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

fozzeh

bobbyj wrote: »

Bbc

bust by christmas

You give them that long?

Reaper

HMV and JJB are the 2 worst performing stocks I ever bought, and I got them both around the same time. They were part of my small high-risk portfolio so I was always ready for a possible loss.

My theory with HMV was there would be a long slow decline and I would make money on the dividends in the meantime, but the fall has been deep and swift, so I called that wrong.

JJB I have dumped but I think I'll hang on to HMV for now and see what happens.

GCH888

I visited Brent Cross yesterday and noticed the HMV there had closed up shop. I'm quite surprised by this since Brent Cross is still quite a high profile location (despite Westfield being down the road).

Now where will I go to hang out and not buy anything while the wife is clothes shopping in Fenwick next door?

Thrugelmir

GCH888 wrote: »

I visited Brent Cross yesterday and noticed the HMV there had closed up shop. I'm quite surprised by this since Brent Cross is still quite a high profile location (despite Westfield being down the road).

Is there still a Waterstones?

Fuzzythinking

malik999 wrote: »

I hope nobody followed fuzzythinking last year and bought any HMV shares.

Well I have bought it and pocketed my dividends and sold them immediately after hearing the 1st profit warning. It is a real shame about the prospect of HMV and I feel it will go bust in end of 2011 but I would be surprised to see HMV manage to turn their business around. It is a very very high risk to buy the cheapest share at the moment but no dividend in a long run

FT

sabretoothtigger

Still does not add up. Declare 30m of profit and with renegotiated terms on their debt then go bust

Not sure where the active ingredient is there. :huh: Despair peaks when price and value is best, fits I think

Maybe Tesco will buy them or someone

Thrugelmir wrote: »

No, after finance costs.

HMV's borrowing is linked to LIBOR so any increase in BOE base will reduce pre tax profitability.

Ok well that might make BOE rate decision a spark point. Highnoon tomorow

malik999

Fuzzythinking wrote: »

Well I have bought it and pocketed my dividends and sold them immediately after hearing the 1st profit warning. It is a real shame about the prospect of HMV and I feel it will go bust in end of 2011 but I would be surprised to see HMV manage to turn their business around. It is a very very high risk to buy the cheapest share at the moment but no dividend in a long run

FT

Of course you did . Must have missed that post
Not worth selling now. I suggest you just hang on to them and hope

northerner77

The share price has limped up over 10p last few days - anything to do with the Canadian sale? When will the new financing deals with RBS/LTSB be announced, anyone know? Thanks.

IronWolf

sabretoothtigger wrote: »

Still does not add up. Declare 30m of profit and with renegotiated terms on their debt then go bust

Not sure where the active ingredient is there. :huh: Despair peaks when price and value is best, fits I think

Maybe Tesco will buy them or someone

Their accounting profit may be £30m but they spend around £40m a year on property, plant and equipment in order to keep it maintained. They also have £550m of current liabilities against current assets (- inventories) of £120m.

Looking at their financial statements its very fishy, they split them into "Group" and "Company", the "company" appears to have a huge loan which doesn't appear in the "group" and has an apparent investment worth £600m, again which the "group" does not show.

The "company" also reports better profits than the "group" yet has miniscule cash flow, but is paying £20m a year in interest on its loan.

It's all very fishy to me, they've set up some sort of holding company to fudge their financial statements, I wouldn't touch HMV.

blinko

there is really no need to go near this share, i shorted at 25 and got out at 20 way to early in hindsight, but again no need to go near this share alot more downside than upside