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Hollywood Media Corp. (HOLL) Message Board

  • Eastman747 Eastman747 Mar 11, 2011 11:18 AM Flag

    Company buys for $2.05, but we are trading at $1.60???

    Tell me where I am wrong, but shouldn┬┤t this be way higher if the company itself bought shares at $2.05?

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    • My write up on Hollywood Media is posted on my blog. If Seeking Alpha picks it up it will appear on Yahoo News under HOLL's ticker symbol.

    • I will but my articles are always reprinted by seeking alpha which means that it will show up on Yahoo News.

    • Got it. Can you post your HOLL piece here too when it is complete?? (Feel free to use anything from what I wrote.)

    • There were three times as many shares tendered which means 2/3 of people were not able to tender. Many of them bought shares in the $1.90 levels for the hope of tendering at $2.05. Now they are selling those shares. It is just a matter of time before they are done and the stock will recover a bit.

      The funny thing is that today's sellers have absolutely no idea that they are selling something worth close to $3 per share for only $1.60.

      • 2 Replies to marios188
      • Marios188: I am a long time follower of this stock. What do you think of my bull thesis?

        -- HOLL has about $10MM in cash; no debt. And the company has very little costs since they sold Broadway.com in 12/10, which was their main operations.
        -- Owns an $8.5MM 5-year note that pays 12% annual interest (related to the sale of Broadway.com).
        -- Owns two small businesses that are worth at least a few million dollars: 1) CinemasOnline, which is an advertising-related business in the UK; and 2) a book-publishing-related business. The company said on 3/19/10 in their 10K that they have resumed a strategic review process, "which may help us realize the full value of our assets in the interest of our shareholders."
        -- Owns 26.2% of Movietickets.com (online movie ticketing). Trends at MovieTickets.com are solid due to an increasing adoption of online movie ticketing (due to smart phones, etc.). Movietickets.com has not paid a dividend in a long time, which may mean one is soon coming.
        -- There are only two players in online movie ticketing -- Fandango.com & MovieTickets.com. Comcast bought Fandango in '07 for $200+MM, which implies a nice valuation for MovieTickets.com, which is arguably the better asset. Next catalyst here is the transfer of the Lowes and Kerasotes theater circuits from Fandango to MovieTickets.com once their contract with Fandango expires in 1H 2011.
        -- The Movietickets.com stake is probably worth at least $40MM and management is highly incentivized to sell it; Fandango potential buyer? Or maybe the two merge and go public??
        -- HOLL may eventually get up to $22MM in earn outs owed to them from selling Broadway.com and Hollywood.com (a few years ago).
        -- Has ~$130MM in NOLs. So, any deals are basically tax free.
        -- All this vs ~$36.4MM market cap (23,179,066 shares outstanding at 1.57).

      • Yeah...it will pay to be long on this..thanks!

 
HOLL
1.30+0.04(+3.17%)Jul 22 10:57 AMEDT

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