MIDAS SHARE TIPS UPDATE: Stay home for video game company Team17
Even as the markets continue to fall, a small number of stocks appear to be resilient. Group of video games Team 17 is on that list.
Shares have even risen from £ 3.82 to £ 4.70 this year. Granted, they were even higher just a few weeks ago, but at least they’re still ahead of 2020.
The profit makes sense. Team17 produces games like the Worms series, with Worms at War, and Overcooked, where virtual chefs rush to prepare meals within a set time frame.
Team17 produces games like the Worms series, with Worms at War and Overcooked, with virtual chefs rushing to prepare meals within a set time frame
Both are very popular with consumers of all ages, and as Boku also notes, when millions of people are forced to have fun at home, video games are a clear distraction.
Team17 has numerous games in its catalog, including several award winners, and CEO Debbie Bestwick is optimistic about the future.
Annual results, released earlier this month, showed that the company runs on all cylinders. Sales were up 43 percent to £ 62 million and profits were up 121 percent to £ 19.2 million.
Strong growth is also expected this year as Bestwick plans to release ten new games.
Team17 also has certain advantages in the current environment. The group makes both games from scratch and helps independent developers to market their ideas.
Many of these people already work from home, which means Team17 is less affected than many companies and struggles to help employees to work remotely.
Midas verdict: Midas recommended Team17 in December 2018, when the stock was £ 1.83, so investors who bought back then are fortunately on strong gains.
There may be a temptation to sell and make bank gains, but the prospects for this company are strong and at £ 4.70 the stock should still deliver long-term rewards. Keep the faith.