Gear4music (holdings) Share Discussion Threads

[mr.elbee] 25/10/2016 11:31

Great company but every share retraces...[except gravity defying ones like Carpetright ,with Lord Harris, which now, thankfully ,is coming down to sanity].

If a share price doesnt retrace, it is a bubble without a doubt, so this is good for G4m.

Many of you have done very well with this stock.I salute you and wish I had had your enviable foresight.

But get out now if you are sitting on a profit. The shorters will be in very soon and the time to buy again will be 250.

[franki8] 25/10/2016 11:24

haters gonna hate!

[kcr69] 25/10/2016 11:18

Very good mr.elbee. Made me smile. Don't share your optimism all the same.

Best wishes.

[franki8] 25/10/2016 11:11

not a lot of sells tbf

[bamboo2] 25/10/2016 10:04

MW, these figures are based on previous ares of consolidation. I have not had time to look at support using smas or trendlines. There are no gaps for support, except right at the beginning of the uptrend.

[cbootle] 25/10/2016 10:03

Personally, I think charts are for astrologers. Read what you like into them ;-)

[martywidget] 25/10/2016 09:47

I think some others may also be checking their Gann square of nine.
And harmonic chart patterns database!

[bamboo2] 25/10/2016 09:40

I have potential support zones at 373, 358, 323, 267, all approx.

[ramridge] 25/10/2016 09:34

sp down some 7% but there are twice as many buyers than sellers. MM are playing games.

[fruitninja84] 25/10/2016 08:39

Back in! :oGot some 'action' at 385 :/ to see that dips are being bought up this fast is astonishing ..

[thevaluehunter] 24/10/2016 23:50

Boohoo 2016 : £195m sales and £18.7m ebitda at 9.6%
Gear4Music (Last 12 months to Aug16) sales of £45m and ebitda of £2.8m at 6.3%

The ebitda margin is not that far off and there will likely be significant economies of scale for G4M going forward as the sales grow which should bring up the ebitda %.

For G4M I think they include the distribution expenses in the cost of sales figure per the stats which is why the GM looks quite low.

[nurdin] 24/10/2016 22:16

Now compare their operating margins

@valuehunter

[kcr69] 24/10/2016 22:07

Not at all che7win, and if you read my first ever post on this board, I actually wanted to hear of any fact based negative points about the business.

Your statement I believe was 'Management seem very keen to exit at these prices...', exit is quite a key word and management is plural.

If you had written,

1. The CEO seems very keen to sell (exit) 4.82% of his holdings, retaining 95.18% or 39.1% of the issued share capital.....at these prices.
2. A non executive director seems very keen to sell (exit) 23.11% of his holdings, retaining 76.89% or 1.2% of the issued share capital......at these prices
3. The chairman seems very keen to sell (exit) 44% of his holdings, albeit the chairman only held 35,971 shares in the business and as such retains only 20,000 shares or 0.1% of the issued share capital.....at these prices

then I would have deemed it a very fair post and not at all amusing.

However on the basis that between the three individuals they have sold 6.01% of their total holding, representing 2.4% of the issued share capital while retaining 40.46% of the issued share capital, my understanding of English Language suggests that isn't exiting but marginally reducing......of course it could simply be interpretation of the word exit, and using management when you meant director.....in which case please accept my apologies.

I am also really sorry but I have absolutely no idea what your PE figures relate to.

[hydrus] 24/10/2016 22:04

The PE is 52 for this year (ending Feb 17) but that is based on conservative broker estimates and the company has a record now of beating them.Next year PE falls to 35, still based on conservative broker forecasts. So likely to be a fair bit lower of growth continues at current rate. Prior year PE ratios completely irrelevant for companies growing at high rates.

[thevaluehunter] 24/10/2016 22:00

The market cap to sales multiple is an interesting one to look at for G4M. At say £60m t/o for the year to Feb 17 the ratio is 1.4x and the company is currently growing top line at over 70%! Compare this to BOO where the market cap is over 5x sales, growing top line at 40%.

[che7win] 24/10/2016 21:26

Kcr, So you don't allow opposing views here, I get it.A current P/E of 131, falling to 52 next year, is that about right?Sorry for making a comment about director sale today, I guess that isn't allowed because you shot the messenger.

[bamboo2] 24/10/2016 21:22

Interesting views here. I'm aligned to fruitninja in my trading, although like to be flexible, and sometimes hold for longer periods. I use chart patterns to generate targets and the best I can do for G4M in the current situation is 425-450. Good luck to longer term holders.

I expect to be back in soon. There's another apex based turn in share price in a few days!

[kcr69] 24/10/2016 21:01

Congratulations to all those that have taken profits today and the past few days, and also for continuing to post good balanced thoughts. There are bound to be retraces and possibly even drifts in the price over the coming months, but I have to stick with my belief that the fundamentals here are just too strong, and the PE too modest for any sustained slide. Furthermore, with the key January update probably only 10 or so weeks aways, any slide will soon hit that looming risk / reward event. Sharp retrace, anything is possible, but to my thinking the mental pain for investors if it happens should be fairly short lived...maybe a couple of ibuprofen type pain.

The one piece of information I would like to hear however, is who bought the 6 million shares last week? Surely they can't have been wrapped up and sold as 10 x 599,000 share parcels to avoid the 3% threshold? I Just think it is a tad odd that there has only been one RNS so far which accounts for only 500,000.

Best wishes all.

[allstar4eva] 24/10/2016 20:27

Will be interesting to see what happens some have been taking profits and buying back virtually every other day. Reasonably good chance of 50% gain in a couple of months here - I would expect that to support the price. £5 is still my short term target however as others have said it has had a very strong run and the markets could come unstuck. You pays your money...

[saucepan] 24/10/2016 19:50

Seems a number of us have taken the same view.

I currently have 75% profit here and booked that today on two-thirds of my holdings. I will let the rest run and am open to buying back those shares released if a weakness opportunity presents itself.

The price is unarguably extended currently and the pullback could be sharp; on the other hand it could still run further - seemed a good compromise to me.

[fruitninja84] 24/10/2016 19:43

Hello Kcr69

I took profits today and got out at an average of 415 for a lovely 110% gain on 20% of my total trading account plus lots of trades from £2 and up taking 20% average on each trade. I'm just writing to tell you that i have valued your posts and have undoubted belief that long term holders here will get the really big gains with a-lot of patience and commitment.

Personally i am NOT an investor and i have never been successful at buying and holding. I just trade and will always take gains before giving any back in the stocks i hold. I set targets and stick to them and get out fast if price action moves against me.

£4 is the right price for now in my opinion and any higher would be counting cream before it rises. With current events upcoming (US election/Article 50) markets may sell off, they may not but for sure i will be watching and will be ready to catch a dip if one should appear here.

Good luck all holders and well done to anyone who spotted this sub 250p. This was clearly floated at the wrong price and amazing opportunities like this one presents seldom come around imo (Trust me i spend hours everyday searching the web and reading statements looking for these kind of situations to trade and would be happy to share ideas/help other traders in there search)

Expect a capital gain of at-least 550-600p a a share should that January statement exceed market expectations.

[lufc5] 24/10/2016 18:59

I very much doubt that will happen. More like 25.00 in next few years.

[panic investor] 24/10/2016 18:21

lol guys hardly any posts all day here and none on LSE - director sells again all be it tiny compared to last weeks massive sales and the share price goes up yet again.The BOD still hold absolutely shed loads of shares - for those concerned look at the registerWould love this to visit 250 again

[little minx] 24/10/2016 17:57

I suppose we shouldn't expect anything else as its half term?