Obviously pleased and relieved to see upgrade for AVG. The sum of parts has been at £4.95 for nearly two years I think. The spend on the Two medical companies is largely complete I hope which should improve the earnings and that’s before they start adding to revenue or get sold on. Neither Adaptix or Magnetica are priced into the sum of parts as far as I know.
G4M has given many of us the slip I suspect. Seem to remember it did very well in the pandemic, (£10!)before slipping back. With two competitors out of the game they must be cornering the market although they did not buy out either of these companies, just purchased their stock from receivers at what some perceived quite high prices. Not sure I’m going to chase it but could well go over £4 again possibly. For online they really are the go to store for instruments, disco, PA, mixers, gizmos and recording equipment . Have contributed to their revenue in the past! Very good service. Blimey they have outlets in Sweden and Germany too. their pre tax profit was about four or five times higher when they hit £10. EPS is about 12times less than then, but nav seems to have recovered a fair bit. Totally confused myself! Think I’ll stick with missed the boat on G4M, but like it a lot. This section is a great addition to the Stack. Many thanks Jon
Yes, AVG is complicated and for me, would require quite a deep dive to understand the Sum Of The Parts, one could of course make the obvious assumption that Harwood have done so.
G4M, as I mentioned, I have to rule it out for now due to the competitive nature of the market and those low margins.
Thanks for your input and once again, apologies for the delayed response.
Jon you mention margins are slim for Gm4. I’m seeing 27 percent margins. Is that slim for retail because it looks ok to me. I know shops expect better margins but they are playing the supermarket game of volume and not being beaten on price. They only have the one shop in uk, one in Sweden and one in Germany . They are predominantly an online business. The volatility is a bit scary accepting that things get over bought and oversold!
A further search has suggested that they are focusing on improving margins by cutting overheads. They are also acquiring more brand names like Premier drum kits. They have better margins than Yamaha or Fender, but they are slim by general retail standards. Looks very interesting. Will see if it falls back a bit more. Might be tempted then
Thanks Jon. Yes I’m being very dumb looking at gross margin. 2 percent makes the recent Sp action up very strange, although they do only have about 20 million shares in issue.
Obviously pleased and relieved to see upgrade for AVG. The sum of parts has been at £4.95 for nearly two years I think. The spend on the Two medical companies is largely complete I hope which should improve the earnings and that’s before they start adding to revenue or get sold on. Neither Adaptix or Magnetica are priced into the sum of parts as far as I know.
G4M has given many of us the slip I suspect. Seem to remember it did very well in the pandemic, (£10!)before slipping back. With two competitors out of the game they must be cornering the market although they did not buy out either of these companies, just purchased their stock from receivers at what some perceived quite high prices. Not sure I’m going to chase it but could well go over £4 again possibly. For online they really are the go to store for instruments, disco, PA, mixers, gizmos and recording equipment . Have contributed to their revenue in the past! Very good service. Blimey they have outlets in Sweden and Germany too. their pre tax profit was about four or five times higher when they hit £10. EPS is about 12times less than then, but nav seems to have recovered a fair bit. Totally confused myself! Think I’ll stick with missed the boat on G4M, but like it a lot. This section is a great addition to the Stack. Many thanks Jon
So sorry for the delay in replying Simon.
Yes, AVG is complicated and for me, would require quite a deep dive to understand the Sum Of The Parts, one could of course make the obvious assumption that Harwood have done so.
G4M, as I mentioned, I have to rule it out for now due to the competitive nature of the market and those low margins.
Thanks for your input and once again, apologies for the delayed response.
Jon
Jon you mention margins are slim for Gm4. I’m seeing 27 percent margins. Is that slim for retail because it looks ok to me. I know shops expect better margins but they are playing the supermarket game of volume and not being beaten on price. They only have the one shop in uk, one in Sweden and one in Germany . They are predominantly an online business. The volatility is a bit scary accepting that things get over bought and oversold!
A further search has suggested that they are focusing on improving margins by cutting overheads. They are also acquiring more brand names like Premier drum kits. They have better margins than Yamaha or Fender, but they are slim by general retail standards. Looks very interesting. Will see if it falls back a bit more. Might be tempted then
Hi again Simon,
G4M operating margin is <2% on Sharescope and around 2% on Stockopedia, which is the metric I generall use and refer to.
This is kind of confirmed at a basic level by a quick look at 2026E revenue of around £150m and profits of £3m or so.
I am not sure what margin you are looking at?
Jon
Thanks Jon. Yes I’m being very dumb looking at gross margin. 2 percent makes the recent Sp action up very strange, although they do only have about 20 million shares in issue.