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Gamma is a growth stock, and we continue to grow.
1440p this morning down 4% on Ukraine invasion, not sure Gamma do any business in Eastern Europe?
New reality, Inflation is depressing valuations and Covid was still interfering with business at the end. Growths numbers look down to between 12-15%. Still making a profit, plenty of cash. If inflation persists could take three years to get back to last years highs unless growth picks up above 20% plus. Though looking less likely as interest rates start to move up. Will be opportunities to acquire other businesses with depressed valuations and there is the dividend. Had my investment been at £20 plus would have sold all by now. As it is will hold, review the results and any outlook statement. Am thinking of my holding as a three year investment from now. Better prospects than many stocks out there.
currently £15.44 to buy so the Jeffries HOLD 1550 target has been achieved
This will bounce back to 20 by June ;-)
PS.
" . . . This is all because Jefferies issued a hold note with an outlier target price of 1550p, . . . "
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Hmm:
Or maybe instead, only another 30p-ish or so to go, before licking its wounds???
All is extremely bearish with Gama's SP trajectory; and has been since early September of last year, and is now entering the 5th consecutive month of consistent decline in the SP - without let up!
However (Last Chance Saloon scenario) I calculate that the v low 1450's is the last major Fibbo turning point. (All the others have been trashed with contempt by the SP).
So, If the SP continues southwards but commences to turn away from that price area (v low 1450's) then I'm topping up with confidence. But . . . . . .
. . . . But should it go screaming past that level, then all is lost and it's chucking out time in the Last Chance Saloon, and I'll sell my holding for a small-ish loss without question, and won't reconsider until April 1st
- as April for Gama has characteristically always been the most bullish month of the year for Gama, by far.
Hi Allenby,
many thanks for going to the trouble of providing the details of the major shareholders in Gamma. I apologise for not wording my post clear enough. If a bid for GAMA were to emerge, it would be interesting to look over the major holdings list of the company, if public, which is actually making that bid.
This is all because Jefferies issued a hold note with an outlier target price of 1550p,( a reversal of a year of 20% plus growth, by going back to Sept 20 sp levels). They may know something that Barclays and Peel Hunt don't know. If there is a problem, shareholders should be told.
Hi fastduckharry, The major shareholders are,
Lion trust 9.84%
Aberdeen inv 9.84%
Blackrock 9.41%
Kerry group 7.90%
Octopus 6.95%
Jupitor assoc 6.75%
Argon ass 5.75%
Close Bro 4.87%
in Total the institutions own 74.84% of the company
Hope this answers your question
Just a quickie. Busy last night and missed the late Holdings in Company rns. The answer to my question of who was buying the shares, was already out there; BlackRock. Should a bid emerge for Gamma will be curious to find out, who the major shareholders of the company involved are.
I agree with sledgey121. The price had gone crazy. Don't usually trade but selling in response Jefferies 1550p target hold note, was the fourth time had sold all my GAMA since mid July. Back in now. Am suspicious of the motivation for the note. That makes me suspicious of the move over 2300p. The obvious logical guess is that GAMA are being softened up for a takeover bid by a US telecommunications company and Jefferies are involved somehow. Would give that company a solid foothold both in the UK and the EU. It could well be that company are also coveting Gamma's software, which might augment their operations in the US.
As for Gamma am sure that H2 will be better than H1 including in Europe, therefore either way will not be tempted to sell again below 2100p even if drops to 1550p though unlikely, would be buying more. Have noticed some solid after hours buying at current levels. Am wondering by whom. Recent history suggests that Gamma will not issue a trading update until January. If all is well, perhaps their advisors might feel it is prudent to issue one, by the end of next month, just to reassure the market.
If the sp collapses again tomorrow, I promise to avoid posting on here again, don't worry about that. Won't change my opinion unless the evidence suggests I'm wrong.
GLA (don't weaken)
" . . . see anything of concern that might explain this sell-off? Just wondering . . . "
" . . . It is a solid company and yesterday's drop is very confusing considering they have just reported a 23% improvement in revenue in its first half. . . "
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From what I've read, it's being suggested that the market was expecting more than was actually achieved in Europe, despite the upbeat results.
- Hence the SP pullback since the trading update.
Perhaps the market is too greedy on this occasion?
From £1.87 launch back in late 2014 to £23.40's of the ATH the day before the H1 trading results were published, turned Gamma into a 12-bagger in relatively short order!
Currently (£18) that's over circa 22%x pullback since the morning of the results, earlier this month.
What's interesting is that the SP is currently under the significant 200 day trend. (Only just sank under it from Tuesday this week).
- Approx once per year, give or take slightly less, slightly more some years, the SP does that when it climbs too far from the 200 (reversion to the mean).
As it's below the 200 as of now, the guessing game is to spot when the SP will commence rising back above that level; which should be imminently based on history.
Many occasions the SP sank quite a fair distance below the 200 before recovering, other times , similar to know, just a handful of days only, so could it do similar on this occasion too?
£18-ish the floor, or further south before the pullback terminates?
Candlesticks suggest £18 is the likely floor, however short-term trend lines have yet to cross to the upside.
- Think I'll wait until they cross, the final arbitrator, just in case I'm wrong about the market being too greedy, and it's something else.
I think £20 was a reasonable SP, it seemed to accelerate past £20 too quickly for me.
Did anyone who looked at the update figures/report see anything of concern that might explain this sell-off? Just wondering - it seems more than just a little profit taking as the share price has been trending down for the past couple of weeks. I hope the fact that this is a very well-run company in a structurally growing sector should steady the drop, and eventually return to its excellent long-term track record.
I invested in March and only because after researching the fundementals of every single AIM company, this was on a shortlist of 3. It is a solid company and yesterday's drop is very confusing considering they have just reported a 23% improvement in revenue in its first half.
I'm still a LTH but I've also moved some money around and bought more yesterday as a short term investment as I can see this getting back to where it was and beyond in the couple of weeks
I finally had time to dig out the H1 report from yesterday, apart from a light weakening of some margins and obviously the reduced cash (from buying businesses) the figures look there or there abouts, the dividend and its annual growth is safe. Not bad, maybe other people expected even better. I think 10% price fall is unreasonable but interestingly still within my spread of expectations.
Nice to see this today
BARCLAYS RAISES GAMMA COMMUNICATIONS TARGET TO 2,250 (2,100) PENCE - 'OVERWEIGHT'
Yep I thought about doing that and then decided 1) never catching a falling knife 2) I already had enough invested in GAMA 3) everything else is doing so well, why sell. I hope your decision works out well for you.
Was hoping for a bit more of a fall today to be honest, give me a more compelling reason to top up. But I have reallocated some funds from profits in a few other shares, moved a bit more in to Gamma.