Warning: The following article is for informational purposes only and should not be considered as investment advice. The author is not a registered financial advisor and does not provide investment recommendations. Any investment decisions you make should be based on your own research and analysis.
Great write-up Spencer. I think you covered the company and investment thesis very well. Only thing I'd mention is that I don't think they're looking to use micro-transactions as part of their GaaS model - these are pretty widely hated by gamers. Instead, their focus is on making games that can be played for >100 hours, with ongoing updates that bring in new players for many years.
1) acqui-hire dilution? their acquisitions are done on a fixed monetary amount. thus as their stock price falls their dilution becomes heavier and heavier. you can see it clearly in the explosion of their outstanding share's.
2) related party transactions between founder and wife?
Thanks for the write-up. What's your view on the 35m internally generated software asset? If I were the founder I will probably expense those and save some tax expense.
Loved the write-up. Keen to market-test the product (for investing purposes of course!). What do you make of the the price drop yesterday and the CFO change?
Interesting write up. I'm coming at this from a slightly different angle as my entry point was my best guess at cash in the bank- about 9-9.5p per share.
There's obviously some dysfunction in the senior leadership here and the accounting is on the aggressive side for my tastes and quite poorly communicated, but my best guess is that there's actually a business in here worth perhaps 1-1.5x sales so I like the upside on what's basically a coin flip at the price I got in at.
My only concern here is fraud- the CEO fits the profile, the accounting hygiene doesn't inspire confidence and the CFO just left abruptly. Do you have a view here? I'm optimistic that this is just incompetence/exuberance but ideally you'd like to see a grown up in the room.
Great write-up Spencer. I think you covered the company and investment thesis very well. Only thing I'd mention is that I don't think they're looking to use micro-transactions as part of their GaaS model - these are pretty widely hated by gamers. Instead, their focus is on making games that can be played for >100 hours, with ongoing updates that bring in new players for many years.
Great structure of the writeup, appreciate it and cant wait to hear more from you.
Where do you go about buying this stock? I can't seem access to it on interactive brokers.
Thanks for the writeup. how do you think about
1) acqui-hire dilution? their acquisitions are done on a fixed monetary amount. thus as their stock price falls their dilution becomes heavier and heavier. you can see it clearly in the explosion of their outstanding share's.
2) related party transactions between founder and wife?
Thanks for the write-up. What's your view on the 35m internally generated software asset? If I were the founder I will probably expense those and save some tax expense.
Loved the write-up. Keen to market-test the product (for investing purposes of course!). What do you make of the the price drop yesterday and the CFO change?
Thank you for an interesting read. The stock performance over the last two years is a shocker.
Interesting write up. I'm coming at this from a slightly different angle as my entry point was my best guess at cash in the bank- about 9-9.5p per share.
There's obviously some dysfunction in the senior leadership here and the accounting is on the aggressive side for my tastes and quite poorly communicated, but my best guess is that there's actually a business in here worth perhaps 1-1.5x sales so I like the upside on what's basically a coin flip at the price I got in at.
My only concern here is fraud- the CEO fits the profile, the accounting hygiene doesn't inspire confidence and the CFO just left abruptly. Do you have a view here? I'm optimistic that this is just incompetence/exuberance but ideally you'd like to see a grown up in the room.
Looks like they have track record of dilution