Gear4music (holdings) Share Discussion Threads

[rathlindri] 08/10/2018 18:15

Grim, just grim

[czeck] 08/10/2018 08:59

AXA Investment Managers has purchased 1,090,979 shares (5.21%).

[czeck] 08/10/2018 08:54

AXA Investment Managers acquiring 1,090,979 of shares (5.21%).

[taurusthebear] 04/10/2018 19:44

ali47fish: Because the last three days is a blip in terms of the last two months. What is there for long-term holders to say that has not been said?

The next test will come with the results. Margins and outlook will no doubt be key. I cannot foresee a problem in terms of the share price over the next couple of years, notwithstanding Brexit uncertainties and that a small cap. can drift 20 to 30 per cent with lack of interest.

I would be surprised if G4M has not doubled from here by Christmas next year.

[smallcapinvestor1] 04/10/2018 13:25

I'm sure these guys will have a fantastic Christmas with all the investment they have made.

[ali47fish] 04/10/2018 13:20

is nobody here- this has been falling forever-i tseems to be rising and still no comment

[taurusthebear] 04/10/2018 11:46

The lower it went or goes, the nearer the bottom it is or will be. BLASH! :0)

[ali47fish] 03/10/2018 08:38

2day of the share price up- have we reached the bottom? anyone with insights please!

[gnome3] 02/10/2018 11:19

I take it you’re not a musician Elbee :)

[gnome3] 02/10/2018 10:29

I think, as you say, Musicman, it's the margins that investors are stuck on at the moment. The last update seems to suggest they're coming under a bit of pressure as competition hots up, but there was still an "in line" forecast for profits.

It's been said before, but this is really not about profit at this stage. It's a land grab. The sector is undergoing a period of consolidation, and not just from the small high street retailers to online, but also, among some of the larger retail chains who have their own online offering. G4M's revenue growth rate in the UK has actually increased and I imagine that is because they are taking significant market share from some of the larger chains.

So how do you put a value on G4M at this stage? Well, I take the view that ultimately, G4M will be one of the winners in the consolidation process and that at some point, when growth rates begin to normalize, they will be able to achieve net profit margins of at least 5%. That doesn't seem unreasonable, given the economies of scale they can expect and based on past industry margins. If you applied a 5% margin to this years revenue expectation, that would be a p/e ratio of under 20. That's for a company growing revenue at over 30% pa. Some might say that profit margin significantly above 5% may be achievable. Looks undervalued to me.

[musicman007] 01/10/2018 13:21

The negative movement is overdone. The restructuring is complete, new infrastructure in place, new staff hired at the front end - although many in the warehouse to cover returns.

Currently stock is flying out of the stores and warehouses - akin to Christmas last year - and we haven't even got there yet !

Yes margins are tighter, yes returns are up BUT, its a solid business generating cash and the investment in infrastructure and IT is paying off and putting them ahead of their competitors.

This is no normal retailer, so don't be fooled by crisis on the high streets talk - their internet front and back end is second to none and well regarded - which should help margins and returns etc.

The upside is clear, the downside limited if you put a sensible stop in place.

[taurusthebear] 29/9/2018 05:36

Rather short-sighted, as the Swedish centre will be open for the busy Christmas season. Reservations here are no doubt based on margin-squeeze, Brexit and a hot summer causing weaker-than-expected sales. But on the other hand, a market cap. of 107 m quid seems to discount much of that pessimism. Boohoo was knocked back to 170p (from 260p last year) pre-results, but is now 35% higher. Pessimism, like optimism, has a habit of being overdone...

[rp19] 24/9/2018 21:32

Hopefully there will be some comment on the 16 October re the acceleration of European sales growth. However, I am not expecting too much as the Swedish Distribution Centre is not due to open until the end of October. Could well be some more share price drift in the short term, particularly if the general market suffers.

[taurusthebear] 21/9/2018 13:26

Depends on your timescales. Looks good long-term value here but could yet test a fiver. Yet to sell any as bought further down, but market obviously worried about squeezed margins and a cyclical down-wave for retail. And many are presumably holding off due to the awful share price chart.

I'm holding till G4M becomes at least a 200m market cap. company, so don't anticipate top-slicing until at least a tenner, but as ever, It may take longer than I initially thought. DYOR... :0)

[czeck] 18/9/2018 10:52

Any ideas on resistance for this share price until G4M reports interim results for the six months ended August 31 on October 16? Almost too soon to see the sales growth which are due to accelerate during the second half of the year.

[taurusthebear] 11/9/2018 15:59

I can see some great bargains appearing over the next few weeks. EU deal done, no matter how bad, and the market will no doubt rally, but no deal or Commons rejection will mean more uncertainty for months...

[ali47fish] 11/9/2018 09:23

except how do you make sense of the share price falling further in the wake of 2 managers upping their holdings?

[cbootle] 10/9/2018 16:38

BlackRock inc (USA) has upped its stake from 12.35 to 12.59%. Good to see confidence.

[taurusthebear] 08/9/2018 15:51

Good time to top-up IMO. Growth powering ahead. Only uncertainty is no-deal Brexit effects..

[smallcapinvestor1] 07/9/2018 08:31

Disagree. Company with a little over one times sales. Looks cheap to me.Market won't see that today though.

[staverly] 07/9/2018 07:28

Despite recent share price fall, on the back of this morning's TU expect share price to have an eventful day. Market value around x7 most recent book value looks optimistic to me. DYOR

[gerryjames] 07/9/2018 07:26

He wishes he had bought some at £1.15...even though it's the stuff of skips they sell...there's still a market.

[ali47fish] 07/9/2018 07:22

what do you mean staverly