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.

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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.

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