Keywords Studios Share Discussion Threads

[scooper72] 13/11/2018 14:13

Should have probably listened to some of your thoughts the other day

[jakeah1174] 13/11/2018 14:08

What is it now... over 40% drop in share price in a matter of 5 weeks, and in the absence of any bad news. Pretty crazy for a great company with such good fundamentals. Seems completely out of proportion now.

[scooper72] 13/11/2018 14:06

Not that anyone will be interested- but I have eventually sold. Will be wanting to go back in bit by bit. Probably more cautiously than I have done in the last 18 months.

[jamesjjj] 12/11/2018 23:19

Thanks bamboo. The problem with KWS at the mo is that it is showing weak relative strength from a technical point of view. I was hopeful that a consolidation was forming around 1400 but the volatility put a stop to that. I fear tomorrow the drop may continue as the volume was substantial with the price closing near the end of its range. As i suspected the major indices are showing signs of backfilling although if they test support I think it will be the last drop.Positive news will make it spike up but if that is not coming it may be a bumpy ride. I have no doubt it will eventually recover as the fundamentals are good but I sold out as I prefer to risk manage.With hindsight the stages after November of last year were showing signs of a crowded share and trading in the range. The good news is this shakeout will have frightened a lot of weak holders and that will help its reversal.For now KWS is like a rabbit caught in the headlights

[bamboo2] 12/11/2018 19:57

Chart shows potential turns 13/11/2018 & 16-19/11/2018
H&S in red, bear flag in blue.

[bamboo2] 12/11/2018 19:10

James, historical support is approx. 1100-1200

There are a two confirmed chart patterns of note, a H&S with tp approx. 1060, and a bear flag, tp approx. 1040

There is a t/s breakaway gap 27/7/17, 916-916.2, this could become a support zone.

Next potential turn date on the mid price based chart is 13/11/2018

[jamesjjj] 12/11/2018 18:39

bamboo i would be interested to know if you see any support anywhere?

[jamesjjj] 12/11/2018 18:27

i sold out all my holding today once it broke support. This could go anywhere now. I noticed after Fridays close a lot of buys which I think were probably shorts closed for the day only to be bought next day. I looked (for curiosity and not to short) on my platform if shorts were available to open on KWS and they were not meaning that so much was selling short that my broker was over its exposure limit. I will wait to buy in when there is some base consolidation. My concern is that a lot of the indices will probably back fill putting pressure against it going up with any real gusto.The trouble with KWS is the volatility is unreal.

[bamboo2] 12/11/2018 17:54

bull, I have pencilled in 31/1/19 or 7/2/19
They are often rns'ed beforehand.

[bulltradept] 12/11/2018 17:52

Am wondering when the TU is? Will have to do a bit of digging.

[scooper72] 12/11/2018 16:41

Well that was a tough day for KWS. People must be getting tempted to start opening new positions by now. I guess people are waiting for the stability to return before they come in.

[az4hr] 12/11/2018 14:18

U guys should buy up coz I’m selling my holding I have a sick ability of selling at the absolute lows I should be trusted with money no way useless till the end

[az4hr] 12/11/2018 14:15

U guys should buy up coz I’m selling my holding I have a sick ability of selling at the absolute lows I should be trusted with money no way useless till the end

[jamesjjj] 12/11/2018 12:38

1670127
KWS does have great potential but it is no good arguing against MR market

[1670127] 12/11/2018 11:38

I invest in shares for the long term, so it is important to look at fundamentals of the business and sector. In my view there are really two kinds of services, specialised and commoditised. Specialised services include Audio, Art and Engineering, commoditised include QA and localization.
Looking at the specialist services, these are high value resources. Audio is typically delivered using a network of in-country studios that work on demand. Most large games developers will have an in-house engineer to complete pre/ post production work and coordinate the projects with the studios. Smaller companies will use companies like keywords to handle the entire projects as the cost of having an inhouse engineer is too much for their projects. As such I already believe 90% of this work is outsourced. Keywords have made a sensible decision to set up a studio in London, where there is a large diversity of languages and voice actors. This is likely to be more expensive than in-country studios dealing with single languages but saves Keywords the double mark-up. There are opportunities for keywords to acquire additional in-country studios to grow business.
Art, highly specialised business with very high bill rates. All games developers have the potential to utilize these services as they are not used through the entire games development cycle so it is not viable to keep large teams of Artists on staff so need to augment their teams during peaks. Smaller companies may fully outsource. Good opportunities for Keywords here.
Games engineering is highly specialised, requiring high cost developers which are billed out to the client at premium price. A lot of this work will be completed by the developer’s in-house teams, this is their core business. That said a lot of this is “state of the art”, especially around automation so they can make use of external specialist teams as they don’t have the expertise. Game porting is not something they may be interested in as the developers want to focus on new content not the re-basing of existing content. This has huge potential for KWS.
All these services have good prospects for Keywords, the risks of the last two is retaining expertise in house and not having too large a bench. These resources can not flex in the same way as the commoditised services, resources are not likely to accept free-lance contracts as their skills are in demand. If Keywords can manage to achieve this I believe these services all have good growth potential.

[bulltradept] 12/11/2018 09:41

"Shouldn't company issue reassuring statement or trading update after about 40 percent drop on just 2months..?"

Not the way it works pal. They don't issue calming words when the price is appreciating, why should they when it's falling?

You occasionally get statements along the lines of we sae no reason for the fall, but rarely TBH.

[mp79] 12/11/2018 09:32

Shouldn't company issue reassuring statement or trading update after about 40 percent drop on just 2months..?

[phowdo] 12/11/2018 09:31

US videogame leaders EA and ATVI both fallen heavily, back to May 2017 levels.
Same here would be around 800p.

[chasbas] 12/11/2018 09:28

Disclosed short positions totalling 2.6%
hxxps://shorttracker.co.uk/company/GB00BBQ38507/

[scooper72] 12/11/2018 09:19

Sentiment. People get nervous when they see momentum going the wrong way. Either they are right, and they will be cutting losses or it's a good time to buy more as they are much cheaper than a year ago despite the figures alphabet has listed below.

[mp79] 12/11/2018 09:15

Why it is going down so rapidly without any news...anybody any idea?

[scooper72] 09/11/2018 16:31

That's annoying. I just bought a few more.

[debno] 09/11/2018 16:26

Shorters are getting the upper hand for now. We need another juicy acquisition or a better than anticipated trading update. Surely this will stop the rot here.

[aimingupward2] 09/11/2018 15:17

Fully agree, Alphabet.

I also think it's daft implying, as Mr Euro does, that KWS is not worth it's valuation because it's only a 'services' company. This labelling could be given to most tech/software companies. The important criteria, as you highlight, are profitability and rate and sustainability of growth.