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Is this sell off overdone or what - can't see anything in the RNS that indicates things are that bad - quite the reverse. Thoughts?
I agree, dipped my toe in.
I bought the dip. This isn't FDEV. Team17 is still aiming to beat revenue expectations. It has solid royalties, solid Indie development teams and good fan following.
I'm going to accumulate at these prices.
I suppose it merely delayed the drop by a few weeks. surprised that managed to stay under wraps. suppose the upside is it's now cheap enough to see upside with the new CEO to be announced at some point.
I used to be a holder here sold a few weeks ago, what p*&s me off is is when you hear how the companys performing from a industry website like this bellow rather than from the company itself, we havent even been told gaming CEO has left.
https://www.gameinformer.com/2023/10/02/worms-dredge-publisher-team17-is-the-latest-to-be-hit-by-layoffs
When the Board fails to manage market expectations.
They must have known about reduced demand, cost overruns etc. months ago and should have given some indication of the steps they were taking to mitigate the problems. Instead they kept quiet, then issue what amounts to an unexpected profit warning. The market doesn't like surprises.
Reckon 185 is the bottom but guess we'll see.
More Octopus 🐙 money....
🙂
Liontrust - the third biggest shareholder - seems to have doubled its stake, with an additional investment of around £17m.
( ・_ゝ・)
The whole gaming industry is in retreat, Team17 are making redsundancy's and restructuring and herd new games are struggling. Gaming division CEO who was highly respected Ex SONY is now leaving........ This sounds far from positive to me. I feel for anyone who loses money but this is a big gamble going forwards hopefully it can recover though I think the odds are stacked against it at least short term
She's still there, just not CEO. There's actually been nothing but positive I have read, all good, and decent results expected to be better 2nd half of year. I would say this is a very good buy in price, very few people if any in lower than this SP since the IPO. New CEO has a strong agency advertising background, I expect to see better performance in marketing the games and as a result higher overall profit as the company maximises the return from the existing porfolio. The issue here is pandemic overhang, loss of interest in gaming stocks, cost of living.
Seems lots of negative news and events since the star CEO moved on. Lost almost half its sp in 6 months and do not see the fall ending yet.
Was also sad to hear that they are going to 3rd party all the QA. Its the reason why I work QA in scientific instruments and not something "fun" like games, because rather than correct a history of treating them badly they are just outsourcing the issue.
Good top-line growth but an increase in overheads (some timing, such as marketing spend for H2 release, but some more entrenched, like staff costs and inflation to general costs) has resulted in falling profits. The wider indie games sector is out of favour at the moment, thanks to reduced investment from platforms in indie games and a huge number of AAA+ titles being released (i.e. very competitive.)
Team17 has 'amicably parted ways' with a CEO of one of their subsidiaries at the same time as making 50 or so staff redundant https://www.eurogamer.net/significant-job-losses-likely-at-worms-publisher-team17-sources
Hell Let Loose - the IP acquired for over £20m, has performed poorly this financial year thanks to updates that alienated the player base.
Plus longstanding CEO is leaving for a marketing executive.
So all a bit grim for the company. You have to trust that the large amount of development spend being capitalized on their balance sheet is going to the right places in order to see a greater return in 1-3 years times. With this spend they're currently around breakeven.
Why the constant drop here?
Well EPS is well down, perhaps reflecting the 10% increase in headcount.
Not a bad H1 at all......very happy
There is usually a reason for share price declines of 60 percent or more and it’s not just the ceo retiring. The whole sector is quite jittery as witnessed by Kws recently not to mention Tinybuild. So revenue surged in March, but profits fell. Cash balance quite respectable but has declined last 2 years from 60 million to 50 million. Net asset value per share down from over 40 p to just 12p. Not quite smashing it in my book. Trading in line for September half year update. Always the possibility of a surprise , but directors usually do some serious purchasing with their own money when they think its a bargain.
The market seems to think otherwise for some reason. Maybe the summer is not turning out so good? I’m afraid it’s ebitda targets that are complete nonsense
These awards were based on EBITDA targets and in fairness they smashed them. In the financial year they were given for, they also managed to grow revenue by 50%. I don't know of any other plc that managed that last year - least of all game devs facing tough comparison with pandemic boom. Total nonsense to say the company is performing poorly.
Funny how directors like to award themselves bucket loads of shares when a company is performing poorly. Like little piggies at the trough. Not totally against the idea of options as an incentive but this looks like sheer greed. Why do shareholders shoulder all the risk for directors to take no risk in share purchase schemes. Another one added to my black list I’m afraid
Not much share chat anywhere.
Simply wall street forecasting good growth but the downtrend continues.
Wondering whether to just give up on this one. Anyone any thoughts?
There will be positive news on the horizon with the announcement of the new CEO and a sense of who is manning the helm going forward with Debbie still on the board, so in reality an upgrade to the company as founder still involved and influential, but with an injection of fresh blood and perspective to take things forward.
No idea because a lot of stocks are like this at the mo.