Eros Media 26 Discussion Threads

[my retirement fund] 26/2/2017 18:32

Perfect business to help ones self to oodles of cash and come up with all manner of plausible excuses as to what happened to it.How long before the cash runs out?

[lonrho] 26/2/2017 13:10

Well the cash outflow has gone into content advances to make programs for Eros Now according to the CEO.

[my retirement fund] 26/2/2017 09:40

still cash flow negative with no credible explanation

[spectoacc] 17/11/2016 10:25

What I don't get is that if there are any "darker issues" (not impossible, but previously raised/dismissed, and in truth the recent less-good results give me more confidence in them being genuine!) then it's the shares that should suffer/go to 0 cents.

I know of no other share that encapsulates greed/fear better than ERO1 - whenever it goes up I want to buy more, whenever it tanks I'm desperate to sell!

[tightfist] 17/11/2016 10:09

Yes, it bemuses me too. I usually convince myself it's all about comparative liquidity between NYSE and LSE ORB (but ORB is meant to be liquid, yeah?). But during the lurch days I do wonder about what darker issues there may be lurking. However, I really struggle to see how a company such as Eros would ever (or in the next 5 years) allow itself to get into a situation whereby it looses all credibility through defaulting on servicing it's debt.For discussion! Cheers, tightfist

[lonrho] 17/11/2016 10:01

Yes and market cap of shares is about ten times net debt.

[spectoacc] 17/11/2016 09:14

Does amuse me how ERO1 often does larger % moves to EROS. One's senior debt, ranking ahead of shareholders, paying 6.5% pa, on a stunning GRY. The other ranks behind bondholders if the co went pop.

[lonrho] 17/11/2016 09:12

You could be right tightfist shares bounced 9% in the states, could be on a report that Temasek had doubled its stake in Eros.

[tightfist] 17/11/2016 08:49

We will see what the price and volume look like at the close today; my anticipation is that we have just printed the next "Higher Low" on the chart running through to 2021.

[spectoacc] 17/11/2016 08:22

Seller suddenly done methinks.

ERO1 certainly behaves more like a share (an AIM share!) than a bond - takes some nerve.

[tightfist] 16/11/2016 12:47

Agreed, it's time to tighten the seat belt and keep my nerve. This was not my planned trajectory for ERO1 ! I was hoping for a reasonably tight channel leading upwards to October 2021. In fairness, if you project a line to maturity off the June low we are still above such a trend channel. I haven't made any further purchases since then, but this looks very tempting now!Cheers, tightfist

[lonrho] 15/11/2016 22:27

Hi tightfist ,I think there will be a sale of a minority interest in ErosNow and its always possible the majority Indian shareholder could sell the company. However like you I intend to hold the bonds until maturity but it will probably be a bumpy ride for the next year or so with poor free cash flow until the ErosNow expansion strategy shows tangible signs of bearing fruit.

[tightfist] 15/11/2016 18:34

Hi Lonrho,I am thinking I want to hold my ERO1 to maturity, no buy-outs here please, unless they were to offer me very near to 100p.Cheers, tightfist

[lonrho] 14/11/2016 16:18

ErosNow I think is largely owned by the holding company rather than the main Indian subsidiary as I think are the bonds. So in theory cash from the sale of a whole or part of ErosNow should be available to buy back bonds but of course it depends on the terms of the sale and any prior corporate repositioning re for instance tax planning.

[spectoacc] 14/11/2016 16:07

And isn't a massive amount of money outstanding either. My only minor concern, which I never found an answer to, is what happens if they flog off a chunk of ErosNow.

[lonrho] 14/11/2016 16:04

At some stage cannacord will tip it again and then it should start to rise, company has been around for forty years only another five to go to bond repayment.

[spectoacc] 14/11/2016 15:58

ENQ1 hardly moved though, & ERO1 just seems to be continuous steady selling (though not in huge sizes). The reverse of what sent it up! Remain a holder here.

[tightfist] 14/11/2016 14:46

Thanks Lonhro,I too am thinking the price is a hangover from the shorting saga, coupled with bond investing being out of fashion for the last 3 months. The "risk free" 2012 Gilt TG21 has lost nearly 3p over that period so I suppose you would expect more risky fixed interest to be harder hit. Unless something goes horribly wrong the redemption yield should attract the punters, but it seems the time is not right yet! The redemption yield on that 1.5% Gilt looks about 0.7%......Another market factor might the developments at another ORB junk bond, Enquest?; I haven't been following how the re-financing is now panning out for Bond holders.Cheers, tightfist

[lonrho] 14/11/2016 13:29

Yep results weren't great but net debt reduced by 30 million dollars following the share issue to two major institutional shareholders. Net debt is covered many times by gross assets and the majority of the debt like the bonds is unsecured. The company is rubbish at turning profit into cash but if the growth projections for eros now are anywhere near correct this should improve. Shares are capitalised at about a billion dollars with strong U.S. institutional support and the bond price seems to be a hangover from the shorting and associated adverse press from late last year and early this.

[spectoacc] 14/11/2016 11:47

Still being sold.

[my retirement fund] 08/11/2016 14:08

Why did it need to raise more money in the face of a long history of debt raising when its supposed to have such a massive booked revenue from a catalogue of folm rights - answer because its insolvent !!!

[tightfist] 08/11/2016 09:54

Yes, it is pretty quiet here! The NYSE share price is looking pretty perky, and only seven weeks ago they raised $30m in a private placing with two existing Top 10 investors - confidence inspiring stuff.Why do the LSE Bonds now trade at a 22% discount? (Although the weakness in the last three weeks is mainly down to the dividend payment). On the Offer right now at 77.6p with a Yield to Maturity of 13.3%.Too good to be true? Cheers, tightfist

[spectoacc] 31/10/2016 09:08

All gone rather quiet, though with a tight spread. Whichever buyer pushed it up seems done now.

[spectoacc] 21/10/2016 08:13

Finally had payment through in Barclays. Always nice to get it a lump in twice a year.

[mokhan2] 19/10/2016 15:43

Received early afternoon via Selftrade...