On April 24th 2014 we looked back at the state of Games Workshop stock price and general health. I'm here to report, GW is on track to regain everything it lost just a short six months ago. The dramatic turn around is really only surprising for people who don't follow stocks on a daily basis.
There doesn't seem to be any one reason, from the average gamer perspective. Nothing dramatic has happened since my last report...oh wait there was something...
Before we get to that something, let us look at where the stock stands now since the "Great Crash".
GW is now only down 8.5% for the year, an amazing feat for a stock many a layman thought was dead. Since April report the stock is up over 16%. A partial reason why GW stock can rise so fast, is the limited amount of stock in circulation, especially balanced with GW pint size Market Cap. It just means buying or selling a few stocks can have a profound effect on the overall stock price.
Still, what could be causing people to buy these stocks? The release of 7th edition did happen last month, but for an average investors it doesn't seem likely they would take the pulse of the wargaming community, to determine the right time to buy GW stock.
GW did do something to get investors attentions though.
On June 6th GW announced...
Games Workshop Group PLC announces that the Board has declared a dividend of 20 pence per share. This will be paid on 4 July 2014 for shareholders on the register at 13 June 2014.
Take a look at what this did to the stock since.
Since the announcement the stock has shot up 9%! It was a quick way to inflate the stock, basically advertising "get your stocks here". This also means GW feels good about the next financial release, because the last one ended up with no Dividend, and was the partial reason many investors sold their stock.
It could also be a cash grab by Kirby, but that is the petty hater in me talking, I am sure we will find out a few things in the next few months, with a good chance GW fully recovered from the January drop.
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Rumor Has It is rated: mongering for spreading pseudo truthieness through leaks and rumors about Warhammer 40k