Embracer: 'Kingdom Come: Deliverance II' Doing Well

(9min)

Summary

  • Embracer's recent quarter was solid, driven by 'Kingdom Come: Deliverance II' and they have a pipeline still with several promising titles.
  • The company is splitting into two: RemainCo (Fellowship Entertainment) with strong IPs like LotR, and NewCo (Coffee Stain) also taking with it some game properties.
  • We believe that RemainCo will have a more solid proposition for equity investors than NewCo.
  • Restructuring and asset sales improved profitability, but the thinner game pipeline explains Embracer's discounted valuation versus peers.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Hobbiton

Beverly Goldschmidt/iStock via Getty Images

Embracer (OTCPK:THQQF) (OTCPK:EBCRY) had a decent quarter indeed with a strong showing from Kingdom Come: Deliverance II (KCD2) as we discussed in our previous coverage. It drove solid segment results and

If you thought our angle on this company was interesting, you may want to check out our idea room, The Value Lab. We focus on long-only value ideas of interest to us, where we try to find international mispriced equities and target a portfolio yield of about 4%. We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, our gang could help broaden your horizons and give some inspiration.

This article was written by

The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.

They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About THQQF Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on THQQF

Related Stocks

SymbolLast Price% Chg
THQQF
--
EBCRY
--