Gear4music (holdings) Share Discussion Threads

[rizler] 06/4/2023 08:08

Not so sure the market agrees with you there my friend. -13% is quite a verdict.

[saracen3] 06/4/2023 07:31

Singers reaffirms 182p target

Gear4music (G4M LN)
Follow to open report
Retail | Corporate Client Mkt cap: £18.5m | CP: 88p | TP: 182p

Margin hits forecasts, but debt substantially reduced
In tough conditions for discretionary spending, G4M grew sales in Q4, implying market share gains continued. Some of this growth, however, reflects efforts to reduce elevated stock levels. This has impacted gross margin and profits, with Mar’23/MarR17;24 EBITDA downgraded c15%. However, the goal of reducing net debt was a success, falling more than markets expected and rolling through to outer years. Leverage is well within the bank’s covenants. Margins and FCF can build from here in the absence of the promotional activity, and drive re-rating. Buy

[bigbigdave] 06/4/2023 07:28

Not wonderful but forecasting next year to be better

[darrin1471] 21/3/2023 17:29

A couple of small sales moved the price down a little.
G4M has been quite stable during the recent turbulence.

[qipincha] 21/3/2023 16:32

What’s going on?

[laughton] 10/3/2023 15:41

Now that shipping from China etc. seems to be normalising hopefully they will be running down some of that overstocking thereby reducing debt.

But maybe that's just me, as a holder, being over optimistic.

[qipincha] 10/3/2023 14:13

Thanks. Read their recent report and makes sense
Just wonder how the debt will affect the company this year, given the interest rate hikes

[laughton] 09/3/2023 14:33

1. They want to be able to flag as many items as "in stock" as possible or run the risk that a potential buyer logs off and looks elsewhere. They increased stock levels when we had all those shipping from China problems.

2. Many of the items are high value.

3. Profit per item is low because there's quite a lot of competition espacially at AV.com where they are up against the likes of Richer Sounds

[qipincha] 09/3/2023 13:46

Thanks.
I am not sure if I understand here correctly. why G4M has to keep such high level of stock? And the profit is so low.
other than this, this is a very good business.

[saracen3] 09/3/2023 12:43

But debt is mainly stock.

[value viper] 09/3/2023 12:27

Tricky to be sure The 2023 net debt expectation is £17.5 million Next year end trading statement due late next month basis last year With FY results in June

[qipincha] 08/3/2023 22:28

what is the company's debt level now?

[darrin1471] 22/2/2023 17:08

Buyer appears happy to pay 90p. Seller last week appeared to be happy selling at 80p

[saracen3] 22/2/2023 12:20

Buyer seems happy to mop up any loose stock from short term traders.

[saracen3] 20/2/2023 17:37

Jackson gone quiet, half term over.

[saracen3] 20/2/2023 16:03

SQUEEZY rallying strongly.

[saracen3] 20/2/2023 14:33

Hard to believe anyone is really that stupid to be short here but up they go.

Next target 130p.

[garth] 20/2/2023 08:17

Darrin,

Good days. I often look at some of those early investments and ponder over LTBH vs trade & MTBH.

Best wishes,

G.

[darrin1471] 18/2/2023 09:05

garth. Thanks for the PACE thread you started many years ago. It turned into a shining example of what an ADVFN thread could and should be. Small shareholders sharing opinions, knowledge and research with each other. I traded my core holding a few times and it ended up as a 10 year 20 bagger on my original investment when they were taken out by a low value takeover.

[saracen3] 17/2/2023 21:38

There are posters to follow, some to ignore and some to do the opposite.

[garth] 17/2/2023 21:07

Darrin,

I did.

Best wishes,

G.

[saracen3] 17/2/2023 20:43

Shorters could actually lose 3X their money on a bid or upbeat trading statement.