Kastor Krieg Posted October 18, 2018 Share Posted October 18, 2018 So, time for doom and gloom now? I forget the name of the Frater who does the usual financial analysis, but if you could shed a light maybe? https://www.thisismoney.co.uk/money/markets/article-6289819/Games-Workshop-raises-alarm-bells-blue-warning-trading-uncertainties.html Games Workshop spooked investors today with an unscheduled trading update warning of 'uncertainties in the trading periods ahead'. The terse, 70-word announcement from the stock market darling, unsettled investors and triggered a 10 per cent slump in its shares to £30.15 - making it the worst performer in the FTSE 250. [...] the Board remains aware that there are some uncertainties in the trading periods ahead for the rest of the 2018/19 financial year. A further update will be given as appropriate.' Retail analyst Nick Bubb pointed out that, having updated the markets just last month, it is unclear why the firm has issued another trading update today, 'bar the fact that its share have been under a bit of pressure'. 'Make of that what you will,' Bubb said. When This is Money contacted the firm for more clarity on the mysterious statement, a spokesperson declined to comment and said 'no one is available to speak with regards to your query.' Link to comment Share on other sites More sharing options...
Noserenda Posted October 18, 2018 Share Posted October 18, 2018 Something something Brexit? Link to comment Share on other sites More sharing options...
Brother Casman Posted October 18, 2018 Share Posted October 18, 2018 N1SB is the Frater who does the usual financial analysis. With regards to the news, I wonder if GW is worried about Brexit? Link to comment Share on other sites More sharing options...
Panzer Posted October 18, 2018 Share Posted October 18, 2018 inb4 all regular Marines move to index-level with a new (Primaris) Space Marine Codex (just joking of course!) Link to comment Share on other sites More sharing options...
Charlo Posted October 18, 2018 Share Posted October 18, 2018 It could mean anything and it could be something completely unrelated to the hobby side of things too. Eagerly awaiting some context though. Link to comment Share on other sites More sharing options...
Canadian_F_H Posted October 18, 2018 Share Posted October 18, 2018 Somebody wanted to buy a few thousand shares at a discount before Christmas. When everything proceeds as they have for the past year they will make a killing... I got nothing... Link to comment Share on other sites More sharing options...
helterskelter Posted October 18, 2018 Share Posted October 18, 2018 The new FW p+p pricing system plus brexit announcement I'd imagine, upsetting a chunk of fan base which led to many emails of a disgruntled nature and maybe noticing the come back of this in some spreadsheets. Not saying these fans just bought FW mind I'm saying these fans bought both and are now less inclined because it's just all super expensive in an already expensive hobby. Plus the pound has been doing the slight falling thing again. Link to comment Share on other sites More sharing options...
Triszin Posted October 18, 2018 Share Posted October 18, 2018 I think its a mixture of 1. uncertainty surrounding Brexit 2. US tariffs on china, might cause Box and book/booklet production cost to increase 3. lower than expected sales predicted for this holiday season. (could be too many boxsets, to fast) Link to comment Share on other sites More sharing options...
Panzer Posted October 18, 2018 Share Posted October 18, 2018 Somebody wanted to buy a few thousand shares at a discount before Christmas. When everything proceeds as they have for the past year they will make a killing... I got nothing... I honestly would do that if I had the money ... unfortunately I don't. Link to comment Share on other sites More sharing options...
Triszin Posted October 18, 2018 Share Posted October 18, 2018 Somebody wanted to buy a few thousand shares at a discount before Christmas. When everything proceeds as they have for the past year they will make a killing... I got nothing... I honestly would do that if I had the money ... unfortunately I don't. Ya, IM just starting to put money aside for a brokerage account/retirement account. I feel like im starting late. also doesn't help I dont make much Link to comment Share on other sites More sharing options...
Seahawk Posted October 18, 2018 Share Posted October 18, 2018 Most likely it has nothing to do with GW and everything to do with the economic upheavals going around (tariffs, Brexit, impending implosion of US economy, etc). No real news here, unless you have tons of money invested in their stock. Link to comment Share on other sites More sharing options...
caladancid Posted October 18, 2018 Share Posted October 18, 2018 Most likely it has nothing to do with GW and everything to do with the economic upheavals going around (tariffs, Brexit, impending implosion of US economy, etc). No real news here, unless you have tons of money invested in their stock. Yeah I can definitely see why Games Workshop would be the only company that felt the need to warn investors due to the impending implosion of the US economy. I may be way off base- but that seems like something of general versus specific importance if it were the concern. Link to comment Share on other sites More sharing options...
Chapter Master Valrak Posted October 18, 2018 Share Posted October 18, 2018 Get ready, another Primarch is about to drop and smash them back up by 20% Link to comment Share on other sites More sharing options...
evilhomer Posted October 18, 2018 Share Posted October 18, 2018 Thanks for the update, was considering buying a chunk earlier in the week after the global dip in the markets. 'Some questions may also be asked as to the timing of former chairman Tom Kirby's £20.3million disposal of Games Workshop stock last month. Did he know something was up? One would suspect not, given that he retired more than a year ago and shouldn't be privy to information regarding the day-to-day running of the business.' Hmmm. Link to comment Share on other sites More sharing options...
Chaos Lord Tom Posted October 18, 2018 Share Posted October 18, 2018 Most likely it has nothing to do with GW and everything to do with the economic upheavals going around (tariffs, Brexit, impending implosion of US economy, etc). No real news here, unless you have tons of money invested in their stock. It would be really weird to issue a warning one month after last report if the topics involved are mainly external. All the reasons you are listing are well known by the investors and should already be integrated in the stock price before the warning. Especially since dividends will be paid in a few days, what will lower again the stocks price. They are closing end of June and must have a clear vision of the performances for Q1. Maybe, these are not on par with a budget that may have been very agressive given the exceptionnal peformances last year (even if sales are higher than last year). The stability of profit they are claiming may be a hint. Moreover, I'm not sure if orders have already been placed by FLGS for the holyday season but orders lower than expected could be a reason for such a warning even if this is less than 40 % of their sales. They may be able to extrapolate their total sales based on the orders placed by their resellers. Link to comment Share on other sites More sharing options...
Ishagu Posted October 18, 2018 Share Posted October 18, 2018 It might be to do with their production Woes. Link to comment Share on other sites More sharing options...
Irbis Posted October 18, 2018 Share Posted October 18, 2018 The new FW p+p pricing system plus brexit announcement I'd imagine, upsetting a chunk of fan base which led to many emails of a disgruntled nature I don't think it's related to FW at all, it's peanuts in main GW business. Well, unless it was a trial of the whole company going to that model thanks to pound doing rollercoaster thing of late and the feedback left them frantically looking for plan B they don't have. My bet would be on Brexit. Link to comment Share on other sites More sharing options...
Scammel Posted October 18, 2018 Share Posted October 18, 2018 I'm 99% certain this is external factors. I see no obvious step-change in GW's operations that would result in anything other than the growth they've enjoyed in recent years. At least I damn well hope, so or my portfolio is entirely Khorne Red... Link to comment Share on other sites More sharing options...
Chaos Lord Tom Posted October 18, 2018 Share Posted October 18, 2018 unless it was a trial of the whole company going to that model Frankly, it would be a really poor way of dealing with currency fluctuations. There are many other ways to secure their revenues. Link to comment Share on other sites More sharing options...
Mechanicus Tech-Support Posted October 18, 2018 Share Posted October 18, 2018 Perfect time to save up and watch the stock for an entry point Link to comment Share on other sites More sharing options...
Warhead01 Posted October 18, 2018 Share Posted October 18, 2018 I would ask if other companies were also effected in the same way. Context is important. Link to comment Share on other sites More sharing options...
Vesper Posted October 18, 2018 Share Posted October 18, 2018 Abaddon confirmed. Link to comment Share on other sites More sharing options...
Happy-inquisitor Posted October 18, 2018 Share Posted October 18, 2018 The wording is not that different to the October 2016 caveat about future trading periods. I suspect that the reaction is more marked this time because the shares are trading at a rather aggressive price to earnings ratio that is probably assuming a lot of future growth. Link to comment Share on other sites More sharing options...
Halandaar Posted October 18, 2018 Share Posted October 18, 2018 Thanks for the update, was considering buying a chunk earlier in the week after the global dip in the markets. 'Some questions may also be asked as to the timing of former chairman Tom Kirby's £20.3million disposal of Games Workshop stock last month. Did he know something was up? One would suspect not, given that he retired more than a year ago and shouldn't be privy to information regarding the day-to-day running of the business.' Hmmm. Tom Kirby's track record as GW chairman suggests he "knows" absolutely bugger all, and he's simply cashing in on the unbelievable good fortune he's had over the last year. Link to comment Share on other sites More sharing options...
Joe Posted October 18, 2018 Share Posted October 18, 2018 We did just have the government announcing that the transition period post-Brexit may take longer. It's more than likely that and a combination of other economic factors. With regards to the news, I wonder if GW is worried about Brexit? Any business with overseas trade that operates out of the UK is concerned about Brexit. I work for a smaller miniatures company, and one of our primary concerns is how it'll affect a. shipping tariffs b. supply/demand from our continental trade customers c. the cost of materials and d. our overall prices. Whilst Games Workshop is a monumentally larger company I imagine they'll be mulling over similar concerns and then some. EDIT: Also, regarding Kirby; so long as he has acquaintances on Geedub's inner core he'll be unofficially privy to any financial/economic information regarding the company. In theory, he shouldn't, but in practice it's almost always the opposite. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.