Henderson European Share Discussion Threads

[bletherer] 10/5/2006 10:02

After today's move the chart is starting to look really nice. We have now completely filled the gap down from the November profit warning and are starting to pull away from the 200 day MA - now both 86 and 75 should be good solid support levels. On the upside there is clearly massive resistance at 150 and the declining tops currently cut at around 130 but there's not a lot else I can see. 100 could be a psychological barrier but it didn't hang around long there on the way down...

[goonertone] 10/5/2006 08:39

Martin

Zooshare said that when quoted 93p last week when it was 88 I believe. Looks like we'll see 93p bid today so who knows whether 98p will be around for long

GT

[martinc] 10/5/2006 08:22

Just tried to buy c. 10,000 shares and was quoted 98p against the market price of 90p. No thanks.

[jtcod] 09/5/2006 14:21

DS
Sorry for not replying earlier.

It's certainly a tight market. I'm surprised that yesterdays RNS didn't move it more. Maybe it will take a little longer to sink in.

If I were an Analyst covering this stock, I'd do a full update and buy note right now to get my clients ahead of the pack. It's still a gift imo.

[scumdog] 09/5/2006 09:49

I can exclusively reveal that a shop in Halesowen, West Midlands is not renewing its contract with Choices UK Local. The shop owner informed me that the business is going to a competitor but did not say who.

[drstaden] 09/5/2006 09:04

JT
Tried to buy more this am. Limited to 2500 at 88p rest offered at 90.

[jtcod] 09/5/2006 08:23

And still they haven't posted my 80p trade. Even though it was settled yesterday.

[jtcod] 08/5/2006 14:12

Edmund
I have not spoken to the management about the Div. However, I see no further obstacle's in the re-establishment of the Dividend.

Provided the business does not have any further disruption between now and September, I expect them to announce it with the prelims.

It will be an important driver of share price imo.

Edit
I'm also expecting Peel Hunt and Seymour Pierce to up the status from Hold to Buy this week.

[bletherer] 08/5/2006 12:34

Not too much impact on the share price so far from the strategic update. As mentioned previously we are right at the 200 day MA (at about 85p) which is likely to act as resistance in the absence of a clearer upside break in the next day or so IMO. With no further news due for a while I could see profit-taking pulling this back 15p or so short term. Management are clearly keen to be seen to be acting to improve the situation - I think they can feel the breath of Gyllenhammar on their necks.

[slim9] 08/5/2006 07:52

Great work JT.

[jtcod] 08/5/2006 07:50

If the non-trading stores are sold before year end, then next years savings will be £2.1m after a £500,000 hike in energy costs. That's twice the previous projection.

Add to this the potential of £50-70m in Turnover generated from the Andromeda aquisition and I think it now guarantees the re-instatement of the old 6.8p dividend next year.

Even at the current price of 89p that's still 7.64 %.

As ever all IMHO and DYOR
JT

BTW looks like they have held my T trade till tonight. Tricky mm's

[goonertone] 08/5/2006 06:14

Home Entertainment Strategic Update
RNS Number:5558C
Home Entertainment Corporation PLC
08 May 2006


Press Release
IMMEDIATE, Monday, 8 May 2006

Home Entertainment Corporation PLC- Strategic Update

Since the company announced interim results on 24 January 2006, Home
Entertainment Corporation has traded in line with market expectations, in a
challenging business environment.

So far, in the second half of the current financial year, which includes the
Christmas and Easter periods, the company sales levels have been encouraging,
reflecting the restructuring of the company's product range and re-branding of
ChoicesUK stores, as well as continuing progress in the convenience store sector
and fulfilment activities.

In addition management has acted decisively to eliminate loss-making activities,
reduce costs and improve cashflow through streamlining the organisation.

The latest phase of its central overhead reduction programme has resulted in
annualised savings of approximately #2 million. In addition, the company is in
the process of disposing of the leases of a number of unopened non-trading
stores, expecting, in due course, to achieve a further annualised saving of
approximately #600,000.

ChoicesUK TV, the company's teleshopping business launched in August 2005, has
been closed following a poor sales performance. The Channel is currently being
operated in association with a third party and all related costs will cease by
the end of July 2006. The total losses incurred will be no more than #1.35
million, of which #833,000 was provided in the first half of the year.

The decision has been taken to exploit the existing film rights of Mosaic
Entertainment and cease further programme acquisitions. It now operates as part
of the ChoicesUK Local business which supports convenience stores and other
retailers.

On 13 April 2006, the company acquired the stock and certain tangible assets
from the receiver of Andromeda Entertainment PLC. As a result, the company has
significantly strengthened its position in computer games, particularly in the
fulfilment market with mail order companies.

Following the successful introduction of the ChoicesUK brand to all operating
divisions, the board is recommending that the company name be changed to
ChoicesUK plc.

Anthony Skitt, Chief Executive, said: "As a result of the actions we have taken,
the ChoicesUK business has developed a new momentum, and is in excellent shape
to succeed in a highly competitive market. We will continue to look for ways of
generating cash flow and shareholder value, improving efficiency and boosting
sales through our existing infrastructure."

END

Contacts
Simon Bloomfield

[jtcod] 07/5/2006 22:23

GT
What do you think of synergies from a marriage between HET and AMU? Distribution savings etc.

[jtcod] 07/5/2006 22:15

I wish I did GT.

Just on a lucky roll at the moment. I increased my stake in IEC by more than my entire stake in HET on Wednesday at 935p and 945p. By end of trade Friday it was 1043p.

I hope the luck continues into this week.
JT

[goonertone] 07/5/2006 19:00

Nice spot Bletherer

I think that the closure of the TV side was probably the worst kept secret ever bearing in mind that anyone who has sky could turn on to Choicesuk channel to see Usave instead. My only uncertainty was whether they would continue to use the infrastructure to rent out to the likes of Playboy etc.

What it does show, to me anyway, that they are not afraid to admit they were wrong and make the tough decision to exit form TV rather than hang on hoping it will come good.

The article certainly sounds like it has been written by someone in the know so lets hope that they are indeed in the know and that the line "upturn in trading" does appear.

GT

PS JTC have you got second sight as your top up this week seems mightily well timed if they are going to issue an upbeat statement?

[jtcod] 07/5/2006 14:31

Good news on the name change. If there is an upturn in trading, price could move through 100p very quickly.

[bletherer] 07/5/2006 11:08

Snippet in the Sunday Times today. Sounds "remarkably well-informed", as they say, and several interesting titbits of information. Mixed news but the TV pullout highlighted here was already predicted on the other bb some weeks back. I like the sound of "could reveal an upturn in trading".....

"Video firm pulls out of TV shopping


ONE of Britain's biggest video-rental chains will admit this week that a diversification into home-shopping television channels has not worked. Home Entertainment Corporation (HEC), the AIM-listed group behind Choices UK, Britain's second-biggest video-rental chain, is expected to announce the closure of its TV-shopping operations with a trading update this week.

The group would close its own channel and cease working for third parties such as Playboy TV.

With the update to investors, which could reveal an upturn in trading, HEC will also announce the acquisition of the assets and stock of Andromeda Entertainment, a computer-games distributor that had collapsed into receivership. It hopes the deal will add tens of millions of pounds of turnover.

Managing director Anthony Skitt is also likely to announce a proposal to change the company's name to Choices UK."

[scumdog] 05/5/2006 23:12

Whatever happened to our resident bear She-ra?

[jtcod] 05/5/2006 15:39

Hope you're right bletherer.

I'm in no hurry though. Provided the fundamentals do not deteriorate, I want to see 100p, 150p & 200p before I consider offloading any.

[bletherer] 05/5/2006 15:32

JT - in response to post 66: yes we have seen it before - with HET, for much of the rise from about 55-70p. Unfortunately also for much of the subsequent march back down. And siwel reminded us several times that much of the 100p drop through 2005 to early 2006 was on equally pathetic volume. Conclusion: this stock can do a lot either way on no volume. It's nice when it's working for you, frustrating when it's working against you. No doubt the tiny free float has a lot to do with this: even very small absolute volumes can be quite serious as a percentage of the available shares. 200-day MA is right here at about 85p so I could see it getting held up for a while at this technically convenient juncture. Otherwise though we've established a nice medium-term uptrend and unless some bad news comes along to spoil the party there's no very obvious congestion/resistance level until about 125p.

[jtcod] 05/5/2006 15:05

Guys
I couldn't say earlier but on wednesday, I put an order in with a limit of 80p.

An mm gave me a guarantee on 63,432 shares at 80p and have been trying to work the rest in the meantime. I've just given up on the rest of them for obvious reasons given the current price.

I now hold 2 % of the company.

Not sure when they will post the T trade though.

[drstaden] 05/5/2006 14:59

JT

I have to raise my glass to you yetagain !!!!!!!!!!!!!!

[jtcod] 05/5/2006 14:34

Has anyone ever seen a share jump 13 % in 2 days on no news and not one shareholder sell?

It's astonishing really.

[jtcod] 05/5/2006 14:17

What impresses me is the hard nosed, 'I'm not selling at this price' attitude of the current shareholders. This bodes well imo.