Gym provider aptly named Gym Group has been looking to consolidate since a biggish drop throughout the November 2018 market decline. This may be viewed a small bump in hindsight even now getting back to £2.50 mark, still some way from its £3+ highs however. Buyers may still be wary however for an EPS growth of 40% as well as sales groth of 25%, a forward PE of 19 is hardly demanding. The potential market for low cost gyms which the company provides would seem to have plenty of runway, with consumer demand for health and wellness products continuing to trend well, we should be some way off market saturation. As long as the company can continue to provide a compelling product as well as increasing margins with additional offerings.
Onto the technical's, now is an interesting time for UK small caps, volumne has been ridiculously low across the board even for August, when liquidity returns keep an eye on which way the price goes. Anywhere below £2.10 would certainly be a danger zone, breaking back above the £2.70-£2.80 range I would be looking to add to my current position.