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TM17 Founder & biggest shareholder Debbie Bestwick stepping down as CEO, Yet this stock sits on a PE of 15!!! More than double TBLD's. TBLD should, if matching TM17'S PE, be 100p per share. The current share valuation is unwarranted.
Good summary Simon. It's quite a coincidence that the COO & 7% shareholder is leaving with 'immediate effect' and just a few weeks earlier a huge number of shares were dumped by a mystery seller. Some were bought by Amati & Franklin Templeton, but the rest remain MIA & there is clearly still an overhang in play.
Has Mr Burtis sold his holding and not told anyone? This absolutely needs to be clarified on tomorrow's call IMO.
The results on the face of it are good given the overall environment stated. My only observation that back catalogue sales represented almost all of total gaming revenues, seems very high and so it will be imperative that successful new titles emerge.
Reading through some of the usual waffle one gets from these reports, I can't see that any of my queries have been addressedd. If I'm asking them, I'm damn sure many others are too.
On 7th February the SP had drifted down to a lowly £0.75p. This morning, even after an 8% rise following the results, I could still buy at £0.515p.....some 31% lower than about six weeks ago. Whoever sold on 7th February has left everyone else a big hill to climb. I will be 'unhappy' if it turns out to be the COO as was.
The fact that one of the founders, Burtis, has decided to leave is disappointing.....only two years after the IPO. There doesn't seem to be any announcement that he was a seller, but no doubt we will eventually find out. And they don't intend to carry on his postion of COO, preferring automony within seperate teams. Just my opinion but, in my eyes, that carries risks too with no overall COO monitoring the teams.
Quote from the CEO today : ''It's easy to go insane when looking at your share price live on screen. I see many people obsessing over it. Our shares have been volatile and it means that the share price can move up or down by 5% or even 10% in a day, but that volatility doesn't alter the fundamental value of the business''. Yes Mr Nichiporchik, quite so, but that doesn't explain the 20% drop in SP on 8th February. Without RNS's, everything becomes even more nebulous.
Agreed @ ShearClass. The Capex you mention has to be taken into context with the speed in which TBLD are buying in and developing IP. One could argue the TBLD are trying to grow a little too quickly. I think a period of consolidation is needed especially as the macro backdrop looks very uncertain in the near future.
Despite this, which ever way yo dice it, from where I'm sitting at £100m market cap the shares are very attractively priced.
The CEO did not address any of the concerns raised on here and corporate governance questions need to be answered over the next two days.
Slight bounce since the open on low volume, I'm remaining wary as there are so many moving parts here & the CEO wants to bat it off as 'markets', where did Amati & Franklin buy their shares from? Why haven't TR1's been released for them? What does Burtis propose to do with his 14m shareholding?
I'd also have thought that the employee benefits trust buying 419k shares was material information that should be RNS'd at the time of purchase?
As for the results, capitalised development spend is off the charts at $35m vs just $15m prior year & cumulative carried software development intangibles sit at $49m vs their amortisation policy of depreciating over 36 months... that means a potential average of ~$16.5m per annum will be depreciated over the next 3 years (vs just $9.2m over the last 2 years combined)... that is a huge headwind to gross margins.
Seems likely although a member on here was in contact with TBLD recently (via email) and was told that none of the directors were selling. Either TBLD were unaware of this at the time or they were telling porkies.
Results today read well. This share is at bargain basement levels so I’m not surprised to see the shares are up heavily today
Is this the overhang then? Burtis owns ~14m shares...
"After taking paternity leave in 2022, Luke Burtis, Chief Operating Officer (COO) and Board Member, has decided to resign from his board position and management role with immediate effect to spend more time with his family. Luke has been a valuable member of tinyBuild, and his contributions to strategy and operations in the early years have been invaluable. The Board of tinyBuild would like to express its gratitude to Luke for his contributions during his tenure and wishes him all the best in his future endeavours."
Thanks Charlie, I only asked the question as Amati held over 2% last August, so they slightly increased their holding after that to trigger the 3% figure. I use the ''Simply wall street'' website which shows more detail of ownership down to much smaller holders.
Thank you Shearclass for your reply too. All very interesting. This does raise questions about how AIM is regulated, or not, as the case may be!
Good spot on the holdings changes. This company should be issuing RNS's for both the Amati & Franklin Templeton increases, the fact they aren't suggests they don't know AIM rules or are deliberately ignoring them.
Here are the previous holdings;
https://web.archive.org/web/20221130142524/https://www.tinybuildinvestors.com/key-shareholders
As per Amati's last interim financial statements to 31/07 they held 4,435,936 shares, so have added just over 2m.
That still leaves the vast majority of trading volume unexplained, Premier Miton owned 9.5m shares at IPO so could have been sitting below the 3% threshold & Makers Fund held 6m post IPO but could have sold at any time. New buyers are likely below the 3% threshold although with this lot you may never know.
Only Berenberg & Numis left on 47p bid then it's down to 45p.
Simon, I got it from TBLD's website. Amati were not there 5 weeks ago, 3% being the required threshold.
Hi Charlie, I would appreciate it if you could tell me which website you got that information from, thanks. I thought Amati had been holding more than 2% long before March 2023 but I stand to be corrected! I think confusion arises on certain sites not being updated quickly.
They have updated the major shareholders. When I looked in Feb, the list was up to 23.03.22. Now it is 8.03.23, the top 4 holdings are the same, Franklin have increased from 5% to 5.7%, and Amati is a new name with 3.2%. I don't know when those shares were acquired.
Yes, definitely a question to add for the 29th March results presentation. About 2 years ago I swore never to buy a new IPO ever again. There are to many people/groups who have got in before the IPO at discounted levels. Then come the IPO the drum of how good the company is ramp the initial few weeks in terms of volume, then those in pre IPO sell out. There is something seriously wrong about IPOs and what happens just prior to that. There needs to be some sort of 1 year cooling off period between buying shares pre IPO and the IPO taking place. Or they shield.not be able to sell for atleast say 1 year after IPO. Just 2 cents or thoughts. To me, how IPOs are handled is borderline wrong/immoral/illegal.
PDiddy1........At 67p You're probably one of only a few lucky ones fairly close to the present SP. The rest of us (well, at least me) are totally dismayed at the way this price has continued it's downward trend, and can only hope of an encouraging results day. And my continuing question is : who sold a massive holding in February and why is this not reflected in the major shareholding percentages? It doesn't really add up.
There's been a ton of games releases last year, a war where they've had to relocate staff and acquisitions to embed. I'm hoping March 29th will bring only good news for shareholders from all of those titles on many platforms that have been released. Fingers crossed. I'm averaged at 67p.
Dirt cheap this mate plenty of cash
Just unsure when the market will reward it. Hope it goes lower sometimes the market doesn't reflect true value for years, I'm unsure it will get bought out
Team17 sitting on a PE ratiocof 16 and this is sitting at 7..... the metrics of the 2 companies are extremely similar..... whydoes Tinybuild deserve to be effectively less than half the price of TBLD? O I have fair value at 110p to be at the same PE of Team17. There will come a point when it will rerate. Unless someone can point out a fundamental valuation difference between the 2 companies where TBLD deserves the current valuation.
Yep, looks like a good decision with a 51k sell at 46p. It’s an odd set up, I still think it’s an options overhang which may or may not clear post results when consideration shares are issued…
We're all ****ing in the wind with this one.
I managed to get out of this dog at 53p last week and sucking in a 10% loss. There is too much overhang on the shares, it will need a great set of results to get this out of the stalls. GLA.
Ripley94.....I don't think it is relevant. Tinybuild is essentially a USA company registered on the UK AIM, It has to hold a usin to be identified in the usa.
I'm more concerned about the zero explanation of the big share sale in February. Clearly someone, a big holder, had decided to run out of patience with this share , or knew something we still don't know, or needed the cash desperately, or saw a better investment opportunity elsewhere.
I'm guessing that there was not a waiting purchaser for the shares that were sold, and that as a result there has been an overhang of shares readily available on the market....hence the slow drift down.
In my opinion the shares are extremely good value but I am very nervous at this downward trend. The old saying 'the market never lies' is often true. The question is....do I top up prior to the results at the end of the month? The only downside to what I believe will be a decent report, is the amount of cash they will be burning through.
Is it unusual for a London listing to have a USA isin ?
Is it dual listed ?
I thought this RNS might be news of some change in shareholding, given the situation last month with the big sale.
Instead, it is confirmation that results will be announced on 29th March, with a presentation that everyone can watch online on 30th March. People here might wish to put in their questions to the tbld directors prior to the live presentation (see RNS)
Really is so intriguing this...we are either looking at a potential short term bagger opportunity or a horror story...really hard to tell which...but all the numbers from company we have so far tell us all is fine. Perplexing.