Henderson European Share Discussion Threads

[slim9] 08/5/2006 08:52

Great work JT.

[jtcod] 08/5/2006 08:50

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 07:14

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 23:23

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

[jtcod] 07/5/2006 23:15

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 20:00

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 15:31

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

[bletherer] 07/5/2006 12:08

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] 06/5/2006 00:12

Whatever happened to our resident bear She-ra?

[jtcod] 05/5/2006 16:39

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 16:32

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 16:05

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 15:59

JT

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

[jtcod] 05/5/2006 15:34

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 15:17

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

[zooshare] 05/5/2006 15:09

well price just flicked from 83 to buy to 85 on 571 shares. Tried to buy 15000 shares ...ask price 93.5p...no sellers...could not stomach the premium...did not buy ..may regert this next week JTC!

[cambium] 05/5/2006 15:06

He's only gone and done it again, well done Sir Cod.

[goonertone] 05/5/2006 15:04

End of day rally again?

Online buy limit just dropped to 100 and you can sell 10000 for 82.75

GT

[michaelmouse] 04/5/2006 17:03

goonertone-
EGM Monday. We may receive a trading update.
Price rise could indicate
1) Pick up in trading?
2) Private equity interest?
None of these?
Cheers.
Michael.

[scumdog] 04/5/2006 16:37

Checked the online situation awhile back - no quote available to buy - 74.10p to sell. Was considering selling up to that point! In future I'll check online limits prior to trading as could hold a bit of a clue to immediate price action.

[goonertone] 04/5/2006 16:21

Anyone any ideas?

[jtcod] 26/4/2006 17:05

The only other possible explanation is that the MM's were holding shed loads. Unlikely.

[bletherer] 26/4/2006 16:45

JTC, I see you're also struggling with the mysteries of where Gyllenhammar is getting his shares from - unless I've missed an RNS along the way that announcement yesterday is the first time any of the major shareholders have acknowledged a reduction in their holding. The only conclusion I have been able to reach is that someone somewhere has not been disclosing some selling. Or HET put up mickey mouse figures about Major Shareholders on their website. Otherwise we would be down to fewer than 5% of shares not held by major investors at this point.

[jtcod] 26/4/2006 16:12

ms
Seriously:
HB is a seasoned pro. He's been investing since before we even had internet. I never gave charting the time of day until I came across HB. He is so spookily correct on so many occasions, I'm sure he's some sort of time-lord or market maker. Which is the same thing really, they have equal powers;-)

[horneblower] 26/4/2006 15:21

miamisteve, seriously?