Kunos Simulazioni maker of Assetto Corsa is bought by Digital Bros
What's up with 505 Games? Stock is +250% since May!
I owned Digital Bros, also known as 505 Games, earlier this year but can now clearly see that I sold too early.
I really can't understand why the stock is having this insane year-end rally. The stock is up 250% since May and is probably going to be one of the best performing gaming stocks of 2016.
I know they have had some cool and award winning niche titles such as Abzû, Virgina and Adr1ft and that they own the retail distribution rights for mega-hits like Rocket League - but I still find the rally in the last few days impressive.
Somebody who is following this stock more closely than me, please help me understand.
Digital Bros - time to take profit
Digital Bros full year financial report (ending 30 June) reported an increase of EBITDA by 56% to €25 million - but most of that came from the one-off item of Payday rights being sold back to Starbreeze. Exuding the Payday rights leaves us with a very expensive stock and as it has gained handsomely so it is time to take profit.
Although I like the more artistic titles such as Abzû and Virginia, and Assetto Corsa will probably do very well, at the moment I will stand by and observe.