Gear4music (holdings) Share Discussion Threads

[gnome3] 14/8/2019 13:47

Niggle,

If the high street stores are going bust and the online retailers go bust, who is it that sells the musical instruments?
Just asking!

[hsfinch] 14/8/2019 13:34

A little underwhelmed by the share price reaction to Jethro (up 20p from 180p as of right now). I suppose if it turns out to be just 100mmbbl it won't be commercial (think Zaydeus). On the other hand it could be the start of a build up to very big volumes (think Liza). FWIW, I think it will be the latter. Is the reaction a reflection on the unimpressive management and staff at TLW?

[niggle] 14/8/2019 13:27

I think if they added stores where you could learn to play instruments and maybe have performance areas, then that could replicate the part of the PAH model.

As it is they are selling instruments online at no margin and will go bust imho. They will not improve margins - there is no evidence that they can.

[cooltools] 14/8/2019 11:21

"G4M is online only."

DYOR: hxxps://www.gear4music.com/information/our-locations




Obviously now a small part of their business, but they were originally bricks and mortar shops and have showrooms.

GLA!

[gnome3] 14/8/2019 10:00

Niggle,
Are you sure you've got your head around the musical instrument retail market? You say that G4M are online only and then that their business model is flawed. There are basically 2 models out there. One is high street shops, or in the US, out of town units, and the other is online. The high street stores are, regrettably, disappearing fast faced with sales moving online. If an online business is flawed, maybe you can give us an alternative?

You do make a good point about the value of creating a destination and I think that G4M can ultimately do this. Musicians spend a great deal of time and money on lessons and I can see an opportunity for G4M to tap into this market. They already have the studio and video production facilities. That’s one for the future I think. I’d rather they focus on the retail side and improving margins for the time being.

[niggle] 14/8/2019 09:00

Pets at Home has a unique business model which combines retail with dog grooming and vet’s practices.

It has physical stores that provide destination services. People have a reason to visit.

G4M is online only.

Its business model is flawed, deriving too high a proportion of sales s through expensive channels.

its margins are terrible. It will die imho.

I didn’t say G4M didn’t - most retailers use their Marketplace - it just doesn’t rely on it.

You clearly don’t understand the two business models. Good luck though, luckily the market does!

[buywell2] 02/7/2019 08:38

What's it got to do with G4M ?


Does he mean that the G4M model using Amazon is flawed and will not produce profits ?

[ignoble] 02/7/2019 08:33

Good read, Sir
Valid points expressed

[niggle] 01/7/2019 10:14

cooltools

Interesting view. So if I buy 50% of the shares in a company and the directors overspend and under deliver then they are not spending my money or risking my investment?

And when they go to the market to raise more money and I’m not included then they are not diluting my money?

Interesting concept.

Where did you study? Bash Street?

[qazwsxedc69] 27/6/2019 09:29

This company was always a favourite of Paul Scott - at one time it was his largest holding. Does anyone know how he views it now? I used to get his daily write up and I think he covered G4M recently, but they have moved to a subscriber model so I don't see it anymore....

[gnome3] 27/6/2019 01:17

Henchard,

I just read another post from ONJohn on the Staffline board.

"I have no position, but I’d sooner be short than long. Declining margins, cash burn, rapidly slowing growth, accounting shenanigans, net debt, rising competition, terrible reviews... this company needs recapitalised and a major managerial shake up, IMO."

Rinse and repeat!

[henchard] 26/6/2019 19:44

ONJohn

I've a professional interest in looking at companies where there are "accounting shenanigans" - could you point me to the dodgy areas you've found in G4M's accounts.

Thanks,
Henchard

[crystball] 26/6/2019 18:19

terrible reviews? I thought customer satisfaction was high not terrible.

[onjohn] 26/6/2019 15:36

I have no position, but I’d sooner be short than long. Declining margins, cash burn, rapidly slowing growth, accounting shenanigans, net debt, rising competition, terrible reviews... this company needs recapitalised and a major managerial shake up, IMO.

[edmonda] 26/6/2019 08:22

As you say, yesterday's results from were in line and they reported the new fiscal year has started well.

An updated research report is now out from Equity Development that has forecasts little changed and examines the opportunity for further growth: note freely accessible here:

[rp19] 25/6/2019 19:14

The (poor) results were well flagged. They bought themselves a bit of time to refocus the business but the crunch period is now coming as they need to demonstrate that they can raise margins. Some hints of this in the narrative, but need more than hints.

[cooltools] 25/6/2019 18:44

niggle - although we like to use the expression "investing in a company", unless you've bought at the IPO or bought directly, they are not spending "your" money.

IMO, we are gambling our money on the share price. In return for that, we could vote at an AGM, in theory, but that's about it. If we buy sufficiently to move the share price, that can have an effect on the directors if they have a significant holding (I never "invest" in a company where they don't - it's the first thing I check).

Good luck all!

[mr.elbee] 25/6/2019 09:57

GAK successfully combines retailing with online.

and the music business has no growth potential. I speak as a musician of 50 plus years experience.. Read "When the music Stops" about the classical decline...the popular market market is worse but has not yet been written about.

[saracen3] 25/6/2019 09:50

Surprising to read posts from people who clearly know very little about the company, its products, its market share and its ongoing growth potential as music shops can no longer compete with online. Looking very attractive to an overseas bidder but management will not sell at this time or level with so much growth to come. Meeting current and potential new investors over the next fortnight.