Codemasters Share Discussion Threads

[mauricemonkey] 05/11/2020 23:49

You've got to feel sorry for anyone that bought a PS4 in lockdown, with the PS5 and new Xbox being released this month

[wildchild] 05/11/2020 16:18

cookertron : I don't think it will react only because the market already knows about its release date. Saying that, I'm more than happy for the price to keep rising though.

[jurgenklopp] 05/11/2020 10:30

Over the last couple of months the likes of Sony and Nintendo have reported extraordinary growth in the hardware they are producing due to the increased demand as a result of people worldwide being in various stages of lockdown and thus buying the latest machines for home entertainment.
Ultimately this will mean very good news for the companies making the games for use in these machines.
The UK has some superb companies in this sphere (FDEV, SUMO, TM17 etc) and CDM is another one.
At the moment, on the assumption that they are all doing very well and ought to be on a similar rating, CDM appears to be the best value by far.
The 500p target I mentioned on 21 October really ought to be perfectly achievable as, in my opinion, it will still be cheap compared to peers.

[cookertron] 05/11/2020 10:09

Is the share price going to react to the release of Dirt 5 on 6/11/20?

[jamessmith23] 05/11/2020 09:08

Obviously H1 was a record 6 months, is it expected to have a H2 anything near to that in terms of revenue or profits? I am fairly new to this share and so not sure how the revenue split tends to work, last year it was fairly even, can imagine that depends on the game releases and potentially other things?

[jurgenklopp] 21/10/2020 08:54

Hopefully the 400p level will hold and form the new base camp for the next leg up.

At least 20% cheaper than UK peers hoefully means an assault towards 500p by the year end.

[lukehold] 10/10/2020 00:36

Finally some serous ad revenue for codies Https://twitter.com/upto2m/status/1314660478967316481?s=21

[madmix] 09/10/2020 13:26

All good points, Wilmdav, thanks.

I prefer TM17 in this sector, and I think it deserves its higher rating. However I do still see some decent upside in CDM at current levels.

[wilmdav] 09/10/2020 11:37

Madmix,

Many thanks for that.

With regard to PER, I did note that their calculation of adjusted eps is unusual. Adjusted net income, from which the calculation is made, is derived from adjusted EBITDA not adjusted operating/pre-tax profit, hence adj eps is inflated by the adding back of £2.2m of depreciation (1.5p).

That is small beer when comparing a PER of 20 with 35-40. However CDM has burned large quantities of cash during the past 2 accounting years, £48.6m in purchase or development of intangible assets as well as £16.2m toward the acquisition of SMS. £35m of this has come from share issues. That could be weighing down on the PER somewhat.

[madmix] 09/10/2020 10:32

CDM current year PER could be under 20 following the H1 trading statement.

Most others in the sector are trading in the 35-50 PER range.

[madmix] 09/10/2020 10:31

Wilmdav,

I think there's a high likelihood of forecasts being beaten.

"Broker Shore capital said although it had already upgraded its full-year forecasts for revenues and EBITDA following the August update to £120 million and £29 million respectively, ‘we expect the company to positively benefit from the key promotion period (CY Q4) and if current trading conditions and increased digital sales continue for Codemasters, we believe our forecasts will be too light and therefore upgrades could be likely.’"

[wilmdav] 09/10/2020 09:42

I am new to this stock, my attention having been grabbed by the expectation of £80.5m revenue in H1 as compared to Sharepad's current consensus forecast of £118.1m for the full year. Am I being naive in assuming there will be a significant upgrade?

[energeticbacker] 07/10/2020 12:58

Codemasters' valuation continues to remain modest compared to AIM peers.

Investor's Champion's in-depth report highlights its attractions and key areas of concern.

[gswredland] 07/10/2020 10:38

Looking good!

[coppertrader] 07/10/2020 10:31

Fantastic half year results upto 30th Sep 2020. 6 months Revenue of 80.5m against 39.8m for the same period in 2019. This half year revenue also exceeds last year’s full year revenue which was 76m.
In this period they have also paid off the last 0.8m of debt that they used to buy slightly mad studios and now have 49.8m in cash up from 24.8m in March. This is equivalent to 32p per share.

[john09] 07/10/2020 09:22

This is either going to new highs or it’s a head and shoulders forming with a move to 300 - 320

Unclear

[babbler] 07/10/2020 08:43

Shaking those stops now.

[john09] 07/10/2020 08:08

Yep I’m in profit bought a week or two too early. Let’s see if it makes new highs

[mauricemonkey] 07/10/2020 07:55

Sparkling update this morning. Should smash revenue forecasts this year having doubled sales y on y.

[john09] 30/9/2020 21:57

2 major institutional investors selling too judging by RNS this week. HSBC now below the threshold. Be good for them both to clear

[shanklin] 30/9/2020 16:14

Agree with rm77

The acquisition is definitely not based on the quality of these new releases. I imagine CDM have every confidence they can make the next release of each a great deal better.

Surely it’s all about being the dominant player in racing games.

[riverman77] 30/9/2020 16:05

Yes those 2 games don't seem particularly impressive, but I think the acquisition gives them other valuable things - around 100 developers and additional expertise in the racing genre. This should further establish their lead in this area and increase barriers to entry. The franchises themselves could also be improved for future versions.

[riverotter] 30/9/2020 15:46

Gamers not impressed with Fast & Furious or Project CARS 3. It seems the first two releases by Slightly Mad Studios under the Codemasters label are a bit of a car crash (excuse the pun). I've trimmed my position in trusty old Codies, few thoughts here...

hxxps://riverotter.co.uk/2020/09/30/slightly-mad-car-crash-at-codemasters/

[john09] 30/9/2020 14:05

Yep. Unduly weak over here. Look at FDEV too flying