Hannover House Inc (HHSE)

[speckulater]

BLOG Update: Effectively Reacting To Changing Business Circumstances











FYI
BLOG post below NOT verbatim. Has been selectively edited.



Monday, September 29, 2014

Excellent buy opportunity for HHSE!

Amazing! Artificial pressures completely unrelated to reality and the company's business have created an AMAZING buy opportunity for HHSE Stock right now! ....................

Hey Folks Guess What?! IT'S COMPLETELY LEGAL for HHSE Management to publicly state that the stock is UNDERVALUED BY MORE THAN A FACTOR OF 10-X!! We think the stock is worth over $.10 per share based on Industry Price-Earnings Ratios, and the new activities launching in the next few weeks (i.e., the Form 10 filing, the VODwiz roll-out and the Nov. 7th release of ON ANY SUNDAY to theatres nationwide). ................

FYI - HHSE Management has made it clear that there will be NO MORE debt conversions until after the posting of the Form 10 and audits (and EVEN THEN, there are no plans being considered for any more conversions).


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UPDATE: DECEMBER 16, 2014 - Approximately ten weeks ago, when the above Blog was posted, HHSE managers believed that the filing of the Form 10 was only a few weeks away, and that its completion would signal a rise in the PPS and general financial health of the company. Now, in retrospect, it's quite clear that the Form 10 project was substantially more difficult and time consuming that expected. In response to the company's urgent need to create a financing structure for the fulfillment of record video presales (including "On Any Sunday", "American Justice", "Dinosaurs of the Jurassic" and "Asalto Al Cine"), the immediate closing of a debt transaction to benefit the National Bank of California and Fantastic Films required that a financing be closed now, in December, and prior to the filing of the Form 10 Registration Statement. While the above blog was true and reasonable at the time it was first published - circumstances over the following ten weeks required that HHSE managers make decisions based on new realities, that were in the best interests of the Company's health (even, if such choices were contrary to earlier goals and statements). We could have stuck to the earlier goal of no new debt conversions - certainly this was the preference of management - but doing so would have jeopardize the manufacturing and fulfillment of Q1 sales. Business must be capable of adjusting to changing circumstances. Otherwise, it's like trying to fight a battle on the field, and then ignoring an unforeseen airstrike because the original attack plan did not anticipate airstrikes. Perhaps some would praise that said managers "stuck to the plan" - but if the end result is defeat, which is the wiser strategy?

To avoid future shareholder conflicts which might arise in the face of changing circumstances, HHSE will hereafter be more circumspect in disclosing "predictions" of future and ever-changing events.

We have struggled with the mutually exclusive goals of being open and transparent with the conflicting reality that HHSE must be capable of quickly adjusting to changing circumstances. Did we know that the Form 10 would take MONTHS rather than weeks to complete? No. Did we know that our new release pre-orders would greatly exceed our manufacturing credit access, and require new financing? No. Did we know that a resolution of the NB Cal debt would be required by all new lenders? No. None of those things were known - although we were certainly hopeful for big preorders. As circumstances change, the HHSE managers must make prudent and reasonable decisions that are in the best interests of the Company. The correct and logical response to our debt transaction today would have been, "good move to protect the Q1 shipments, but we wish it didn't have to happen right now." HHSE managers agree.

SO, blog postings will no longer discuss anticipated future events - unless required under pubco disclosure rules.

http://www.hannoverhousemovies.blogspot.com/2014/09/excellent-buy-opportunity-for-hhse.html


























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