4 reasons I think it’s a good time to buy this AIM-listed growth stock

first_img4 reasons I think it’s a good time to buy this AIM-listed growth stock Our 6 ‘Best Buys Now’ Shares Michael Baxter has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Michael Baxter | Thursday, 9th January, 2020 | More on: CDM center_img There was a time when the computer and video games industry was a small business. A computer game could be written by a single person, working from their bedroom. It is not like that now, and it has changed for a good reason. This reason partly explains why I think that this UK computer and video games company, which has been around since the 1980s, could be set to enjoy a stellar performance.The reason is hardware. Purists say the hardware does not matter, rather it is design and the imagination that has gone into a video game that counts. If that is so, explain how the computer and video games business has grown so massively over the last two or three decades There hasn’t been an increase in imagination, games designers haven’t suddenly become more talented, but what has increased is computer power.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In its early days, Codemasters Group (LSE: CDM) sold budget computer games, typically selling for £1.99 for the Sinclair Spectrum and Commodore 64. As hardware became more powerful, games designers found that they could be more ambitious; graphics improved from blocks that had a vague resemblance to something real to graphics so realistic that it was hard to distinguish them from reality.That’s what happens when state of the art becomes several thousand times more powerful.The company itself was listed on the AIM market in June 2018. At first, the share price fell sharply, before rising. A few days before Christmas, its shares were trading at a new all-time high. Shares are up around 40% since August, but only 4% up on the IPO price.The company is interesting for four reasons.Firstly, it has recently announced that it has extended its contract with Formula One World Championship from 2021 to 2025, with the possibility of extending the contract further. In the latest half year, gross profits tallied £12m, yet the period saw just one release, a Formula One game. There is a good chance that the company can build on this franchise.Secondly, it has recently acquired Slightly Mad Studios. Among other things, the deal means a new video game based on the Fast and Furious movie franchise.Thirdly, the company is going digital. That means that the physical medium upon which its games were sold in the past is being replaced by digital delivery, carrying a much lower (almost zero) unit cost. This means that the company’s gross margins are likely to increase significantly – in its latest half year, gross margins increased by 89.0%Finally, hardware is getting stronger. The latest smartphones now offer game-playing capabilities that leave dedicated games machines from a few years ago in the shade. Despite the emergence of a video games market in smartphones, the PlayStation Four has already proven to be the second biggest selling games station in history, but its shelf-life is far from over. Now the hype machine is focusing on the PlayStation Five.For companies that specialise in racing games, such as Codemasters, processing speed and power is crucial – that is why its games are likely to get better and more popular. See all posts by Michael Baxter Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Enter Your Email Addresslast_img read more

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