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It opened at 4 actually so it only needs 30% from this 3.10p to do thar..
Let's see if there is a boune but if so it may only be a deceased moggy type
A 50% gain would take it back to where it opened yesterday after the RNS.
The lesson I've learned from this (and after subsequently assessing other AIM shares) is to never invest in an IPO within the first three years of flotation, then review the share. There's a 1000-1 chance you will miss out on a huge rise, but there's infinitely more chance of you losing a significant chunk of your original investment. A valuation of £534m to a figure of £6m in two years beggars belief. Obviously the CEO and other founder have lost a fortune, but the CEO clearly still has more than sufficient funds to totally underwrite the proposed $10m raise. The financial mismanagement is staggering; almost criminal. For those looking for a gamble and an entry point, I suppose this may be it. You might get a quick 25-50% return if it bounces a bit or t/o bid emerges. Good luck with that. I'm done with this company.
Looks like Premier Minton are still involved. Surely this institutions could buy the entire company for less than their original investment :
Swedbank Robur AB 14,728,994 7.30%
Hong Kong NetEase Interactive Entertainment Limited 12,889,171 6.40%
Premier Miton Investors 9,500,000 4.70%
Crazy tor think that people who followed tip will need almost to 100 bag this stock to break even and it’s less than 3 years old: https://www.telegraph.co.uk/money/investing/stocks-shares/questor-computer-games-firms-founders-believe-shares-should/
Questor share tip: bosses at tinyBuil d have held on to 45pc of the company following its flotation – a vote of confidence in a bright future
“We went through years of hell before making any money.” So say the people behind tinyBuild on the computer games firm’s website. They finally got their reward last month when it joined Aim and its founders became millionaires many times over.
Alex Nichiporchik, chief executive, is now worth £204m as he owns 38.2pc of a company valued at £534m. His colleague Luke Burtis owns 7.1pc, worth £38m.
Their retention of such large stakes is hugely reassuring to this column, whose belief in “following the money” extends to the actions of company bosses as well as those of outside investors. But at least one fund manager has put his clients’ money behind tinyBuild too.
“We like the computer games sector: it is bigger than film and music combined,” said Jon Hudson of Premier Miton Investors, one of the largest institutional backers of tinyBuild. Questor likes the sector too: we have scored big gains with the likes of Frontier Developments, Codemasters and Team17.
And tinyBuild takes Team17’s approach: rather than developing its own games it takes on promising titles from independent developers and helps them with funding, marketing and technical expertise.
“Alex and Luke discovered the value of this model by direct personal experience: they wanted to release a game called No Time To Explain but were strung along by a publisher, jeopardising the entire project,” said Mr Hudson. “They realised they could help other developers to commercialise their games so they changed course to become a publisher.”
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The company says that since August 2013 it has formed partnerships with dozens of independent developers, acting as a publishing partner and “providing funding, knowledge, production, artwork, guidance, etc to make other developers’ games better”.
“They come at it from a developer’s point of view,” said Mr Hudson. He said tinyBuild selected just 1pc of the games it saw, picking those with the most promise and advising the developers on how to make their game more appealing to users. “It’s a partnership that works,” he said, “and this way you don’t have to commit much capital – it’s a low-risk way to generate a big hit.”
The ultimate goal is a game that can develop into a “franchise”: one that can remain popular through multiple versions, with spin-offs, books, prequels and so on.
It was a real clanger today to give notice of a raise in advance without specific details or timeframe. Renders it pretty much uninvestable in the meantime when market assumes a discount is on horizon. Every other firm raising uses an accelerated bookbuild type process to get it done and dusted as soon as possible for good reason.
Moneyshark, I agree it wasn’t good, but I’ve seen shocking updates and companies have still bounced from a certain level (REVB was an example).
The CEO could buy this back with the pocket change he got from the initial floatation for a start.
Despite the evident doom and gloom here I’m surprised there hasn’t been a bounce from these levels yet. Surely this is now worth less than the value of all the IP’s etc? It seems strange that no larger organisation has come in to snap up a chunk like Boohoo did with Revolution Beauty
I almost wonder if he's made a conscious decision to destroy the equity value here with a view to buying it back on the cheap. I know that's a bit of a conspiracy theory but he's been so managerially inept and complacent despite all the warning signals I'm almost inclined to believe it.
Simon, your correct. With a sizeable capitalized development spend to be depreciated over 3 years, aligned with a collapse in revenue, the prognosis is terminal .
TheMoneyShark: You questioned my comments last week about this company running out of cash. You said ''Why is the cash evidently going to run out given that this business has been ran debt free and in cash for at least the last 6 years?'' and that it has a big credit facility.
Well, now you have the answer. Am I surprised at the news today? No I'm not, because I saw this coming. The people running this company may know their way around a computer game, but they seem to have virtually zero business acumen. The 'Escalante' legal case adds insult to injury with millions having to be paid out. And the 'revolving credit facility' no longer exists because I'm sure the bank terminated it because of either broken covenants or they anticipated it was going to be difficult to recover any funds drawn down. And quite frankly, how long is an extra $10m fund raise going to last at this rate of cash burn?
My investment isn't worth selling. Being down 97% it's virtually worthless.
At the present rate, my view is that this company is going bust by this time next year.
Perhaps he will delist & take it private, he can afford to and won't have shareholders to bother with ?
The one saving grace for raise here is CEO having so much skin in the game, discounting will impact him more than it will other shareholders. Having put prospect out there out there they now need to do it as quickly as possible to stop the bleeding. Again we don't see nearly enough urgency from management but at least they're finally talking about cutting costs.
Remember when I called this company a turd and got shouted out the board... lol.
This article relating to FDEV who seemed in a similar position (albeit about 10 times the market cap of here) was interesting to read as there are potentially some parallels https://www.ii.co.uk/analysis-commentary/stockwatch-there-life-left-share-down-96-ii530003
It would be fair to say that I regret ever reading Questor in the Telegraph recommending this at around £2.30. It would be fair to say that I'm sick as a pig with the way things have gone. The lesson to learn here is not to invest on newspaper recommendations but to do one's own research. In recent times the lack of transparency has been far too evident. Cash is eventually going to run out and there is only a 50/50 chance (i.m.o) of this share existing a year or two down the line. The CEO clearly lacks business acumen and we are no where clearer as to whether the former founder member has sold out of the company. In my view it's a complete mess but there's no point selling now. My shares a re virtually worthless and down over 90%. It would be fair to say that I'm a little peeved to say the least.
Plus the games in the pipeline actually look quite good from the previews. It’s just a question of patience as the volumes being sold a tiny in comparison to the shares in issue. I actually increased my holding here recently (wish I’d waited), but this drop on low volumes isn’t concerning in my view.
This is also being destroyed on tiny volumes, all it would take is some persistent buying and the price would soar. Today it has dropped by 20% on less than £50k worth of shares being traded. Personally I think this is the drop before the rise.
Wouldn’t surprise me if this is all priming for a takeover, CEO has such a strong majority holding he could orchestrate taking this back under private ownership without challenge.
...that my investment here has not gone exactly as anticipated. Struggling to find the positives...
Stocko's figure will have been taken from tinybuild's own shareholders list web page which is months out of date. There is nowhere to find LB's current holding. The company is not obliged to disclose it for another two months.
Similar is happening with FDEV. Invesco's fllings show it has been dumping FDEV for months but FDEV has not disclosed this on RNS.
404x, Could you please tell me the source of the info on those Amati exits?
The Amati VCT certainly is having a rough ride. Share price halved in two years.
This volume specifically corresponds with Amati's holding and they've been suddenly exiting a few other small caps in a similar manner. Whether they're distressed or looking to wind down who knows but we can say for sure their funds have been performing woefully, so wouldn't be surprised if they were just looking for liquidity wherever they can find it.
Looks likely to be Amati exiting
Peel have their own problems, they recently issued a buy statement on a company accused of fraud by its own auditors, while trying to cover up the dodgy audit - probably because that same company pays them! https://www.ft.com/content/52ba07ba-fca4-40aa-aea7-756114e6da5a
Usually when they suggest something it's an inverse signal to do the opposite. No wonder their own share price is down 65% since last year.