The Gym Share Discussion Threads

[turbocharge] 11/1/2019 10:17

Also, can't see all this Brexit negativity having much impact on how well GYM does...

[thomshrike] 11/1/2019 10:14

Same thing happened to me: I have also been a structural investor, with the conviction that the low-cost model would be very successful when applied to gyms, also given my positive experience as a member.
Importantly, this should be a time when GYM should actually be reaping the benefits of increased scale and increased market share: added value of the dual membership, larger discounts from equipment suppliers, easier access to better locations, further dilution of fixed costs such as marketing, etc etc etc. The company is also relatively insulated from an economic downturn, as we could expect many members of priced gyms to trade down.
Therefore I would be quite surprised if we start seeing negative news here. Quite the opposite. Again: just my opinion.

[turbocharge] 11/1/2019 10:08

Why do you suppose it's about to change?

[dtaliadoros] 11/1/2019 09:27

This company has not come out with any bad news in the years I have held them (other than direct sales). Perhsps that is about to change.

[dtaliadoros] 11/1/2019 09:20

When I bought into this stock 2 years ago sub 1.80 All the brokers where saying gym share price was pricey. None of them saw how disruptive gym would be to fitness industry but I did. I would not have spotted this if I had not been a member and seen how hard they sweat their assets with gyms packed to the rafters. People love these gyms.

[turbocharge] 11/1/2019 08:40

Inclined to agree it might be a good time to buy at a decent price

[thomshrike] 11/1/2019 08:32

The drop has to do with some cautious comments written on that broker note. Maybe the company will use the RNS next week to dispel those concerns, which might make it a good time to buy now. Just an opinion though, DYOR.

[dtaliadoros] 10/1/2019 19:48

Why the 11% drop? Can't believe its on the back of a broker downgrade.

[turbocharge] 10/1/2019 17:22

"Those whom the gods wish to destroy, they first make mad..." [corrientes]

The author has penned an excellent description of him or herself. Judicious use of filter button called for :)

[corrientes] 10/1/2019 16:38

These new style gym organisations, like fashion accessories will become a busted flush shortly, following London et al, soon to be be in a downward spiral. Even no membership gyms will be one of the first things to be deleted from personal budgets. The more hyped up nancy type gyms will eventually go the way of the dodo. Paying for a rarely used Rolls Royce is a mugs game now.

[turbocharge] 10/1/2019 15:27

Just bought some in anticipation of good update next week (I hope!) :)

[ps. Have done no research, apart from being a Gym Group member]

[hawaly] 10/1/2019 10:10

Yes I see, it was June - thanks.

[thomshrike] 10/1/2019 10:03

If I read it correctly at the time, for whatever reason the notification was published recently, but that crossing had taken place last June. I wouldn't read too much into any of these disposals.

[hawaly] 10/1/2019 09:55

I have no position but just wondered that no one mentions the fact that founder John Treharne sold his final remaining 3.5% stake to below notifiable levels a few days ago....

or these director sales:

Date Action Director No. shares Price (p) Value (£)
09 Nov 18 Sell J Spaven 356,535 330 1,176,566
28 Sep 18 Sell Paul Gilbert 200,000 310 620,000
06 Sep 18 Sell John Treharne 500,000 329 1,645,000
20 Jun 18 Sell John Treharne 500,000 273 1,362,500

are these relevant do you think?

[shauney2] 10/1/2019 09:43

I wouldn't worry too much about the Barclays downgrade.Thats the similar price target they gave 2 years ago.

[thomshrike] 10/1/2019 09:08

Recommendation down to Equalweight, PT down to 265p.

[dtaliadoros] 10/1/2019 08:59

To what price.? I do like this stock. I took profits at 3.20 and now looking to get back in. These levels look attractive although always weary of buying just before trading update.

[thomshrike] 10/1/2019 06:20

GYM downgraded today at Barclays. Does anyone know the reasons behind the downgrade?

[thomshrike] 08/1/2019 16:33

Having in the past met their team that looks into new locations, I was amazed by the sophistication of their methodology, in particular their thorough analysis of demographics and flows of people at the targeted location.
I was in the past a member at the unit near Trafalgar Square and the price for new members continuously crept up as capacity utilization was always high.
Central locations are crucial for their increasingly important dual membership option (now packaged within LiveIt), which allows you to use both the unit near where you live and the unit near where you work.
You cannot value this company on static multiples, because most of the value of the new units has yet to be unlocked. Adjusted (i.e. pre-expansion opex and capex) FCF yield now stands comfortably above 10%.

[dtaliadoros] 08/1/2019 16:04

Actually I must say, i think their better value locations are the one out of town, unless they have managed to secure the central london venues at knock down prices.

I work just down the road from their new Monument branch in the city, and to be honest there is proliferation of premium offerings, as people have the money to spend up here and are more likely to want to indulge in lunch time classes.

The core market target group for gym group I feel lie in outer central london locations.

[rathean] 08/1/2019 12:02

As Phil and Kirsty say it's all about location. The Gym group have some prime locations across the UK including their 2 new London locations.

[rathean] 08/1/2019 12:00

A well funded prime player in a consolidating market. The Gym was rammed yesterday and will be for the next few weeks, tailing off into the Spring before the 'beach body' spike in May.Still an aggressive valuation at this share price but nothing compared to some of the tech and bio plays. Good value medium term hold imo dyor ofc, happy here at 252 b/e.