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.