Gear4music (holdings) Share Discussion Threads

[laughton] 09/11/2022 12:51

Apologies - as is obvious I posted the above on the wrong board. That should teach me not to have too many tabs open at the same time. Duh!

[laughton] 09/11/2022 12:50

Just finished watching the Investor Presentation. All looks good to me so I've taken the opportunity to buy a few more. Probably made some simple mistake but I make the Yield north of 10% for a steady as you go business.

Management seem sensible, hopefully they don't get carried away with the cash they're generating and opt for another Tuffnels.

[callumross] 09/11/2022 12:25

Gear4music (Corporate, Buy, TP 220p) - today’s H1 update is in line with expectations that were reset in early Sept due to the adverse effect of the extreme heatwave in Jul/Aug and macro/consumer uncertainties. Sales in H1 were +2% with growth in both Q1 and Q2 despite the weaker summer months. This consisted of UK -3%, and Europe +10% confirming the re-acceleration after opening/stocking 2 new DCs. It has seen improved trading momentum in late Sept and early Oct and is on track to deploy several new growth initiatives in H2, as well as further productivity enhancements. Net debt has already started to reduce and is on track to fall further by year end as elevated stock levels (strategic) normalise. We outline why we are comfortable with the debt position in more detail in today's note. Despite its substantially increased scale, capability, competitive advantage and pipeline of incremental growth initiatives, the share price has never been lower in its 8 year history. It trades on 5.4x EV/EBITDA, reducing to 3.6x next year (8x P/E) versus its 14x 5-year avg. Our 12m target price remains unchanged at 225p, based on a modest 6x Mar’24 multiple. A contrarian entry point.

[callumross] 09/11/2022 12:24

Not sure why the continued fall given they updated the market in a fairly reassuring trading statement just a few weeks ago.Surely things cannot have changed much in such a short time period. Tempted to buy more sub £1. Crazy valuation. A bit like VINO which had a similarly silly valuation and is now recovering strongly.

[dros1] 09/11/2022 12:16

results on the 15th

[darrin1471] 09/11/2022 12:11

Only 27k of sells. Probably a PI. Illiquid share.
Hoping to buy in at a new low.

[theonewhoknows2] 09/11/2022 12:01

down she goes

[theonewhoknows2] 31/10/2022 13:31

making 1m a year profit is never going to move this

[saracen3] 20/10/2022 08:25

Singer comment

Gear4music (Corporate, Buy, TP 220p) - today’s H1 update is in line with expectations that were reset in early Sept due to the adverse effect of the extreme heatwave in Jul/Aug and macro/consumer uncertainties. Sales in H1 were +2% with growth in both Q1 and Q2 despite the weaker summer months. This consisted of UK -3%, and Europe +10% confirming the re-acceleration after opening/stocking 2 new DCs. It has seen improved trading momentum in late Sept and early Oct and is on track to deploy several new growth initiatives in H2, as well as further productivity enhancements. Net debt has already started to reduce and is on track to fall further by year end as elevated stock levels (strategic) normalise. We outline why we are comfortable with the debt position in more detail in today's note. Despite its substantially increased scale, capability, competitive advantage and pipeline of incremental growth initiatives, the share price has never been lower in its 8 year history. It trades on 5.4x EV/EBITDA, reducing to 3.6x next year (8x P/E) versus its 14x 5-year avg. Our 12m target price remains unchanged at 225p, based on a modest 6x Mar’24 multiple. A contrarian entry point.

[darrin1471] 17/10/2022 11:59

09/09/2022
The Group intends to announce a more detailed trading update in relation to the six-month period ending 30 September 2022 on 20 October 2022

[mr.elbee] 17/10/2022 11:39

"The managers said the online retailer of musical instruments has a ‘leading market position in the UK and a growing share of the European market’. ‘It warned on weaker-than-expected consumer demand during February and March"

But a leading position is no use whatever when the entire market is shrinking because the music industry .......... such as it was..is no more

talk to any{ex} pro musician for the truth.

[glavey] 01/10/2022 08:11

Did someone turn down the volume or is it switched off?

[cirlbunting1] 09/9/2022 19:31

I've topped up significantly at 1.04. Avg now for me is 1.3. I personally believe that 1.02 was the bottom.

[cirlbunting1] 09/9/2022 19:28

I wouldnt pay attention to ceos or other directors buying. I think it's meaningless at this point. Personally - i would prefer if they all sold - that way a takeover would be a lot more likely. Main thing for this company is to survive. When it does, it will take the remaining market share left behind by struggling brick & mortar music retailers. Also i want to see cuts - particularly in software development. Dont need 50+ software engineers getting paid 50k+ annually to maintain a website. But i assume those cuts will come when demand weakens (if it does) or an impairment on that AV purchase which i think is inevitable. Either way, u cant time when to buy. Unless you have a team of macro strategists. For those waiting to buy when rates start to get cut - goodluck.

[masurenguy] 09/9/2022 15:39

Still on a downward trend today. Wass sold 810,000 @730p - pocketing £5.9m - nearly 2 years ago and only bought back 50,000 at circa 200p - £100,00 - in May this year, so I'd like to see a meaningful new investment by him before I'm tempted to re-enter here.

[kalai1] 09/9/2022 14:45

G4M issued an AGM Statement and Trading Update this morning. Trading during July and August has been affected by the widely reported cost of living crisis and unusually hot weather across Europe although early indications are that trading has improved in September. Management believe it is now prudent to moderate full year expectations accordingly and now expect FY23 revenue to grow to approximately £155 million with EBITDA of £9m. Share price is down another 12% in the negative guidance, valuation now looks reasonably attractive with forward PE ratio at 7.8x. But with business momentum and share price momentum negative G4M is a share to monitor for now...

...from WealthOracle

hxxps://wealthoracle.co.uk/detailed-result-full/G4M/548

[glavey] 09/9/2022 13:47

"Taken an initial long position (rare for me) and will look to add on further weakness."

Your's or the company's?

[sbb1x] 09/9/2022 09:22

Wonder how many andrew Wass will.buy after 10.30

[sbb1x] 09/9/2022 08:52

Cant buy, can only sell.

[kirk 6] 09/9/2022 08:52

Downgrading massively wtf?

[sbb1x] 09/9/2022 08:22

Only 20m shares in issue wow

[albert zog] 09/9/2022 08:16

They are downgrading massively after only a few months of their new financial year

[terminator101] 09/9/2022 08:15

Way oversold IMO. Even with the profit warning, fundamentals here look sound. Taken an initial long position (rare for me) and will look to add on further weakness.