Throwback Thursday: King Digital Entertainment (KING) Case Study Part 2 – Digging Into the Financials

This is another post in our ongoing Throwback Thursday’s Series, where we share blog posts from the past to bring you a ton of value and help you learn faster.

Last week we did Part 1 of this case study series on KING.

Today, we get to Part 2, KING’s financials.

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

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 company’s financials to see if it’s still worth looking at.

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.

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Note. The above Morningstar link still works if you want to look at the financials yourself even though the company is now private.

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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 also has all proxy-related info, 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 researching 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.

P.S. Improve your value investing knowledge and check out our FREE book On Float. If you pay the shipping, I’ll pay to get you the book anywhere in the world so you can learn about this ultra-valuable and hidden investment concept to gain a huge advantage over other investors.

P.P.S. If you want to see our other case study videos, click here to go to our Value Investing Case Study playlist on YouTube.