Buy the Dip...

Riverside

Riverside
Rat Catcher said:
Another thread focusing on share prices? It isn't as if Frontier will be out of business next week - although if they are, so what? 🤷‍♂️
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It's an interesting development wrt a company we on the forum are familiar with.

Motley Fool says DB's announcement that JWE2 sales have not been as good as expected prompted the dip, and also seems to think it may get worse before it gets better (ie might not be the best time to buy shares).

The Frontier Developments share price just crashed. Should I buy?

The Frontier Developments (LON: FDEV) share price has now lost 50% of its value in 2021. Roland Head explains what's gone wrong and gives his verdict.
www.fool.co.uk www.fool.co.uk

It would be interesting to discover why sales are below the expected rate, or at least theorise.
 

Rat Catcher

Rat Catcher
Riverside said:
It's an interesting development wrt a company we on the forum are familiar with.

Motley Fool says DB's announcement that JWE2 sales have not been as good as expected prompted the dip, and also seems to think it may get worse before it gets better (ie might not be the best time to buy shares).

The Frontier Developments share price just crashed. Should I buy?

The Frontier Developments (LON: FDEV) share price has now lost 50% of its value in 2021. Roland Head explains what's gone wrong and gives his verdict.
www.fool.co.uk www.fool.co.uk

It would be interesting to discover why sales are below the expected rate, or at least theorise.
Click to expand...
Plenty of theories abound on how poorly EDO performed, and allegedly the JWE2 forum is a little salty also, if nothing else the 'financial feedback' might force a change to product releases in the future. Didn't the shoddy release of CP2077 also lead to a massive share price drop for CD Projekt Red? Perhaps investors are becoming somewhat wary over poorly received games software, particularly when it might affect their own pockets.
 

Riverside

Riverside
Rat Catcher said:
Plenty of theories abound on how poorly EDO performed, and allegedly the JWE2 forum is a little salty also, if nothing else the 'financial feedback' might force a change to product releases in the future. Didn't the shoddy release of CP2077 also lead to a massive share price drop for CD Projekt Red? Perhaps investors are becoming somewhat wary over poorly received games software, particularly when it might affect their own pockets.
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But you said:
Rat Catcher said:
so what? 🤷‍♂️
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;)
 

VR jefranklin18

VR jefranklin18
Riverside said:
It's an interesting development wrt a company we on the forum are familiar with.

Motley Fool says DB's announcement that JWE2 sales have not been as good as expected prompted the dip, and also seems to think it may get worse before it gets better (ie might not be the best time to buy shares).

The Frontier Developments share price just crashed. Should I buy?

The Frontier Developments (LON: FDEV) share price has now lost 50% of its value in 2021. Roland Head explains what's gone wrong and gives his verdict.
www.fool.co.uk www.fool.co.uk

It would be interesting to discover why sales are below the expected rate, or at least theorise.
Click to expand...
Motley Fool always tends to have decent analysis and reading that, it looks as if there may have been a bit of a bubble, especially if the sales don't meet expectations.
 

Exeider

Exeider
t-lo said:
Well, the company is said to have a strong shareholder focus in their software development stratregy - what with with Oddy's release to the end of its financial year and all that.

So, if you want your clipper, go own some shares?
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That's kind of what I was thinking, we hear all the time that they make these moves, that we consider bone headed because of the "shareholders", and I thought, Well what if a good chunk of the shareholders WERE the players, wouldn't that mean that we could at least partially influence the direction by taking advantage of the "for the shareholders" behavior.

I mean, i get that people are laughing at my suggestion but am I wrong for coming up with it? I only suggested it because I feel like there is this war between the shareholders and the players and like many got stuck between the acceptance that there MUST be this give and take, but then thought to reframe the conceit. And try to make it cease being about "sides" and make into one thing and in that Fdev wont have an excuse to say "well we did this for the shareholders." if the players ARE the shareholders.

I mean granted, I dont know as much about financial markets as I'd like to but I thought, perhaps erroneously, but thought that, well if players fund a kickstarter to help a company make a game, then on a larger scale owning shares in the company is kind of like the same thing in that you have stake in the project, and the developers then KNOW the players have an active stake in the project.

Could you explain to me where I went wrong?
 

Ian Doncaster

Ian Doncaster
Exeider said:
Could you explain to me where I went wrong?
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Vandaahl is right on the process issues, but I think there's a bigger problem in terms of scale.

Even with this week's sudden drop in share prices, the total paper value of all FDEV shares is still just under £700 million. To be the sort of shareholder who actually gets listened to, you're going to need to own a noticeable fraction of that - a few percent, say. So, let's budget £35 million or so, perhaps, to get a 5% shareholding (actually trying to buy up 5% all at once willl push up the price, so you might only get 4% at the end of it, or have to be quite patient in purchasing them) - that'd make your consortium the 5th largest shareholder, which could be fairly influential in practice.

Of course if you could raise £35 million, you could make a games development company and produce an Elite Dangerous competitor. There have been more expensive games to produce, but it'd still be well into AAA budget levels.

Meanwhile, if you get a more plausible amount of shares (one, say, for £17 at current prices), your stake in the company is basically irrelevant noise when it comes to any policy-making, because there are almost 40 million shares total.
 

Ted Striker

Ted Striker
I don't consider this a good investment at all. Elite isn't a money maker and I don't know what A-rated games they have in the pipeline, or what monetization they might have if they do exist.
 

Rubbernuke

Rubbernuke
Ian Doncaster said:
Vandaahl is right on the process issues, but I think there's a bigger problem in terms of scale.

Even with this week's sudden drop in share prices, the total paper value of all FDEV shares is still just under £700 million. To be the sort of shareholder who actually gets listened to, you're going to need to own a noticeable fraction of that - a few percent, say. So, let's budget £35 million or so, perhaps, to get a 5% shareholding (actually trying to buy up 5% all at once willl push up the price, so you might only get 4% at the end of it, or have to be quite patient in purchasing them) - that'd make your consortium the 5th largest shareholder, which could be fairly influential in practice.

Of course if you could raise £35 million, you could make a games development company and produce an Elite Dangerous competitor. There have been more expensive games to produce, but it'd still be well into AAA budget levels.

Meanwhile, if you get a more plausible amount of shares (one, say, for £17 at current prices), your stake in the company is basically irrelevant noise when it comes to any policy-making, because there are almost 40 million shares total.
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Or you could just unload a ton of scan data and win the election and control of Elite*

*this may have been posted in the wrong section
 

Northpin

Northpin
Vandaahl said:
Just to put things into perspective:
View attachment 276702
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So, whoever invested in FDev like 5 years ago - managed to multiply its investment like 8 times?
Sure 8 times is not as good as 15 times, but it's still... really good. Right?

Still, i'd like to know what was the trigger for the drop.
Did someone just dumped in the market a lot of their stock.

Is it some sort of maneuver? Maybe someone wants to buy a lot of stock, but not at 2000+ per share?
 
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