GAW is a model stock and keeps delivering so why the markdown ?
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GAW is a model stock and keeps delivering so why the markdown ?
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As far as I'm aware there has never been any question about Games Workshop delivering stunning 2018 results - the problem is what's going to happen in 2019.
Peel Hunt, I believe, have raised their Target price from 2400 to 2700 today. That seems to be a subtle sell recommendation to me. In the past, from memory, they have always been behind the curve but when catching up have always issued a TP greater than the current price.
As always little in the way of forward guidance was given by the company and the new product effects in 2018 give some uncertainty over growth in 2019 - stock report shows this falling 20% in 2019.
Time will tell.
Phil
When I saw the fall, my immediate knee-jerk reaction was that I had a nice 30% capital gain locked up and thought to take the profit. Then I looked around more carefully and decided I'd hold.
I looked, for example, at a breakdown of the moieties bought and sold and saw that the sellers were very many small parcels, whereas the two highest amounts were buys. I wonder how many small amounts were being held by customers, possibly not ever long term holders of any stocks and not necessarily able to have all the fundamentals and news as we are, just happy to take a small cash windfall, then panicked into thinking it was all about to be snatched away.
Pure speculation on my part of course, but I notice that the price is steadily sneaking back up with, again, numerous very small buys and sells. £2.5 million's worth changing hands by 11 am. I shall keep an eye on them, but, I am still convinced that this company knows how to make money and will continue to do so.
Sales have plateaued as expected, with the 2H only marginally ahead of the 1H.
The Outlook comment was somewhat muted - this time last year the annual accounts were accompanied by an "above expectations" update.
It's had a fantastic run the last couple of years,leading to a £1bn+ market cap.