Gear4music (holdings) Share Discussion Threads

[niggle] 15/1/2019 12:53

All

If you leave a space before you add the URL it will come up as edmonda's

[tsmith2] 15/1/2019 12:53

Have ED put a target price on the stock?

[tsmith2] 15/1/2019 12:49

appreciate the transparency

[edmonda] 15/1/2019 11:44

Here is a link that should work. FYI we're not independent, we're paid for by the company. But we do try to major in reasoned analysis. If you want to receive email updates when notes are released, just register on the website. Thanks.

[saracen3] 15/1/2019 10:49

Available on Gear4Music website. See link to Investor site at the bottom.

[highlandspring888] 15/1/2019 10:48

hxxp should be http - I like how it is "independent research" published on the companies own investor mini website ))

However like others here I think at the current price it is a good dump - I just picked up a couple of grands worth and will set on them and see how it turns out.

[rathlindri] 15/1/2019 10:40

saracen3 and tsmith2 thanks for highlighting the ED analysis this morning, a bit of reasoned analysis contrasting with the white noise we have had on here in recent days.

[ali47fish] 15/1/2019 10:36

saracen link does not work

[saracen3] 15/1/2019 10:22

Independent research note just released. hxxp://www.gear4musicplc.com/media/1197/gear4music-15-jan-2019.pdf

[onjohn] 15/1/2019 10:19

will collapse on 25 february i think

[fillipe] 15/1/2019 10:02

tsmith2
15 Jan '19 - 08:13 - 2007 of 2014
hxxps://www.equitydevelopment.co.uk/edreader/?d=%3D%3DwMyUjM

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Thanks for that, ts2 - I'm registered with ED but seems to not receive any email notifications of reports to view.

Without your mention I'd likely have missed this one from ED.

[tsmith2] 15/1/2019 09:15

You should go short til you are balls deep...

[niggle] 15/1/2019 09:14

No online company can survive with only 22.7% profit margin.

Look at Boohoo! 54.4%

“Boohoo:
It has reported a 44% jump in sales for the four months to 31 December, compared to the same period in 2017.”

Sales in the US soared by 78%.

And it's not driving sales at the expense of profits. Boohoo's profit margin rose 1.7% to 54.2%.”

I expect this company to fail.

[tsmith2] 15/1/2019 09:09

I don't think MMs have any real amount of stock. Lets see some volume and see where that takes us. Hopefully, management were speaking to IIs holders..Andrew Wass should be buying..

[tsmith2] 15/1/2019 09:07

Errmm...FY2019 is this year to end of March 2019 so this current year (bet you don't even spot that the numbers are actually forecasted for 12mths to end of Feb though)ED - state Conservative estimates..No fund raise International markets massive opportunity way too cheap..

[opodio] 15/1/2019 08:55

No I’m waiting for sub 100 or until blackrock stop selling

They have millions to be dumped

[fillipe] 15/1/2019 08:36

175p maybe now looking to be the low of the recent falling and a turning point from here for G4M.

f

[tsmith2] 14/1/2019 20:36

We are expanding into Germany in particular and Europe in general

[tomjones8] 14/1/2019 20:31

Let me say one thing - I have no idea as to when this stock will bottom. We may already be close to this point as more than 60% of the free float has changed hands (since the trading update). Or maybe the stock will drop another 20%. I don’t know.

However, if you can buy it here and own it for 3-4 years you will do well for yourself.

The company is a true emerging leader in its niche. It has own brand that partly sets it apart from all commodity resellers. The market (both in the UK and in Europe) should consolidate meaningfully in the next couple of years as a large number of brick and mortar retailers will shrink or be forced to exit. We are slowly seeing it happen already.

The long-term opportunity is enormous and G4M is in a very good place to capture decent share of the industry. Price leadership today (which has driven down gross margins in the recent periods) could reverse in the long run as the number of players in the industry shrinks.

Amazon is not a real contender to take share - their warehouses are not suitable for super bulky items and they recently said that they will focus on smaller size packages. Amazon does not have relationships with many of the key brands who remain reluctant to sell through it.

The management team are excellent and are very well incentivised. The balance sheet is in a healthier shape than it appears as the majority of the debt is the secured mortgage on the building they recently acquired at a fraction of its market value.

I am not concerned by the state of margins today. I believe that once they scale the business to a revenue of £300m or thereabouts (4 years from now, conservatively) - if they can do just a 5% EBITDA margin, which is reachable without much gross margin expansion, the market cap could go to £180m if not higher. The growth runway will remain, hopefully for another decade or more.

[buywell3] 14/1/2019 20:30

OK from comments made today the team thinks:

1) The BOD should stop selling low margin products on Amazon and EBay

2) Drive towards higher margins from their own website sales

3) Improve their website visibility and its e-commerce functions

4) Seek higher margin named goods ( hard but doable)


Over to the BOD .... RNS please to address issues raised

[ignoble] 14/1/2019 20:25

That is indeed a valid point.
A lot of top end guitars end up in collectors hands.
I am lucky enough to have a Gibson Les Paul .....bought in 2004 and I will never need another.
They sound better with age ...although that is probably a matter of opinion.

[mr.elbee] 14/1/2019 20:14

it is a permanently declining industry apart from young bedroom wannabees who are fast running out of credit..Why stay in the sector?

[tsmith2] 14/1/2019 19:40

See the difference is for the hyperbole and citing *historical* (hint, hint) numbers you don't have the balls or conviction to take a position that your drivel would lead you to conclude...I wonder why.

[tsmith2] 14/1/2019 19:38

And it would be defence not defense