More stakebuilding going on by the looks of things You would not be able sell 40000 above the bid price under normal circumstances |
Liontrust holdings notification as they now have over 18% |
Both misses came from failure to complete Xmas deliveries.
First time the warehouse was just too busy due to unforeseen demand, and last year there was a late strike by the Post Office.
I cannot imagine that they will let this will happen again. |
Yes, if they have a better period than expected and they beat on revenues then will boost profit numbers. Equally, if they miss the revised revenue guidance (got form on this) then more pain is likely. |
Rev has been reduced 11% but they clearly stated that profit remains as forecast. So IMO if anything it shows that the benefit of their revised business model is working better than expected. |
 More from Singers
Gear4music (Buy) - Interims confirm it has made good progress in H1 against its objective to establish a higher margin business by prioritising gross margins and reducing costs. Higher margin own brand is outperforming 3P brands, especially in Europe reflecting the initial benefits from a significant development programme. At £(1.4)m the pre-tax loss was £0.1m better than forecast, helped by an 80bps gross margin uplift (exit rate was better) and the cost performance being slightly better than expected, with the benefits of cost actions still to come. A total of £4.0m annualised savings were implemented during the half that will benefit H2 onwards, with a part year effect of c£2m this year and c£2m next year. This is roughly evenly split between opex and capex, which feeds through to lower capex assumptions in our forecasts, and better FCF (now >£3m next year). PBT guidance has been re-iterated on lower sales (downgraded 11%) as margin and cost-led upgrades feed through. On these revised assumptions, our EBITDA margin forecast expands by 30bps this year, and by 40bps next year to 6.0% (on a pre-IFRS16 basis). Capex savings also see ND forecasts reduced (by £2m next year). Our target price is left unchanged for the time-being at 182p. This is based on 5.0x EV/EBITDA. However, margin expansion, better FCF and lower ND, which are all pivotal issues, should support a higher multiple, even on lower sales which should increase market confidence in forecasts. We therefore remain at Buy. |
Nothing we did not know already but a negative in that the sales forecast has been lowered. A move down if anything I reckon |
House broker Singers reaffirms 182p target
Gear4music (G4M LN)
Follow to open report
Retail | Corporate Client
Mkt cap:
£25.2m | CP: 120p | TP: 182p
Margin expanding and FCF improving
Gear4music has made good progress in H1 against its objective to establish a higher margin business by prioritising gross margins and reducing costs. PBT guidance has been re-iterated on lower sales, and capex savings see ND forecasts improve. Our target price is left unchanged for the time-being at 182p. This is based on 5.0x EV/EBITDA. Margin expansion, better FCF and lower ND, which are all pivotal issues, should support a higher multiple, though, even on lower sales which should increase market confidence in forecasts. We therefore remain at Buy. |
House broker Singers looking for stock on their daily newsletter.
Results tomorrow |
ali47fish. My average was 107ish and I have held for 12 months. My normal target is to double over 4 years. Today you could make a case for 100's of shares doubling within 4 years. I'm trying to focus on those more likely to move first.
I like the G4M business model, recovery potential and did like the growth potential of AV.com. A year ago I thought online only would bounce quickly. Today I do not see any online only turnaround within the next 6 months so I have moved on to pastures new.
IMO G4M cutting costs and sacrificing sales for profitable margins is sensible but not the recipe for a quick turnaround. I have heard a couple of companies (CURY & ANG) say retail competition in the EU is fierce at the moment.
I will watch G4M closely and hope to get back in before any upturn. |
so darrin why didn't you add if i may ask- iam at aloss myself with anaverage price in the 400p |
G4M is normally quite an illiquid stock outside of results. I have struggled in the past to get a price and have struggled to buy/sell without moving the price.
Yesterday a buyer (7 x 25k at 111p to 112p) did not move the price but today the L2 spread moved from 105-115 on opening to 115-125 on limited volume. I was able to get 116-223 on dummy sells/buys |
well explained basem and i am grateful |
Basically there were no shares available to buy electronically online This usually means the market is short of stock and results in a move upwards I was testing the sell limits yesterday too and although the bid was at 105 I was being offered 111.65 to sell large quantities |
basem please explain cnnot buy etc... so where deos the strength comes form? |
Results on Tuesday |
Market is short of stock again |
Trying to work out the trades 111.6 are sells - I reckon there is an order being filled You cannot buy anything online at 115 without going to negotiated trade Strength for sure |
Large volume today Strength for sure Can sell volume at 111.6 and Negotiated trade only at 115 |
Would you kindly expand in that please.Thanks |
"He obviously sees potential here so time will tell I guess."
Maybe he just wanted a bit of extra discount on some gear... |
"The Capex spend is all but over so margins will increase".
This demonstrates a very serious lack of accounting knowledge.
LOL |
Results and Institutional presentations a week today. Very unlikely that trading conditions have worsened in 3 weeks since the last confident update.
The Capex spend is all but over so margins will increase |
Selling a FTSE100 business he founded and pocketing £500m, wouldn't suggest to me that he's an idiot :)That said, buying these when he did wasn't perhaps the greatest of timings but nobody can time the market. He obviously sees potential here so time will tell I guess. |
Is he tho? |
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