Hannover House Inc (HHSE)

[Michael Anderson]

Prior to the last 6 months, it was a lot of hype and promises by management and some werent kept. It seemed to lose trust in management and really until the last 6 months or so is when things have gotten going, but they need to continue to prove their worth.

They showed amazing growth for Q1 compared to 2010 Q1 and Q2 results will be put in the upcoming Q3 results and revenue with Q2 and Q3 combined will probably equate to over $4 million. Net income is growing. They just recently became current, removed the yield sign. They partnered up with Seaworld and Regal. So, they are legitimately growing significantly and gaining significant partnerships. Yes, more needs to be done for the trust to fully be there, but they have shown a lot over the recent months. Based on what was stated for Q2 and filed for Q1, and expected growth for the 2nd half, forward PE is under 5 for 2011. Pretty incredible. Dilution is extremely minimal, etc, etc.

So, why isnt the pps higher? It should be, but they still have to bring in trust and show they can not just deliver once, but continue to do so and also deliver on their original promise of audited financials.

Upcoming and a reason to hold longer besides the preceding growth, They have All's Faire In Love with Regal and Regal has the perfect resources to promote the movie and it just has to do ok to be a success. You have the release of Turtle to DVD/bluray next month, Cook County next month, Toys in the Attic in December. Also, you have Q3 financials which will show excellent results. On top of that, the audited financials could be completed to solidify their legitimacy and trust. Who knows what else they could surprise us with. After all this, if the pps doesnt move, then I would be concerned, but the bottom has been in and there has been a ton done recently with even more upcoming, all in a very short timeframe.