Games Workshop's stock loses 24% value today. It has begun.

[Lexington]

Reinholt over at Warseer - who runs a trading desk himself - has a [URL="http://www.warseer.com/forums/showthread.php?394884-Games-Workshop-Stock-Prices-The-Future-and-Cats-Without-Sufficient-Coffee"]pretty nice overview[/URL] of his view on GW's situation, by way of response to Wolfshade's post/resulting BoLS article.

[Wolfshade]

It is a nice post, and had I had known that it was to become an article it would have fleshed out the post more (or at least put it in context). Probably not as eloquently as Reinholt, but certainly less orange. If I am honest the original motivation was more of a rebuttle to the OP that was suggesting the end is nigh.

In the whole I agree with what he says, and he too is cautious to prognose what is happening based on localised fluctuations.

It is very important to note this comments:

Changing your customer segment while you have a successful and growing business to an untested one, which was not researched, based on whim of management? Stupid.
Not listening to internal concerns and instead silencing those people/firing them? Stupid.

GW's biggest issue is GW senior management. Yes certainly, you cannot lsiten to every person in the community, but if revenue starts to tumble you might need to dip your finger in and see what is being said.

I certainly see the yardstick for recover growing at the same speed as the sector, though what that sector is and how you define it (outside of stocks and shares) is a little difficult. What I don't think will happen (even if GW do make an upturn in growth) is see as strong growth as back in 2nd/3rd the world is very much a different place. GW have seemed to failed to get the internet (like a lot of companies) and I am concerned that they are actually much closer to market saturation now then they were, that is a small product can very rapidly grow inexcess of 100%, but in terms of actual numbers that is still very small, whereas GW is larger so while they may grow faster (in raw numbers) their % will be much lower.

One thing I would take issue with is the dropping in customer base. It is not that I do not believe it to be the case, it is just that there is insufficient data to actually make that comment. Revenue is falling, is that less customers spending the same amount or the same customer spending less. Eitherway, it is a problem, you are either stagnating (not growing the player base, i.e. what is preventing the growth, entry cost too high? complexity of rules? I don't know) or losing customers (which i think is worse, it isn't that you are aren't attracting new custoemrs you are actively lossing the existing ones.

Eitherway, like Reinholt, I doubt that we will see any see-change any time soon, and the next financials statements may be obscured by the drop of the new editions. What will be worrying is if they are not noticeably up on either the previous 6 months or the same period last year.

[Cap'nSmurfs]

Speaking of companies that are in trouble because they never really understood the internet, you guys should check out what's happening with Future Publishing. Sad to see.

[Wolfshade]

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.

Contrast that with last year:
Games Workshop Group PLC announces that today the Board has declared a dividend of 16 pence per share. This will be paid on 5 July 2013 for shareholders on the register at 31 May 2013.

So an additional 4p.
Is GW trying to raise revenue by making shares seem more attractive?
Is Kirby, with his large personal share trying to milk the cow before it dies?
Is GW internal results better than expected (those known to the board not the market)?

Find out the answer to at least 1 of these questions when the annual accounts are published.

[Mr Mystery]

When are the accounts to be published?

[Wolfshade]

End of July start of August normally.