Keywords Studios Share Discussion Threads

[mad foetus] 09/11/2017 14:35

The keywords for today being "nasty" and "reaming". Oh well!

[scooper72] 09/11/2017 13:52

Keeping my main holding but wondering whether to trade a bit on KWS. Anyone think it will get down to 1500 or below? After most of the surges it has generally tended to drop about 7% or so for a while

[nimbo1] 09/11/2017 12:03

reckon i'll be able to get a few more at 15

[ashehzi] 09/11/2017 08:45

Thanks Rivaldo.

[rivaldo] 09/11/2017 06:44

Video game maker stocks surged overnight in the USA:



"Take-Two Interactive Software jumped 10.58% after the videogame maker offered a stronger-than-expected revenue forecast for the holiday quarter.

That sparked a rally among its competitors, with Activision Blizzard surging 5.89% and Electronic Arts adding 2.19%."

[mad foetus] 07/11/2017 16:17

Lovely looking reversals last couple of days. Bodes well

[ashehzi] 06/11/2017 21:29

How's the chart looking now? I guess same as share price recovered at the EoD.

[bamboo2] 03/11/2017 16:16

Nice looking bull flag on the chart. Possible update next week?

[alphabeta4] 02/11/2017 19:50

It's funny, around this time last year I bought my first lot at c£4.40 and then fretted about my entry point due to it coming after a strong rise. The rest is history...

[nimbo1] 02/11/2017 11:11

i suspect in time it will be a profitable decision. GL

[mad foetus] 02/11/2017 11:11

First nibble went well so took a bite!

[mad foetus] 02/11/2017 10:36

Normally I would be more patient and wait for this to drift down to the placing price, but that doesn't seem likely to happen and so I've taken a nibble this morning. Compelling story here.

[rivaldo] 01/11/2017 14:08

Commentary from an analyst at Davy Stockbrokers on KWS and on the sector in general, plus KWS have been nominated for an award:



"Irish video gaming industry offers major possibilities
Monday, October 30, 2017

A measure of the growth possibilities offered by the video games industry in Ireland was underlined in last week’s major acquisition by Dublin headquartered Keyword Studios of US-based VMC Consulting for $66m (€57m).

It follows a number of smaller takeovers earlier this year by the Leopardstown-based company, which recently raised approximately €85m through a 10% share issuance.

Founded in 1998, the company started out providing spoken-word audio services for game producers, but has expanded significantly over the years through a mix of organic growth and acquisition, and is now listed in London.

Working with many of industry’s major players — EA Sports, Konami and Ubisoft — Keyword’s latest acquisition makes the firm one of the biggest players in its field.

“While this fast-tracks Keyword to No 1 in functional testing from No 5, this deal also brings with it the company’s biggest integration lift to date,” says Davy analyst Joseph Quinn.

“Outsourcing within the $100bn-plus video game industry is growing, and developers are increasingly turning to outsourcing partners to achieve faster content delivery, driven by the pace of mobile and online game development. Keywords Studios, the largest provider of outsourced technical services to the industry, is the leading consolidator within this space.”

Keywords Studios have also been shortlisted in the Deloitte Technology Fast 50 Programme 2017. The company has studios in London, Barcelona, Milan, Rome, Tokyo, Singapore, Shanghai, New Delhi, Montreal, Seattle, Los Angeles and Rio de Janeiro, employing over 1,500......

.....As a pointer for the video game industry’s potential future dominance of the entertainment sector, in 2013 Grand Theft Auto V made $800m worldwide in its first 24 hours - more than any single game, film or record in history. In the same year, global video games sales were $70bn, versus cinema’s $35bn."

[bamboo2] 31/10/2017 09:52

RNS from Octopus Investments, suggests that they have been diluted down below 6%.

[bamboo2] 30/10/2017 10:11

Added a few more this morning. gla

[rivaldo] 30/10/2017 08:04

Berenberg have this morning increased their target price to 2000p (from 1350p) and say Buy.....

[bamboo2] 28/10/2017 20:26

The invh&s and Bowl target completed this week, with a little hesitation and deviation. This led to some superb trading ops over the past few days, which I hope those inclined to do so, used to their advantage. I managed two, but missed a third, due to being busy elsewhere.

The htf tp [1844] has been joined by a standard [pun intended] flag tp at, coincidentally, min. 1840
I would not be surprised to see this top out [for now] near £20

A few potential turns indicated over the coming days. In fact too many for comfort, which means keep nimble if you're trading.
Buy and holds can probably stay safely asleep for the next few years!

Pot. turns 31 Oct/1 Nov x2, 3 Nov [tv], 6 Nov, 9/10 Nov.



PS, cheers to the management at KWS!

[panic investor] 27/10/2017 18:35

Great interview - pipeline sounds exciting

[shanklin] 27/10/2017 14:31

Rivaldo

Thank you for highlighting the proactive interview

Perhaps easier to access it from



Cheers, Martin

[alphabeta4] 27/10/2017 13:33

Hoping the €21m projected net cash at year end from the extra funds raised further backs that up Glaws :)

[glaws2] 27/10/2017 09:37

Very strong hint of more acquisitions to come in short order !

[rivaldo] 27/10/2017 09:19

New video interview with the CEO - sounds like they got tremendous institutional support to get the placing away at a "nice" price".

KWS will now be "unquestionably the largest provider in North America":

http ://www.proactiveinvestors.co.uk/companies/stocktube/8289/no-rest-at-keywords-studios-as-they-make-largest-acquisition-to-date-8289.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=7163-370414-PROACTIVITY+-+Sirius+Minerals+in+focus+as+new+commercial+deal+bolsters+Yorkshire+mine+development

"No rest at Keywords Studios as they make largest acquisition to date
10:13 26 Oct 2017

Andrew Day, chief executive of Keywords Studios PLC (LON:KWS), discusses with Proactive's Andrew Scott their acquisition of the North America-focused VMC Consulting for US$66mln.

Day describes the move as a significant step in their consolidation of the fragmented video games services sector.

Through a network of vetted private individuals, VMC is one of the leading video games beta testers and offers many cross selling and roll-out opportunities."

[nimbo1] 26/10/2017 09:36

got some more at 1580

[grabster] 25/10/2017 14:14

double../alpha../saucepan,

Yes, I think a US listing is summat they might consider next year perhaps, alongside an application to join the UK main market. But both moves are quite expensive to obtain and maintain. I would rather they waited until they are well clear of whatever threshold they have set themselves for doing so (if they have - which I imagine they will have). The admin requirements (and associated costs) of being on the main market are the same whether in the FTSE-250 or among the sub-250 players - so it would be foolish to go for it while only just above FTSE-250 size - in case they subsequently experience a dip that forces them to demote, which is embarrassing. Better to time it so they are comfortably into the middle of the 250 or above when they join.

[rivaldo] 25/10/2017 14:08

Just back from hols and thrilled by this latest acquisition - "transformational" is sometimes overused, but this is genuinely so.

KWS is now an 11-bagger for me from my initial purchase, but I see every reason to continue to hold for more.

Good coverage of Numis' upgrade to an 1865p target price in this article:

http ://www.proactiveinvestors.co.uk/companies/news/186181/keywords-studios-tipped-to-work-its-magic-on-slumbering-vmc-186181.html

"Keywords Studios tipped to work its magic on slumbering VMC
10:49 25 Oct 2017

Keywords announced a big acquisition yesterday and it may have added "a sleeping giant" to its portfolio

Numis Securities has given the thumbs-up to the acquisition of VMC by Keywords Studios PLC (LON:KWS) and upgraded the stock to 'buy' from 'hold'.

The technical services provider to the video games industry has a history of shrewd acquisitions and Numis said the latest one is “at a typically attractive valuation” albeit, at 11.5 times annual earnings, a tad higher than usual, reflecting the scale of the company being acquired, which is three times the size of Keywords' previous largest acquisition.

“Based on the expected total cash paid of c.$71m, Keywords is acquiring VMC for 1.25x trailing revenues and we estimate a post synergy P/E [price/earnings ratio] of 11.5x,” Numis said, as it readjusted its target price to 1,865p.

For comparison purposes, Numis noted Keywords itself is valued at six times 2017 pro forma revenues and trades on a P/E of more than 50.

In addition to US$2.5mln of targeted synergies, VMC brings two new service approaches to Keywords: 1) embedded technical services; 2) the "Global Beta Test Network", described by Keywords' chief executive Andrew Day as “testing games in a real world scenario".

Numis said VMC's embedded technical services expertise could open the door to “long hoped-for broader outsourcing contracts”, which in turn could deliver significant longer-term organic growth.

“We model VMC delivering flat revenues in 2018, and look for improved processes to generate growth in 2019,” Numis said.

In yesterday's analysts' call, Day noted the significant disparity in VMC's margins and Keywords' own, and expressed confidence that Keywords could get VMC's margins up to Keywords' level.

“VMC's revenue excluding discontinued low margin contracts has been flat over 2015-2017, which we think is a poor result in a growing market, and we think better execution should deliver an improved performance in due course,” Numis said."