Keywords Studios Share Discussion Threads

[steeplejack] 26/9/2019 17:03

Well £8 is consistent with your thinking that the stock should be trading on a multiple of around 12.Having listened to the presentation,I think such a rating would grossly undervalue the shares but who knows.This is AIM listed.

[scooper72] 26/9/2019 14:50

Many thanks

[scooper72] 26/9/2019 13:38

Sorry - the phrase under distribution- could u explain for me. Thanks

[scooper72] 26/9/2019 13:37

I've picked up a few extra as the re trace down seems to have gone quite a way and I would have thought it should find some support around 1000p

[1670127] 26/9/2019 13:35

The results were solid but not outstanding and there appears to be an increase in short holdings. My guess is some of the companies they aquired with part payment in shares, are getting jittery and are offloading given the price drop. I still expect this to trend down to 8 pound per share over time you can read my previous posts on my reasoning. If you believe in a strong future growth story this number will not be reached!

[davr0s] 26/9/2019 13:10

Trend broke a lot time ago - it's under distribution but no one wants to hear this

[ali47fish] 26/9/2019 13:09

what onearth is happening here no comments from anyone-sp keeps falling!

[steeplejack] 23/9/2019 06:51

Absolutely,the brokers/bankers play to the gallery.The whole system of dual capacity ie running proprietary books while concurrently masquerading as providing objective advice,is fundamentally flawed.This has been the case ever since Big Bang back in 1986 but has become more pernicious as brokers have refined the best way to squeeze money out of the system.We all know about investment banks who recommend stocks to its clients (while manipulating their discretionary books to their advantage) and doing exactly the opposite on their proprietary books by shorting stock.The result is a lack of trust which has contributing to a sharp reduction in public listings over the last ten years as companies struggle with burdensome regulation and indifferent broker support.'Smoke and mirrors' is nice term for out and out manipulation.

[lopans] 22/9/2019 08:26

Anyone notice that Peel Hunts sell recommendation coincides with a short position increase on the same day and another short increasing a few days earlier. All 3 funds primed and ready..Smoke and mirrors????

[scooper72] 19/9/2019 15:02

Tempted to do the same but for now will sit tight.

[steeplejack] 19/9/2019 14:50

Let me assure.....it IS people playing around!

[scooper72] 19/9/2019 14:08

Even though my buy yesterday was a good call it is still a bit unnerving to see it then bounce back so much today. Just hoping its not people playing around

[steeplejack] 19/9/2019 10:23

Yes,it is an excellent presentation.Yesterday here,it was mentioned that NASDAQ technology stocks are on an average PE of around 12.Frankly,I think this company can easily wear a PE of 25.The organic growth prospects are exceptional.This is not a capital intensive business but it’s high margin.The company can and is reaping very clear synergistic benefits from its acquisition policy which is far from scatter gun or ill conceived.The short term consequences of the move to new consoles is more than likely to be compensated for by operational cost savings.In any case,new consoles grow this business long term as does the trend to outsourcing.I reckon this stock should be trading around £15 currently.The thing is,equity markets are currently pretty nervy.There’s a tendency to run to the hills with the big caps.The climate doesn’t necessarily favour KWS just now but the long term growth prospects are undeniable.

Hope this company seeks a NASDAQ listing one day.I think it’ll find one more than useful especially when on the acquisition trail.

[1squintyflinty] 19/9/2019 09:10

Excellent presentation.

[steeplejack] 19/9/2019 08:49

Date Broker name View Closing price Old price target New price target Broker change
18-Sep-19 Liberum Capital Hold 1,213.00p - 1,700.00p Reiteration
18-Sep-19 Peel Hunt Limited Sell 1,213.00p 1,310.00p 1,210.00p Reiteration
31-Jul-19 Jefferies Buy 1,663.00p 1,916.00p 1,970.00p Reiteration

...back in late April,a non executive sold some £7.5m worth of stock at 1504p.The stock stands on PE to Dec 2020 of around 22.A fairly influential broker in the smaller company market is a seller.Technically,the chart is pretty awful with support around £11-50 and then just above ten quid.All helps to make me a long term holder I guess.

[tomps2] 19/9/2019 07:30

KWS H1 19 analyst presentation from 18.9.19

Great overview of the business, and the opportunities. The opening trailer is fun!

[melody9999] 18/9/2019 23:29

What surprises me is that today's numbers were well signalled in the TU on 310719. At that time the share price was 1650p+.

I was expecting the share price to continue to recover back towards 1650p so to be honest this has caught me out today.

I don't see anything in the news today that explains a further 25%+ reduction from 1650p down to 1220p - but maybe someone can enlighten me?

[rivaldo] 18/9/2019 23:01

Both Numis and Citi are positive - it's ironic that short-term investment in growth to meet increasing demand and raise margins going forward should be met with a reaction like today's:

"1226 GMT - Keywords Studios will benefit from its expanded capacity in the second half after investing to satisfy strong demand in the first half, Citi says. The Dublin-based, London-listed provider of services to the videogame industry says it has started the second half well and expects continued organic growth, although at a lower rate than in the first half, and stronger margins. In light of increased demand across all its service lines, the company pulled forward its capacity expansion plans and invested in recruitment, training, IT and human resources, Citi says."

"1326 GMT - Keywords Studios was hit by lower margins in the first half, but the issues behind that are expected to be temporary, Numis says. These margins headwinds should start to abate in the second half and be gone next year, as they are the result of costs associated with an unexpectedly rapid increase in staffing, higher operating expenditure and an inherited underperforming contract, Numis says. The Dublin-based, London-listed provider of services to the videogame industry should benefit from structural industry growth, further outsourcing and value-creating acquisitions, the brokerage says."

[steeplejack] 18/9/2019 16:10

Hope you're right....but I'd already bought on the last dip around 1280 so I'm holding off for now.Other fish in the sea.

[robow] 18/9/2019 16:08

I joined you

[scooper72] 18/9/2019 16:06

Well. The drop was big enough for me to pick up a few. Decided not to wait, will find out over next week if I have been a bit impatient

[robow] 18/9/2019 16:01

fall seems overdone to me

[steeplejack] 18/9/2019 15:59

Falling on high volume,around the highest for a year.The company seem hellbent on acquisitions but Peel Hunt seem mindful of possible hiccups.Its not always easy to integrate acquisitions easily or avoid potential pitfalls.Been treated churlishly today but the shares had bounced by 10% over the last week.£11 looks probable.

[scooper72] 18/9/2019 13:18

Tempted to pick up some more. ...but will probably wait a day or two and be cautious