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Simon1367 - 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?
It evidence shows to me that Alex knows how to preserve a balance sheet……not to mention they’ve got an undrawn credit facility of £35m waiting in the wings if needed……the cash won’t be running out anytime soon.
Yes, definitely not a good idea to invest based on what you’ve read in the newspaper but we all make choices I suppose?
I’m very happy with my average price here and only see upside as we go in to 2024 with a strong portfolio of games in the pipeline and strong IP’s under the Tinybuild umbrella.
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.
Yes, especially the likes of Streets of Rogue 2 which I think will be a big hit if it’s as good as the first game.
Tinybuild have some strong IP and franchises and have a fairly strong track record of producing a good portfolio of games. The 1000 hour game model could work in their favour also.
It’s never particularly comfortable holding a small cap like this wren it’s heading south but I will be buying another load next week when I have some dry powder. Hopefully I’ll still be able to get a load at the current price.
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.
There has been a period of selling over the last few days…….
Some real glutens for punishment offloading up to 500k of shares at 5.5p, I would assume they’re not the smartest cookies in the biscuit tin. Lol.
The only way from here is either up or for the company to fold…..which given the cash situation, the undrawn credit facility and the pipeline of games to be released in 2024…..I can’t really see that happening.
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.
Unhooked - With a market cap now between £12-£13m the company has more cash in the bank than the market values the entire company. The market is valuing the business and all IP’s at £0.
At this price the margin of safety is very high and there surely can only be upside from this price unless the market wants to start valuing cash at less than its inherent worth?
...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.
AAAA1111 - Thanks. I’ll keep an eye on Stockopedia major shareholders see if anything is updated in the coming week.
Someone has offloaded a sizeable amount of stock I’d be curious to see who. Stocko is still saying that Luke Burtis is still holding 14m shares. Anyone know if that is correct?
Similar is happening with FDEV. Invesco's fllings show it has been dumping FDEV for months but FDEV has not disclosed this on RNS.
In the region of 20 million shares have gone through the order book as unknowns in the last few days……
Someone is dumping by the looks of it but we’re not getting any 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.
Another what looks like a big sell this afternoon, another 1m shares. Still no RNS…..
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.
404x - It looks like someone is exiting…..
It could be Amati, there are a few II’s holding 10-15 million shares……should get some RNS in the next few days.
Looks likely to be Amati exiting
Looks like there was some substantial offloading this afternoon, around 10 million shares….
The trades are down as unknowns but I presume from the selling pressure that they were all sells….
Probably some RNS in the next 24 hours with the details.
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.
They’ve downgraded Torah
Brave to get in here
404x - I think that is a fair assessment.
I’ve watched the share price drift down from 100p over the last 12 months and I’ve been waiting for a chance to take a nibble.
It’s clearly been a difficult year for Tinybuild and they’ve burned through a significant amount of cash but for the time being they’ve still got a healthy balance sheet and no debt. It’s a difficult market with huge competition but there is also huge sums to be made from successful titles.
From the report it sounds like they’re going to address the cost issues in the short term and focus on the ‘1000 hour’ model for their games.
There is risk here but also huge potential upside if they’re able to turn things around which is why I’ve taken a position.
The big drop happened after the AGM update, yesterday's RNS was in line with that, worth reading for details. In a nutshell they forecasted too optimistically and came in below market expectations.
To a certain extent all video game publishers are facing challenge of revenue growth stalling after pandemic boom, having over-hired on expectation growth would be sustainable they now need to cut costs. Some companies have manged this better than others but same applies even to big names like Roblox in US.
In UK FDEV, KWS and TM17 down from highs. Tinybuild is somewhat unique because the market cap is so low and has fallen the most from its peak.
Hi all,
Why down so much ???
Thank you.
Wayne
Back in here, value seems a no-brainer at this level.
$10-$20m cash in the bank by the end of December this year plus there is an undrawn credit facility of $35m. The company has liquidity and a strong balance sheet for the time being.
Hopefully things will pick up in H2 with title releases weighted towards the second half of the year….although headwinds will weigh on profitability.