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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Game Digital - Price competition triggers warning

February 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GMD
  • Price:
  • 250p
Game shocked the market by announcing that EBITDA for 2014 will now be similar to the £51.3m achieved in 2013, significantly below forecasts. The bugbear was a highly competitive “Black Friday” and Christmas trading period, which forced Game into higher levels of promotional activity including offering attractive bundling of consoles and games.Broker Liberum has downgraded EBITDA forecasts by 21% to £51m for year to end July ’15 with new eps of 18p, rising to 22.7p in ’16. Liberum believes the rapid growth of console sales bodes well for future content sales and on balance it’s worth holding onto the shares for that. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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