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This could really start to motor soon. It has all the required ingredients.
This is the sort of broadcasting deal that I think will soon become much more widespread in Esports. Broadcasting rights are lagging behind in the sector in general, but there are signs now that it is starting to be monetised in a similar way to broadcasting deals for major sports, e.g. premier league football. Excellent news for the likes of Guild.
https://esportsinsider.com/2021/04/huya-league-of-legends-china-rights/
Great post as always Sonic, top of the EU rankings, that’s amazing!!
Interesting to hear your past experience of soros fund UpNUp. This definitely has the feel of someone drip selling their holding in the background. If it is soros, then they’re hopefully nearly done, and then it should be onwards and upwards.
Nice to see interest picking up anyway this week and plenty of big buys coming through. Highest trading day ever yesterday on no news, including nice 1.47m over ask buy printed after hours. A few more days like that and whoever is selling should be flushed out. Looking forward to seeing what happens to trading volumes then when we do get some official news. Lots of hints on Twitter from company and CEO that news flow this month should be good, so hopefully not much longer before next update, but we’ll have to wait and see.
In other news, Guild Fortnite team now top of the EU rankings!
https://twitter.com/fcrrankings/status/1390354541804130306?s=21
GLA.
Very nice sonic, great notes.
I suspect the soros fund as I was in an aim company over 10 years ago now that had the soros fund involved. They had a large holding and never mentioned crossing each percentage point let alone going below 3% they just went from a massive holding to zero. A bit naughty of them.
You just have to see a seller as a buying opportunity. Be patient and wait for the jump up in price when they've gone. At least that's how I see it. I've made good money in the past doing just that.
Cracking summary Sonic
ISA / SIPP: Yes.
Review: 3 month + H1 results.
End
Guild esports (LSE: GILD)
Sector: Esports / online gaming. Strong growth. Target sector.
IPO price: 8p (Oct 20)
Current share price: 6p
Market cap £30m
Cash £18m (28 Jan 21)
No debt
Revenues:
Sponsorship - 3 x multimillion pound, multi year sponsorship deals signed since IPO.
Merchandise - steady plus new launch May 2021.
Expected future revenue streams:
Sponsorship and merchandise to grow.
In-stream ads (under-utilised in whole sector).
Image / streaming rights (again under-utilised in sector, but expected to become more mainstream as esports expands. BBC / sky sports already shown some esports tournaments live. Viewing figures good. Expected strong growth).
Academy. If successful then player transfers (for fee) possible in future. Plus academy subscription fees.
Risks:
Costs associated with rapid growth plans. Need to secure enough revenues to support growth. Good cash pile at present as cushion, but needs to be used wisely and in-line with revenue growth. Keep eye. Early signs good with impressive sponsorship deals so far. Review H1.
Other:
Beckham as ambassador major plus. Good for brand awareness and growth. Might attract some external criticism for terms, but proving worth already with sponsorship deals / merchandising so far.
High ranking players / teams in chosen esports: Fortnite (number 1 rank), Valorant, Rocket league and Fifa 21. Recent high profile tournament wins.
Possible announcements / share price catalysts:
US OTC dual listing - grossly undervalued compared to US peers. Should get good uptake from US investors when more readily available to trade over there.
Further sponsorship deals (hinted at in interviews and announcements).
H1 update (H1 ended March 21).
As yet unnamed fin tech sponsor launch (expected major stadium launch when pandemic allows (exec chair / CC interview)).
Also, grossly undervalued on fundamentals at present, especially compared to peers, so could see steady share price rise just based on that, especially if peers continue to rise in value.
Esports sector continuing to grow - should benefit all involved in sector, including Guild.
BOD / company / SP performance so far:
Impressive performances on the pitch from large group of players in range of esports. Well coached. Players and coaches seem to enjoy setup. Lots of other gamers expressing desire to play for Guild. Likeable brand. All players representing Guild display company and sponsor names on social media platforms. Well organised.
Very large combined social media presence. Good viewing figures for on-line streams. Huge benefit to sponsors and future ad revs.
Steady stream of large sponsorship deals so far, including HyperX and Subway.
Company looks to be on good trajectory in an exciting sector.
SP seems to be severely lagging behind development and potential. ? Legacy seller. ? Opportunity.
Very undervalued at current levels.
Overall impression: Conviction buy
Capital risk: Low
LT-trade ratio: 90:10