Member Info for Danger_Mouse

You_Having_a_Laugh I don’t think anyone here is arguing there will be a strong upside move this week or this month! That maybe your goal. That said, the risk-reward of gradually redeploying profits from other stocks, such as miners, looks quite attractive. Value stocks have also been leading performance, which strengthens the case for at least a partial rotation rather than simply letting gains run without discipline.

This is the retail sell off on anything software related. But the volume is tiny and absorbed by the large buyer and help our buybacks.

Stocks like RELX, LSEG and KNOS have been trading at very high valuation multiples because they were seen as "safe havens." When the market gets nervous about AI disruption, those high multiples (often 25x–30x P/E) are the first to get corrected. Arguably to oversold territory but they are down never the less. Gamma is already cheap: As we’ve discussed, GAMA is trading at about 10x–11x P/E. It has already been through its own "correction" over the last year. It’s hard to sell a stock down much further when it’s already trading at a massive discount to its peers and its own historical average.

Mr_Scruff on ADVFN forum mentions... "Gamma is different: GAMA isn't a pure-play software developer in the same way. It provides the underlying infrastructure (SIP trunking, cloud PBX, and mobile connectivity). Even if an AI writes your code, you still need a network and a communication platform to run your business. GAMA is the pipes" not just the apps.

This sounds like extremely bad luck. Using it on forums as a reason not to get the licence is unethical. The bigger question is do you want to be in SRB knowing the two deaths. I don't think I do.

JackDawr get ready to add to your position when the momentum shifts and not fret. If you keep failing start with global index and dont read forums like these... perhaps switch to Citywire forums.

European Peers trade at 15x - 18x with Mixed-revenue type and Mid-single digit

Gamma (GAMA) trades about 10.5x with 89% Recurring and Double-digit EPS growth

Gamma’s acquisitions of Starface and Placetel have made them a top-tier player in Germany. Germany is significantly behind the UK in switching to the cloud, meaning there is a massive "land grab" opportunity that Gamma is currently winning.

In the UK Gamma knows they can’t win on just the phone line anymore. Their strategy is to use the switch-off as an "excuse" to audit a business and sell them a higher-value package:

1. The Old Way: Just a phone line (£20).

2. The Gamma Way: Phone line + Cyber Security + Microsoft Teams Integration + Mobile SIMs.

Result: Even if the "line" is cheaper, the total bill for the customer (ARPU - Average Revenue Per User) goes up because they are buying more services from one place.

The UK market is "mature" (everyone has fibre/VoIP already), but Germany is years behind. In Germany, the margins are much higher because the competition hasn't squeezed the life out of the pricing yet. Gamma’s recent acquisition of Starface gives them a high-margin software platform in a market where businesses are still willing to pay a premium for "quality German engineering" in their comms.

JG68

I totally get the frustration with the math not matching the screen lately. It's wild to watch giants like LSEG and RELX slide when their updates are actually solid. LSEG has taken a real beating since mid-January, dropping from over £91 toward £81 despite doing what they promised.

But I think GAMA is a different story because of where it's starting from.

LSEG and RELX have been priced for perfection for a long time, usually trading at huge multiples like 25x or 30x P/E. When something like an AI threat or a global tech rotation hits, they have a long way to fall. GAMA is already in the bargain bin. At 900p, you’re looking at a P/E under 10x for a company that’s growing EBITDA at 13% and has zero debt.

The way I see the buybacks:

* LSEG/RELX: They're basically using buybacks to try and hold up a very expensive house.

* GAMA: They're using a massive pile of cash to hoover up shares while the market has them valued like a stagnant company.

The index drag from the FTSE 250 is definitely real and pulling everything down right now, but GAMA is retiring shares at a massive discount to its fair value. While the ship might feel rocky today, the board is effectively shrinking the share count while the price is on the floor. Once the market moves on from the current UK gloom and looks at that German growth, there will be a lot fewer shares left to go around.

@JG68 names like RELX and LSEG they’re basically priced for perfection. They trade at such high multiples that even when they beat earnings, the needle barely moves. You’re essentially paying a huge premium just for the comfort of stability. On the flip side, "value" plays like Shell and BP have shown how to actually move the dial through capital allocation. Their massive buybacks: Shell is still chewing through billions in stock every quarter do the heavy lifting for shareholders even when the underlying oil price is dragging. They aren't just waiting for growth; they’re manufacturing it by shrinking the share count while the stock is cheap.

That’s exactly whyGAMA is so interesting right now. It’s valued like a stagnant value stock with a P/E around 10x, yet it's delivering double-digit EBITDA growth and has turned into a buyback machine itself. They just finished a £45m program and have already committed to another £85m over the next two years. It’s the Shell playbook: use a mountain of cash to retire shares while the market is asleep. But unlike the oil giants, GAMA has a massive structural kicker in Germany. Cloud penetration there is still way behind the UK, and as that German business scales to eventually overtake the UK arm, a re-rating to 1500p–1600p isn't just a "maybe"—it’s where the math leads when you combine a shrinking share count with double-digit earnings growth.

The buy back of apples has no bearing on the buybacks of pears.

Gamma Communications PLC has cemented its position as a key challenger in the German cloud communications market, which is currently undergoing a massive state-led transformation. Following the £152.2 million acquisition of STARFACE in early 2025, Gamma now manages over 500,000 cloud seats in Germany. This international expansion is strategically timed to coincide with a "digitalisation offensive" by the administration of Chancellor Friedrich Merz, who has established the country’s first dedicated Federal Ministry for Digital Transformation and Government Modernisation.

The German government has committed significant fiscal resources to close its digital infrastructure gap, earmarking over €4 billion in 2025 for broadband and mobile network expansion, with plans to scale this to €34.2 billion by 2029. This public investment, alongside an €18 billion "High-Tech Agenda" targeting AI and technological sovereignty, creates a high-growth environment for Gamma’s UCaaS and SIP trunking services as SMEs migrate from legacy systems. By leveraging its network of over 2,000 partners and a growing £50 million+ revenue stream from the region, Gamma is well-positioned to benefit from Germany’s transition to a modern, cloud-first industrial economy.

German Economic & Government Policy

Federal Ministry for Digital Transformation (BMDS) Details: en.wikipedia.org

Digital Ministry Establishment Analysis: www.globalgovernmentforum.com

Infrastructure Spending (2025–2029): www.business-sweden.com

2026 Budget Approvals (Heise Online): www.heise.de

European Commission 2025 Digital Decade Report: digital-strategy.ec.europa.eu

German Tech Policy Ambitions (CEPA): cepa.org

Gamma Communications PLC Operations

Gamma PLC H1 2025 Financial Report: www.londonstockexchange.com

STARFACE Acquisition Details: technologyreseller.uk

Gamma German Growth Performance (Pilling & Co): www.pilling.co.uk

Gamma Investor Strategy & Growth Thesis: gammagroup.co

Strategic Integration Analysis (Josh Thompson): joshthompson.co.uk

If you follow the "math" of the City analysts, GAMA is arguably worth at least 1,400p-1,500p based on its earnings power. At 910p, you are essentially buying a "Quality Growth" company at a "Value" price.

If it's worth 1,500-1600p, why is it 910p?

1 Sentiment Overhang: The departure of the CFO (Bill Castell) created a temporary "trust gap" that shorters exploited.

2 The Buyback Trap: The buyback is a "slow ship." The company isn't in a rush to push the price to 1,500p; they want to buy as many shares as possible at 910p to maximise the EPS boost for when the re-rating eventually happens.

3 Short Resistance: Shorters are fighting to keep it below the 50-day moving average (913p) to prevent momentum buyers from jumping in.

It states: "Production in the area of the incident is expected to be resumed within a few days once the authorities have completed their enquiries, but mining operations are otherwise unaffected."

The stoppage is localised, It shouldn’t change guidance, mine plans, or cash generation. Only the specific area where the incident occurred is paused. The rest of the mine and the wider operation continues as normal. The timeline is short “Within a few days” implies a procedural pause, not a technical or safety failure that needs remediation. Any lost tonnes from a few days in one area are immaterial at the quarterly or annual level. They can usually be recovered later through sequencing or catch-up mining.

Agree.

We are somewhat aligned as long term holders. I’m not worried about the upside yet; that will take care of itself in time. For me, this is personal. I’ve seen significant success in gold and gold miners recently, and as I convert those profits to cash (60% of AUM, to 50% then now to 33%). I plan to mirror a small fraction of the proceeds thats sitting in something very boring. More boring than GAMA even though it trades like a HY-bond at todays valuation. I’m more than happy to apply that pressure against the short interest. I am probably talking to myself (a sign of madness) but its fun... forum engamant has dropped of a cliff (presume all shorters), and I know what tools they used to arrive at GAMA, but technical analysis is never 100% right.

If the shorts are going long to hedge a short or exit a short.... long-term holders know what to do. Keep them trapped in this narrow band. Two steps ahead.

Using the GAMA buybacks as a guide, I add 200 shares at 906.84 to take my AUM up from 0.02% to a fraction over 0.2% of my portfolio's AUM. Lunch time dips are for adding not giving shares to shorters.

Production has not halted. There would have been an RNS. yesterday or the RNS of the announcement.

Yes most other gold stocks have broken out.

If you buy above todays highs of 913.62 you could be cannon fodder for small shorts.

A profits a profit. We are at a FOMO stage.

SRB is where it should be...

https://www.tradingview.com/x/ykXczZeD/