HMV Share Discussion Threads

[crontab] 28/12/2012 00:01

I don't think it's just the rent that's killing the high street. It's also the business rates, which are scandalously high in this country.

[nolens volens] 27/12/2012 16:34

Who was the wally going on on here about Christmas day being rent due day and the company not being able to pay the next quarter's rent. Deal on facts not opinions. I am a real psychiatrist

[woff woff] 27/12/2012 16:17

yes jim fix,ed it for me to milk a goat blind folded it was good

[loganair] 27/12/2012 15:53

Interesting snippet about HMV Canada which was sold by HMV to Hilco.

"The company has improved profit margins by working closely with suppliers, scaling back its permanent real estate portfolio, and dropping low-margin video games and tech products"

While HMV in the UK has been going the in opposite direction by increasing video games and tech products!

"In Britain, HMV Group suffers from the strains of tougher online competition and a strategy of sticking with low-margin video games and computers, which the Canadian division ditched under Mr. Williams."

And HMV Canada seems to be getting help from its landlords while in the UK landlords are trying to squeeze every penny they can until they strangle the retailers to death.

"Cadillac Fairview Corp., one of the chain's biggest landlords, said HMV serves as a counterbalance to its centres' preponderance of fashion retailers."

"We need to evolve and adapt," Mr. Williams said.

[loganair] 27/12/2012 15:38

Any report I read about the entertainment companies will do almost any thing to keep HMV going as it is – my suspicion it is away to keep getting the small private investor to keep buying shares allowing the big corporate boys to swindle as much money from the small private investor as possible.

Like many I think HMV will survive, however survive in a similar way to retailers such as SCS, Game, Jessops or Clinton Cards where the small share holders lost the lot while they remain on the high street under new owners.

Or at best the likes of Universal may take-over HMV at just a couple of pence a share.

[clocktower] 27/12/2012 13:50

The likes of Universal will not keep sinking money into a ever deeper hole - better for them to take a one off hit, that will be nothhing like the suggested £150m imo. However, I expect the plan the banks having been working towards for some time has been to sell down and salvage as much as they can and then sort out a pre-pack with suppliers, who having lost very little as the bulk of the stock will no longer belong to HMV as in effect the suppliers have loaned them stock on a scan and sell and pay basis. This will have provided HMV time to pay outstanding accounts by selling down dead stock that go at this time of year, leaving the real dregs that will fetch no more than a couple of pence in the pound to go into a pre-pack.

[zcaprd7] 27/12/2012 13:38

Ha. No wonder they led the deal to keep them going. This will survive...

[boonkoh] 27/12/2012 13:29

Clearly £150m loss by Universal is a scare headline by newspapers looking to sell copies. it won't be close to that amount if HMV go under.

Good to see suppliers do have an interest to keep the company going. But for how long? They won't keep supplying stock for free if HMV keeps losing money and crunch time is coming.

I am expecting Amazon to have had another blockbuster Christmas in entertainment, and HMV to report the same circa -15% revenue trend over the key Christmas period.

[loganair] 27/12/2012 11:23

Listening to the retail analyst over Christmas they says that quite a number of retailers will go bust in the first 3 months of 2013, one or two of them will be well known big names on the high street.

I do not quite understand how Universal would be liable for £150mln in rents on just 40 shops should HMV go into administration. Any thing like that could only happen if HMV closed down all together, like many I think a pre-packed will be the order of the day which would allow the unprofitable outlets to close while keeping many open.

The only real losers will be the small share holders of HMV.

[kammi1] 26/12/2012 14:37

Graham, you are no scientist intrested in behaviour, you are a sado with no life, wanting to spread doom and gloom to feel better about your self.Go and play with your marbles.
Now run along kid.
Kammi

[graham2405] 26/12/2012 13:43

Sounds like a closing down sale..........and lets face it, it may be.

[g2theary] 24/12/2012 23:49

The CEO's bonus is a box set of friends on DVD! ha! Roll on deal with the banks!

[wipo1] 24/12/2012 14:56

Hmv very busy where I am,currys quiet? mmmmm

[zcaprd7] 24/12/2012 13:04

Well, no suspension in the end...

[still waiting] 24/12/2012 10:52

they should pay them in cd's, that would give them an incentive to shift the bloody stuff...

[brando69] 24/12/2012 10:23

clocktower 24 Dec'12 - 09:43 - 17681 of 17683 0 0

Does anyone know if the new CEO has a Christmas bonus due before the day is out in his contract?


as long as he's paid in share options, i don't care

[montyhedge] 24/12/2012 10:19

Shareprice telling you it won't be paid, brown stuff probably hit the fan next week.

[graham2405] 24/12/2012 10:10

"Which sounded a very strange comment to make after you have stated your lack of interest in hmv?"

Totally banjo

I have an interest in economics, particularly behavioural economics. I have no financial interest in HMV, my interest is in failing companies and the behaviour of shareholders.

Hence I pop up on forums if I believe that a company is going down, hence I attract criticism from holders, criticism and sometimes threats.

Clearly some holders find it hard to accept that something they have an emotional as well as a financial interest in is failing.

It especially happens when the brand is a high street brand where the shares appear cheap. These companies tend to attract 'bargain hunters'. In effect the well known 'brand' perhaps misleads them into thinking that the company will survive. It gives the company 'credibility', you even hear statements to the effect of 'the government owned banks will not let them fail'.

Even if evidence states that plenty of well known high street brands fail.

Hence lots of private investors go down with the ship, rather than taking a small loss early, they then are unable/unwilling to take a large loss later, ultimately ending in them losing the lot.

You might want to read 'Extraordinary Popular Delusions and the Madness of Crowds'. Alternatively 'Animal Spirits'.

Regardless, I have no desire to see 'HMV' fail, it's just that the HMV brand is associated with a company whose business model has been surpassed.

The brand will no doubt survive online, just as Woolworths still survives online?



With luck, some stores will survive, there is still a market albeit a much smaller one, not everyone shops online, yet.

HMV group is in a lot of debt, it does not have the funds to reduce the estate down to a profitable level, opening stores is easy, but getting out of leases is an expensive process.

Sales are falling year on year by double digits, no company can survive that without shrinking, i.e. closing stores (exiting leases early), which adds to debt. Especially companies that piled on the debt with a number of failed diversification strategies.

Most recently they have revamped stores and started selling Tech, which in itself is a very competitive business, both elsewhere in the high street and online. It is not meeting expectations, which is not a great surprise to me given the competition.

If HMV staff are to have a chance, it is without the debt and a lot less stores, simply put a pre-pack, the saviour of many a high street brand.

HMV Group plc in my opinion is ultimately doomed, its just a matter of when....

When will the banks have had enough.
When will the suppliers have had enough.

All in my humble opinion.

[wakeytom] 24/12/2012 10:02

I am long this but am I the only one to think that the rent will not be paid tomorrow, and that the current offer on the buy one get one half price box sets is just not affordable or profitable

[clocktower] 24/12/2012 09:43

Does anyone know if the new CEO has a Christmas bonus due before the day is out in his contract?

[graham2405] 24/12/2012 09:29

"It said many could struggle to meet their quarterly rent payment, due on Christmas Day"

[totally banjo] 24/12/2012 02:27

This has made my Christmas and will the Mrs Banjo in morning...

alison krauss edale part 7.