Keywords Studios Share Discussion Threads

[traderglt] 08/2/2019 12:31

Nothing is a hedge on Brexit apart from forex

[1670127] 08/2/2019 11:12

Agree, it needs a stable base. Your number makes sense given some acquisitions have not been fully factored into the results. Could overshoot at the moment given the momentum. Would like to see a foreward forecast from the company.

[nimbo1] 08/2/2019 10:56

I would buy at a PE of 15 or so too once it forms a base

[nimbo1] 07/2/2019 12:55

Yes but it’s not a hedge on the gaming market going through turmoil. Ea, ttwo and ea almost halved. Ttwo the one to buy but sector sentiment getting worse not better. Fdev at the moment bucking the trend somewhat due to high quality results but was suffering before that.

[rathean] 07/2/2019 10:39

Looking to double up circa 950 but not before.

[bamboo2] 06/2/2019 17:13

H&S looks confirmed this evening.
Next potential turns 7-8/2/2019, 14-15/2/2019

[azure8269] 06/2/2019 14:21

Thanks Rivaldo.

Have been glad to read your logic with shares we both held over the last 10 years.
Kind Regards

Azure

[bulltradept] 06/2/2019 14:14

FDEV has done well one wonders if they are a good fit?

[rivaldo] 06/2/2019 13:40

Hi azure8269.

KWS are now on a current year P/E (for 2019) of only 21 given the forecast 55.1c EPS. That's extremely cheap historically for this stock.

If KWS make any acquisitions at all that rating will reduce - and KWS still have the capacity to make large acquisitions, which would reduce the P/E very quickly.

[bamboo2] 06/2/2019 12:20

bull, 27/7/17 was a breakaway gap in response to a t/u stating "first half performance ahead of our expectations"

I noticed an 'ugly' ie malformed H&S pattern, which confirms with eod close below approx 1060. The tp is actually a bit higher than 916, at approx 925

[azure8269] 06/2/2019 11:26

I notice there is 3.39% short stock so I hope they are closing so this can leg up

Same thing with LTG

What's your view Rivaldo?

[bulltradept] 06/2/2019 11:19

Ah the gap you are talking about is a gap which opened up at the previous day's high. Not sure it will break £10 currently, if it did then yes, entirely possible.

[bamboo2] 06/2/2019 10:56

Approx 1060 now key support, eod close below targets the prior breakaway gap [916-916.2] dated 27/7/17.

[bamboo2] 06/2/2019 10:49

bull, my continuation idea has gone up the spout too!
Having been approx 8% up, now stopped out approx -2%

[bulltradept] 06/2/2019 10:45

Oh well....lol

[bulltradept] 04/2/2019 15:45

bamboo2, Good volume on the update and a nice gap, be surprise if it closed soon given the update.

[bulltradept] 04/2/2019 15:43

Rivaldo,

Fair enough, but what I stated was correct, I wasn't as you appear to be doing, saying it was going to be a hold or a sell.

I only relayed what the IC had stated at that time.

[rivaldo] 04/2/2019 12:38

Actually the IC said Buy KWS just two hours ago:



"Tip Updates 2 hours ago
Keywords triggers relief rally

Shares in Keywords Studios (KWS) soared by more than a tenth after a full-year trading update allayed fears about its future revenue growth trajectory. The company’s market value had deteriorated since its September half-year results, ostensibly reflecting concerns not only about its ability to continue driving the top line, but also to integrate acquisitions. Not to mention the threat of heightened Chinese regulation affecting the broader gaming market.

Back on 21 December, the company had guided towards sales “in the region of €250m” (£219m) for 2018 – slightly below analysts’ forecasts – with adjusted pre-tax profits of €37m, in line with consensus estimates. But Keywords’ latest update suggested that things had improved; now, it expects revenues of “at least” €250m, and adjusted pre-tax profits of around €37.8m. Altogether, this means that revenues and pre-tax profits will have grown by 65 per cent and 64 per cent respectively year-on-year.

Organic revenues rose 10.1 per cent on a like-for-like basis. And these would have grown by 14.9 per cent, excluding VMC – a provider of video-game functional testing and customer support in North America – bought in October 2017 via a £75m share placing.

Keywords acquired eight new businesses last year, but still ended up with just €0.4m net debt. This compared with €11.1m net cash in 2017. Broker Berenberg expects net cash to increase to €24m in FY2019 and believes that – with its additional debt facilities – the group appears well-positioned to continue with its M&A strategy this year. Analysts here also note that China has lifted its gaming freeze. And though Keywords cited a weaker-than-expected performance from its localisation testing business, this stemmed from some titles shifting from last year’s fourth quarter into this year – something that should provide a boost to FY2019.

IC View

At 1,146p, shares in Keywords trade at around 28 times forecast earnings – undemanding against their own history. Given Q3’s encouraging signals, this could offer an attractive entry-point; the broader video games market is predicted to keep growing, and with such growth should theoretically come a need for greater outsourcing. Buy.

Last IC view: Buy, 1,860p, 19 Sep 2018"

[bamboo2] 04/2/2019 08:59

Looking for an eod close above 1216 to confirm the first of the INVH&S reversal patterns.

[bulltradept] 03/2/2019 18:05

Perhaps it was the IC saying their rating was 'under review'. They had KWS on a buy now, not sure.

Will let you know when we know.

[ali47fish] 02/2/2019 09:56

i wonder what has triggered today's retrace anyway investors chronicle is slightly negative as follows
Keywords Studios (KWS) expects to report revenues for the year to December 2018 of at least €250m – up from €151m – and adjusted pre-tax profits of around €37.8m, up from €23m. The tax rate, based on Keywords’ measure of pre-tax profits, continued to fall and is expected to be 19 per cent, down from 20.5 per cent. EPS is thus expected to rise 51 per cent to around 47c. Meanwhile, organic sales grew on a like-for-like basis by 10.1 per cent. Excluding VMC, like-for-like sales would have grown 14.9 per cent. Keywords bought eight businesses, and ended December with €0.2m net debt, against €11.1m net cash in 2017. The shares were up by almost a tenth this morning, but have fallen significantly in recent months; recommendation under review.

[bamboo2] 01/2/2019 10:07

Added a few more under 1170 earlier.