Entertainment One Share Discussion Threads

[raffles the gentleman thug] 14/9/2016 11:22

Looks good show judging by trailer - think I must be about only person buying ETO today ... but happy about that

[tini5] 14/9/2016 11:11

Designated Survivor premieres next week on ABC in the United States. It has yet to be acquired by a UK broadcaster, however, TVWise previously revealed that Netflix UK, Channel 5 and Sky were circling; looking to secure a deal with international distributor Entertainment One (eOne).

www.tvwise.co.uk/2016/09/mykelti-williamson-joins-kiefer-sutherlands-abc-drama-designated-survivor/

[raffles the gentleman thug] 14/9/2016 09:41

spoole5 ... do let me know if there are any other companies you don't like trading on 10x earnings and growing 20% a year compound as I would be most interested to hear of them ... thank you

[raffles the gentleman thug] 14/9/2016 08:22

1gw ... I wasn't actually quoting anything, just merely telling you all what market expectations are for the current year ending Mar 2017.

To reiterate in a little more detail they are expected to deliver 21% revenue growth (50% in Television, 14% in Family, and 6% in Film); and 18% growth in EBITDA (broken down as 23% growth in Television, 24% in Family, and 2% in Film).

Normalised pre-tax earnings are expected to grow 17%, but EPS should be more or less flat as indicated because the number of shares is about 50m higher over the year.

Naturally market forecasts were all predicated on a GBP/USD fx rate of 1.47 or so, not the 1.32 we are at, which give some upside to forecasts, although the group is partly hedged through dollar denominated debt and production financing.

The trading update should merely state that they are on track to achieve this growth and nothing more. And frankly the valuation of the shares doesn't warrant more

[tini5] 14/9/2016 08:18

Filtered.. Makes the thread much more constructive.

[masurenguy] 14/9/2016 08:18

Give it a rest now spoole - this consistent stream of one line negatives is getting very boring and is also bordering on attention-seeking trollism !

[spoole5] 14/9/2016 08:08

Share price will have a 1 at the start by the end of today methinks.

[1gw] 14/9/2016 07:26

raffles - you're quoting expectations for "adjusted" eps, which have been consistently much higher over the last 5 years than basic eps. This is mainly because of "one-off" costs and high levels of amortisation related to past acquisitions I think. While the amortisation charges will eventually drop out assuming they reach their desired scale and stop being so acquisitive, it does add some execution risk as investors need to assume that they will indeed keep the show on the road to deliver the higher level of "underlying" eps when the adjustments drop away. So it is not necessarily fair to compare multiples on an adjusted basis between a "buy to grow" company with persistently high amortisation/one-off charges and one which is achieving those earnings largely on an organic basis.

[spoole5] 14/9/2016 00:08

Will they have enough good news to justify knocking back 240? If not the market will be brutal and itv's refusal to go higher will be justified.

[werty5] 13/9/2016 21:23

Don't know but I am really hoping he is shorting this. The news stream here all points to a positive looking update, which I would imagine will arrive before the months end AGM. When it arrives we may well be smelling fried shorter.

[amoore70] 13/9/2016 21:17

Where did this idiot Spoole5 come from?

[spoole5] 13/9/2016 19:17

Itv will be able to pick these up for 2 quid in six months.

[raffles the gentleman thug] 13/9/2016 19:10

well look at last year's 1gw, because you shouldn't be expecting much more than trading in line with expectations. If thats not good enough for you and the market, and folks want to sell it down from an already 20% plus discount to peers then they are welcome.

To remind you 1gw, because I get the impression you are unaware, consensus for the year to March 2017 is for EPS of around 19.4p, i.e., FLAT on last year - not growth, but flat, albeit based upon pre Brexit exchange rates.

Consensus for forward earnings for March 2018 is then 23.2p - earnings growth of 20% and an earnings multiple dropping down to 8.8x

[1gw] 13/9/2016 18:09

To be fair through, there's some cyclicality on the film side of ETO isn't there? I would imagine there's a bit of a track-record premium in the ITV price as well. I like both stocks at the moment although much more heavily invested here right now.

Near-term outlook for ETO share price probably quite dependent on the trading update that I would think should be due anyday now (with backstop of the AGM). Given the robust rejection of the ITV approach and the news posted here over the last few months I am expecting something of a barnstorming update - and I suspect I'm not alone in that. So if it turns out to be just a wishy-washy statement majoring on being on track to double the size of the business rather than a specific commentary on how well the current year is going and how strong the immediate outlook is, there may be a negative reaction.

[raffles the gentleman thug] 13/9/2016 16:08

And for those of who can't work it out that's 20% cheaper than ITV with none of the economic cyclicality

[raffles the gentleman thug] 13/9/2016 16:02

Don't wind yourself up tini5 - its actually nice to see someone getting properly shaken out of a shareholding, which no doubt they paid a much higher price for.

For that reason the price action we are seeing today should be short lived. Forward EPS 19.4p, PE Ratio 10.5x, easy decision to buy for me

[tini5] 13/9/2016 15:15

Utter rubbish. Financials are sound - fundamentally this should be up around 240.

[tsmith2] 13/9/2016 14:58

Corp activity froth. £1.75/1.80 here we come

[raffles the gentleman thug] 13/9/2016 13:05

Best to ignore those who post unsubstantiated one liners and feel unable to ever argue their case werty5.

Really surprised still pulling back, but I am buying more each and every day its weak like this. Probably just suffering from someone deleveraging at the moment and not a lot more. Good news is volume is getting done without dramatic influence on share price

[spoole5] 13/9/2016 11:25

Monotonous but correct.

[werty5] 13/9/2016 11:17

Time to filter you spoole5 your posts are monotonous in the extreme.

[spoole5] 13/9/2016 11:14

Yep sub 2 quid by the end of the week. Bid froth disappearing fast.

[salpara111] 13/9/2016 10:51

The share price is not of concern at present.
One can only assume that management will have some pretty positive news at the end of the month to justify knocking back the 236 offer.
I am still hoping for a dual listing but accept that it is probably a long shot.

[raffles the gentleman thug] 13/9/2016 08:44

I am note sure how much RSI matters in this particular case, but there certainly doesn't seem to be a whole lot of justification for the shares to be trading 20p below ITV's initial offer, and 85p below the level we presume management would have allowed due diligence to commence.

And for that reason, and the impending trading update I am buying a few more