This is an out of favour stock, that's obvious. However, is it a bargain or a value trap?
This company is valued at 76m with over 30m net cash (growing higher each period). I think the problem here is that the market thinks the cash will be ploughed back into poor acquisitions. A new strategy is needed here, for either buybacks or dividends.
Imo at this low valuation and such high mgt ownership that change of strategy is likely. When you have such a high cash amount and low valuation, there's a lot of options for mgt. Time will tell. I don't think valuation will be low for much longer. Bottom fishing is a tricky game with small caps, though. |
Bgt in here today. Complete contrarian pick. Chart looks poor, etc. However, ?30m cash with ?80m mkt cap. Cash has grown ?13m in the 7 months since last May (fy results). H1 showed 11.1p eps. Hopefully H2 will equal or beat that, so perhaps 23p fy eps with a p/e under 10. Looks cheap for a tech stock. Even though we are in a downtrend, this level has provided plenty of support in the past. Though I admit there's a chance we could go under 200p again.
35% owned by management is also a good sign that everyone are aligned to improve the share price. Let's see how we perform over the next few months in the run up to end May (FY end date). Target a 300p share price by the summer. |
SUMO, who Tencent acquired a while back for ~£900M, are cutting back to just doing "work for hire" development.
Cant see Tencent getting the chequebook out for further investments/acquisitions in these tough market conditions for videogame developers. |
When's the next game release, wont be difficult to beat last release figures methinks. |
...it's because you don't understand valuations and never have. The valuation is pricing in modest disappointments. Anything better than that and the shares are off to the races.
You can't appreciate how lowly this is valued. I expect by year end net cash will be close to 35m, maybe even higher. That will be the next positive surprise for the market. |
mortality, not sure which period you're querying, but the reason the share price is down 20% from the Planet Coaster launch is the game turned out to be another embarrassing poor-quality loss-making dud. The launch-day player review score was the lowest of any Frontier game I recall. Despite a swift emergency price drop, takings over the industry's biggest month December were an insignificant £2.5m. Steam player numbers are down 90% and the game is now out of the Top 250 sales chart, with nothing to suggest it will ever return. Sp down only 20% is mild, considering. |
 Tipped?
14:05 Update
Nipped in and out of this on that little plunge down toward 220p - taken about 14 pips. I was looking for a better price as per the post above as the price had run away on the update...... BUTTTT......
The price has gone higher so sat wondering whether it is going to keep going. Clearly some form of bullish crossover from EVPL (formerly TM17) yesterday as the market wonders if the bottom is in the sector or at least some stability.
A little scurry of buying after 12 - dont know if that is a tip or the market is getting behind this for a bigger breakout
And now...
I can see someone is working a larger than normal buy order in the market. It is deceptive on the book. This share falls over on nothing selling, but someone is having a go here in mopping up at 235p, 239p and now 240p.
Just don't know how big the order is and whether it will eat through the orders on the offer at 243p-245p to cause a bigger breakout.
Is it a big order? How many do you want mystery buyer?
All imo
DYOR |
Dnt miss Neo energy guys news soon will blast that to 2/3p |
No sign of amt / yank? Crying into their pillows? |
At 250p it's worth £100m which is a p/e of over 20. Is the market expecting a jump from £4.5m profits next year? |
Ive always said it's worth 4 quid plus.
Now all that nonsense about planet coaster is out the way we can look forward to the new Jurassic world game and a significant step up in elite dangerous.
Then after that we have planet zoo 2... |
A re-rate to 300p?
Frontier has delivered a strong turnaround in financial performance in H1 FY25, following the return to profitability achieved in the second half of FY24.
· Revenue of £47.3m million was in line with management's expectations.
· Actions taken in the preceding financial year to reduce costs and reshape the Company delivered a turnaround in profitability of over £9 million to an Adjusted EBITDA* profit of £4.4 million.
· An improved cash position of £27.2 million at 30 November 2024 grew to £30.5 million at 31 December 2024, which is before receipt of December revenue. |
This looks the one that the market was expecting alot worse on.
Quite the mark up though.
Is it going to settle down abit and provide a better entry?
Watching to see how exchanges pan out here. That sounds like they should come in and re-rate it.
Wrong/sort of right?
Crazy nutty bullish optimism?
All imo
DYOR |
Market is so irrational. People fretting about Planet coaster 2 lol.
Actually planet coaster 2 was ok and other franchises like Elite are going from strength to strength.
Sub 0.5x ev/sales.. when every other developer in on 1x.
Someone remind me why this company has shed 50m in value in the last few months? |
Guaranteed that yank and his / its ilk will turn up in due course say they actually bought in this week |
Agreed. 400k base on PC2 was more than I expected. |
Super happy with these results.
Almost half the market cap in cash.
I not super happy with the share price. Should never have fallen so far. |
A lot of know nowt experts around these days.... |
Looks like you ladies were wrong Glad to have bght in here at 186. Shld see 200p today |
Doesn't look good, a lucky escape for me. |
Remember April? Peeps here writing e.g. "Planet Coaster 2 announcement in June. Road back to 1000." Reality is road back to 100.
David Braben's management just added another nail to its coffin. A Planet Coaster 2 game update intended to fix bugs broke the game for many players, for some totally wiping their 100s of hours of coaster building work. Players retaliated by smacking last week's Steam review score down to 33% and the laughable Deluxe Edition extras score is down to 13%. Steam concurrent players is down to 25% of the predecessor edition at the corresponding time. Despite a second emergency price discount, game has disappeared from the Steam top 100.
Share price is down 33% from the game launch, and below 200p. |
Has seriously damaged the brand.....gonna take some restoring....the clowns! |
Hot on the heels of one disastrous Planet Coaster 2 launch comes two more. Yesterday FDEV released an add-on pack and "Premium Edition"... despite having delivered only a comprehensively broken and unfinished mess in place of the main game launched last month.
Result? Customer revolt, dislike-bombing the YouTube launch video and review-bombing the main game and DLC on Steam.
Video link < >
Despite FDEV making an emergency price drop of 20%, the game's Steam chart position is down to #83 - from #2 on launch. |
Over the period in question, the share price dropped 90%. Since the the last game release, it dropped 20%.
"continue to rise"?? The current continuous rise has lasted one day. |
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