Watching stocks over the short-term is often an experiment in futility. On November 13 2014 we looked back at the state of Games Workshop's stock price and general financial health. In the last report, GW was on a downward dip with the choice of a new CEO seemingly having no positive effect on investor confidence.
As the year is about to come to a close, where does GW stand just a few weeks away from one year anniversary of their stock crashing?
In America consumer confidence is up and retail sales are generally posting higher sales through the holiday. So, it is important to keep in mind GW is a British company and the largest amount of sales still come from Britain, sadly like much of Europe, Britain is not faring as well as folks in America.
Before we look at the last 30+ days stock price, lets see where GW stands since the "Great January Crash" of 2014.
As you can see GW is now below their pre-crash number by 28%.
Like I refereed to earlier this continued downward trend can be attributed to global economic fears; still oil is cheap and that means more money not only for consumers but, it should also mean cheaper operating costs for GW. How crashing oil prices factor into the minds of GW investors is anyone's guess.
Any attempt though to have positive news was to be for not, because GW just loves to disappoint. Here take a look at the stock price just over the last 30+ days.
As you can see, the last month GW stock is down over 2.5%, in the short period alone. If you notice on Dec 10th another little dip, it was caused because you know the British Sterling is just so damn hot right now!
Games Workshop Group PLC announces that trading in the six months to 30 November 2014 at constant currency has been broadly in line with the Board’s expectations and 2013/14 first half performance.
The Company has been exposed to the continuing strength of sterling, particularly against the US dollar and euro in the period reported. The adverse impact in the six months to 30 November 2014 will result in operating profit at actual rates being approximately £1 million lower than 2013/14 first half performance.
The Company’s half yearly report for the six months to 30 November 2014 will be released on 14 January 2015.
Somehow the stacked board of GW accountants didn't anticipate anything like this happening, nor did they, you know ACCOUNT for it! To put this in perspective that is one million less from a total operating profit of 16 million-- a sizable chunk of change. Investors reacted by dumping stock right after the announcement. The truth is we won't see the real fireworks until Jan. 14th when we get the new CEO taking center stage to deliver the next yearly report. If there is no post holiday dividend stocking stuffer, expect another blood bath for GW stock.
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