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FRONTIER DEVELOPMENTS, the Cambridge based company focused on video games, is the subject of the weekly column today.

 

I have mentioned this one before here on the site, but felt they warranted a closer look, particularly as the shares had been coming off a bit of late and yesterday dropped around 9p to 95p.

Always aware that a falling share price tends to tell a story, as I have alluded to here on more than one occasion, I felt the need for a little clarity.

As it is, the feedback from the company yesterday was that they knew of no reason at all for the weak price, although pointed out the fairly illiquid nature of the stock. Indeed, the price has been up to £1.60p from the £1.27p float price, on small volume suggesting that it doesn’t take much buying or selling from retail investors to move it one way or the other.

I had also wondered whether that any lock-ins from connected parties or Directors may have led to stock being passed on, although it transpires such lock-ins are in place for a year from the floatation date.

Although by the nature of the business it somewhat speculative, unlike some with blue sky potential FRONTIER is profitable, well established and generating decent sales.  

Anyone interested in taking a look at what is an interesting and long established company looking to broaden its reach and offerings can view the article via the usual link later today.

One thing I should clarify is the cash position, which is actually higher than that quoted in the article, as after the floatation and a pre-float raising this now sits circa £10m, which should hold the company in good stead for further ongoing development.

http://www.cambridge-news.co.uk/Business/Private-Punter/

 

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