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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Gym Group - Fast-growing disruptor in dynamic affordable fitness niche

September 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GYM
  • Price:
  • 246p
Back in the 1990s when I started analysing shares, the health & fitness sector was on fire as the likes of Holmes Place and particularly Fitness First enjoyed stratospheric PE ratios well into the 30s and even early 40s. The latter described itself as an affordable alternative to expensive country clubs and as an “in” to the fitness craze. The shares generated multi-bagger gains as investors latched on to its high growth rates and stickability of revenues through a spine of annual memberships. But the credit crunch and stagnation in earnings created a backlash against unfair contract terms with limited rights to cancel memberships, which paved the way for a new model espoused by The Gym Group, the subject of this month’s recommendati ...

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The Gym Group (June 2020)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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