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A fantasy company at a fair price

A recent share price dip offers an excellent opportunity to hop on this quality stock
December 14, 2023

If a company significantly increases its Christmas bonus pool, you'd normally assume that trading is healthy and management expects a strong period ahead.

Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • High margins
  • Rising dividends
  • Strong return on capital
  • Net cash position
Bear points
  • Softer revenue growth
  • Amazon deal uncertainty

But Games Workshop (GAW) shares were marked down by over 10 per cent on the back of a half-year update last week which, along with confirming a £3mn increase in employee profit share scheme payouts, revealed softer trading in the wargame miniature maker’s second quarter.

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