Market's view on Gym Grp
Published on April 2024
- One stock watcher is puzzled why a company with 235 gyms needs to appoint advisors for site selection, questioning the necessity given their experience.
- A reviewer expresses difficulty in defining the company’s future, stressing the importance of asset growth and debt repayment over dividends.
- There are differing opinions on the company’s reinvestment strategy; some prefer site growth over dividends, pointing out a general preference for income stocks on the LSE.
- Frustration is voiced over the company’s focus on accessibility rather than profitability for shareholders.
- Positive feedback is given on a business update, though no specifics are provided.
- The company’s interim report shows revenue growth and an increase in membership but mentions a statutory loss and no positive EPS yet, highlighting a cautious but improving situation.
- Concerns are raised about the company’s pricing power and gym occupancy which are still below pre-pandemic levels.
- Doubts are shared about the company’s revenue growth pace and its ability to manage increased costs.
- The impact of new pharmacological solutions on the fitness industry is speculated to potentially pressure the company’s stock.
- Discussions around strategic moves, including synergies between gym locations and high street coffee brands, are noted.
- The increase in short positions, including major firms, suggests a bearish outlook from some investors.
- A promotion offering half-price membership is viewed as a sign of desperation by the company.
- Mixed feelings are expressed about the company’s no-contract membership model, with some viewing it as outdated.
- The company’s share price suffers after a warning about rising costs outweighing revenue improvements, highlighting a challenging financial climate.