Network News: 2016 June GW Market Watch
Network News is rated: trending land of make believe importance for this blog
Watching stocks over the short-term is often an experiment in futility. On April 3rd 2016 we looked back at the state of Games Workshop’s stock price and general financial health…
Well the seemingly impossible happened and Great Britain has left the EU, what this means for GW we won’t know for a few years once all the new trade agreements Britain is going to have to write up actually happens. Gamers not in Great Britain can make all the jokes about what the falling Pound means for Forgeworld orders, but these are dangerous times and how nimbly GW reacts could determine its future. Today we can only look at the current aftermath, and while things may look grim at the moment, let us dive into the numbers and see if we can find any silver linings.
So, how did GW do with all the craziness of the last month? Here take look at the stock for the last month of May
As expected things are down, but it is important to note, GW stock was falling well before the Brexit vote. Overall, the stock is down almost 8% for the last 30 days. How do things look in comparison from the start of the year?
This is where things get really scary, GW stock is down a whopping 26% over the last six months! This is even on the backs of general good will and exciting product releases. Worse still is the stock hasn’t gotten a boost from this announcement…
TRADING UPDATE ON CLOSE OF FINANCIAL YEAR ENDED 29 MAY 2016
Following the close of its 2015/16 financial year Games Workshop provides the following trading highlights:
We expect the Group’s profit for the year to 29 May 2016 to be slightly above market expectations due to earning more licensing income than we were expecting.
Over the year, sales have been largely the same as the prior year across all channels.
We will provide the detailed information on the results for the 2015/6 financial year at the time of our announcement on 26 July 2016.
This should have been great news, but since we won’t have detailed information until July 26th we can only surmise GW is riding a videogame IP gravy train to profits. This strangely precipitated some pension shareholders to dump shares, maybe they figured this is as good as its going to get? Until we see the results for the financial year, we could see another drop in stocks leading up. So come back here for a full report on the report!