I Read The News Today Oh Boy! 1-Dec-2017

1st Dec '17 by matylda

17 comments 3719 reads

Well, nothing for me to comment on here today.

I did start this thread yesterday on Initial Stop Loss and if anyone has any comment - Much appreciated.

Now, where's that advent calendar!

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Matylda

Premium Member

17 comments

timarr

1st Dec '17

Games Workshop (LON:GAW) trading update. Operating profit has tripled in the last year. Mind you the share price has quadrupled even after falling back a bit. Bought into this just over a year ago which shows either a) I'm a brilliant stockpicker or b) even a monkey with a dart is occasionally able to hit a target.

timarr

MrContrarian

1st Dec '17

My morning smallcap tweet:

Simigon (LON:SIM), Thalassa Holdings (LON:THAL), £RM2, £7DIG

SimiGon (SIM) share buyback up to $106k. That's <1% of cap!
Thalassa (THAL) sells main opco WGP Group for $20m + $10m earn out as proposed in August. Will leave up to $2,500,000 of cash in the business to meet its working capital requirements during the first five months of 2018. "Any revenue received post completion in relation to certain sales made, services provided and work undertaken by WGP Group prior to completion will be repayable by FFN against this working capital amount." Will use the cash for acquisitions. aka The Soukup Empire.
RM2 (RMS) still hasn't got new funding. Has enough cash till end Jan.
7Digital Group (7DIG) £8.5m placing at 4p cf 5.125p SP.

iwright7

1st Dec '17

Timarr

Games Workshop (LON:GAW) is skill - I'm a holder too!

Keith Ashworth-Lord (UK Buffetology Fund) describes GAW's business as: “the nearest thing to legalised drug dealing on the stock market”.

Brought more at the opening bell @ £21.15 - Still looks cheap.

dfs12

1st Dec '17

Games Workshop (LON:GAW) has to win the award for the most understated trading update for the most impressive set of figures. I was a holder until the recent dip and I've just bought back in. Add to these great numbers the fact that the business is likely to be 2nd half weighted! Couldn't believe my luck when I was able to get some stock at only a small'ish premium to yesterday's price.

iwright7

1st Dec '17

I think its a game that Games Workshop (LON:GAW) play with the stockmarket. The net effect is that investors are slow to react to the good news and the share price drifts up gradually. Incredible company. Ian

Breakout

1st Dec '17

You are obviously a genius!

Ramridge

1st Dec '17

Re. Games Workshop (LON:GAW) operating profit for 1H18 of £38m equals the whole of FY17. Broker forecasts on stocko now look very low.
Went long this morning.

timarr

1st Dec '17

Ook!

Of course if yesterday's sp drop had coincided with a poor trading update that would have been insider dealing whereas we can now see it was noise traders doing what they do - trading on noise, not information. I'm considering writing to the FCA to demand they investigate ... :)

More bananas, please.

timarr

Trigger14

1st Dec '17

Games Workshop is my biggest position right now and I’m pretty bullish about it in general. Highly profitable with a rock solid competitive advantage etc. However, I am pretty ambivalent about it right now. The results in the trading update are excellent but may be driven to a large extent by the product cycle. Their history is pretty chequered with booms and busts. To meet expectations they need similar results in H2 this year to H2 last year. On the one hand the momentum in performance seems excellent suggesting growth is more likely to be sustained. On the other they are not releasing a massive new product this year (at least to my understanding). I think they may well beat again this year and perhaps significantly so, but people are going to be focusing on the period after that soon if not already.

matylda

1st Dec '17

Agreed Games Workshop (LON:GAW) still seems decent value here - Observation made by Ramridge "operating profit for 1H18 of £38m equals the whole of FY17".

I remember looking at this when it was half the price thinking nobody buys that stuff - How wrong I was!

timarr - Genius :) Let us know next time you throw a dart!

lemonjar

1st Dec '17

So I'm totally not the measured, patient, DYOR investor I like to think I am - who am I kidding?? Just bought some, total impulse buy at the checkout! (small sums mind you but still :)

TangoDoc

1st Dec '17

I'm a GAW holder, but then I am also a long time wargamer, so I get the entire hobby and have stayed with it since the mid 60s ( though 15mm Napoleonic). I went into my local branch in Leicester a week or so back and chatted to the bloke in charge about how things were, just out of curiosity. The shop looked very up-beat, as was the bloke. However good computer graphics are, nothing takes the place of ownership of figures, including the painting and customising/adapting of them but, in addition, there is always a need for the camaraderie such shops offer to those of us with nerdy bones. A bit like Stockopedia really!

Ramridge

1st Dec '17

hi matylda - just like you, I looked at this company last year (there is a shop in my home town Portsmouth) and dismissed it as one for the geeks, same category as stamp collecting or train spotting.
Computer gaming and mobile games would soon consign this type of entertainment to history - so I surmised.
How wrong was I. Note to myself : don't fall into the trap (or its converse) "I liked the shaver so much, I bought the company" (Victor Kiam, Remington company).

matylda

1st Dec '17

Yes Ramridge, I also remember a visit just out of curiosity, I had already made the decision it had no future :)

If we were all right all the time how dull this world would be eh!

timarr

1st Dec '17

I did exactly the same for about 3 years while it looked "value". I eventually read the Annual Report and was so impressed by the clarity of vision that I bought some stock. I'm just a sucker for clear prose and a straightforward presentation, completely in contrast to the jargon you get in most company communications.

As for genius, well I was one of the chimps that bought Accrol Group (LON:ACRL) ... but as ever the key is to dump the mistakes quickly and run the successes for as long as possible.

timarr

Rusty2

1st Dec '17

Yes I misunderstood Games Workshop (LON:GAW) as well. There have been a few companies like that, £G4M is another, I thought was just another low margin pro-audio dealer.

Beginner

1st Dec '17

Can I borrow your darts?

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I Read The News Today Oh Boy! 1-Dec-2017

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Matylda

17 comments

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