Keywords Studios Share Discussion Threads

[aimingupward2] 06/10/2017 12:41

- and, in addition, expansion is foreseen, beyond games, into, e.g., e-learning, film and T.V., etc - and "we do already have some clients there".

So, plenty of scope!

[rivaldo] 06/10/2017 07:23

I came across this nice summary of KWS' analyst briefing from two weeks ago not posted here before - some choice snippets:



"Keywords is bullish on the USD 109bn global games market, as estimated by NEWZOO in its 2Q 2017 Global Games report, and which is forecasted to grow at 6% CAGR through 2020.

The services segment is estimated at USD 5bn per annum and nearly 50% is currently outsourced by games developers to third parties.

Amongst Keywords client base of about 400 developers, they claim to service 23 of the top 25 games companies by revenue (as ranked by Newzoo in June 2017) and seven of the top mobile games (as ranked by PocketGamer in May 2017)."

"Emphasizing his confidence in localization, Day shared a comment to him from his Managing Director for Europe Fulvio Sioli who said “it just feels like it’s become a tipping point and Keywords has become the go-to player for game localization.”

"Keywords remains committed to acquisitions as a driver of growth, with Day telling analysts they “have plenty of opportunity to do accretive deals.” It is targeting 4 to 10 acquisitions a year at USD 2-10 million per acquisition and it has a new EUR 35m revolving credit facility from Barclays Bank with which to fund the purchases."

"Asked by an analyst if he were open to acquisitions that are not immediately earnings-accretive but more strategic in nature, CEO Day said “I think it’s fair to assume that if we do a larger deal it might come at a larger multiple than the deals we’ve done so far” but he stressed that he “would hope we don’t get to the point where we do deals that are not accretive.”

[djbilywiz] 05/10/2017 22:17

Agree bamboo, chart looking interesting. Be nice to see a breakout on large volume.

[bamboo2] 05/10/2017 14:46

Looking for an eod close above 1406 to confirm an INVH&S with a min tp of 1566

We are now looking at a number of concurrent chart patterns.

Time to add more?

Historical resistance at 1483 possible.

[aimingupward2] 04/10/2017 15:44

Sounds wise, bamboo.

[bamboo2] 04/10/2017 15:33

aiming up, A potential turn in the chart has me starting averaging back in today.

So far, the retrace was not as deep as I had expected, and I paid about the same as the earlier sell. Have space for more.

I think the consolidation period could end soon with another attempt on 1400.

[rivaldo] 01/10/2017 15:43

Amati VCT 2 published their interims last week, and had this to say about KWS:



"The greatest contributor to performance over the six months under review was Keywords Studios ("Keywords"), the technical services provider to the video games industry, its shares rising 109%. Keywords continued its acquisition strategy, acquiring five businesses, which all fit the template of expanding the group's geographical coverage and service lines. The most eye-catching of these recent acquisitions were a software development business and a video games content management software provider, both giving Keywords entirely new services to offer their customer base.

Keywords finds itself in an enviable position: its market remains highly fragmented yet customers wish to deal with fewer vendors. By continuing to consolidate its industry, it can present itself to video games publishers as a one-stop solution for all video games support services. The market for outsourced video games services continues to demonstrate healthy levels of growth which, when combined with earnings enhancing acquisitions, provide a powerful catalyst for shareholder returns."

[aimingupward2] 30/9/2017 20:01

I agree, bamboo, that there may well be a bit of a setback on the way further up - as you say it's unlikely (I would say virtually certain) that it won't be a straight line.
However, the chances of being nimble and fortunate enough to profit from going out and getting back in again are small and, in my view, not worth the risk.

Nevertheless, good luck to you, if that's what you've decided to try.

[bamboo2] 30/9/2017 09:58

My target price has not changed.

While it is possible, it is unlikely, that the target price will be achieved in a straight line. I loaded up [in fact averaged down] at just over 1200 approx 21 Sept and felt the need to protect profit.

I am trading the potential turn. It may or may not happen and I could have got the direction wrong. We'll see early next week. Will look at charts later on this weekend.

[aimingupward2] 29/9/2017 23:42

The iii site lists the 'best AIM companies of 2017'.

KWS is in line to win the title of 'best growth company' of the year with Gear4Music cited as probable runner up.

Bamboo - dear me, one day you say your tp is 1670 - 1703 and the next that you have sold out but 'will be back'. At what sort of price do think you'll be willing and able to buy back in, may I ask?

[bamboo2] 29/9/2017 10:10

al, thanks!

Price has hit historical resistance this morning.

Potential turn marked for today or Monday, although I am unsure of direction I am knee deep in profit so have pulled the plug.

Gla. Will be back!

[allstar4eva] 29/9/2017 08:46

Good call on this Bamboo

[panic investor] 28/9/2017 12:43

AU2 - promised around 7 this year and one could be huge by the sound of the presentation

[bamboo2] 28/9/2017 12:33

Good to hear another voice.

My updated tp is approx 1670-1703

edited after rechecking calcs.

[aimingupward2] 28/9/2017 12:14

Positive write up in I.C., with a forecast eps this year of U.S 30 cents and a BUY recommendation on the basis of continuing acquisitions.

[bamboo2] 26/9/2017 10:45

Overhead Gap closed.

Suspect we will have some consolidation for a few sessions, as up against recent historical resistance. Then next stop is 1390. gla

[bamboo2] 26/9/2017 09:25

Gap closing day today, by the looks of things.

Ideally I would like to see an eod close above 1335 sometime this week.

[bamboo2] 21/9/2017 16:40

Great price action today. I think this has quite a bit further to go.

[panic investor] 21/9/2017 12:41

Nimbo that will break out don't worry

[nimbo1] 21/9/2017 11:36

yesterday i had a choice of buying a lump of burford or KWS. of course I chose burford, much to my consternation.

[m4ybe] 21/9/2017 08:45

Think also getting a push in the right direction from FDEV finding buyers for 10% last night, as they are both growth in the same sector.

[bamboo2] 21/9/2017 08:26

Added this morning at 12.07
Price hit 50sma, historical and trendline support yesterday. Potential turn today/tomorrow.

[scooper72] 20/9/2017 21:33

Also just watched a good chunk of it. V impressive update. It reminds me of a journalistic piece that said Keywords is an obvious way to get exposure to a rapidly growing market. Much better than buying Nintendo shares etc. Go to the guys who are smart enough to provide all the services to the big name developers and console creators. Feeling v reassured.

[mysteronz] 20/9/2017 21:07

Just watched the video, thanks to PI world. What a company :) always a happy holder here.

[scooper72] 20/9/2017 15:29

Well I was silly enough to get my £20k stopped out yesterday at 1245p. But ended up buying back in this morning at 1236p. Should have waited until this afternoon. Oh well.