Against all odds, I became interested in Rovio on the day the share price plummeted -50%. I bought a small batch then as a speculative bet on a rebound, but the birds have stayed in my portfolio ever since - and for the better.
Now the picture has become clearer. I wouldn’t have believed that the numbers would be this stable. It’s clear that the IPO was overpriced, which is a shame. On the other hand, it has opened up an opportunity to buy at a discount, although the €12 IPO valuation is, in my opinion, quite brazen, and I don’t expect a return to that level anytime soon.
In addition to the numbers, the company has a couple of interesting wild cards. The first is Hatch, which also supports the second, which is Rovio as a potential acquisition target.
I spotted news in the Remedy thread about Sony setting up a dedicated studio for its game movies.
Disney is raking in crazy profits with its Marvel movies.
I believe that content is a kind of megatrend, as people have more time on their hands to consume entertainment, and technological development makes games and movies even more immersive, and digital content becomes even more competitive against, for example, travel.
Columbia Pictures distributed the AB 1 movie. Regarding the AB 2 movie, Columbia is producing and distributing it, which means a much smaller risk for Rovio. Columbia is, by the way, a subsidiary of Sony.
I bet that Sony will snap Rovio up, so that those who participated in the IPO would also get their money back.
… mutta olet oikeassa, saattaa tulla päivä että seiska on kevyttä !!
