Any of you guys 'really' invested in this company, that is to say on the Stock market? Shares are recovering with expectation recently, might be a sound investment if sales are good.
General / Off-Topic Frontier DEV any Market investors?
- Thread starter Poacher886
- Start date
Yaffle
Volunteer Moderator
Usually via a broker. Who will charge you a fee for the privilege, and another as and when you choose to sell.
FD is listed on AIM, not the full LSE.
Its all very easy these days, no need to phone anyone. You open up an account (Free) with a 'execution only' stocks and shares account via the internet. There are hundreds of these, and they will charge varying amounts for trades, im with one called X-O which have no extra charges except a charge of £5.95 to buy shares and the same to sell. However these charges are being stopped for the AIM market in the new year, so it will be free to trade.
Im all in on the AIM market where Frontier DEV is currently Ticker (FDEV), The brokers will hold your money in there account (which you can view of course) and you simply trade via your account on the internet. All they do is buy or sell for you as an execution only. They will offer no advice, they simply do as you command.
Frontier entered the market in June last year @ £1.60p they dipped to as low as 94.5p recently, and our now on the march back up, currently @ £1.50p with expediency of ED having good sales. If you had bought in in DEC lows you would be 50% up already!!
Yaffle
Volunteer Moderator
In this case the owner of the website is the broker. Oh, and the ones that say "no fees" will stiff you somewhere, it's what finance types do (note the sig).
you don't unless you are dabbling in financial investements anyways. still there are a few platforms that are ok for "the man in the street" to deal through like consors.
fdev is a tricky one because most of what they needed (cash) they got from a few institutional investors after the ks. some of them have been active with FD prior (pls corret me if wrong).
this means that most of the shares are not readily open on the market. db & his cronies (pardon the expression) control 80 (?) percent of the company and do not want to sell (at least not near current prices
) . so you can only buy a few (under 100k) shares anyway. for the man on the street, well i would go into my local branch and just put a bid in for 500 or 1k GBP, that could return a nice investment (only use play money pls) short term (24 months).i have repeatedly tried to add shares by buying 15k+ lots at top market prices alas no cigar. the daily volumes that are traded are very low from a few '00 to a few k's max. so now i am just going to try and scoop whatever low volumes are on offer... *sigh*
time will tell ^^
ps. fd have now another access point to cash if it needed to be raised. and it is much cheaper than asking the banks
pps. these views are too ill-considered to be anything other than my own
I use these guys.
https://www.fidelity.co.uk/investor/default.page
I have an advisor though, rather than doing it myself but it can be done.
Yaffle
Volunteer Moderator
This bit isn't quite right. Equity funding (sell a share, get cash) is very expensive. The reason is twofold- tax and risk.
Tax is the easy one to grasp. Tax is paid on profit, lower profit = less tax. Interest reduces profit, thereby reduces tax. So a loan costs less than the headline rate (say a 9% EAR loan would be down to about 6% after this).
If you own a share you carry all the risk. A bank will be paid back before you, so it has less risk. As a result you are expecting a high return (you may not get one). This is because your downside is much, much greater, so you desire a bigger upside. To keep you happy FD has to either accumulate capital value (share price goes up) or pay a dividend (a bit like interest). Dividends are post tax, and attract no tax reduction, so expensive to start with with no tax help.
This is a concept called gearing (or leverage for our North American friends).
If you have trouble sleeping try a google on dividend irrelevance theory.
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FDEV
Frontier Developments plc (Frontier) is an independent developer of video games with studios in Cambridge, United Kingdom and Halifax, Canada. Frontier's software technology includes Cobra. Cobra supports multi-core central processing unit (CPU) and graphics processing unit (GPU) architectures of personal computers (PC), console, tablet and smartphone with a modular, high performance system offering visual fidelity that is applicable across a range of game genres. Cobra incorporates a framework, which enables development of game creation tools, which offer the ability to view, tweak and review changes to content (such as animations, audio and three dimensional (3D) models) on target platforms in a live game session running on that platform, without the intervention of a programmer. It has added cloud-based analytic capability to Cobra, whereby Frontier's code running on commodity servers interacts with the game to provide data-driven game rules and information gathering.
Frontier Developments plc (Frontier) is an independent developer of video games with studios in Cambridge, United Kingdom and Halifax, Canada. Frontier's software technology includes Cobra. Cobra supports multi-core central processing unit (CPU) and graphics processing unit (GPU) architectures of personal computers (PC), console, tablet and smartphone with a modular, high performance system offering visual fidelity that is applicable across a range of game genres. Cobra incorporates a framework, which enables development of game creation tools, which offer the ability to view, tweak and review changes to content (such as animations, audio and three dimensional (3D) models) on target platforms in a live game session running on that platform, without the intervention of a programmer. It has added cloud-based analytic capability to Cobra, whereby Frontier's code running on commodity servers interacts with the game to provide data-driven game rules and information gathering.
Are you in FDEV yourself....real low free float for these.
I use Hargreaves Lansdown www.hl.co.uk
and bought my 3730 shares at 142, so i'm showing a small profit, which i hope goes up at time of release.
and bought my 3730 shares at 142, so i'm showing a small profit, which i hope goes up at time of release.
Yaffle
Volunteer Moderator
Nope, plus my profession makes having shareholdings unnecessarily painful (with good reason I add). I have a more mundane investment approach - pay off the mortgage! That's an incredible return. Over a 25 year sum you'll pay in interest roughly the size of the mortgage, sooner you clear it sooner you'll not be paying it any more. Plus, not earning interest, or (more accurately not paying interest) or receiving dividends on non-ISA savings is a darn sight more tax efficient than earning more income and having it taxed. It's flipped about a bit for an individual as the way tax works is different.
I've been kicking myself all year...Had my finger on the button to buy 1mil shares in IRONVEILD @ 2.1p in DEC 2012, decided at last minute to keep my current stock as news was due.....
IRONVEILD, hit 20p some 6 months later, F%££* Hell, would have made a cool 180K! the share i kept went down all year for -35% loss ..:/
AIM is a dangerous game....Stock brokers casino !!
IRONVEILD, hit 20p some 6 months later, F%££* Hell, would have made a cool 180K! the share i kept went down all year for -35% loss ..:/
AIM is a dangerous game....Stock brokers casino !!
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Yaffle
Volunteer Moderator
...and that's the risk. I feel for you, it's gutting when it happens.
The flipside is that when the reverse happens I won't be part of the action, and I really hope that upside is there for you somewhere.
Having a portfolio reduces specific risks, but will reduce gains too. What I mean is that you won't be exposed to share X tanking, because share Y should do well. But had you just bought share Y you'd be in the money. You can, of course, never remove systematic (market) risk.
Remember (this may need a bit of thinking about) having £1 less in bad times is far worse than having £1 in good times.
That concept is behind the beta calculation you get for shares, which is telling you that for every £1 rise or fall in the market the share you look at has, on average, moved the beta number of times. So a beta of 2 means on average, market goes up £1 your share goes up £2. And vice-versa.
AIM companies tend to be higher risk, it's the nature of the companies on AIM, it's not a Bad Thing. It just is.
I'm also with X-O and can recommend them as a safe and easy way to buy and sell shares.
please dont be put off by all the doom merchants it's as easy as buying anything else on the internet.
and before anyone starts berating me ...
It is execution only!! this means buyer beware .. stocks can go down as well as up ... you take all the risk there is no'one there to hold your hand ... but if you fancy a flutter you should definitely have a go it's really interesting.
Yeah, exactly this, Good Broker site is X-O (no hidden fees), and as you say, trading shares now is a easy as ordering something from Amazon, and as Yaffle says it can be a very risky (and addictive) past-time.
I've seen shares (REM) go up 2000% in three weeks and make millionaires of some, and of course the opposite...its a game (certainly the AIM penny shares) and i went all in with 10's of Ks from the off, naturally i diversified my PF so as to spread risk, but as we know the AIM market IS risk, with rewards to make a casino look bland!
I don't get this about shares. How have you made a profit? You haven't made a profit until you sell them, surely? or you get so much of a dividend that your initial investment is repaid and then some?
Personally, if I wanted to risk anything, I'd prefer to build a company and sell it, than invest in someone's company.
Yaffle
Volunteer Moderator
Well, you've hit the nail on the old head there. If you own a share you get money back off it as either income (a dividend) or as capital growth (share price increase) or as a combination of the two.
The latter is only actually a gain when you dispose of the share. At that point your crystallise your gain, get cash back. Until you sell the share it's just a theoretical position.
The word "profit" is difficult in this situation. Essentially it's any excess you get from something from selling it compared to what it cost you. Often people use the word a bit fuzzily and will refer to the capital gain as a profit. Which it would be if you are in the business of buying and selling shares much as Tesco buys and sells potatoes. Otherwise it's a capital gain. But only when you sell it.
Dividends are like interest you receive on a deposit account, so it's income. Rather than thinking "profit" you could look at the return you are getting as a %, so divide the dividend by the market price. Take the market price because you could realise that by selling the share now, so it's the investment you have tied up in it. That is roughly a comparison to a deposit account, so as long as the % is more than you'd get from such an account you're "in the money".
Your description is more one of payback, as in "how long will it take for me to earn dividends to the same value I paid for this share" which is an interesting way to look at it.
Hope that helped. If not with the terms at least with insomnia.