Replies to post #102206 on Hannover House Inc (HHSE)

[Michael Anderson]

Thats not even taking into account the tremendous growth, audit, uplist and other possibilities. With the potential forward and the growth, .07 is very undervalued.

[speckulater]

HHSE Film Library Per Share Value




The HHSE $24.3M Film Library Valuation Report came out March 18, 2011. Yet, in the Q4 Financials HHSE used the figure $22,315,337.

The Company removed from the Library Valuation four titles that were discontinued during 2011. However, the Company has not added back into the Library report any valuation estimates for the twelve new titles acquired during 2011, which could add significantly to this asset item. The Company is in the process of having the Film Library Re-Evaluated, I assume it will be a component of the coming Audit.

FINANCIAL REPORT COVERING THE HANNOVER HOUSE FILM LIBRARY VALUATION - March 18, 2011:
http://www.otcmarkets.com/financialReportViewer?symbol=TDGI&id=45983


HHSE owns the Film Library free and clear so it is an asset. Calculating a per share value is rather simple.

$22.3M / 476.5M O/S = .047

HHSE Film Library = $0.047 Per HHSE Share

So HHSE has a Liquidation Value of $0.047 per share. Theoretically, even if HHSE stopped business today, its Library could be sold for around $0.047 per share.

This has nothing to do with E.P.S., it is strictly a separate Asset Value. On the Q4 Balance Sheet, HHSE has twice the Assets of Liabilities (8.1M - 3.4M) so the .047 stands and then some. In plain English, IF HHSE stopped business today, they could theoretically sell their Film Library for $0.047 per share. Making HHSE at $0.0315 an undervalued and virtually risk free investment.






HHSE

[nysouthern78]

IMO The industry multiple does not apply to unaudited pink sheet stocks.

We can only hope that we will actually see a completed audit this June. We were also told that we would have a completed audit in June 2010 and June 2011. Fingers crossed that 3rd times a charm.

[speckulater]

HHSE Fairly Valued Based On E.P.S. Alone ~ $0.054





HHSE Price 7/4/13 = $0.0254

12 Month (Trailing) Earnings Per Share = $1,382,897 / 550,334,514 ~ $0.0025


HHSE P/E = .0254 / .0025 = 10.16




Entertainment - Diversified, Average P/E Ratio: 20.8
http://biz.yahoo.com/p/industries.html


Entertainment, Average P/E Ratio 22.21
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html


20.8 + 22.21 = 43.01

43.01 / 2 = 21.505

Average Entertainment Industry P/E = 21.5




HHSE has been profitable every Quarter in its 3.25 years existence, 13 consecutive Quarters out of 13. HHSE should at least have an average industry price multiple. (Because of consistent Profitability and 80.7% Pre-Tax Profit Margin, one could argue for much higher multiple).


Fair, True Value HHSE based on E.P.S. x Average Industry P/E:

.0025 x 21.5 = .05375

HHSE Price Per Share ~ $0.054








HHSE