Member Info for skittish

Picking over the carcass of Arcadia -

https://www.bbc.co.uk/news/business-55113812

"Lord Rose said he did not want to "demonise" Sir Philip, but said the controversial businessman had "not moved from an analogue world to a digital world fast enough", blaming that on a likely lack of investment over 10 or 15 years"

Codemasters' takeover slated again in The Times yesterday, effectively suggesting that the directors including non exec's are selling shareholders down the river for their own personal (substantial) gain.

https://www.thetimes.co.uk/article/flawed-codemasters-deal-shows-the-need-for-a-long-term-game-plan-hr2dbwbsq

Choice phrases abound such as -

"The deal is flawed on every level and benefits neither shareholders nor the wider economy."

"The price, moreover, is highly unattractive."

TM17 p/e is currently 61, same as CDM.

The American company has offered a premium of only 12 per cent. These are the terms a company would accept only if it were in distress."

"Yet Codemasters has been a lockdown winner. Between April and September, its revenues doubled to £81 million."

"Boss Frank Sagnier, who says the bid fully values Codemasters and that games are becoming increasingly expensive to develop, will get a £17 million windfall"

"Shareholders need to start focusing on long-term rewards rather than their annual bonus cheque"

The implication being that games developer(s) should be able to command much higher prices.

INCE very much unloved over the last few days, since the date for the interims - 1-12-20 - was announced.

Provided there is no bad news (really bad) in there I see value here.

Investors should be starting to look towards the end of Covid sometime in 2021 when the world will return to something more normal - although it may be a slightly different new normal.

Yes, just seen that.

Can't help but feel that BWNG will be missing a trick or two if they don't pick up some of these brands at knock down prices - especially as they are shortly to be "cashed up".

I know they aren't really "cashed up" - but with the £94M fundraising and cash generated during this year of £100M+, then the company has much greater fire power than it did 12 months ago.

Top Man and Top Shop brands are estimated to be worth in £100M+ so maybe a bit too big for BWNG to snaffle, but there is still Burton and Dorothy Perkins.

And the fall out from EWM is still continuing with Pea****s and Jaeger up for grabs.

Hopefully BWNG are running a slide rule over at least some of them, and seeing what synergies they can come up with.

BOO after all raised money for precisely this opportunity, so the ability to buy distressed names shouldn't come as any surprise.

ath 815p earlier today, although slipped back a little later on.

Can't complain though, so long as we seesaw upwards to infinity and beyond!

No doubt helped a little by CDM along the way.

No CDM options type nonsense at the TM17 offices, I'm sure.

786p - all time closing high today.

Beautiful looking chart - very, very well behaved this share.

Yes, if you held shares on 3-11 then for every 18 you held you can buy 11 @ 57p.

You can also apply for additional shares over and above the 18/11, again @ 57p.

If you are a smallish pi and the shares are 60p then the gain may be modest.

But if you are an ii with deep pockets then it may be an easy way to a few hundred k £.

If however the shares were to go to 67p or even 77p then suddenly the 57p offer looks very much more inviting.

And everyone entitled still has around two weeks before they need to commit.

Interesting.

Of course shares can go down as well as up.

At a price of 61.4p BWNG shares are now 7.7% above the OO and excess offer price.

If you are an ii and believe in the company, then it is really a no-brainer to apply for all your OO entitlement and try to get as many as you can in the excess offer.

Presumably any ii's presently invested do believe in the company in any event.

The FD was buying recently at 61p.

Maybe the offer at 57p, underwritten by Alliance, is a more subtle way of supporting the company than many give credit for.

At the present rate of increase in the value of the shares the proportion of shares owned by alliance is unlikely to increase from 45% to circa 57%, and instead may decrease to circa 33%. Maybe that is part of the intention all along, inter alia to increase the shareholder base and reduce the proportion of shares held by Alliance, thus making the company more attractive as an investment.

Everybody wins, as any dilutive effect relating to future dividends is more than offset by an increasing share price.

And the FD buying after the capital raising was announced may suggest that was the intention all along.

If the price holds up then buying into the offer is the obvious choice, IMHO.

And everyone has plenty of time in which to make their decision.

What price in early December?

DYOR etc

Trading update and interims due early next month.

Possibly why people are getting on board now.

Mainly about Frontier, but small mention of TM17 in "The Times" today -

https://www.thetimes.co.uk/edition/business/pandemic-means-its-time-to-power-up-for-one-of-the-biggest-players-in-gaming-s82b295g5

"If he’s right, Britain’s crop of games developers stand to prosper. Mr Braben bemoans the many home-grown studios that sold out in the past, sending intellectual property and well-paid jobs offshore, but he thinks home-grown developers are much more inclined to stay independent now. Indeed, he’s bullish about the prospects for the British technology sector. Frontier has hired 120 people during the pandemic and it’s eager for more. “Finding good graduates is now much easier than it was before. The tech sector in the UK is in really rude health.”"

Thanks to fairenough11 on ADVFN - late RNS - Schroders now hold 5.1%.

Suspect someone has been accumulating today also.

Does anyone know how many Schroders took at IPO?

Could see a bit of a boost Monday.

A bit sneaky to release on a dark Friday evening at 18.16!

The Times today -

"Some of the country’s biggest retailers were overwhelmed yesterday as gaming fans tried to get their hands on the latest Playstation 5 console.

Tesco, John Lewis, Currys and Game websites crashed after they were unable to cope with demand for the £449 console.

Currys had introduced a virtual queueing system on its website, with more than 200,000 waiting at one point, before announcing that it would delay taking new orders.

John Lewis and Tesco managed to get their websites back up but said they were out of stock within an hour. AO World, the online retailer, had stock to fulfil for pre-order only so did not take any more orders"

Should be good news for anything computer game related, including TM17.

Maybe coincidence but this rise commence the day after the end of the Jefferies Global Interactive Entertainment Virtual Conference, which was RNS'd on 9th November 2020.

Possibly perked the interest of some investors?

Something has to give shortly.

Failed attempt to breach 35p earlier today, now looks primed to go above 35p with the spread consistently narrowing to 34.8p-35.0p. Lots of trades @ 34.8p - assume they are buys but no one is yet paying 35p.

After 35p, next resistance is 45p and then not much until around the 110p mark.

Update due in around a fortnight is crucial, but this hopefully will be the catalyst to break through to much higher levels.

On a p/e of 2 it shouldn't take much good news to really motor upwards.

Looks like someone had to split a trade down into small parcels, 2500, 3000, 3000 (all within a minute) in order to be able to buy.

If so, bodes well for further rises.

Trades went through yesterday okay for me, but with a delay.

Could be unmet demand out there being illustrated by numerous small trades - 'cos that is all people may be able to get.

Been following for a while (a relative worked in their HK office many years ago), dipped in yesterday am and several times more this am.

It appears to be unusually good timing for me.

Great prospects here for a significant recovery.

And danawinner, our one time contact with new management, does seem to be quite keen posting presently on various mineral type stocks, but not so often on here these days.

And a little while ago he was doing something with fast charging EV's in HK.

Minerals/batteries etc, maybe a hint of something there.

Or maybe not.....

Tidying up a few loose ends....

https://find-and-update.company-information.service.gov.uk/company/03740688/filing-history

"Registered office address changed from 20 the Broadgate Tower, Primrose Street, London EC2A 2EW United Kingdom to 48 Chancery Lane C/O Keystone Law (Attn: S Holden) London WC2A 1JF on 19 November 2020"

And as to Mr Holden this is what is said about him....

https://www.keystonelaw.com/news/keystone-boosts-corporate-capabilities-with-equity-capital-markets-expert

"Simon’s equity capital markets and M&A expertise, specifically relating to mining and oil and gas transactions, has been recognised in The Legal 500 where he is recommended by clients and praised as a ‘tour de force’"

Interesting that this change of RO has been preceded over the last few days by some buying activity.

The existing investments may well be divested over time - this is now a totally different company to that which existed a few months ago - the only common factor is the name, and many of the same shareholders, although at least 25% of these are different.

Standby for action.......

The bots seem to be busy doing the buying today, with possibly pi's mainly doing the selling.

Another decent rise coming up, maybe.

The higher the share price rises the more likely parties are to take up the OO and apply for excess entitlement, and therefore the lower the likely resulting % of shares in the hands of Alliance & Co.

This share has closed higher, and also higher than its daily opening price, for 6 days running now.

Closing price is now 2.8% above the price of the shares in the Open Offer.