London stock market welcomes two new listings in tech and property


A video technology company and a property services supplier join the London Stock Exchange this week

Two firms join the London stock market this week, a video technology company and a property services supplier.

Falcon Media House, which owns patented technology that prevents buffering when streaming video online, listed this morning at a valuation of £14m after raising £4m.

The business, which already has deals in place with Tata, intends to use the funds to grow its content, scale and reach. It also plans to develop one of its distribution platforms into the “Netflix of sports”.

The “over-the-top” streaming market, online videos that do not require the viewer to subscribe to a traditional TV provider, is forecast to grow from $28bn in 2015 to $62bn by 2020. It has “ushered in a broadcasting revolution that has irrevocably transformed the way that millions of people across the globe choose, access and watch multimedia content”, according to executive chairman Gert Rieder. “We are tapping into the insatiable demand for a more personalised and flexible multimedia experience, and in turn establish Falcon into a UK leader in the market.”

Video tech firm Falcon Media House wants to build the “Netflix of sports”

On Wednesday, Dukemount Capital, a property and investment services company, will follow suit with a flotation valuing the company at approximately £1.5m.

The group intends to raise £1m, which will be used to source and structure its first real estate acquisitions and cover its listing costs.

The UK-based company plans to acquire, manage and develop UK residential and hotel properties, which are for the most part already pre-leased to housing associations on a long-term consumer price index-linked basis. Dukemount will then agree a sale and leaseback with institutions. These leases, typically more than 30 years long, are called as long-dated income.

Last year, a report published by Schroders showed that the potential demand for long-dated income could be on the order of £1.6 trillion. Dukemont chairman Geoffrey Dart, who has an established record in hotel development, said: “The board have identified a unique opportunity which we expect will help close the growing demand and supply gap for long-dated income by providing institutions such as pension providers higher income yields.”

Dukemount expects to be profitable within the first 12 to 18 months of ­listing.


Super Mario Run Launched for iOS: Nintendo Investors Dump Stock

Super Mario Run Launched for iOS: Nintendo Investors Dump Stock
Nintendo launched Super Mario Run mobile video game for iOS devices
Nintendo’s shares plummeted after the launch
Super Mario Run will require a $10 buy for the full version
Nintendo shares dived almost five percent Friday, hours after the release of its latest mobile phone game and despite it topping download charts in several countries.

Coming on the heels of the Pokemon Go craze this summer, the game was released for iPhone only in about 150 countries on Thursday, a key test for Nintendo’s fledgling foray into mobile gaming.

(Also see: Everything You Should Know Before You Download Super Mario Run)

But when the Japanese market opened Friday, investors pressed the sell button on Nintendo, which tumbled 4.89 percent to JPY 26,225 ($222) by the break – wiping almost $2 billion (roughly Rs. 13,561 crores) off the firm’s market capitalisation.

Shares in DeNA, Nintendo’s co-developer on the game, plunged 7.07 percent to JPY 2,848.
Nintendo had soared nearly 12 percent between the September announcement of Super Mario Run’s planned release and Thursday’s closing price.

The game, based on the firm’s popular Italian plumber, was number one in download rankings in Japan, Germany, Australia and Britain, according to market researcher SensorTower.

But some analysts had warned that the nearly $10 price tag to buy the full version could scare away some potential customers – Pokemon Go is free – and Android users will not be able to buy it until a later date.

(Also see: Super Mario Run Controls, Gameplay, Coins, and Modes Explained)

It is unclear how much the game will boost Nintendo’s finances.

“Some investors who may have overestimated the expected revenue from downloads seem to be disappointed,” Daiwa Securities analyst Takao Suzuki told AFP.
“Super Mario Run was in the top spot in download rankings and in sales in many European countries, while in the US it is number one in downloads but seventh by revenue.
“Sales in the US leave a bit to be desired.”

The shares may continue to struggle next week, Suzuki added.

“But I don’t think they will keep sliding further… It seems that short-term investors sold their shares, but for long-term investors there is no need to be concerned,” he said.

Nintendo refused for years to move into smartphone gaming or license its characters for online play.

But, as the Kyoto-based giant struggled to repair its battered balance sheet, it changed course and announced last year it was teaming up with DeNA to develop games for smartphones and tablets based on its host of popular characters.

In March, Nintendo released its first mobile game “Miitomo” – a free-to-play and interactive game that allows users to create avatars.

Then the Pokemon Go game – based on Nintendo characters – exploded on to the market, sparking a phenomenon as it was downloaded more than half a billion times.

But it was only partly Nintendo’s creation – the game is owned by San Francisco-based Niantic – and it has had little impact on the firm’s bottom line.

Tags: Super Mario Run, Super Mario, Nintendo, Super Mario Run Release, Super Mario Run Release Date, Super Mario Run for iOS, Gaming, Apps


Pokemon Go Financial Impact Will Be Limited, Says Nintendo; Stock Crashes

Pokemon Go Financial Impact Will Be Limited, Says Nintendo; Stock Crashes

Nintendo Co. shares plunged by the most since 1990 after the company said late Friday that the financial impact from the worldwide hit Pokemon Go will be limited.

The stock sank 18 percent to JPY 23,220 at the close in Tokyo Monday, the maximum one-day move allowed by the exchange, wiping out JPY 708 billion ($6.7 billion or roughly Rs. 45,096 crores) in market value. After debuting in the US earlier this month, Pokemon Go launched in Japan on Friday and became available in Hong Kong on Monday.

The correction comes after Pokemon Go’s release almost doubled Nintendo’s stock through Friday’s close, adding $17.6 billion (roughly Rs. 1,18,468 crores) in market capitalization. Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an “effective economic stake” of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.

(Also see:  Pokemon Go No Longer Working in Parts of India, Reddit Users Complain)

“It’s still possible to say that in the short-term it’s overheated,” said Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities Co.

In a press release after the market closed on Friday in Japan, the Kyoto-based company said the game’s financial impact will be “limited” and that it is not necessary to revise its annual forecast even after factoring in current conditions. It also said revenue from Pokemon Go Plus, a Nintendo-produced accessory for the game expected to go on sale soon, has already been factored into the current guidance.

(Also see:  This Pokemon Go Map Will Show You Every Pokemon Location)

“The content of the announcement itself is not that shocking, but it is a surprise they said it on Friday instead of when they report earnings” later this week, said Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co. “The game has been published in Japan, so for the time being we’ve exhausted all the catalysts.”

(Also see: Pokemon Go iOS: How to Download Pokemon Go for iPhone, iPad)

The company will report first-quarter earnings on Wednesday after the market close, a period which ended before the release of Pokemon Go. The firm is forecasting an annual net profit of JPY 35 billion in the current fiscal year, up from the JPY 16.5 billion it earned last year.

Short interest in Nintendo surged earlier this month as bears bet the stock rally had gone too far. As of July 20, short-sellers had built up a bet worth $940 million (roughly Rs. 6,326 crores) – or 2.6 percent of outstanding shares – that the stock would fall, according to researcher IHS Markit. At current prices, such a bet would have generated about $140 million (roughly Rs. 942 crores) in profits.

(Also see: How to Download Pokemon Go APK, Install, and Play on Android)

Shares of related companies also fell. McDonald’s Holdings Co. (Japan), the game’s exclusive launch partner, declined 12 percent. Electronic parts maker Hosiden Corp., which Mitsubishi UFJ Financial Group said may produce Pokemon Go Plus, sank 16 percent.

(Also see: How to Play Pokemon Go in India? Here’s Everything You Need to Know)

Besides the earnings announcement on Wednesday, Morgan Stanley said the next focus point is if Pokemon Go launches in China, where access to geographical data necessary for the game is restricted by the government. Investors are also waiting for announcements on Nintendo’s other upcoming mobile games and its next-generation console expected to be released next year, analysts Mia Nagasaka and Yuki Maeda wrote in a July 22 report.

© 2016 Bloomberg L.P.

Tags: Android, Apple, Apps, Gaming, Internet, Nintendo, Pokemon, Pokemon Go]


Look at valuation of a stock, not price

Look at valuation, not price

Is it an opportunity or a risk? It is a question many direct stock investors would be asking themselves when they see prices of good companies hitting 52-week lows.

In the past couple of months, a large number of companies have hit these lows. As many as 101 stocks, or 50 per cent stocks in the BSE-200, have hit such lows since February. These include Tata Consultancy Services, Lupin, Colgate-Palmolive, Oil India, Castrol India and other marquee companies. But, should you jump to buy these?

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Says investment advisor Arun Kejriwal: “When stocks fall that sharply, investors wonder that whether it is attractive or not. Sometimes, things are go right but one can also get stuck.”

Nilesh Shah, managing director, Kotak Securities believes that each stock has to be valued on the basis on valuation and not only on the basis of 52-week low or high. “Many times, a fairly-valued 52-week high stock is better than an expensively valued 52-week low stock. It is important to evaluate fundamentals of stocks than its price movement,” he says, adding that it is not necessary that a stock on a 52-week high is expensive or vice-versa.

However, there are investors who make decisions based on anchoring bias. Anchoring bias is relying too heavily on the very first bit of information while making decisions. So, information like 52-week high or low becomes a point to exit or enter stocks, which might either be too expensive or fundamentals aren’t very strong. It is much like buying something in a sale which you might not need or use.

Market experts believe that direct stock investors need to focus on a number of things such as fundamentals of the company, the business, quality of management, growth potential, etc. Often, such falls are caused by a genuine problem that is likely to continue for some more time. And investors, in their pursuit of bargain hunting, might land up into value traps.

According to Kejriwal, investors need to be clear about a few things. If only a couple of stocks have fallen to 52-week lows, they need to find a reason and see whether it is a good buying opportunity. Such good companies can be held for the medium to long term.

However, when a large number of stocks fall at the same time, there are expectations that there will be some buyback. But, any investor buying into this fall should be clear that they will exit on the bounce back because otherwise there are chances of getting stuck.

Investors can also use this as a strategy, but then it has to be a medium-to-long-term one. “Such investors cannot just buy once and stop. If the stock falls again, they should buy more. This should be used more as an investment style,” adds Kejriwal. This will help them average out costs and give a substantial boost when things turnaround.