 - 1983 of 1987
what do you think the impact of the following be?

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.

[tsmith2] 14/1/2019 19:08

it'll still be profitable.no one has denied the company didn't issue a profits warning but down was entirely due to the warehouse capacity issue. It's a blipthe company is gro with the top line stonkingly well, it's spent a very substantial amounts in developing its IT/website, marketing to grab market share and warehouses/properties to fulfil both U.K. and overseas growth..An absolute bargain at these levels..

[s1zematters] 14/1/2019 19:05

Well done Onjohn, hopefully Smith can learn as he goes along the meaning of these BASIC terms, i'm not holding my breath though, this guy is like the ultimate jihadist fanboy of his little share.
G4M is not open to debate, Mrs Smith told him it was a winner at £8 so that is final!

[tsmith2] 14/1/2019 19:03

I stand corrected.

[tsmith2] 14/1/2019 19:02

the 3 musketeers arrive together - quelle surpris...what do you think the impact of the following be?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."

[s1zematters] 14/1/2019 19:01

Wrong again Smith. £3.5 mill ebitda gave way to £1.5 mill pre tax profit.
GBP'000 12 months 12 months Change
ended 28
February
2018
----------
Revenue 80,100
Gross profit 20,319
EBITDA 3,458
Operating profit 1,961
Pre-tax profit 1,500



----------------------------------------------------------------------
tsmith2
14 Jan '19 - 18:53 - 1978 of 1980
0 0 0
Yawn

according to your own man’s submission £3.5mn EBITDA amounted to £2.6mn of pre tax profit..

[onjohn] 14/1/2019 18:59

profit warning

[tsmith2] 14/1/2019 18:57

if a company is expected to announce figure greater than one they subsequently advice will materialise, what is this commonly know as a ....In English pls...a function of not being able to read, me thinks

[s1zematters] 14/1/2019 18:54

Quick quiz open to all.

if a company is expected to announce a figure greater than one they subsequently advice will materialise, what is this commonly know as a ....

A, Share tiping award to Mrs Paula Smith
B, Being unable to articulate anything in your own words.
C, A profits warning!



So funny Smith; from everything i write above,and your revert is that!

Hilarious!

[tsmith2] 14/1/2019 18:53

Yawn according to your own man's submission £3.5mn EBITDA amounted to £2.6mn of pre tax profit..

[niggle] 14/1/2019 18:50

Which is a deeper loss.

[tsmith2] 14/1/2019 18:47

What the company actually said is:the Board now expects FY19 EBITDA to be slightly below FY18 levels.slightly below..notwithstanding the warehousing issue.

[s1zematters] 14/1/2019 18:30

The last results clearly illustrate that in the first 6 months they operated at a loss. They reported a loss of 362K. (ref RNS results dated 16th October 2018.)

Since this reported loss, the company subsequently issued the RNS PROFIT WARNING 2 weeks ago suggesting the situation has deteriorated and they expect to report Earnings before interest, tax, depreciation and amortisation to be lower than last year.

Last year the group reported a net profit of 1.5 million down from £2.6mill the year before that.
So it would seem that it's touch and go if the group will remain net profitable in 2018 final results after the company already telling us the ebitda will be lower than 2017 final results.

Here's the worrying part; Sales were up 43% last year and 41% this year, however none of that has translated into net earnings! ALL of that growth has had zero effect on profitability, indeed the net profit has actually fallen in both years whilst this sales growth occurred.
There is little to suggest that selling priced matched branded goods or employing amazon or eBay to earn sales growth is contributing anything other than vanity to the company!
Indeed selling low margin goods is hurting the overall margin on sales as can be seen in the Oct results, where overall margins slipped 2.5%.


In May 2017 the Group raised GBP4.2m .
At full results 17 they reported £3.5mill cash.
At Half Year 18 results they reported £2.6 mil cash

Sales are rising but cash and profits are falling each year. It's very easy to see why the professional slide ruler boys at blackrock want out of this faux growth aim story!

Target price 80p

AIMHO/happy to stand corrected.

2018 INTERIM RESULSTS

GBP'000 6-months ended 6-months ended Change
31 August 2018 31 August 2017
---------------- ----------------
Revenue 42,521 31,219 +36%
Gross profit 9,636 7,811 +23%
Gross margin 22.7% 25.0% -230bps
EBITDA 652 717 (65)
Net profit ( LOSS ) (362) 4 (366)


-------------------------------------------
2017 FULL RESULTS


GBP'000 12 months 12 months Change
ended 28 ended 28
February February
2018 2017
---------- ----------
Revenue 80,100 56,128 +43%
Gross profit 20,319 15,145 +34%
EBITDA 3,458 3,617 -4%
Operating profit 1,961 2,616 -25%
Pre-tax profit 1,500 2,636 -43%