Hannover House Inc (HHSE)

[Chance To See]

This is a delayed response to moviesam’s post asking what will get the share price moving up.

Many responders mentioned the audit, which I put at #2. I don’t think anyone mentioned cash flow for some reason, which I put at #1.

1. ADEQUATE CASH FLOW. TDGI needs to get its cash flow difficulties behind it. In other words, they need to get their debts under control (which they are very aware of and said as much at the Shareholders’ Meeting). As it is, all their Twelve “profits” are going to Gaumont and they’re left borrowing money from management to pay the bills.

2. 2010 AUDIT. I think we’ve had enough amateur mistakes in the Financial Statements. I believe investors need to see Financial Statements prepared by professionals, free of mistakes and supported by full and clear footnotes.

If these are taken care of, we should see a valuation appropriate for a company that can be profitable with relatively modest sales while setting itself up for much greater sales.