The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Numis have today increased their target price to 2180p (from 1865p) and say Buy: Http://investing.thisismoney.co.uk/broker-views/
Excellent new acquisition - and highly earnings-enhancing with a maximum �5.2m paid for �0.7m PBT: Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/KWS/13658903.html Good to see the further expansion into esports, and the customer list is terrific, including Sony, Square Enix, Riot Games, Deep Silver, Sega, Capcom and Ubisoft. Endion, thx re the comments on Shenmue, sounds exciting. Moorhey, that's interesting, I also hold SCH and XLM.....
Shenmue was a blockbuster game of the late 90's. It was THE most expensive game ever made at the time, one of the first with elements of rpg, life sim, turn based combat etc. It got good reviews but was a commercial flop along with its successor. However it went on to develop a cult following and there is a lot of excitement about the HD re-release coming along with a third game in the series due for release in 2019, the first sequal in what will be 18 years!
This is why I bought the. share for my SIPP, I can see this company being in the FTSE100 inside 5 years.. I have taken positions on 5 companies that I think have the potential to be FTSE100 companies in that time frame. Along with KWS, I'm also into GBG, FDM, SCH and XLM
This news sounds good, though as a non-gamer Shenmue means nothing to me - perhaps others here can comment?! Http://www.businesscloud.co.uk/news/studio-resurrects-classic-shenmue-video-games "Studio resurrects classic Shenmue video games d3t has brought the 20-year old Shenmue I & II to Playstation4, Xbox One and PC while growing its team and moving to bigger offices 12:04pm 22nd May 2018 d3t Ltd has confirmed that it is the development studio responsible for resurrecting two 20-year-old video games, the hugely popular and boundary-pushing Shenmue and Shenmue II. The project remained top-secret until the news was announced in April at SEGA Fes 2018 in Tokyo. �We can finally reveal that the d3t team have been resurrecting Shenmue from the original source code written over 20 years ago!� said d3t operations director Noel Austin �We are bringing Shenmue and Shenmue II to modern platforms: Playstation4, Xbox One and PC. �It's been a journey of discovery, delving into the original code, also an honour and a privilege to work on such high-profile titles, delivering this classic franchise to new platforms and new audiences.� d3t is a growing tech company in the North West of England. Founded in 2011 it has grown year-on-year to its current team of 50, and was acquired by Keywords Studios last year. The company is forecasting continued expansion and has recently moved to a larger HQ in Cheshire. d3t stands out in the UK game development sector because it strategically does not develop its own IP, instead it exclusively delivers game and interactive projects on behalf of international clients. Household names like SEGA, Sony, the BBC and independent studios worldwide regularly engage d3t on projects and it provides invaluable, confidential support across the games and interactive media sectors. This technical port of Shenmue I & II represented an enormous technical challenge for the team at d3t. The company has referred to the process as 'digital archaeology' and says the re-release of Shenmue 1 and 2 will be available together as a single package later this year, and will remain true to the originals. Studio head Richard Badger added: �A lot of the work we undertake stays under wraps, so it�s great that we can actually talk about this amazing project. �The global Shenmue gaming community have shown us incredible support and we are really excited about the launch of the games later this year. �We are extremely proud of our team and being able to showcase the remarkable software development talent that can be found right here in the North West of England.� d3t does not just deliver when it comes to resurrecting well-loved cutting-edge games. The company also provides the same level of expertise to the museum and heritage sector and has recently been involved with real life archaeology, working as a technology p
Very interesting (and long!) article about localisation services, including an interview with KWS' director of such services. The section about China is very instructive (who knew that skeletons were such a problem?!): Https://www.mcvuk.com/development/localisation-think-global-act-local KWS (and ACSO, which I also hold) are also featured in an article about consolidation in the software services sector in this weekend's FT, which might bring in some more attention: Https://www.ft.com/content/0804f154-59c4-11e8-bdb7-f6677d2e1ce8 "Keywords Studios Dublin-based Keywords Studios provides technical services to the video games industry, ranging from animation to visual effects and engineering. It works for some of the world�s biggest video game publishers, including Electronic Arts, Activision Blizzard and Tencent. Keywords has snapped up businesses to help it expand into new markets, including Mindwalk in China and Mexico�s LOLA. In October, it completed its largest ever deal, buying US-based VMC Consulting for $66m. The VMC acquisition has increased Keywords� workforce by almost 50 per cent to 4,000. Andrew Day, chief executive, said at the time the deal would boost the company�s technical services around the world. �We strongly believe that this will result in a compelling offering for our broadened client base, not only in North America but also internationally,� he said. The company�s revenues increased 57 per cent to �151.4m in the year to December 31, while profits before tax rose 27 per cent to �12m. Shares are up 6.5 per cent to �17.00 this year."
Tipped here by Octopus Investments fund manager Richard Power to reach FTSE100 size: Https://www.trustnet.com/news/811492/four-aim-stocks-with-ftse-100-potential "Keywords Studios The final company is gaming service provider Keywords Studios. Originally started as a company that translated games into various languages, the company has expanded since 1998. The �1.3bn firm, which launched in 2013, has since expanded its range through a number of bolt-on acquisitions, working with top 20 mobile game and traditional video game manufacturers. The company has been successful in these acquisitions as it allows the bought firms to retain their brand and has built up a global offering that deals with sensitivities in different regions well, according to Power. It is run by chief executive Andrew Day, who the manager said is a blend of both optimistic and realistic - something that is rare in smaller companies as CEOs are usually one or the other. "I think Keywords could get [to the FTSE 100]. It is such a big marketplace that if they execute well then they have got the opportunity there," he said."
Seems like the sp is yoyoing a fair bit, might be we are at the mercy of day traders at the moment.
Superb results overnight from Electronic Arts, who beat forecasts and upgraded their outlook for 2019. Which all bodes well for the industry - and suppliers like KWS: Http://www.proactiveinvestors.com/companies/news/196657/electronic-arts-beats-4q-guidance-forecasts-improved-results-in-fiscal-2019-196657.html
from final results "We entered 2018 with pro forma revenues of �225m, across seven service lines and 42 studios in four continents, compared to just over �16m derived from four service lines and five studios in 2013 - the year of our IPO. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=KWS&ArticleCode=uf43k5hc&ArticleHeadline=Final_Results I would say if this slows down sp could fall but at the moment a strong sp is helping with acquisitions and equity raise which is giving Keywords expand a global presence facilitating the gaming world and making the p/e ratio high.
The one cause for concern i have right now is that the p/e ratio for this stock is very high. Do people think this will effect its pricing much, or is it more reflective of the lower risk growth potential?
Keywords have begun small forays into the chinese market. This article highlights the situation regarding breaking into it and the future of western games within the industry. Growing into the chinese market alone would bring in massive revenue, infact if keywords were to become a crossover company between china and western companies i would hazard to say that it coule become its largest revenue generating market in the future. slator.com/features/how-big-western-games-go-into-china/
Indeed! Was just reading about how fragmented ths market it. Keywords holds a majority share of the market at 15%. Meaning its in a great position to buy out the smaller companies and, like you said, cross fertilize their services. Who knows how much of the narket this company will own 5 years from now.
Also they become able to offer best in the market by incentivising execs of taken over firms and can cross fertilize all parts of the business so get even better at what they do.
Being an avid gamer for about 15 years im quite clued in to the gaming market. What strikes me about this companies business model is 1. that its success is not dependant upon one or even a handful of companies. If one of the game developers go under, yes their client base takes a hit, but the next upcoming company can step into its place. This minimises risk quite drastically compared to other businesses. 2. Their services can cover a truly international client base. 3. They can do well out of and get good business even from a bad game. Say for instance they provided translation services for a game that turned out to flop, whilst the game developer wpuld take a hit keywords could still be praised for their work in the product despite the underlying game issues.
Hindsight is the miracle of the stock market. Was worried it might not stay below 1890 for long, ah well, long term growth it still gonna happen so Im a happy investor here!
going over their latest financial reports and everything looks very promising. They have a great client base, expanding areas of expertise, and crucially there is not really anyone else doing what they are doing. The broker forecasts don't seem particularly strong but then I've come to see them as about as useful as an underwater hairdryer. Will be monitoring the price tomorrow for a buy in moment.
The latest Edison report notes that KWS are on a PEG of only 0.8 for FY16 to 18. Furthermore, in addition to the high organic growth, KWS have a whopping �95m to deploy for acquisitions. And the cross-selling opportunities for KWS in their core gaming sector are vast. Plus there's the potential in: - AR/VR - e-learning - e-sports All of which means that KWS' P/E could drop extremely quickly. Finally there's China. Here's a new article about the huge growth of gaming in China, with a mention for KWS as follows: Https://slator.com/features/how-big-western-games-go-into-china/ "Breaking into China Game localizer Keywords Studios� mentioned in their 2017 annual report published on April 30, 2018 that China is a market they are interested in. Of course, Keywords also benefits from games going the opposite direction as the company wants to help Chinese publishers going overseas. �The astounding success achieved by battle arena games led by Fortnite and Player Unknown Battleground seem set to continue and we are fortunate to be providing services for those games too,� the report reads. �The mobile games sector continues to grow faster than the other platform types, with much of this growth originating in Asia where we continue to expand and build upon our relationships with the major games publishers in China, Japan and Korea.� Keywords� revenues in China remain small at EUR 3.68m (USD 4.44m), and was most probably boosted by the acquisition of Red Hot CG and Mindwalk Studios, but the company is keen on expanding in the region as part of their growth strategy."
Absolutely Endion. This company has potentially a huge future and is one of a handful of companies I'm hoping has the potential to enter the FTSE100 within 5 years - ie be worth £4bn+
That's exactly what I told my broker but they were adamant I was wrong lol Many thanks :)
Dividend In line with our progressive dividend policy, and allowing for the need to retain resources to fund future growth of the Group�s business and its strategic aims, the Board is pleased to recommend a final dividend of 0.98p per share which, following the interim dividend payment of 0.48p per share, will make the total dividend for the year ending 31 December 2017 1.46p per share, an increase of 10% compared to 2016. Subject to shareholder approval at the Annual General Meeting, the final dividend will be paid on 22 June 2018 to all shareholders on the register at 1 June 2018 and the shares will trade ex-dividend on 31 May 2018. The cash cost of the final proposed dividend will be an estimated �0.7m, subject to currency fluctuations.
Just dipped my toe into this stock last week, my question is, does this company pay a divi? I seem to be getting conflicting information from market sites. Many thanks.
I assume this will be in tomorrow's Daily Mail - should bring in some interest.... Http://www.thisismoney.co.uk/money/investing/article-5647103/SMALL-CAP-SHARE-IDEAS-Keywords-Studios-expands-bets-growing-video-games-market.html It's a long article, so I thought this extract was the most interesting, with some titbits of info not previously known: "SMALL CAP SHARE IDEAS: Video games outsourcing firm Keywords Studios expands amid growing industry By Philip Whiterow, Proactive Investors, For Thisismoney.co.uk Published: 12:49, 23 April 2018 | Updated: 16:47, 23 April 2018 "Examples of �larger purchases� include North America-focused VMC Consulting, which it bought for $66million last October, financed by an underwritten share placing. The new shares were sold through a book-build exercise and snapped up in about two hours, which underlines how highly regarded is the video games services group at present. Shares over the last three years have rocketed from 153p to 1,746p as the carefully built portfolio, which ranges from translation services through to augmented and virtual reality services, has driven large rises in sales and earnings. VMC looks to be more of the same. Keywords expects the latest addition to be �significantly earnings enhancing� almost immediately. Adjusted revenue of the US group in the year to October was $57.4million and underlying profits an annualised $6.4million. The purchase will more than double Keywords' customer support operation in the North American market as well as growing market share and footprint. Cross-selling has been a fundamental plank of the strategy and the number of clients using three or more of Keywords� services increased to 93 in 2017 from 64 in 2016 and 51 in 2015. German bank Berenberg, which rates the shares a �buy� and has a price target of 2,060p, sees this trend as evidence that computer games publishers and developers are moving away from �tactical outsourcing� towards strategic arrangements with trusted partners. Crucially, it has made its first inroads into the eSports market, mostly through the provision of its services for game development and in-game support, but also via marketing. ESports � football, rugby, Formula One to name three - are played electronically by teams with increasingly large numbers of people watching. By 2020, the market is tipped to be generating �1billion annually in revenues and, like video games, there is a requirement for localisation and consistent quality. Keywords highlights that it is continuing to seek out ways to �leverage the growth in eSports further,� Berenberg observed. The most recent acquisitions have focused on adding extra music and audio services to the group�s offering."
Is it still worth buying into this stock at this point? Obviously those already with stock will want that, but anyone with a more unbiased view? Seems like this company has a good future.