Games Workshop November Market Watch 2016

Watching stocks over the short-term is often an experiment in futility; on November 2nd 2016 we looked back at the state of Games Workshop’s stock price and general financial health today we do the same…

As major events whirl around the world most global markets have been amazingly resilient, with the American stock market leading the way. Even as every day seems to bring new political turmoil, the western world prepares for the most important annual consumer spending spree. Unlike last year Games Workshop is prepared, they have given everything a wargamer could want.

November and December have brought us Blood Bowl, the Thousand Sons, Horus Heresy, and updates to popular, but struggling armies. On top of that, Games Workshop has been engaging the community with slick social media and complete rumor control.

Games Workshop’s high marks though always lag when it comes to the Stock Price, so how did they do over the month of November?

As you can see Games Workshop is up almost a whopping 14% month to month! You will also notice the large spike near the end of the month, it is almost like investors knew something was up. Well certainly something was up, but we can get to that later. In the meantime, how did the last minute boost have the stock looking for the year to date?

Games Workshop has almost completely erased 2016 lowest points. Better yet GW has good news to report going into the final month of the year that easily explains the latest rise in the stock price…

Games Workshop Group PLC announces that sales and profits in the six months to 27 November 2016 are significantly ahead of those in the first half of the prior year and ahead of the Board’s original expectations. Preliminary estimates indicate an operating profit of c.£13 million for the period.

Over the first half we have seen strong sales and profit growth in constant currency terms. Sales and profits have further benefitted from the favourable impact of a weaker pound. Royalty income is also expected to be ahead of the prior year.

However, the Board is aware that it is still early in the 2017 financial year and that there are a number of challenging trading periods ahead.

We will be announcing our half-yearly report for the six months to 27 November 2016 on 10 January 2017.

So come January 10th 2017 we will find out just how good this half-year report will be, but GW at least sounds confident for the first time in a long time. The devil is in the details though; the better than expected projections could be an outgrowth of  weaker pound and less to do with unit sales, but I guess we will find out in less than 40 days!