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Good rebound, and now only 6% below ATH
Relentless downtrend. A lesson in not to go for hyped shares!
There's some commentary around growth not being so good from here. However, indicators would suggest now is the time to buy. If I do - then watch the sp start dropping .....
I'm not sure what you are expecting me to say ironknut: I've been buying KWS for years, and my earliest share purchases have doubled in value even at todays SP which is nearly 20% below the ATH. I don't know about you, but something tells me that the internet and internet gaming is here for a long time - I can't see the board-game monopoly making a come-back any time soon. I will be honest - I don't play internet games. I did when I was in my early-30's but not since, and I'm 61yo now. My old mate Dave took a marketing job in 1987 with an unknown company just starting out in the UK - he was the 1st employee they took on in the UK. Dave retired a multi-millionaire about 5 years ago - who did he go to work for? Electronic Arts.
Moorhey, what are you on. Please tell,i want some.
I've seen this pullback before when Keywords buys a new company and issues a wodge of additional shares. Maybe due to some being offloaded? It always recovers well. AGM is on 26th, if the results are good and they reinstate a dividend I think we'll see a jump. If I had cash free I'd be adding.
Some pretty big sells after hours again. Maybe some large investors are predicting a steady decline. Maybe the directors know something. I bought more last week a bit prematurely it seems. Just have to hope for a recovery.
The market reaction to the Secondary Placing seems a bit overdone. Giorgio Guastalla has been a non-executive director for a number of years and now runs a food import business. I'm assuming that he's decided to retire now and has "cashed-in his chips" - and who can blame him?
Buying opportunity!
Hi Robina, sorry for the late reply, only just saw your message. Well, I'm glad KWS appear to be helping you buck your trend! ;-) I'm a LTH - like moorhey about 3 years now - and I buy on the dips where possible. I like that company have a strong long-term ambitious strategy and global reach. IMO this makes for a very good long-term investment with dividends thrown in.
Sometime, the markets just seem to defy logic.
I'm a long term holder, and 3 years ago this week (back on 22nd March 2018) I posted on this forum that "(KWS) is one my "band of 5" companies which could potentially be in the FTSE100 in 5 years time" and right now I still think KWS will be in the FTSE100 by March 2023. It might take little longer getting there by "organic growth", but if one of the software developers in its "stable" comes up with a winner, then hitting £5bn and FTSE100 won't be a problem at all.
JayneC - you weren't able to factor in the fact that I bought in recently. If it was to sustain a rise it would violate the rule which dictates I never make a profit any individual share purchase. I ought o write a book on how I do it.
My bet is that it is heading for 2200. The P/E is very high at nearly 50. As the market is very febrile that isn't good.
Agree Moorhey. Current market volatility is holding the SP down somewhat, I just sold another holding in order to pick up a few more of these as I honestly didn't think we'd see under £25 again.
Unless I'm reading these wrong, the FY Results are tremendous!
Revenue up 14.4%
Profit up 86.8%
Net Cash improvement of Euro120.80m - on a Revenue of Euro373.50m
KWS is turning into a proper cash-cow
Let's hope there are no neutral or negative aspects in tomorrow's report, or that it won't be seen by analysts as good enough.
Need to break this downtrend.
This ought to be a good investment. However, everything I think ought to be good turns out not to be.
Having held for a couple of years now, I'd say it's a good opportunity to buy, only wish I had more free cash to top up myself! Share price was well above this pre-Covid and there's been excellent acquisitions, adding further value. I seem to recall the company stating they were looking to reinstate the dividend asap too. If and when that's confirmed, it will likely shoot up.
Can be a bit of a cyclic share-price, never falls too far though and always creeps up again. I think it's - unfairly - been treated as a Covid play, which misses the point of the empire Keywords are building here. All IMHO, DYOR as always. Holding long and strong here.
Results out this week. Is it worth getting in before then or not? Just wondering if the fall since the update is an opportunity or an issue for concern. Any feedback welcome.
general tech sell-off. Look at others in the group - FDEV was down 8% at one point, also TM17, SUMO they are down 7 a 5 % respectively
Any idea why the shares are down nearly 7% today, I can't find any news.
Great trading update at 7am this morning:
12% organic revenue growth despite COVID-19 constraints.
There's your answer PETR76, the info to put that RNS out was available yesterday (to those in-the-know) and they've gone out and bought shares.
almost 1 mil. shares traded today which also happens to be the largest volume day in 6 months. up by 5% obviously someone has been buying. Any thoughts ?
Thanks Moorhey.
I reduced my position significantly today just to update you too. Of course none of us can predict the future, even the professionals so whether this turns out to be the wrong decision we shall see. However at the time being I am going to take a look into Intel. Huge efficient company with an incredible financial position that is valued cheaply according to a DCF model. In a way their financial position reminds me of KWS however they buy back shares rather than issue more which I don't like from KWS management especially whilst interest rates are so low. Of course they don't like debt but reducing our holding by about 10% worries me and also the low dividend policy. More and more KWS' business is becoming detatched from the stock price in my opinion and as a value investor that worries me literally.
Best of luck however with your holding (and what is left of mine hahaha)
I will also make sure to take a look at the companies you mentioned carefully, so thank you!
Hi Ellis7,
I also invest in GBG - the GB Group is a world leader in internet security. It could be a FTSE100 member inside 3 years, but will likely be swallowed-up before then (in my opinion).
Another company like KWS is Softcat (SCT), but instead of games and entertainment it focuses on business software.
Hahaha yes I guess a bit of a generic phrase however for its valuation as you say when in terms of revenue and bottom line it is rather the epitome of this saying.
I appreciate your input (and patience) as I have never posted on forums before.
Would you know of any competitors of Keywords that I can further research or any other useful areas to look into?
As of now from a value investor standpoint it seems like a sell or at least reduce my holding.
Thanks again :)
"A great company, but undoubtedly overvalued" - reading these forums, you comer across phrases like this a lot, and do they really mean anything? I'm not picking holes in your post Ellis7, for me "value" like beauty is in the eye of the beholder. Intrinsically, you are correct - a valuation of £2.06bn about a company with a turnover of £350-400 million is a bit bonkers. Profits after tax for the last 5 years - in total - are only £45 million. But this is, in my view, a gambling opportunity - if it can find a game worth a £1bn amongst its stable of developers, then the SP will seem cheap.
Hi,
I bought into this stock 3 years ago from a friend's tip (I knew nothing about investing at this point and of course I shouldn't have done this). Luckily however, unlike other investments this one has turned into a machine. I am now restructuring my portfolio to my stricter criteria and in the process Keywords has given me a challenge.
Despite my scepticism. I love the financial management of this company and their clear objective. Over the 3 years it has grown from a largely localization company to one that is on its way to being the go-to video game service provider according to management. Debt remains low, and revenues are growing organically too. From a value investor standpoint however though perhaps this is the end of the road for me.
A great company, but undoubtably overvalued - whether this is rightly so is what I am here to ask. It brings me to the quesiton is there anyone else in this sector with the same objective as Keywords? Who are their competition? Are they on their way to monopolising the video game service sector?
Thank you in advance to anyone willing to have a discussion or answer my question.