King Digital Entertainment (KING) Case Study Part 2 – Digging Into Financials – FIXED –

King Digital Entertainment (KING) Case Study Part 2 - Digging Into Financials

After once again having technical issues this post is ready to go now that I can finish it.  Sorry about the unfinished post from earlier but I had to check some things to figure out what was going on.

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This post is a continuation of King Digital Entertainment (KING) ongoing case study.  In Part 1 I found that KING passed what I require for a preliminary analysis to consider a company for potential investment.

Today we will begin the real meat of the analysis and dig into the companies financials to see if it's still worth looking at.

Starting The Real Analysis

The financials I use at this point are the most recent quarterly report.  Most recent annual report, if different from the most recent quarter report.  And the most recent proxy if available.

In this case I'll also be using its most recent annual and quarterly investor presentations as well.

You can find this info at either Morningstar or the company's website.

If you're following along the first thing you're likely to notice is that KING doesn't have a 10K and instead only has a 20-F annual report.  The 20-F report is what foreign companies file as their annual report instead of the 10K.

The 20-F has all proxy related info as well so this is why KING doesn't report a separate proxy form.

This is true of all foreign companies listing in the US as far as I know so make sure you're aware of these slight differences when research foreign companies.

Instead of releasing the notes I copied from the financials and telling you what I found first.  I want you to tell me what you think about KING first.

What stood out to you from KING's financial reports?  Do you still consider them a possible investment after reading its most recent financials?  Did you come across some red flags?  Let me know in the comments below.

In the next few days I will release my notes and tell you what I think about KING.

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This is your last chance to enter for a chance to win more than $100 in prizes for the giveaway that will happen when we reach 200 total subscribers between Press On Research and Value Investing Journey.

And we're about to hit this number so if you want your chance to these prizes make sure to Sign up for the Value Investing Journey newsletter here.

King Digital Entertainment (KING) Case Study Part 2 – Digging Into Financials

King Digital Entertainment (KING) Case Study Part 2 - Digging Into Financials

This test post is a continuation of King Digital Entertainment (KING) ongoing case study.  In Part 1 I found that KING passed what I require for a preliminary analysis to consider a company for potential investment.

Today we will begin the real meat of the analysis and dig into the companies financials to see if it's still worth looking at.

Starting The Real Analysis

The financials I use at this point are the most recent quarterly report.  Most recent annual report, if different from the most recent quarter report.  And the most recent proxy if available.

In this case I'll also be using its most recent annual and quarterly investor presentations as well.

You can find this info at either Morningstar or the company's website.

If you're following along the first thing you're likely to notice is that KING doesn't have a 10K and instead only has a 20-F annual report.  The 20-F report is what foreign companies file as their annual report instead of the 10K.

The 20-F contains all proxy related info as well so this is why KING doesn't report a separate proxy form.

This is true of all foreign companies listing in the US as far as I know so make sure you're aware of these slight differences when research foreign companies.

Instead of releasing the notes I copied from the financials and telling you what I found first.  I want you to tell me what you think about KING first.

What stood out to you from KING's financial reports?  Do you still consider them a possible investment after reading its most recent financials?  Did you come across some red flags?  Let me know in the comments below.

In the next few days I will release my notes and tell you what I think about KING.

***

This is your last chance to enter for a chance to win more than $100 in prizes for the giveaway that will happen when we reach 200 total subscribers between Press On Research and Value Investing Journey.

And we're about to hit this number so if you want your chance to these prizes make sure to Sign up for the Value Investing Journey newsletter here.

Only Six Subscribers Away To Giveaway More Than $100 In Prizes

Only Six Subscribers Away To Giveaway More Than $100 In Prizes

We're now only six subscribers away from giving away more than $100 worth of prizes.  But to get over the hump I'm going to add another book to the prize pool.

The Fortune At the Bottom of the Pyramid - Eradicating Poverty Through Profits - Enabling Dignity and Choice Through Markets by C.K. Prahalad is one of the best books I've read in a while.  And has opened my eyes to new ways to help poorer people around the world.  Some of which I actually plan to start soon.

But remember this isn't the only prize you'll be entered to win.

You'll also be entered to win:

The Snowball - Warren Buffett and the Business of Life.

Pour Your Heart Into It:  How Starbucks Built A Company One Cup At A Time - Special Partner Edition.

Good To Great

And a $50 AMEX gift card.

When subscribing you'll also gain access to exclusive subscriber only content including two things that will help you evaluate companies faster.  Exclusive case study notes.  And exclusive notes on capital allocation.  One of the most important but least understood concepts of investing and being an entrepreneur.

All you have to do to enter to win the $50 AMEX gift card.  The 960 page hardcover copy of Warren Buffett's favorite biography.  The hardcovers of Pour Your Heart Into It and Good To Great.  And The Fortune At The Bottom of the Pyramid.  More than $100 worth of gifts.  Get exclusive subscriber only content.  And your three free gifts that will help you evaluate companies faster, subscribe to Value Investing Journey at this link

If you win I'll ship the gifts to your address anywhere in the world.  At my cost.

And remember; now Value Investing Journey subscribers get a 50% discount on a Press On Research subscription.

So by subscribing to Value Investing Journey for free, you'll gain access to a 50% discount saving you $49.  Have the chance to win more than $100 worth of prizes.  And get three exclusive things that will help you evaluate companies faster.

Subscribe to Value Investing Journey at this link

Technical Difficulties

Technical Difficulties

This was me for three hours yesterday.

If you follow me on Twitter you know I was having some technical issues on the site yesterday. But for those who don't I want to let you know why there is no new post today.

On Saturday I wrote almost 900 words for the next post I'm working on. The biggest single thing I've written since my book. And I came back to work on it some more yesterday hoping to finish... But all the progress was gone.

I spent the next three hours trying to figure out why and trying to get that content back. But nothing worked. And while my hosting service issue fixed the issue, I couldn't recover the content.

But not only did I lose ~900 words of content. I also lost three hours of time that I could've spent finishing the post.

If you see something not working please let me know so I can fix it. And I'm sorry there isn't a new post today like there are most Mondays.

I'll have the post done ASAP, but until then we will continue with the KING case study in the next post.

Weekend Upgrades – Improve How You Think, Invest, and Live #6

Weekend Upgrades - Improve How You Think, Invest, and Live #6

I haven't done one of these in a while because I've posted a lot on Twitter and Quora.  And have written other posts like the Famous Failures series and Who Do You Want To Become?

I've been working on my biggest post ever that I hope to have finished by next week.  And finding the next Press On Research pick so we're back to Weekend Upgrades this week.

Ian Cassel Of MicroCapClub Interviews Professor Sanjay Bakshi - one of my personal investment heroes.  If you've followed this blog for a while you know how much I love Sanjay Bakshi's teachings and how much I've learned from him.

Other great things linked in this interview:

If you can't tell, I think the interview - and all the other links in the interview - are gold.

AB InBev's Hard Nosed King of Beers Part 1.

AB InBev's Hard Nosed King of Beers Part 2.

One of my favorite business books I've ever read is Dream Big - The Story of 3G Capital.  And Anheuser Busch - owned by AB InBev - is the focus of the articles above.

Malcolm Gladwell On What Makes People Really Disruptive.

Markel Corporation at $800 a Share - Analysis Via Rational Walk.

25 Books That Will Teach You The Most Powerful Leadership Lessons Ever.

How Do People Learn The Fastest.

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Don't forget, if you want to receive three free gifts that will help you evaluate companies faster.  Get all future blog posts. Get future case study information first.  And be entered to win four prizes valued at $100, subscribe at this link.

King Digital Entertainment (KING) Case Study Part 1

King Digital Entertainment (KING) Case Study Part 1

A couple of years ago everyone I knew was always telling me about a game they couldn't stop playing. Even if I tired of hearing about it, they all told me I had to play it.

I was finally pushed into playing it after months of not giving in when my whole family got sucked into the craze that was Candy Crush.

During the time I played the game, Candy Crush's creator King Digital Entertainment (KING) was about to IPO on the stock market.

I followed the news leading up to the IPO. But as a rule I don't invest in IPOs for many reasons. The main one is because IPO doesn't just stand for initial public offering. To many - including most value investors - it also stands for; it's probably overpriced.

Just take a quick look at some of the 2.17 million results that came up when searching for the term on Google.

I forgot about the company after I stopped playing Candy Crush.  But last week I asked for your suggestions on what you'd like to research. And Amit wanted me to look into KING.

On a preliminary basis Amit's KING is a great company to do a case study on.

King Digital Entertainment (KING) Preliminary Info Done on 6/23/2015

The following analysis is the preliminary analysis I do on all companies.

Subscribers to Value Investing Journey and Press On Research have exclusive access to the exact numbers I calculated for KING.  But below is a video highlighting everything I found important about it on a preliminary analysis.

If you want further explanation on anything in this video please go to the following pages.  Aramanino Foods (AMNF) Case Study Part 1 - Preliminary Analysis.  Why the P/E Ratio Is Useless and How to Calculate EV.  And Earnings Yield Explanation Video.

From the limited info above, this case study will continue to the next stage. Where we'll dig into the financials.

Thanks Amit for recommending KING for the case study.

Exclusive Capital Allocation Notes

Exclusive Capital Allocation Notes

In the end, plenty of unintelligent capital allocation takes place in corporate America. (That's why you hear so much about “restructuring.”) Warren Buffett

Capital allocation is one of the most important but least understood concepts in all of finance.  And if you understand capital allocation you have a great advantage over investors and entrepreneurs that don't.

Any chance I get to read about capital allocation I take.  So I was happy to find some new info on it this weekend on Reddit and wanted to share it with everyone.

Michael Mauboussin is the managing director and head of Global Financial Strategies at Credit Suisse.  Author of many books.  And great investment thinker.

He just released his updated findings on capital allocation in the research report: Capital Allocation Updated - Evidence, Analytical Methods, and Assessment Guidance.

This 73 page PDF file is a gold mine by itself.  But this isn't all I'm telling you about today.

I took notes on the 73 page research report.  And released them exclusive to Value Investing Journey and Press On Research subscribers.  But I didn't stop there.

If you want to learn more about capital allocation, subscribers also got exclusive access to four of the best things I've learned from about capital allocation in the doc released to them yesterday..

And this isn't all you'll get when you subscribe either...

Not only will you get the above exclusive content.  But you'll be entered to win four great prizes.  And get two other free gifts that will help you evaluate companies faster.

At last check, we're only 12 subscribers away from 200 subscribers necessary to give away $100+ worth of prizes talked about below.

All you have to do to enter to win the $50 AMEX gift card.  The 960 page hardcover copy of Warren Buffett's favorite biography.  The hardcovers of Pour Your Heart Into It and Good To Great.  Get exclusive subscriber only content.  And your three free gifts that will help you evaluate companies faster, subscribe using the form below.