Replies to post #71890 on Hannover House Inc (HHSE)

[Michael Anderson]

Its about profit and going for a big hit is what has cost many to lose a lot of money in the industry, so if they can continue to slowly get better, slowly make more profits and continue to just make a little bit of profit at a time without it possibly setting them back, it is a great strategy. You are equating success too much with a box office number. I think you can agree that "Twelve" is an amazing success for HH, yet they grossed under $200K at the box office and are probably going to end the year with their post theatrical release out of the top 100 dvd/blu ray sales, yet it is still a tremendous success for HH. I would be incredibly happy if they can do that with several movies per year or even several movies do 1/4 of that. No one is saying it wouldnt be great to have an awesome box office indie hit, but it is not needed. The size of their business, their partnerships, cash, access to cash, etc makes it that much better what they are achieving and what is going to be achieved in the near future as well. There plan is looking to come together and it is easy to see their growth and future plans.

I mean TDGI has a forward P/E between 5-10 based on their strategy so far, so if they can even exceed what they are doing, that would be incredible. So, I dont know what you expect, but going after and pushing for a big hit is not the answer as that could hurt them much more than help

[Martin81]

I disagree...

Going up swinging for the fences means that you are more likely to strike out. So sure go for the big budget movies and risk walking away in the red. But on the other hand go for singles and stay in the game while you work the low budget movies as the company grows and walk away with a profit even it's minimal.

[Golden Eagle Runner]

Most young baseball players develop over time into home run hitters. Do I believe that TDGI will hit a home run? Yes I just think that it will take more time then you are allowing. I will take singles and doubles instead of strike outs.

[snakecorleone]

A base hit is good. That doesn't mean it lacks quality fyi. Now, a strike out, well, that's a problem. Mcdonalds is a perfect example of a base hit, they don't make their money off expensive food. They get it on the volume of their base hits. This isn't a new concept. Most companies work off base hits and that volume over a big giant score. Walmart is a base hit company. Yes, I have gone into walmart and looked thru their DVD's and there are many DVD's I have never heard of, they have DVD's ranging from very inexpensive all the way up. I worked for a fortune 500 company that its entire business model was based off volume not home runs.

As long as TDGI is profitable and can continue to bring quality base hit films to the market, that is what is going to grow the business until they come across a home run. I have no doubt that eventually they will find a home run, especially with the change that has happened with the big companies spending most of their money on blockbusters. They will certainly miss out on a lot of great movies and that will give TDGI a better opportunity now to score a home run...