Sea Bass 916
25 May 2018
Re: AMC divergence Hi Pen,Breakout on the weekly RSI from the 16p (ish) high in Nov 2016. No volume though.Regards SB.
penhome
25 May 2018
Re: ZOO breakout [link]
Elviron1
25 May 2018
Re: Gear4music Hi Pen,You can get a discounted Stockopedia subscription through the Naked Trader website (think it's 25%). Also, think you can get a discount via refer a friend.I used the 2 week trial the other day. It's a nice set up and I think the small cap reports are pretty useful. I didn't sign up in the end (but it was a close decision and I may do in the future).
IAmShareCrazy
23 May 2018
Gaps Vrs - I got on this morning first thing. Lot's going on here.Angle - Potential game changing tech. Down trend broken.
penhome
22 May 2018
Re: Gear4music S123mMany thanks for that. Interesting read.I can see the argument of driving turnover growth, distribution hubs to speed delivery, increasing country penetration and then reducing marketing spend.I still don’t see how they are going to outrun Amazon which already has the EU hubs established, country presence and is the natural point of call of anyone wanting to check prices and delivery times.Amazon can list every product on G4M’s website, offer competitive pricing and, with Prime, next day delivery. This level of competition will cap many retailers margins including G4M.I’ll look into a Stockopedia subscription.Pen
IAmShareCrazy
22 May 2018
Cash Generators SeverfieldNumisBloomsbury publishing
share 123 maiden
22 May 2018
Re: Gear4music Pen,Sorry I have been at work all day today and only just seen your message. I have tried copying the bit from Stockopedia (to which I do subscribe) about G4M. The little pictures don't seem to have copied successfully, but I'm sure you will get the idea.I thought you could subscribe to the SCVR without having to pay a fee, but I may be wrong on that. You can usually get a two week free trial if you haven't done that already, here is the link for that. [link] (LON:G4M)Share price: 717p (down 1.2% today, at 14:35)No. shares: 20.87mMarket cap: £149.6m(at the time of writing, I hold a long position in this share)Preliminary resultsGear4music (Holdings) plc, ("Gear4music" or "the Group"
(LSE: G4M), the largest UK based online retailer of musical instruments and music equipment, today announces its unaudited financial results for the 12 months ended 28 February 2018.Why is this company valued at almost £150m, when its profits are small, and have fallen year-on-year? The reason is that it's all about top line growth. This is effectively a period of land-grab, where in various product areas, a small number of dominant players are emerging. Obviously the big one is Amazon. Then in fashion (in the UK), we have ASOS (LON:ASC) and Boohoo.Com (LON:BOO) and surprisingly perhaps, also Next (LON:NXT) . Then there are lots of other brands, many of which are likely to fall by the wayside in the future.As regards musical instrument eCommerce, the dominant European player is called Thomann. However, Gear4Music appears to be making considerable progress, in Europe as well as in the UK.G4M has a low gross margin of only 25.4% (down from 27.0% last year), but its average order value is high, at £127 (up 3%). So the way I look at it, the gross profit is £32.26 per order - a respectable figure.The company and its advisers have managed investor expectations very well, in my view. We were told some time ago to expect flattish profits this year. This is because the company is concentrating on driving growth, which requires some up-front costs (e.g. initial losses from new distribution hubs in Germany & Sweden). The company then sees a benefit from that investment, because it can better manage deliveries, and provide next-day deliveries.There is also the issue that some brands (e.g. guitars) require that distributors have a physical showroom in every country. So opening a distribution hub in Germany moved G4M up the pecking order.The other reason that short term profitability doesn't really matter, is that marketing spend is the key driver of sales growth. Once sufficient scale has been achieved, then marketing naturally falls as a percentage of revenues, which in turn drives up the future profit margin. This is also the main barrier to new entrants achieving scale - they can't afford to spend the big marketing bucks which creates scale.I'm printing off the full results statement now, and will read it thoroughly outside - OK that's at least partly an excuse to sit in the sun for a while! More later....Having read the full results now, here are a few key points;Strong revenue growth +43% to £80.1mDistribution capacity is being increased to handle £150m annual future salesProfitability in 02/2018 fell by 25% to £1.96m, but this was flagged in advance, and isn't a concern in my viewMarket share is only small - estimated at 6% of UK market, and 1% of European market - so plenty of growth potential - this company should continue to grow strongly for years to come, in my view - which is why the shares look expensive, based on current profitabilityOwn-brand products are just over a quarter of total sales. These tend to be higher margin.Marketing spend is £6.7m, or 8.3% of revenues. As the business grows, then this percentage should eventually fall, thus boosting profits. I like the fact that, in a recession say, marketing spending could b
Lady Jennifer
22 May 2018
Re: Gear4music The only thing I could find - on the stock link or elsewhere - was a single sentence.....Anyway, I think we have a busy day on the horizon - it's results from Gear4Music (in which I have a long position) - a costly growth stock, which institutions seem to want to buy.
penhome
21 May 2018
Re: Gear4music Hi s123mEveything I click on that link comes up with ‘subscriber only’It says log in to your account to open up this article.Pen
penhome
21 May 2018
Re: Gear4music LJThanks, but there’s nothing about G4M on that linkPen
share 123 maiden
21 May 2018
Re: Gear4music Pen You don’t have to subscribe to Stockopedia to get the SCVR each day.
Lady Jennifer
21 May 2018
Re: Gear4music There seems to be a duplicate here......[link]
penhome
21 May 2018
Re: Gear4music Thanks, but I think it’s for subscribers only.Pen
share 123 maiden
21 May 2018
Re: Gear4music PenThis Small Cap Value Report from Stockopedia might be of interest. Paul Scott gives his take on Gear4music (amongst other companies).[link]
IAmShareCrazy
21 May 2018
Re: Marstons There was some short interest in this but I am not interested either way.
