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Or a nice way to deflate the share price further and take private.
Seems quite prudent to me.
From today's AGM agenda.
Resolution 13. That the Directors be and are hereby generally and unconditionally authorised to exercise all powers of the Company, pursuant to Section 551 of the Act, to allot equity securities (within the meaning of Section 560 of the Act) up to an aggregate nominal amount of £65,797.56, which represents one-third of the nominal value of the Company’s issued share capital at the date of this notice
There is a reason the SP is dropping. Big investors unloading following the flop of F1 Manager 2023, after three big flops before that. SP will not reverse direction until management reverses direction. Which will definely not happen before SP crosses 200p in a few days time.
I used to trade this last winter, it would drop to 450P ish and then jump back up to 500p and higher. Then it went up and carried on to 600p. It is surprising that they are down here, the worrying factor for me is that no Directors have bought, do they know they something? They certainly do as they are the Directors! Four of the Directors were quick enough to sell at 1400p ish before the drop last year. If they can get their s-hite together, this share will explode. At this stage, we might as well see if it drops to 200p, fire off a feck load of stops.
Cascudi, Re the share buy back, where are you thinking the company would get the cash for that? They cannot afford to use the cash in bank because that is needed to make the next game.
Short-term, bankruptcy can easily be avoided by sacking most of the staff.
I used last financial statement, I was expecting to be different from may... at the end of the day I don't see a bankruptcy case here
Cash figure is wrong. Board reported £24m a few weeks back. Cash dropped £4m in the last quarter.
Company is spending big promoting Warhammer. Bought a giant film set style stand at Europe's biggest industry show a few weeks show, just for this one game.
You can pressure them by doing a GDPR request which by law makes them confirm they got your email.
President David Braben's email address is easy to find. I made the obvious guess, including a dot, and searched Google. Up it popped on a Russian Elite Dangerous fan web site. But actually putting here might break some website rule.
Well done to the short that are using the trend and the negative sentiment around this company to make huge profits.
But as soon as we will have a positive news I can see a nice squeeze
Share in issue = 39m
Net current asset = 31m = 80p per share = 36% of today sp
Cash =28m = 72p per share = 32% of today sp
Equity= 96m = 246p per share = 111% of today sp
I sent an email to attention of directors board to the only email that is available in the contact us... query@frontier.co.uk but I didn't have any reply. It is terrible that they don't have an email for investors
Cascudi How did you try to contact the board? The website INVESTORS section has got no email address or contact form. Did you write by post?
Faulks "they must be making some big future releases because 900 staff is just madness otherwise." But the last four big releases were madness. Totally foreseeable underperformance, erased 90% of shareholder value. And the next big release, Warhammer, looks to be more of the same. They should STOP making big releases until they have replaced the mad people who are OKing these releases AND who are still growing the headcoun. If they carry on as now, will in a year run out of cash to make any new product, and game over.
Dear investors, I have tried to contact the board with no reply. This company needs to do something. Starting a share buy back or directors need to buy in to bring trust. I suggest to shareholders to do the same thing. Their silent with no action is very poorly in my opinion
The success of this company is dependent on Jonny Watts (CEO). Except he was already in the company as each and every flop has been released. So the question is, was he arguing for or against the company releasing substandard/buggy games/updates? Was he saying “if we release that in its current form it’ll flop”? If he couldn’t see the car crashing multiple times, what will that mean for future releases.
I’m not sure pinning hopes on the new Warhammer game paying the wages of 900 staff is right - however they must be making some big future releases because 900 staff is just madness otherwise.
Thanks. As you say, Working Capital are a very low profile outfit. Be interesting if they were to go over 10%. They look to be the main buyer currently, probably just as well! Perhaps they will bring some pressure to bear on the board for cost savings?
We don't usually get a TU until January so most probably this will drift until then i guess. Very much a wait and see for me at this stage.
With Braben owning 33% of the company, a possible t/o looks tedious and unlikely. I was going to buy in, but I will probably wait and see for a week or two. It hit 631p on the 27th July, what a fall. Personally, I cannot see this testing less than 200p, great upside if they get their ducks in a row. It will be good to see who owns what, when the dust settles. At these prices, there is certainly value.
Hedge fund. Very low profile. Bought in after January's one-day crash. Is now left as the top II.
Very true. The institutions must have tried their very best, but if the the guy at the wheel insists on driving over the cliff, all they could do was quit before the smash.
With an holding like I don't think institution can do much. P
Https://www.frontier.co.uk/investors/shareholder-information
Wow 32% holding
Ok, i'm a bit confused on the II's here.
I can see Invesco have reduced. Also Swedbank Robur as per RNS's 18th August and prior, but they are still higher than the 5.8% shown in the last AR so they must have increased and then thought better of it!
So who are Working Capital Partners? Never heard of them. They must be based overseas as they only disclosed at 5% (5% intervals is the threshold for overseas investors). Are they hedge fund, activist investor? Appreciate any feedback.
Ok, to be clear, for me it's not just about Warhammer: i think there is quite a lot of value in the back catalogue, there are some good developers, but too many of them, there is a chunk of cash still, and i think the market is potentially writing off Warhammer prematurely. The mood is so overwhelmingly negative that it makes me want to buy. I'm a fairly contrarian individual!
I have started with a small investment. If Warhammer flops then i will probably just sell at a loss. No big deal. If i see some cost cutting or takeover interest or improvements to Warhammer i may buy more. If that is at lower prices, great.
I rode this share from £1.70 to over £20 in quite a short length of time so that is why i say it moves quickly. When i bought shares just after the IPO, my buys were sometimes the only ones that day so yes it can be thinly traded which exaggerates moves in the SP.
I try to value the business as another games company would. They might think that £100m is cheap for a business with perhaps £20m of cash, some games such as the Planet games which have shown longevity, and a dev team that they could prune probably quite hard.
It's certainly possible the price could fall by half due to various II's selling out, but if the market cap falls to £50m i would be happy to buy more and average down. I've no ability to time the market i just try to buy stuff for less than i think it's worth. My guess is that the SP could drift lower, but there's always the chance that an RNS pops up one day saying its being taken over and then it's too late to get in. Who knows?
I try and size my investments according to my level of conviction. So that's low currently(!), but the fact i've got a few shares means i will follow closely going forward and see what happens.
ATB
Filippo I have been asking myself the same question.
I am not an expert but to sell you need someone to buy if there is no a buyer and you need a price. Who is buying at the moment is willing to buy at big discount. That is my opinion. The other thing is that also this shares as only 30m outstanding shares so a small sell is still a big sell. If you trow a stone in the sea you don't make big wave movement but if trow a stone in a small pond you can make a big movement