Games Workshop Share Discussion Threads

[srpactive] 19/2/2015 08:48

The mm's are playing this like a fiddle.

Drawing a chart based on the odd shares traded
at the bid or offer.

They have moved from 488 to 535p and the most you
could have made was 20p on the bid, lowest 505p
highest 525p. Apart from a nano second when it
went higher yesterday.

Went past one of their shops yesterday empty, and
this is half term when children are everywhere looking
for things to do.

dyor

[essentialinvestor] 16/2/2015 20:44

The results break down royalty income, Space Marines for XBOX360
is just one of many examples.

If TK makes a significant purchase I will increase here.

[nod] 16/2/2015 20:31

Phil, they do licence to game developers and many have made successful games. After many years in development Warhammer Online went live in 2008. My son and friends had ceased the models by this time but found time to play online during the school holidays. They liked the online game. The developer was taken over by EA and then EA went through a bad financial patch after the crash and had to cut costs, Warhammer Online was closed down in December 2013 after 5 years. It was hard for them to get enough players away from World of Warcraft to achieve the massive multiplayer dreamed of. See the thread header for a link to Warhammer Online in 2008. The link still works.

[philo124] 16/2/2015 19:04

Bad luck. What a different childhood our sons have!

[essentialinvestor] 16/2/2015 19:02

A significant % of their profit is royalty income.

I had over 230k invested here at one point, down to 10k now,
my holding has gone the same way as the stores ).

[mozy123] 16/2/2015 19:00

Sheffield centre store has similar opening times Phil. They are never in prime locations due to rent. Always tucked away, the majority of retail footfall wont even go in - really a niche business.

The engagement is from learning the game, artistic merits of whose that attempt it and the quality of the offering.

If the continue to produce high quality models then thats half the problem - the other is price. Not many kids that would want to try the hobby can even afford to get started.

I know i didnt - me and friends had to pool pocket money to buy the models and paints we wanted. I remember buying the starter sets with 2 armies and one had one army and the friend the other army. Those were the days.

[philo124] 16/2/2015 18:57

Given how expensive the hobby/BRAND is I would have expected a much higher profile shop than the old type of shop in my time of airfix and railways- quaint that it was. Has anyone thought of taking the brand onto online gaming via a licence- probably sacrilege but say in China would be very popular.
Yes, they have to market the Brand better imo.

[essentialinvestor] 16/2/2015 17:40

Well that's the issue, they have taken costs out but at what price?.

I realise not everyone is a fan of Tom, however he knows the business
inside out and would expect all scenarios have been looked at in great detail before
deciding on the one man store model.

[philo124] 16/2/2015 17:12

They have a manager bonus scheme and long term share plan. Went to Cheltenham store yesterday. They are closed Monday's and Tuesdays and open at 12.00 Weds- Fri. I was a bit surprised about that. I think the shop could be better positioned where they would get higher footfall. Spent £80 and temporary manager volunteered to give my son 2 hours instruction at the shop when he is over from Spain in a couple of weeks time.

[essentialinvestor] 16/2/2015 17:05

I picked that up as well, would have thought they have a structure with
a floating manager in either an area or region, rather than just someone
filling in from HO.

Recruitment will largely depend on the salary package and benefits,
so would hope with the one store concept the manager is suitably rewarded.

[nod] 16/2/2015 16:58

For a few years GAW has identified a business risk as being able to recruit and retain enough store managers for its expansion. With two man stores if someone quits there is a backup and a familiar face for customers. With one man stores GAW will need to wheel in a manager from head office and an unfamiliar face for customers. Same if the manager goes down with flu.From last update a month ago:"As discussed in the 2014 annual report, for Games Workshop to continue to be successful we need motivated, hard-working managers in all parts of the business who understand Games Workshop's niche business model, are aligned with its values and are committed to getting things done. The biggest risk for Games Workshop is that we don't have enough of these managers to continue to grow the business globally."

[essentialinvestor] 16/2/2015 16:35

You would hope the recent dividend declaration may indicate
that trading is at least stable.

Significant costs have been taken out of the business, however it remains to be seen if
one man small stores can drive sales longer term, hopefully yes.

[woozle1] 13/2/2015 10:40

NOd .. glad to hear that you're not the only one banning console games .. we've felt lonely doing but right, in the sense that our children good concentration and social skills and are much more engaged with people ..

[mozy123] 13/2/2015 09:29

Asia - not being funny but there is 4 billion people in that region and they are all trying to get into the middle class - lack of strategy for sure!

[essentialinvestor] 13/2/2015 06:05

Nod, that may be the key to valuation here IMV.

Is the one man store concept capable of reestablishing revenue growth,
it's certainly stripped out costs, but can it grow sales?.

[nod] 13/2/2015 01:52

Mozy, Asia has been slow to take off. GAW had four stores at last year end having added 1 store during the year. Operating Profit was just positive. They paid a person redundancy as part of the one man store changes and this tipped Asia into a net loss. I am not convinced the one-man store concept will work out. It cost well over 4 million to implement the changes and revenue was significantly down during this changeover.Asia covers Japan and China. The Japanese are not spending and the Chinese manufacture their own cheap replicas. I can't see that Asia holds much potential. South Korea could be a market. Australia had been going well but has been hit by a recession over the past two years.

[philo124] 12/2/2015 22:11

Thanks for that Nod, good luck to all of you.

[dazzaa] 10/2/2015 08:31

Nice jump though

[woozle1] 10/2/2015 07:21

Looks like the clear out of an overhang

[dazzaa] 09/2/2015 22:19

Why the jump in price ? possible takeover? share building exercise ?