dealtn wrote:
Gear4Music (G4M). Similar. Originally bought well before lockdown, on the back of market perception of poor results for a "growth" stock. Dropping from about 800p to 200p. I considered that a massive over-reaction having analysed why margins were hit (and in my view likely to recover). My initial target was to double, so back to half previous price. (I am a natural - and stubborn - contrarian). Before that target was hit lockdown provided an opportunity to add (although only small) as the view was that "some" would use lockdown to either learn, or rediscover, musical instruments. (A conversation with the postman confirmed an increase in packages at the sorting office and we speculated about the contents - musical instruments and gym equipment came up!).
Trading Update
https://www.investegate.co.uk/gear4musi ... 00022253W/
One I glad I ran as a winner, now back North of 800p
Has extensive operations in the UK and Europe (with warehouse capability both sides so Brexit trade issues don't appear to be an issue).
Cheap on a P/E basis, especially for a company with a lot of growth. So how much growth is there? Was it a beneficiary of lockdown and growth actually forecast to be negative (broker research suggests so)?