Team17 Share Discussion Threads

[scepticalinvestor] 24/11/2023 09:51

Might buy in at around 90p

[melody9999] 24/11/2023 09:42

Thanks Tom - good analysis. Think the MMs are filling a sell order at present which presents a buying opportunity at these levels - so I have taken a few.

[74tom] 24/11/2023 09:31

"This needs to half again to be on the same valuation as frontier developments. Still on 10x ev/ebitda which is very rich in this market."

Not sure on the maths or logic there there...

Market cap is £266m, cash of £45m at last results, so EV £220m, adjusted EBITDA of £28m, however that includes £11m of impairments, so operating cashflow likely to be nearer £40m. So it's now valued at just over 5x EV/ operating cashflow, which for a company that has consistently produced significant PBT is far from expensive.

It's also incomparable to FDEV which is a basket case, SUMO Group who were bought by Tencent for £920m in 2021 are a far closer benchmark IMO. That transaction was almost certainly the reason this hit £1b+ market cap.

TM17 have produced / developed many successful indie games & know their niche. Dredge has been a massive success since it's release in March & is almost certainly responsible for the beat on revenues, however they aren't the developer so the bottom line impact is lessened. Neverthess, this is surely a buy at these levels.

[shinnas] 24/11/2023 09:25

Liontrust doubled their holding in October ..so I suppose they were stupid too

[shinnas] 24/11/2023 09:10

Well no one was questioning when it was £3

.in fact a director bought 29000 in September... so maybe a director was a brainless idiot

[strawberry alarm clock] 24/11/2023 09:07

If you need to ask *why* you shouldn't be investing in the stock market Put your pennies back in your piggy bank

[shinnas] 24/11/2023 09:06

But needs to be 3x higher if you compare with another company... it's all subjective

[strawberry alarm clock] 24/11/2023 09:05

Over done ?You are clueless - thickos like you will always lose money

[mortal1ty] 24/11/2023 08:57

This needs to half again to be on the same valuation as frontier developments. Still on 10x ev/ebitda which is very rich in this market.

[bulltradept] 24/11/2023 08:44

.Didn't they lose their founder this year, IIRC?

[bulltradept] 24/11/2023 08:38

It could well be over done, but we shall see, give it time.

[owenski] 24/11/2023 08:37

"The Board remains confident in the long-term trajectory of the business."

The chart however, has been giving out a different trajectory for quite some time.

[blueball] 24/11/2023 08:30

Lots of selling.

[mortal1ty] 24/11/2023 08:12

Not sure why this business trades at a 300% premium to all the other developers.

[terminator101] 24/11/2023 08:10

Where are all the gerbils when you need them?

[martywidget] 17/11/2023 12:54

10 Nov 23 330.0 Strong Bull Senkou Span Cross
08 Nov 23 315.0 Bull Kumo Breakout
06 Nov 23 286.0 Weak Bull Chikou Span Cross
03 Nov 23 270.0 Weak Bull Tenkan/Kijun Cross
01 Nov 23 267.5 Weak Bull Kijun Sen Cross


free stock charts from uk.advfn.com

[boozey] 17/11/2023 12:26

Price keeps moving up here consistently. My view is that an institution is buying, but in an illiquid stock any substantial form of buying to secure a reasonable holding will inevitably push the price up quite substantially.

This point has been highlighted by the recent Holding announcement by Octopus Investments.

[boozey] 08/11/2023 13:29

se81, I have noticed this too - been up an upwards trajectory since 250p. I bought in after that clearout. Not often I get the timing right!

[se81] 08/11/2023 13:00

Quite the move up here from that clear out on Oct 13- its been really well bid that last few days- something afoot or just an oversold bounce?

[mr macgregor] 22/10/2023 16:25

Numerous red flags here. CEO stepping down and Chair and two NEDs leaving or left. Veiled profit warnings in the interims issued 19th September in which CEO talked about "a backdrop of one of the most competitive years for high quality launches and deep peer discounting that I can remember." ie. margins under pressure.
Note revenues were up but profit declining. Claim of cash generation doesn't tie in with cash decline over the year. Big development costs expensed through the balance sheet which flatters profit and the net cash inflow figure. Massive increase in trade payables.
CEO says "The Board remains confident in the long-term trajectory of the business." Note no mention of confidence in short to medium term.
Now the CEO of the Team17 Digital Division has left and they're reported by Endgamer to be laying off a third of the company in the QA, marketing, usability, customer service, IT and HR departments.
"So deep are the cuts that Eurogamer has been contacted by developers working on games set to be published by Team17 that have been left concerned about the company's ability to continue working on their project due to the sheer numbers of people likely to be made redundant, and the knowledge and skills being lost.
Development partners were not told of the layoffs before they were confirmed publicly by Team17, sources close to the company said. One developer said they first realised the team they had been working with was likely no longer at the company after seeing their posts on LinkedIn looking for new employment.
Team17 has not commented publicly on the reasoning for the restructure, but staff and development parties say they have been told the reasoning they have been given relates to the release calendar this year being particularly competitive for the business."
Bargepole job imo.
hxxps://www.eurogamer.net/full-extent-of-team17-cuts-threaten-third-of-the-company-sources

[sphere25] 19/10/2023 11:56

You can add 5% of the share issuance, and the market barely bats an eye lid, or continues to sell down in this market. It is a recurring theme out there, across all kinds of small caps. I am sat watching the price movements and exchanges on usually around 90-120 shares and it is so hard to get involved and fight these downtrends.

This sector is riddled with profit downgrades so the large sellers are a more natural dynamic, but TM17 has outperformed the sector and is making bullish noises on the outlook.

The market rightly or wrongly doesn't buy that belief, or doesn't buy the valuation at even recent levels in a continued downtrend. But the fact someone is stepping in to buy big makes it a watch at the very least.

The movement suggests there is alot more stock to clear here, to even allow an oversold bounce above 250p and back to the top of the downtrend. Maybe Liontrust need to add another 5% and it can bounce.

Again, it is that sort of market.

What the market is doing when it sees the the odd bit of big buying, it focuses more on the sellers in size swarming the price points, and the exhaustion of the big buyer(s), rather than a clear out of the sellers and a more significant type of bullish bounce - as was in the past before this grinding type of downtrend market.

So the grind down continues, but I thought this was a decent example of the activity out there.

All imo
DYOR

[johndoe23] 19/10/2023 08:09

Starting to look interesting here

[botuney9] 18/10/2023 12:13

TR-1

Liontrust - a major shareholder - have doubled their investment to over 10%

(((￣へ￣井)