*No ChatGPTs were killed in the making of this, my first DD. This is chiefly for UK investors but I think it's a decent stock for internationals too.*
**Ticker:** GAW/[GMWKF](https://finance.yahoo.com/quote/GMWKF/)/GMWKY
**Market Cap:** 4.72 billion GBP, or 6.35 billion USD
**Revenue:** 617.5 million (reported June 1, up 17.46% yoy). 828.9m USD.
**EPS:** 7.99
**Why I'm Bullish:**
**- Growth Potential from TV**
Warhammer and Amazon have agreed to move ahead with a TV show based on the Warhammer franchise. In Dec '22 the deal was made, in Dec '23 they announced they had settled creative differences and locked in the deal, in Dec '24 Henry Cavill (obviously) announced via socials and interviews that the project was moving forwards, and that he would be acting and producing. It's now apparently still moving forward, though firm news may still be some time away. [Source](https://www.ign.com/articles/games-workshop-says-its-contract-with-amazon-prevents-it-from-revealing-any-details-on-the-warhammer-40000-cinematic-universe-but-shares-promising-sounding-update-on-scope-and-scale)
If this happens (and lots of money has already gone into it) then it could significantly expand the earning power of the already popular franchise in a similar style to Game of Thrones or even, dare I say it, the LOTR movies. That's a long shot and it will be some time away if it ever happens, but the potential is there, and if we start getting news, then the vibes-based market will push the price up fast. Major expansion opportunity.
**- GAW is also a good hedge; it's profitable; it pays dividends**
Everyone ursine expects a market dump at some point, but GAW's not some shitty SPAC that will lose 80% of its value overnight. This is a very profitable company that offers a decent dividend (2.4%) paid quarterly. As a UK company it also offers some protection against fluctuations in the value of the USD that most of us have 90% of our money wrapped up in. Just in case the market comes to its senses at some point in the future, maybe. Eh, it probably won't.
**- Growth Potential in General**
Warhammer has expanded in popularity steadily. This is a google trends search for the term over the last ten years:
https://preview.redd.it/n7kyryau8ptf1.png?width=2885&format=png&auto=webp&s=68eb0a436022c2ab552d2e3d758bb356a53c5d30
It's almost at peak popularity right now, and it's been expanding out into novels, comics, and the aforementioned tv show/film. The franchise had a crossover with MTG, too.
**- Current Dip / Insider Buying**
It's a good time to buy, relatively speaking. The stock recently hit ATH of 166.42 GBP, and has since dipped to 143.90. This dip is apparently based on profit-taking, not some fundamental problem (unless it's one which has yet to be announced). If there is some problem, then CEO Kevin Rountree is unaware of it, as this year he purchased 381k worth of stock at a price of 163 a share. The stock is currently at 143.
\- **Downsides**
Well, there's the distinct risk of the Amazon deal falling through, and the stock is slightly pricey without it in traditional terms. It also probably won't double overnight, it's a long-term hold which offers steady returns, if that's what you're into. If Russia nukes England then it'll be worthless, I guess. UK companies typically grow slower than US (although GAW has had very decent growth over a number of years). That's all I've got, but I'm sure someone will come up with some more in the comments.
**TLDR**
Little toy orcs are cool, and so is Henry Cavill. Insiders are buying, the stock is very profitable, and they're trying to expand their market through TV and film. There's also a dividend so you can get some useless crumpet money every three months.
**Positions**
I started buying at 114 and haven't stopped since, currently have a little over 10k USD of my wife's hard-earned money invested. Hopefully she will not become the next Nana of WSB.
https://preview.redd.it/kzcv2wkicptf1.png?width=1080&format=png&auto=webp&s=cdc692d9c6f97885b45ffdd1fcec9bf0cf7c6cd8