Keywords Studios Plc Share Price (KWS)

Hahahahah when will you ladies realise that it is not bottom feeding when you buy at the level. Rather in a years time it will be the year high!!

This is going back to single digits - over indebted, unprofitable, what is there to like?

Ps for transparency I have a 130000 share short on this dog from 1522

No this is pretty different - and actually positive. Contingent consideration is when they have done an acquisition and part of the price is dependent on the target company achieving certain performance figures - usually quite challenging ones, so if KWS is now paying that it means that the acquisition is doing well.

Shorts are when hedgies are taking a position expecting the share price to fall i.e. they think it is overvalued and will correct downwards. It certainly was wildly overvalued in the past but f you scrub the numbers properly you can see its currently trading on pretty conservative multiples. That said, there is this Goldman report from last year hanging over them where GS identified KWS as a potential loser form AI. I'm personally sceptical about that assessment which is why Ive entered KWS recently , but there are plenty of people out there a lot more bullish on AI than me, so DYOR

Movement may also be related to issue of small number of new shares (possibly the same thing?):

RNS Number : 0036K

Keywords Studios PLC

10 April 2024

Keywords Studios, the international provider of creative and technology-enabled solutions to the global video games and entertainment industries, today announces the issuance of 87,648 new ordinary shares comprising the share element of contingent consideration due based on the performance of 47 Communications LLC since its acquisition.

Application has been made to the London Stock Exchange for the admission of these 87,648 new ordinary shares to trading on AIM. Admission of the new shares is expected to take place at 8:00am on 15 April 2024.

The Company's total issued share capital following admission will consist of 79,521,770 ordinary shares of one pence each with one voting right per share. There are 568,706 Ordinary Shares in the Company's Employee Benefit Trust ("EBT"), and the EBT has waived its right to exercise its voting rights and to receive dividends in respect of these Ordinary Shares.

For anyone curious about the recent drop, I see that an additional 0.6% short position from GLG capital was opened on April 9, giving KWS a cumulative 3.7% short position, so possible this put some downward pressure on the stock

Yes, its an interesting one. Did a deep dive looking at them and their comps and frankly theyre putting in a pretty impressive operating performance, especially versus the competition. The whole sector has been taking a beating though and they have historically been wildly overvalued, so a serious correction had to happen - but now make decent value sense with some decent organic growth coming through. Am gradually accumulating at these levels, though its impossible to call the bottom.