Keywords Studios Share Discussion Threads

[rivaldo] 10/12/2015 08:14

New interview with the manager of the Amati funds, with a good plug for KWS. Mind you, I think he needs a new calculator....



"Another stock in which he has invested of late is Keywords, another company that came to his attention via an investment from his VCT funds, but that has now found its way into the smaller companies fund.

Keywords is a company that provides customisation and translation services for computer game manufacturers, Lawson takes up the story, ‘So if a firm creates a game that involves the characters walking on a street, well in the US they would pass a 7-11, but in the UK it would be a co-op or whatever, and those changes are made by Keywords.’

On where he sees the future growth of the company coming from, he said, ‘the key here is that the market is very fragmented, there are little companies all over the world doing this, but Keyword is making acquisitions, and trying to get to the point where it can provide its services in a range of different countries. It is trading at 13 times earnings right now, but bought a company that trades at 5 times earnings, so that is a value accretive purchase.’"

[rivaldo] 02/12/2015 09:21

RNS - Hargreave Hale/Marlborough have bought more, and are now up to 2.56m shares (their last RNS in June had them at 2.44m shares):

[bamboo2] 26/11/2015 17:00

Price hits H&S target but fails to confirm chart pattern high target. For now.

[modform] 26/11/2015 16:43

Good to see you onboard Scottish, hoping this will be another OPAY.

[scottishfield] 26/11/2015 16:18

Yes, bought today also modform, good to see you here, you're confident obviously.

[modform] 26/11/2015 16:09

Added some this morning, now 6% of PF, serious holding now. An extremely exciting and early stage growth company.

[saucepan] 26/11/2015 15:19

Thanks for that link, rivaldo!

[rivaldo] 26/11/2015 15:01

Good interview with the CEO here. Three things to stress:

- strong support from the City
- looks like new acquisitions are imminent, possibly even before Christmas, with "a number at reasonably advanced stages"
- acquisitions will likely be earnings-enhancing being say 70% cash, 30% shares

http ://www.proactiveinvestors.co.uk/companies/news/119731/keywords-studios-raises-1045mln-for-new-acquisitions-119731.html

[saucepan] 26/11/2015 14:46

The market is clearly impressed. The price did not stay down for long; weak holders and profit takers have now stepped aside it would seem and those who have been waiting for a dip to take part in the ride are now jumping on.

Onwards and upwards from here, hopefully.

[soupdragon55] 26/11/2015 14:02

Back into positive territory now.

[rivaldo] 26/11/2015 07:36

Happy with that - a £10.5m fundraising at 190p for further acquisitions. The placing price is fine given the recent meteoric ascent.

And importantly, there's also a trading update confirming that trading for the year should be in line with expectations:

[saucepan] 26/11/2015 07:35

Placing of 5,500,000 new ordinary shares at 190 pence per Placing Share (the "Placing Price") to raise approximately £10.45m. That should put a floor on any further share price drift.

It sounds like they have acquisition targets lined up, so hopefully not long before further news to drive the price onwards.

[bamboo2] 25/11/2015 21:31

I like the chart. It looks like a flag, but is slightly long in the tooth. The share price has dropped away, and formed a small Head and Shoulders pattern that could indicate a potential dip to 196. An upward b/o is confirmed by an eod close above the upper trendline of the flag. The precise target depends the share price at b/o, but is currently around 248. Will keep on watch list.

[saucepan] 25/11/2015 21:15

modform: I lived and worked in India for four years and still visit regularly for short assignments. While that does not give me an inside track to SPL specifically, I like to think it gives me a bit of a feel for it and for the country as a whole. I would not be in SPL, however, if I did not think the technicals were on my side. I have traded it twice unsuccessfully with tight stops (more than a year ago). My current entry was timed near the all time low, so I am lucky enough to be well up now. I hope to run my position, but will not now let it turn into a losing trade (the risk of overnight suspension notwithstanding)!

I do think SPL is largely a binary situation: either the port will get built and the share price should do well; or the port will not get built and the investment will be a disaster. Obviously, my conviction is very much aligned with the former. I acknowledge that there is a third scenario that could hammer the share price - if fraud occurs and is exposed (GBO comes to mind). I am prepared to take the risk for now. SPL is not my usual investment, and the only foreign AIM stock in my current portfolio. I just feel it is a rather special situation - but could be deluding myself :-)

(Apologies for off topic).

[modform] 25/11/2015 20:32

Saucepan, you gave a shock, I had to clean my glasses twice, are you invested in the Indian port company, that has to be a trade, but good luck.I am also astonished that such a big order hasn't moved the price, there has to be a large seller in the background.

[saucepan] 25/11/2015 18:45

Yes, it would be great to hear some feedback if anyone would be so kind.

MG1982, it does seem a bit odd that such a large reported buy has not moved the price. I wonder if there is an overhang or the price is being held back to enable the completion of large orders? Such large volume and lack of price action, in my experience, is often soon followed by a large move when the market makers are ready to let it go again. (That kind of thing has just happened at SPL today).

[mg1982] 25/11/2015 11:18

Did anyone attend the Sharesoc event yesterday? A chunky 115k buy gone through. People are probably waiting for a dip before they buy

[saucepan] 22/11/2015 19:35

I'd love to be at the ShareSoc event (ISL is presenting, too, which I also hold!). Unfortunately, I have other commitments and cannot get down from Yorkshire.

It would be great to have feedback on this thread if anyone can manage that.

[sharesoc] 22/11/2015 16:02

Keywords Studios present at our next growth company seminar which is on Tuesday. Shareholders and potential investors may be interested in attending:

[saucepan] 27/10/2015 16:20

Thanks, rivaldo.

[rivaldo] 27/10/2015 08:54

Detailed coverage of that Finncap initiation:

http ://www.proactiveinvestors.co.uk/companies/news/116528/keywords-to-take-advantage-of-surging-video-game-market-116528.html

"Keywords to take advantage of surging video game market
11:34 22 Oct 2015

Keywords Studios (LON:KWS) is in the perfect position to take advantage of a buoyant gaming market, according to broker finnCap.

Global gaming revenue is around US$91bn and forecast to grow around 8% per year while, at present, the outsourcing market is worth around US$4.7bn.

Video game development service provider Keywords offers a range of skills including translation, localisation and, most recently, art services to game publishers.

Its service offering opens it up around US$3.6bn of this, but with some 81% of video game services still completed in-house by game developers, the broker reckons the service outsourcing market could grow rapidly.

finnCap cites rising development costs and the digitisation of distribution channels as reasons publishers could look to control costs by relying on outsourcing companies.

Keywords’ diverse offering, six different services from 16 locations, makes it “significantly more comprehensive than its typical single service/single geography competitor,” the broker added.

This advantage has led the company to servicing 21 of the top 25 video games publishers by revenue.

Organic growth in its first half was 23%, showing the company’s “ability to win new business and keep existing clients,” finnCap said.

Some 80% of Keywords’ revenue is recurring, with this likely to be added to by an increase in constantly updated games, such as mobile, and the addition of more long-term projects.

Keywords has also completed some eight acquisitions since its IPO two years ago, with its most recent, Liquid Development, adding additional art services to its offering.

“The addition of art services has and will continue to improve/accelerate the group’s addressable market, growth rate, gross margin and revenue visibility,” the broker said.

It initiated coverage on Keywords by placing a ‘buy’ recommendation on the stock, with a target price of 245p."

[rivaldo] 22/10/2015 11:20

Finncap have initiated coverage today, with a Buy and 245p target price:

[soupdragon55] 21/10/2015 18:48

Maybe not yet for Zak

[rivaldo] 20/10/2015 14:22

Chartist Zak Mir sees 275p coming FWIW:

Http ://www.shareprophets.com/views/15860/zak-mir-s-bull-call-of-the-day-no1keywords-studios-275p-resistance-line-projection-target