Disclaimer, positions and reasoning for post.
Reasoning:
Financial discussions on reddit are, understandably, dominated by US-based companies. I learned early on in investing, however, that having a diversity not only different sectors but also the currencies a portfolio is in can be beneficial. (Changes in exchange rates saw a portfolio that was invested in US stocks drop in value by as much as high single digit percentages.)
For this reason, I want to draw attention to three hopefully interesting UK-based companies in an effort to help encourage people to find diversity, wherever they are based.
All three are established companies that have the potential for fast growth, with two paying dividends. The third has yet to IPO but I feel might draw interest when it does, hence its inclusion. GAW and CINE are also traded on the NYSE as a depository receipt hence the different tickers.
Disclaimer:
Until now, I've been somewhat new to the details of investing, and am still getting to grips with fundamental and technical jargon, but am doing my best to provide information accurately. I'll provide links to their relevant LSE pages, as well as financial reports, to do a lot of the heavy lifting for me. The numbers I provide are coming from my broker and might be slightly different. If I have anything misleading or wrong, please let me know.
Positions:
I have a handful of shares in Cineworld Group (CWD/CNNWF) and am considering investing in both Games Workshop Group (GAW/GMWKF) and Brewdog, when it eventually IPOs.
Games Workshop Group (GAW/GMWKF) LSE page.
Games workshop annual reports and half-year results
Possibly the best-known company on this list, it is an established company that has well-recognized IP. They own "Warhammer" and "Warhammer 40,000" along with their spin-offs, the more recent "Age of Sigmar", as well as a "Lord of the Rings" range that is still in production. To add to those, they also own brands such as "Citadel" (not to be confused with the hedge-fund), "Black Library", and "Forge World". They have a diverse range of products, from their core table-top wargame minis, to literature, a large number of licensed computer games, and even a number of TV shows in development. The most prominent of these shows is a live-action adaption of their "Eisenhorn" book series, with Frank Spotnitz as the showrunner. They also have lesser known Funko figures and even action figures that have been released, the latter of which was unexpectedly popular.
In recent years the company has undergone a change in direction which has led to a rapid growth in share value, with approximately 80%/year growth for the past 5 years. More recently, they have seen a somewhat slow but consistent drop in share value over the past 3-4 months. Going forward, they are working to tap into Chinese markets which could potentially fuel a lot of further growth. This will likely be supported by a re-release of their "Warhammer Fantasy" range, notably with the inclusion of "Kislev" and "Grand Cathay:" Fantasy versions of Russia and China Respectively.
Details at a glance:
Share value at close of 19/3/21: p9,596.5 (~$133)
Market cap: £3.24B
P/E ratio: 45.09
Revenue: £269.70M
EPs: £2.19
Dividend yield: 1.87%
Beta: 1.33
Cineworld Group (CWD/CNNWF) LSE page.
Cineworld results, reports and presentations
Cineworld Group own cinemas across both North America and Europe. Around 2017/2018 Cineworld Group aggressively expanded and bought over competitors in North America with this expansion making it the second-largest cinema chain in the world. The expansion, combined with COVID, however, has left the company with significant debt and close to bankruptcy. That said, with cinemas reopening, and them receiving some bailouts, they now have a chance to avoid this.
Details at a glance:
Share value at close of 19/3/21: p122.13 (~$1.70)
Market cap: £407.45M
P/E ratio: 2.29
Revenue: £3.38B
EPS: £0.13
Dividend yield: 29.72%
Beta: 2.69
Brewdog.
Brewdog annual report - August 2020 PDF warning.
Brewdog are a craft brewing company that has exploded in popularity over the past decade. They are a famous brand, although many might not recognise it by name. Early in their history, in 2009, they gained worldwide infamy for the strongest beer at the time: Tactical Nuclear Penguin, which also almost ruined the company after regulators accused them of promoting irresponsible drinking. Over the years the company has continued to provoke controversy, although this has largely helped increase brand awareness rather than cause harm. As well as brewing, they operate a number of bars globally, and Brewdog also began to operate a small number of hotels pre-COVID.
For those who are interested in ethical investing Brewdog is a certified B-Corp and has a growing focus on sustainable production and distribution. As part of their sustainability commitment, all their recipes are publically available.
As of writing, Brewdog does not have an IPO date, although have expressed a desire to go public in the past.
Edit: Formatting
Submitted March 19, 2021 at 07:45PM by Nemisis_the_2nd https://ift.tt/2QoT7w8
