Undervaluved HMV Group's share price.....

rockitup

LongTermLurker wrote: »

The move in popularity from physical media to data files must have been a big hit on traditional retailers including music, video and books. The vast majority of current and future consumers will continue to listen to and read data files in one format or another. If they buy a CD, they will undoubtedly rip it to MP3 or some other format so they can listen to it on their favourite media player. People are also becoming more used to buying things online and unless the likes of HMV dramatically embrace the Internet, selling both physical and downloadable media online, IMO they will continue to see reduced market share.

I used to love going into record shops and browsing through the albums, but it's a long time since I could be bothered reading album sleeves and a long time since I bought physical media - itunes for me

Can you even still go into a shop and say "can you put me this on please?... Play the next track"? Even download sites allow you to preview tracks.

I still have the majority 80% of my music collection on Vinyl and even 78's along with the other 20% on CD's and now MP3's on the iPod touch.

Excuse the reminiscing but the MP3 quality is not as good but the convenience of being able to have a few thousand tracks on a media player (for use in the car, with headphones or dock for everyday use or even linked up to the well loved hi-fi seperates) is brilliant and time saving.

Back to the subject, as Reaper mentioned they have a good dividend income but I cannot see anything much in the way of share price growth with HMV. Agreed they can adapt their business model but by how much more.... It is quite likely that there will be less HMV stores around in the next few years and they will be more reliant on their online profits along with remaining stores in busy shopping centres.

LongTermLurker

rockitup wrote: »

Excuse the reminiscing but the MP3 quality is not as good but the convenience of being able to have a few thousand tracks on a media player (for use in the car, with headphones or dock for everyday use or even linked up to the well loved hi-fi seperates) is brilliant and time saving.

Fully agree, but when you used to say 8 track and Betamax was best, which turned out to be most popular amongst kids/ the buying teenagers? Yup, the convenient ones, cassettes and VHS.

Still have my albums to reminisc over - I don't have any 78s though

MacsReturns

YumYum wrote: »

My other half works in a HMV store in England. I used to work there too and from what he's told me, the store is not doing half as well as it was a couple of years ago. They've pretty much been told that if they don't improve then the store will close. This particular store despite being one of the smallest has won many an award so it's pretty upsetting to see it all go downhill. HMV as a company is trying to improve by moving into technology a lot more, the pre-owned games market and selling higher end clothing but I guess only time will tell.

I can see why management are being hard there - the latest results showed only one single branch not in profit. Guess now we know which one :rotfl::T



Disclosure: I hold a few HMV shares...

googler

cashbackproblems wrote: »

Never mind shopping online how many of us even actually pay for our songs, dvds, shows??? This is why HMV doesnt appeal as a business, it has nothing of great value to suggest any huge increases in sp.

I pay for the CDs, LPs, live shows, etc because I can see that if I don't, and many others don't, that the artist won't survive, and I won't get to hear them in future. I want them to stay in business so that I can hear them some more.

gozomark

Fuzzythinking wrote: »

I could not understand why HMV Group's share is undervalved

don't confuse undervalued share price with a low share price...

rockitup

LongTermLurker wrote: »

Fully agree, but when you used to say 8 track and Betamax was best, which turned out to be most popular amongst kids/ the buying teenagers? Yup, the convenient ones, cassettes and VHS.

Still have my albums to reminisc over - I don't have any 78s though

8 Track, cor forgot all about that one! In 1975 I bought a Quadrophonic Music Centre which had 8 Track instead of the cassette. I think all the 8 track tapes ended up at boot sales, ahh so that's where you spend Sunday mornings!

78's... still got a box of the best ones but saw the Comets (Bill Haley's group) play live (still alive) in 2008 in the US. The drummer !!!!!! Richards was 84 years young and still belted out a 15 minute drum solo. Probably older than HMV, lol

Mickygg

I was tempted with HMV due to the share price and current high dividend yield.

However there is areason for the SP continually decreasing. I decided without mentioning what I was thyinking, to ask friends and family what they thought of HMV, where they thought it was heading, on line music and waterstones etc etc. I had close to all people agreeing that on-line will continue to crush HMV and waterstones, and that they only buy from HMV in their rock bottom price sale as most other on line retailers are cheaper.

That confirmed what I thought, and have therefore decided to keep clear as I can see this becoming a yell group type of share, continually falling.

Reaper

Mickygg wrote: »

I can see this becoming a yell group type of share, continually falling.

Maybe, but the big difference is Yell pays no dividend and HMV are paying a huge dividend. I know which I would rather own.

Reaper

By the way for anyone thinking of investing I believe the ex-dividend date for the declared 7.4p final dividend is 29th September.

Fuzzythinking

Hi guys

Are you saying people are increasingly ordering DVDs, CDs, books online instead of going to HMV Group in these days?

Then why people still flocking to the HMV Group on busy day like Saturday/Sunday and sometime during the week?

Am I right that HMV Group has a low debt or none? Problem with cash-flow?

To improve the share price:

HMV Group needs to expand the business online where people can buy the books, ebooks , DVDs, CDs, etc from Waterstone online...

Reduce the number of retail outles and expand varous products such as computer stuff, magazines, newspapers and stationary which should enough to destabilise WHSmith's business!

Get rid of that bloody HMV Live! It is a terrible idea - blowing £8M and got £0.2M income which is an embarrassing to the shareholders and board of directors!

Offer discount voucher when spend more than tenner in HMV Group.

Hope Directors take my suggestion!