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Thanks ... it's funny how the worst offenders, to protect themselves always include IMO in their posts by default even when it doesn't make sense.
IMO.
Thanks again Glen for sharing this ... I've taken good advantage already.
Per the warrants, I'll mention to others here, although I also own some commons, my plan is to gradually roll-over the warrants into shares (over the next 1-3 years) while also swing-trading the volatility. My thinking is that this provides the best opportunity of growth while managing risk ... even if the stock triples, the warrants expire useless.
Warrants look reasonably priced on the recent pullback.
Expiration: 2022
Conversion Price: $31.67
Also interesting is that he seems to have an unfavorable opinion of *all* pink sheets ... I'm curious too why he's drawn here specifically.
"No products and no revenues."
What you knew they have many products at Walmart ... would that change your mind?
Do you still contend there has been "massive dilution" taking place?
SEC Football Pre-Season DVDs Coming Soon!
You realize the transfer agent is not gagged, right? No need to to make inference when the real numbers are available...
Please define 'massive' ... lol!
IRE ... I'm still upset missing it last year, but its on my radar again... thanks ... and no have not done DD on it yet ... lol!
How's baseball recently??
Awesome! Thanks! As mentioned, I was a little nervous about Walmart after Toys, so this alleviates that concern.
Would be amazing if this could turn into a recurring revenue stream!
So much potential and value revealed in recent PRs ... I have a feeling its going to be a great week!
Not sure if you are interested in logic but you've made a 'false analogy' associating 'being happy with the scraps' with investment in HHSE.
Hannover house has only a $5M marketcap so OF COURSE they can't compete in a bidding war with a major studio. They can pick up movies at bargains that other studios might have missed. Yes, that is picking up the scraps and there is nothing wrong with that! Can you show me otherwise?
Anyway here is the detail of the falacy:
"False Analogy"
Analogies are very useful as they allow us to draw lessons from the familiar and apply them to the unfamiliar. Life is like a box of chocolate – you never know what you’re going to get.
A false analogy is an argument based upon an assumed similarity between two things, people, or situations when in fact the two things being compared are not similar in the manner invoked.
So let's recap this thread ... did I miss anything specific here?
1. HHSE's line of credit was (supposedly) very misleading such that they won't get much anything from it.
2. But, when pointed out that they did indeed acquire some movies, the story changes that the movies were cheap crap movies.
3. But when pointed out the movies included a Sundance Award-Winner, the story changes that it is an expensive movie that they will lose a lot of money or alternatively that the movie was award winning but crap movie at the same time.
Sure a lot of (at best) negative assuptions especially considering the extremely low valuation ... are there any better companies trading at this valuation ... let me know!
"Might be a good movie, but a movie that nobody wants to see."
I'm not sure that makes sense, but I'll bite...
"If it was a 2011 Sundance favorite, why is it just being picked up by hhse?"
Being a small company (only $5M marketcap) and wanting to be prudent this approach is EXACTLY what I'd do ... pick up good movies that other larger studios passed up on ... being near a last option of being picked up, I'm sure a good discount was negotatied. They don't have much of a line-of-credit to work with, right?
With a $5M market cap ... totally happy getting the scraps!
Thanks Paul ... I really appreciate the financial modeling details.
Welcome and hears to a long and successful journey to all of us, only just beginning!
"Those were total garbage movies, nobody is going to pay for that garage sale junk"
I doubt this changes your mind, but FYI for all else following these comments:
PR: "TO.GET.HER - From director Erica Dunton, winner of the Best of Next Audience Award at the 2011 Sundance Film Festival, this suspense-thriller details the horrifying outcome when a dream beach vacation for a group of teenaged-girlfriends descends into a murderous nightmare. Licensed from Film Sales Company, New York"
http://www.otcmarkets.com/stock/HHSE/news
"Eric twists in his tricky writer way to make it sound like TCA is giving HHSE $5 million dollars to buy movies"
Opening Paragraph of PR : "The agreement with TCA enables the Company to borrow up to $5-million, based on a mutually approved formula of eligible receivables and assets."
Follow up PR: "Eight new releases will begin hitting the retail home video shelves as early as October, fueled by new corporate funding from TCA Global"
I don't see any twisting at all!!??? They were very clear that the deal was limited to a ceiling of $5M and were also clear about the new movies they acquired!
"Those were total garbage movies, nobody is going to pay for that garage sale junk."
So you at least seem here to concede they are indeed using the funds to acquire movies.
If their movies were of no value, I can't see why Walmart would continue to sell them. Also, keep in mind the marketcap is only $5M ... the company is priced for bankrupcy, so even with meager earnings -- by normal movie standards -- are quite significant for this company.
And I know lots of folks that watch low-budget horror flicks...
Perhaps you missed the announcement last Friday of all the movies they just bought!?
Company is priced for bankruptcy ... don't see any such claims so there really is only upside potential, perhaps tremendous!
"BUT, If I can save one of my fellow investors from a train wreck, I think my time of posting is well-spent. "
That's not really helping ... convinving one person to sell merely transfers the shares to someone else ... who is going to "help" the new person?
The stock market does not create wealth .... it only estalishes price for trading assets.
If your motives are altruistic, I think you would benefit socieity better by donating your time here to charity work.
Since we are on the subject, it's not a triple play but I proudly scored a goal today in soccer!
My wife was invited to this parents group and I unexpectedly got roped into playing almost the moment we arrived. I thought we were going to go easy and let the few kids go at it but for some reason the fathers were very competitive. I knew it was going to be rough when the other team scored on us very aggressively in the first 10 seconds. The ball was kicked very hard and wizzed by our goalie's head. At that point it was 'oh crap, game on'! I got a skinned knee, and was ready to pass out aferwards.
I made a comment about being impressed with my first-ever goal (I've never played before) ... the other dad responded sarcastically "well great for you".
Fond memories ...lol.
Triple Play!? ... that's very impressive!! Go Tigers!
With all the distractions here, let's not forget the SEC football release coming this August!!
HHSE - even with the TITA fiasco, the numbers are still very good relative to the shareprice ... that's the great part of this low valuation!
They did not mention SEC football in their blog which I'm hoping is because nobody was asking about it (which is odd as its their biggest upcoming release, but understandable given all the distractions). If that also does not show up on the shevles this August, its going to be concerning. If either TITA or SEC do indeed show up, I'm going to quintuple down ... lol.
What is the PE valuation ... 5,000,000/400,000*4 ... about PE of 3!?
That's the beauty here ... there is huge growth potential but even without significant growth the shares reamain dirt cheap!
Of course, there are some that don't trust the numbers due to lack of audit ... I can't prove there will be an audit so fine. Nonetheless, until either the audit or bankruptcy neither side can claim ultimate victory. I'd argue the liklihood that Eric and Fred are sincere in their numbers and general outlook is *much* greater than the opposite scenario of the company near bankrupcy. If the latter, who would lend to them and how did they remain in business (which is verifiable) until now? Thus, IMO, the upside potential is much greater in both probability and magnitude than downside risk.
Let's see what happens!
Anyone watch the championship game tonight? Win for my Heat!!
Was a very tough and emotionally draining playoffs. Heat are a stacked team but most of the time they felt like underdogs having to come back from behind so many times. Fun watching Lebron have to adjust his game tonight to be a shooter.
They said the end of Q2, not the beginning ... so we are looking Q3 financials (when Safeway should be online as we've discussed).
Given your blood in the streets comment, I'm sure you mean the news does not matter to the share price (as we've seen) but I'm quite happy for good news:
1. Verifiable news and postivive developments will lead to higher share price if the audit is released.
2. Increased likelihood that businss is thriving and therfore higher incentive and probability of the audit being (eventually) released.
3. Less chance of bankruptcy (in the near term at least), which is the real downside.
It's frustrating as hell, but I don't want to downplay good news. I keep repeating this, but I'm really itching to see TITA at Walmart and also SEC football ... for now, the TCA agreement and lower share price (despite the news) has tipped the risk/reward scale in better favor.
Until we have either audit or bankruptcy the pot in this poker game is getting bigger and bigger!
We already disussed this ... SAFEWAY! I think I made some very solid reasoning to which chose not to answer.
Were you not implying that the company just makes stuff up such that anything they say cannot be trusted? If you did not mean to imply this then no need to retract anything. In this case I thank you for the clarification.
It now seems you are implying that TCA is part of some plot to fool the public in creating this PR mainly for propaganda purposes.
I can't prove you wrong, but I also can't prove magical leprachauns don't exist ... without some evidence to backup the claim, both seem a little far-fetched.
They've certainly done a terrible job managing expectations ... I guess I differ that I think the share price is sufficiently depressed to more than enough to compensate for this and the verifiable business shows much more potential upside than downside for this share price.
That said, they could be FOS about everything. The next hard deadline is the SEC video release so that will certainly be telling. By then the audit will also be more than 'a few weeks' past due so I'll certainly be with you in liquidating my shares (if possible) at that point.
Extremely frustrating for me too ... this is not a fun topic so thanks for weighing in.
HHSE - given the obvious selling on the (presumably good) news, I'm very curious what is speculated as most likely transpiring today?
1. Protecting/containing a huge short position by preventing any momentum. Why the huge short position?
2. Trying cover/accumluate by inducing frustration and panic selling of retail investors.
3. Selling by Fotis to create maximum harm. But then, why is volume reported as short-selling?
4. Traders looking to get out of short-term position given news today did not have anticipated effect. Does not seem likely as share price seems always be manipulated.
5. Genuine belief that company is worthless. But wouldn't news today reinforce the value?
6. Strategic loss by a competitor with deep pockets. Financing much more difficult at lower share prices.
7. Profitable swing trading of MM. Sell, scare longs, cover, repeat.
Feels better not to be alone here.
Seems very unlikely the bankruptcy is on the horizon with the TCA deal. Thus, from a value perspective, there seems little downside from the $4M marketcap.
The audit, of course, is huge. But I'll feel quite comfortable if/when we get *any* the following ... at this point, the value will be more tangible.
SEC football videos at Walmart (in August)
TITA at Walmart (when??)
VODWIZ in production (with other videos)
NTEK devices at Walmart (a possibility as mentioned here).
If the SEC football thing does not materialize it will be panic time for me.
Not sure if audit is being strategically delayed to coincide with these other developments.
hah ... I'm not sure what you mean by that, but I plan holding a core position to be (hopefully) enhanced by volatility/swing-trading.
I could be burned by a big run but it has worked so far... I have more invested than if I had 'bought and held'.
My plan is to swing-trade the warrants and (if all goes well) gradually convert the gains into common shares. Right now, I'm about 2/3 holdings in the warrants and 1/3 common.
Presumably, the appreciation of the warrants will decellerate relative to the common as the shareprice recovers so that is a good way -- I think -- to get most of the upside of the warrants while reducing risk.
Thanks for the thoughts...
HHSE - is this investing or poker? Calling the bluff ... bought more at .009!
I guess you can retract this statement now... as an unbiased bystander would do in light of new information.
http://www.tcaglobalfund.com/Press-Releases/tca-global-funds-hannover-house-5-mm
Sweet ... not that anyone here was doubting!
Y-WT - took advantage of today's dip and bought back my trading shares @3.19 (had previously sold them @3.60). Not a huge gain on the trade but I'll take it.
ORT/EORBF - Signs off-take with Glencore!!!
The market has not taken kindly to the cost overruns ... but with the agreement with Veolia I've not questioned the tech is real ... this agreement should help financing significantly ... crossing fingers!
http://www.stockhouse.com/news/canadianreleasesdetail.aspx?
n=8905137MONTREAL, QUEBEC--(Marketwired - June 17, 2013) - Orbite Aluminae Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Corporation") today announced an offtake agreement with Glencore International AG ("Glencore"), a subsidiary of Glencore Xstrata plc ("Glencore Xstrata"), for the purchase of smelter-grade alumina from the Corporation's proposed smelter-grade alumina (SGA) plant in Quebec, Canada.
The Agreement provides for the purchase by Glencore of 100% of the smelter-grade alumina, from the Corporation's first proposed SGA plant in Quebec, Canada, for an initial term of 10 years from the commencement of commercial production. The Agreement also foresees that Orbite and Glencore will undertake negotiations relating to Glencore's potential financial participation in the ownership and operation of the Corporation's proposed SGA plant in Quebec. The Parties have not set any timetable for the commencement or conclusion of these negotiations. All other terms of the Agreement, including pricing and renewal rights, are confidential for competitive reasons.
"We are definitely pleased to be executing our first offtake agreement with a company of Glencore's stature and experience in the alumina industry," said Glenn Kelly, Orbite's Chief Operating Officer.
Glencore Xstrata is one of the world's largest global diversified natural resource companies with pro forma revenues of $236 billion in 2012. Glencore Xstrata's industrial and marketing activities are supported by a global network of more than 90 offices located in more than 50 countries, with diversified operations comprised of more than 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities.