Games Workshop Share Discussion Threads

[nimbo1] 19/3/2020 10:52

what price does capitulation look like here? £30? no idea myself....suppose it depends on the next update.

I personally feel given the circumstances GAW should have announced something to the market about their mitigating steps ref retail - if anything and their online sales (I assume increasing!) and their supply chain etc being intact. What steps are in place for their warehouses - I note an amazon warehouse has closed due to someone contracting corona etc.

Im sure they are doing fine would just be nice to hear - perhaps no news means business as usual!

[saurish] 18/3/2020 12:01

Bought some @41. After making a fair few mistakes in the current market capitulation, I intend to hold on to this one. GLA.

[shanklin] 18/3/2020 11:48

NC, What a lovely article

[norbert colon] 18/3/2020 11:40

https://unherd.com/2020/03/self-isolation-is-feeding-my-warhammer-addiction/

[robinnicolson] 18/3/2020 08:27

'Warhammer online' as a search term unsurprisingly shows a very large spike on Google Trends. GW have cancelled all scheduled events at Warhammer World but are organising new 'online events'.



The current very strong dollar should be beneficial to the business.

[nimbo1] 17/3/2020 15:41

I also just picked some up - GL

[rathean] 17/3/2020 15:14

Opened a small long term position today, so pleased to get in at this share price and will add if it drops another 25%.

[prospective investor] 13/3/2020 10:07

Lets hope we see some director buys in the next few weeks!

[epo001] 13/3/2020 10:00

One thing is sure, the director sale a few weeks ago now looks like perfect timing.

[daijavu] 12/3/2020 12:17

Chwarae teg, you could say that. I've been around a while :)

[pilkington] 12/3/2020 11:34

daijavu - you`ve obviously seen this before.

[daijavu] 12/3/2020 10:37

I sold all my shares, including GAW, a fortnight ago. I'm glad I did. I hope to buy back when the dust has settled and that I'll be lucky enough to buy back at the bottom. It'll be a difficult call because, even after Corvid 19 has been sorted, it might take some time for companies and markets to recover and there could be further drops before they do.

[nimbo1] 12/3/2020 10:00

I followed my stop loss policy for self preservation purposes a couple of weeks ago. So my holding is less than it was.

My fear here is the UK has to go down the same route as Italy and close shops etc. Or perhaps worse one person in the GAW factory gets coronavirus and production is disrupted.

If that happens surely the last divi would be cancelled because their very generous policy of paying out all surplus income suddenly backfires. I appreciate the customers might be panic buying to give themselves something to do at home as the counter to that.

Any thoughts to ease my fears? or am I just letting a bear market go to my head...

[nod] 11/3/2020 12:40

Nallen1, you will be rich if you follow Warren's advice and not just read it a hundred times.

[sd_anon] 10/3/2020 20:19

You are not wrong nod. I am guessing that 'others' are going to get a lot more fearful yet.

[nallen1] 10/3/2020 19:13

If I had a pound for every time that's been trotted out this week, I'd be proper rich.

[nod] 10/3/2020 07:31

Warren Buffett once said that it is wise to be "Fearful when others are greedy and greedy when others are fearful."

[luderitz] 06/3/2020 14:07

Well done SDA and very sensible, as they say it’s only a profit when the money is in one’s account.

Buy back when markets have settled, GAW seems a very well managed outfit so marginal risk IMHO.

[cockerhoop] 06/3/2020 12:32

Whilst it's impossible to gauge the extent of the Corona virus I imagine most GAW hobbyists would welcome a couple of weeks self isolation to catch up with modelling and painting, ordering online from GAW or the multiple independent retailers.

No company is completely immune from short term disruption but GAW certainly has the balance sheet strength to see any choppy waters out imo.

[10ak] 06/3/2020 11:36

Nice insight. As a long term holder, what is your target buy back price?

[hazl] 23/2/2020 16:43

OT
sogoesit.
I have sent you a P Message about 5G .

[sogoesit] 23/2/2020 09:37

From an article in this week's MoneyWeek titled "The end of outsourcing?"
(Vertical integration strategy vs outsourcing)

"From a long-term investor’s point of view, then, financially robust and highly profitable vertically-integrated companies are a compelling prospect. As Renishaw’s recent experience illustrates, however, investors should be prepared to ride out some nasty short-term share-price dips. Here are my favourites to consider.
.....

Games Workshop (LSE: GAW)

Games Workshop is the company behind Warhammer, a unique presence on the British high street. The stores are dedicated to a single hobby, Warhammer, which involves painting science-fiction and fantasy-themed model soldiers and associated props and using them to play out fantasy battles according to rules made up by the company. The battles are set in two imaginary universes with rich histories mythologised in countless books and magazines published by Games Workshop.

It is, perhaps, the most vertically-integrated company of all those mentioned in this article. Games Workshop manufactures models in Nottingham and operates two additional distribution hubs in Memphis, Tennessee and Sydney, Australia. From these it supplies its own stores, customers who order online and independent hobby stores. Over half of total revenue in 2019 was earned through Games Workshop’s own channels.

The company has experienced a dramatic surge in popularity in recent years. This is due to incremental improvements inspired by insights only possible because of Games Workshop’s deep-rooted relationship with its customers, from which it recruits store managers. It has changed the materials it uses to make more detailed models, relaunched games with simpler rules and new stories and launched Warhammer Community, a website that supports and markets the hobby. It also earns income from video-game developers, who license Warhammer’s characters and stories, and is planning a TV series.

Surging sales have led to an even more remarkable increase in profit due to the company’s fixed cost base. In 2019, Games Workshop earned a remarkable 45% return on capital, three times the return it earned a few years earlier. The shares are not cheap, though. They are on a debt-adjusted p/e ratio of 35 and recent sales of shares by directors suggest that, for now at least, the share price is finally catching up with expectations."