The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Aimgambler, hedging my bets at the moment. Will buy more if goes down further to 175p. If not, then happy with my holding.
Hugh, there's obviously a sell being worked at around 180p and they're just working it through. Once gone it'll bounce hard. If you think it's oversold then these forced sellers provide a great buying op for those not constricted by metrics. Aimho.
No prizes for guessing your position.
Any chance I can have the lottery numbers for tonight too?
Bi in the 170s soon...
"Still going down ...."
There's some really astute people on here.
Currently the SP has held steady since I bought in half an hour ago at 184p. I think lowest might be 180p before recovery.
Still going down ....
!Loose confirmed it was planning to make redundancies earlier this month, after Eurogamer broke news that extensive cuts were being made to Team17's QA department in favour of outsourcing work elsewhere. But the job losses go much further than those at risk in QA, Eurogamer understands, with staff across a wide range of departments affected - including those employed in Team17's marketing, usability, customer service, IT and HR teams.”
That things were bad was therefore obvious. Not that things have been going that well for some years now: “But the long term shareholders of Team17 Group plc (LON:TM17) have had an unfortunate run in the last three years. Unfortunately, they have held through a 65% decline in the share price in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 34% lower in that time.”
The latest news from the company itself: “While the important trading periods of Black Friday and Christmas are not yet complete, management believes the Group remains well positioned with strong traction across its new release and back catalogue titles, and currently expects FY23 revenues to be modestly ahead of current market expectations.” So, revenues are going to be better than expected. That’s not usually a cause for a share price collapse.
“Consequently, the Group now expects to deliver full year adjusted EBITDA of at least £28.5m, which includes non-cash title impairments of up to £11.5m.” Ah, but earnings aren;t going to be so good. Thus the share price reaction.
“The Group has an exciting schedule of high-quality new releases planned across the Group in 2024, while back catalogue investments will continue to support revenue growth. Management will provide greater clarity on FY24 at the full year results, but currently expects to see an improved underlying trading performance compared to FY23.” And, of course, things will be much, much, better next year.
Basically, the costs of that reorganisation have come as a nasty surprise to the market."
But it wasn't really a surprise, and reorganisation leads to better performance.
DYOR but there's a great opportunity here.
Ndie game developer Team17 (TM17) upgraded its sales expectations for the year but revealed an £11.5mn impairment in a trading update, sending the shares down 42 per cent on Friday morning.
The company said project overspends and some games not hitting expected sales levels. This means it is “reviewing a number of titles, both under development and already launched” which will lead to the impairments. Team17 had previously promised “second half weighted” profits.
The full-year adjusted cash profit is expected to be at least £28.5mn, the lowest for some years and £20mn down on 2022.
Totally agree, there's nothing here that should encourage any of the big IIs to jump ship, just desperate PI's.
It's a very solid company, and you know what I think today was the right time to let the cat outof the bag. The SP had been in decline, atleast it ws a 40% drop from where it was yesterday. If this had happened 2 months back after the news that had already gone out, it would probably be below this price today.
I read a very well put together RNS, there's no bullsh8T, there's no buttering it up. They've been very open.
Octopus and Liontrust have both been buying heavily since £2.50, I can’t see them dumping here due to a £11m impairment. Results will be ahead of expectations.cost overruns unexpectedly continued into H2. Investors may be bit miffed that this wasn’t indicated in the September update but still a Massive overreaction. Should be back to the £2.20 - £2.50 range fairly quickly.
At this level, it's complete madness, taking from the poor to give to the rich.
The SP has never been this low, it's below the IPO price and for what? Because the company is taking action and kitchen sinks it alongside doing better than predicted.
It's an open secret about the lay offs, and when you acquire new busineses as they ahve this is always standard.
This is just a small growth blip that's now been put out there, fair value here is still circa £3 easily. And considering NOBODY has an average below the current SP since IPO I struggle to see this being anythong other than a panic smash and grab to fill orders, taking out sell orders they could see. Maybe they saw the ones this AM and went for them, and now they're using them to supply the buys for the rest of the day.
Easy money for me, this will be above £2.50 by Monday close.
Barely budged. Another move down to come?
No way there's been the volume to supply that much this AM at that time and price
The fact that the trades hadrdly moved the share price one iota and were done "back to back" suggests that they might be trades between MMs.
Let it bleed some more. Might see 170 here today
I have just bought in at 184.75p but not expecting much upside until next week.
They are not, the Buy/Sell at the time 180/185 and all those chunky trades were @185
Those are sells
MASSIVE BUYS Just gone through
24-Nov-23 10:03:33 185.00 500,000 Unknown* 180.00 185.00 925.00k O
24-Nov-23 10:03:33 185.00 500,000 Buy* 180.00 185.00 £925.00k O
24-Nov-23 10:03:21 185.00 225,000 Unknown* 180.00 185.00 £416.25k O
24-Nov-23 10:03:21 185.00 225,000 Buy* 180.00 185.00 £416.25k O
24-Nov-23 10:03:04 181.05 10 Sell* 180.00 185.00 £18.11 O
24-Nov-23 10:03:03 185.00 5,000 Buy* 180.00 185.00 £9,250 O
24-Nov-23 10:03:01 185.00 600 Buy* 180.00 185.00 £1,110 O
24-Nov-23 10:03:00 185.00 225,000 Unknown* 180.00 185.00 £416.25k O
24-Nov-23 10:03:00 185.00 225,000 Buy* 180.00 185.00 £416.25k
24.11.23 Berenberg cuts Team17 price target to 490 (650) pence - 'buy'
Big overreaction imo. Seems some people are scared its the next FDEV but anyone with knowledge in the industry knows thats not the case. Still might drift lower next week but personally feel its a great time to accumulate
Me too, I just £9k at 185p. Still very profitable but below expectations with new leadership coming in. Common to kitchen sink as the CEO has resigned - Probably influenced by the CFO - It’s the right thing to do anyway.
Fair point grippa, 50 job cuts is significant, and as far as the market knew on 19th Sept they actually pointed out increased headcount in 23 versus 22 as a "financial highlight", strange way to put it when it would only mean more mouths to feed. Market assumption would have been that trend continuing.
That website has it slightly wrong though reporting Michael Pattison as CEO, rather than specifying him just being CEO of internal digital division. This profit warning looks like the recently appointed overall CEO making his mark and throwing predecessor under bus. Job cuts no bad thing btw, can't see why they didn't lay that out even in this RNS. If revenue contracting, cutting expense only option.
Either way it fits with trend of independent video game makers taking an absolute beating lately. 180p was the lowest this has ever been.