Paradox Interact

My biggest additional purchase this month. I doubled my position with 2 tranches. The quarterly figures are due on Wednesday. If Paycom exceeds expectations again, I see a recovery to €220 as realistic.

Other additional purchases this month also include $PDX (-0,6 %)
$UNH (+0,11 %)
$DE (+8,79 %)
$LIN (+1,73 %) and $6367 (+2,75 %)

In total, reserves amounting to around 2-3 net monthly salaries have been spent, including savings plans. In May, I will continue to move aggressively into the market and further reduce my considerable cash position before slowing down my investment pace towards the summer.

Nevertheless, always remember: time in the market beats market timing ⏱️ I may be buying too high now, but I also intend to stay in for a LONG time. In many positions even forever.

$PDX (-0,6 %) Subsequent purchases are right and important

$PDX (-0,6 %)
Quarterly figures

• Revenues increase by 72
• Operating profit decrease by 49 % (Write-downs of MSEK 175.8)
• EPS SEK 0.93

The CEO writes that the quality standards are being raised and that they are now trying to save City Skylines. I am of the opinion that this can be achieved. Paradox's games have an average lifespan of 10 years and are actively growing, as you can see with Hearts of Iron. Overall, the figures are not particularly good, but that has already been priced in. The outlook is pretty good and the analysts' estimates are very conservative. The company will continue to grow in the long term. It has no debt, a large pipeline and a new strategy.

What is your opinion on the figures?

https://www.paradoxinteractive.com/investors/financial-reports/year-end-report-january-december-2023

The big festival for "capitalism and economic games" started yesterday on Steam.

https://store.steampowered.com/category/capitalism_economy?snr=1_4_4__118

Fun fact: One of my first games on PC back then was "Capitalism"

https://en.wikipedia.org/wiki/Capitalism_%28video_game%29

You were the main owner of a listed corporation and had to build up profitable production chains while avoiding insolvency or being bought up by competitors.

The whole gaming industry is a real money-printing machine, if you look at the hype surrounding $TTWO (+0,76 %) for GTA or the constant results for $PDX (-0,6 %) are considered.

Here are a few of the "pearls" that are included in the sale.

(To be taken with a grain of salt, of course.)

1. you've always wanted to crypto mine without getting real returns but still spending money on electricity?

Then try the Realtime Mining Simulator!

https://store.steampowered.com/app/1567480/Realtime_Mining_Simulator/

2. you want to burn other people's money in projects?

Then try your hand at a government tax revenue simulator!

https://store.steampowered.com/app/1300610/Taxer_Inc/

3. the official hedge fund managers are doing everything wrong and you could burn more money?

Check out the hedge fund manager simulator.

https://store.steampowered.com/app/2310900/Hedge_Fund_Tycoon/

4. technical analysis without the risk of losing money?

How about the "Trade Bots - A technical Analysis Simulation"?

https://store.steampowered.com/app/1899350/Trade_Bots_A_Technical_Analysis_Simulation/

(Well, Trading View could do that too, but it's about the principle).

What do you think of the gaming industry?

Is it more of a gimmick or serious enough for investment?

I actually see the big danger for investments in the hype-driven market, at least for large publishers. On top of that, there are constant shitstorms because of sometimes trivial things.

#gaming

#tech

I don't know much about what they do, but an insider I know thinks that they are still developing properly

$PDX (-0,6 %)

City Skylines 2 and the current problems

Three days before the release the hardware requirements were increased significantly and at the release the game runs just so on high end systems.

Nevertheless, the game runs better than expected and today there was the first patch which already brings out a few FPS.

I am confident that the performance will be improved in the next months. City Skylines 2, like its predecessor, is a game for many years to come and will provide Paradox with a strong and stable additional revenue stream in the years to come.

I'm still disappointed, but the long-term outlook hasn't changed.

The console release and the release of the mod menu will come in the next few months.

Rationally, I think the stock price crash is a bit exaggerated, but many shareholders are disappointed and have lost confidence. I think that the next quarterly figures will be very good and look positively into the future. Paradox has proven in recent years that they learn from mistakes.

Now I can not afford Cities Skylines 2, but why the stinginess, for me one of the developer studios they are most aligned with the wishes of the players.

Post-purchase before City Skylines 2

$PDX (-0,6 %) Delivers phenomenal quarterly figures

- Sales increase to MSEK 737.3 a 61% increase compared to the same period last year.

- Operating profit amounted to MSEK 292.9, an increase of 37%.

Source:

https://www.paradoxinteractive.com/investors/financial-reports/interim-report-january-june-2023 (2023)