# VRL - Village Roadshow



## RichKid (15 November 2005)

Village (VRL) has just announced a special fully franked dividend for both classes of shares, looks like it may be turning around after troubles in recent years, has had solid gains in recent months despite a recent correction.


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## rozella (15 November 2005)

*Re: VRL Village Roadshow*

The market liked it......up 13.1% today


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## RichKid (15 November 2005)

*Re: VRL Village Roadshow*



			
				rozella said:
			
		

> The market liked it......up 13.1% today




Glad you saw it Rozella, I was about to mention it in your divvy thread...looks like you have a keen eye! (VRL was on my watchlist for other reasons: I was looking for it to consolidate lower down, the annct puts paid to that idea!). The share buy back will add some further stability imo.


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## Gurgler (28 February 2007)

Not the best day to release your half yearly results.

I'm not strong on accounting - anyone (fundies or otherwise) able to pass there eyes over these and give an opinion?

http://www.asx.com.au/asxpdf/20070228/pdf/3116x6j0q1d9b8.pdf and http://www.asx.com.au/asxpdf/20070228/pdf/3116t63rrh4zj7.pdf

Seems odd that this thread has only 3 previous posts (all on 15 Nov 2005) in a company that appears to have a reasonably diversified position and a good outlook. Maybe I'm missing something in my ignorance.


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## Gurgler (27 May 2007)

Lest a monologue develop here, would any techies like to comment on the MACD and Stochastic of this graph?

I recognise a lengthening sideways movement, but still remain impressed with the way this stock handled Feb28 and Mar 5.

Any comments anyone? I'd appreciate the insights of those more knowledgable.


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## Sean K (28 May 2007)

Gurgler said:


> Lest a monologue develop here, would any techies like to comment on the MACD and Stochastic of this graph?
> 
> I recognise a lengthening sideways movement, but still remain impressed with the way this stock handled Feb28 and Mar 5.
> 
> Any comments anyone?



Yes, was a good come back on 28th. Very unusual. Some panick going on there, or stop losses maybe. 

On the longer term MACD is just been churning sideways really with the stock, although there is a higher high with is in the chart as well. This is normally a good thing, and it's just started to turn again indicating momentum is turning a little up. 

Stochs is oversold down there, but can stay oversold for a little while. To me it indicates it has started to turn, but it's no sure thing. I'd wait till it was back through 20, and approaching the 50 line.

Has a nice line of support across 3.20 and there will still be resistance at 3.45 ish. However, there looks to be an expanding triangle forming the past 3 months, and these can mean reversal to the downside. Just a probability and something to watch. I personally wouldn't be entering until the support line was proven once again. I'd probably be shorting it under 3.20.


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## Gurgler (19 July 2007)

Strange days indeed.

What do people make of these last 10 trades - late yesterday and again this morning. What can explain such a selling pattern?


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## Gurgler (3 September 2007)

Excerpts from ANN just out: 

*Village Roadshow Limited (VRL) announced today that Village Roadshow Pictures Group (VRPG) and Concord Music Group (Concord) had signed an agreement to merge VRPG and Concord into a new diversified entertainment group, Village Roadshow Entertainment Group (VREG).*

This positioning seems to be forward-thinking and has met with aimmediate positive reaction, albeit, of a nominal 7%.

*Concord is one of the few remaining significant independent music companies in the US, and has an irreplaceable catalogue of music that includes masters of more than 5,000 albums and 6,000 music publishing copyrights as well as its diversified roster of new releases. Legendary labels in the Concord catalogue include Riverside, Prestige, Fantasy, Stax, Telarc and Heads Up, featuring artists such as Ray Charles (whose album “Genius Loves Company” with Concord sold over 5.5 million units worldwide), Miles Davis, John Coltrane, Creedence Clearwater Revival and Isaac Hayes. Concord also continues to add new music content and music publishing rights.
*

Concord is also known for innovative approaches to distribution and subscription options e.g. the joint venture with Starbucks and Hear Music.


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## Gurgler (5 September 2007)

And two days later this:

*Village bids for Sydney Aquarium owner*
Jesse Hogan
September 5, 2007 - 12:20PM

*Village Roadshow is continuing its recent strategy of buying out its joint venture partners by launching a $166 million takeover bid for the owner of the Sydney Aquarium.

Village is already the largest shareholder of Sydney Attractions Group (SAG), with 19.9 per cent of its shares, but is offering $6.01 a share to acquire the rest.

The bid values SAG at $197.9 million, including responsibility for its $67.1 million of debt, which is 16.1 times the company's latest earnings result.

The underlying value Village's offer is $165.9 million when you discount the shares it already owns.

As well as the Sydney Aquarium, SAG owns and operates other attractions such as the Sydney Tower OzTrek, Skywalk and Wildlife World.*

There appears to be movement at this station. For a stock which seems to hold a diversified portfolio of investments it has been locked in a prolonged sideways movement for most of the past 6 months (latest correction excluded of course). The absence of volume is significant. Has this stock getting over a bad history?

Are we about to see a break out of that format?


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## Gurgler (7 December 2007)

Are we going to see the resistance at 3.10 tested? MD's position confirmed on 5 Dec, perhaps the sign of more posotive times ahead.

Big volume (for this stock) in the last week of Nov. The recent rises seem similar to those at the end of July and Sept.


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## bloomy88 (4 January 2009)

Hello all,

I was just wondering if anyone has any views of VRL's long term prospects?

They seem to have great assets and although there services are less likely to be used in a recession i think they are a great buy at their current price.

Any thoughts are greatly appreciated

Cheers


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## So_Cynical (4 January 2009)

bloomy88 said:


> I was just wondering if anyone has any views of VRL's long term prospects?




Been watching for a while and am keen to get in once all the negatives 
are outa the way...be interesting to see if the interim divi holds in March.

Seems undervalued at current Market Cap: 130,715,702 very thinly traded
as top 20 hold about 85% from memory.


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## bloomy88 (4 January 2009)

So_Cynical said:


> Been watching for a while and am keen to get in once all the negatives
> are outa the way...be interesting to see if the interim divi holds in March.




Just out of interest, what do you consider to be the negatives of VRL?
I know they have a large amount of debt but a majority of this is long term...

Appreciate your feedback

Cheers


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## Indie (5 January 2009)

bloomy88 said:


> Hello all,
> 
> I was just wondering if anyone has any views of VRL's long term prospects?
> 
> ...




I work in the film industry and have had extensive dealings with VR over the last couple of years at senior level. They are moving out of film finance which was the only area they were losing money so that's a positive. They seem to believe that since they deal mainly in escapism they will do well in the current global downturn. But that's the usual type of optimism you'd expect from the board anyway, right?

IMO all of their services rely heavily on discretionary spending from consumers that are under enormous pressure and their media holdings rely on an shrinking pool of advertising revenue. I don't see blue skies ahead unless you think the global economy has bottomed out already. So without knowing the finer details of their balance sheet on the surface they don't appear an obvious BUY in the current climate.


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## So_Cynical (5 January 2009)

bloomy88 said:


> Just out of interest, what do you consider to be the negatives of VRL?
> I know they have a large amount of debt but a majority of this is long term...
> 
> Appreciate your feedback
> ...




I'm with Indie



Indie said:


> IMO all of their services rely heavily on discretionary spending from consumers that are under enormous pressure and their media holdings rely on an shrinking pool of advertising revenue. I don't see blue skies ahead unless you think the global economy has bottomed out already. So without knowing the finer details of their balance sheet on the surface they don't appear an obvious BUY in the current climate.




There core business is entertainment....the interim divi and earnings/guidance in March will tell
the story....there market cap is about 130 million and they payed $141 million for Sydney aquarium 
in Feb, and payed substantial amounts for an aquarium in Auckland and water parks is Hawaii 
and Arizona....all in the last 16 odd months (top of the asset market)


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## Tysonboss1 (5 April 2009)

Does anyone know where I can find out some profit and loss figures for the film production unit, They are quite open with the earnings for the other divisions but I can't seem to find any info on the film production division.

any info would be great.


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## So_Cynical (5 April 2009)

Tysonboss1 said:


> Does anyone know where I can find out some profit and loss figures for the film production unit, They are quite open with the earnings for the other divisions but I can't seem to find any info on the film production division.




No idea...what i do know is they will announce a divi in April and the 
SP will tank or rally accordingly  buying into VRL now is a real punt.


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## So_Cynical (15 April 2009)

So_Cynical said:


> buying into VRL now is a real punt.




I took the punt today...i figure the SP just cant go much lower. :dunno:

VRL have big debt...but big cash flows too, im punting the dividend cut 
wont be to brutal....assuming there will be a dividend. :bite:


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## Kremmen (11 May 2009)

So_Cynical said:


> VRL have big debt...but big cash flows too, im punting the dividend cut wont be to brutal....assuming there will be a dividend.




The interim dividend has been announced: 3.75c/share. Also, they've worked out their long-term funding arrangements.


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## So_Cynical (11 May 2009)

Kremmen said:


> The interim dividend has been announced: 3.75c/share. Also, they've worked out their long-term funding arrangements.




If the interim divi holds good for the final divi, that's a annualized return of around 9.5% 
at the current SP...pretty good result...i was expecting the divi to be lower so was 
pleasantly surprised.


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## Tysonboss1 (13 May 2009)

So_Cynical said:


> If the interim divi holds good for the final divi, that's a annualized return of around 9.5%
> at the current SP...pretty good result...i was expecting the divi to be lower so was
> pleasantly surprised.




whats the go with their dividends, are they planning on starting paying both interim and final divs.

I looked at their dividend history and in the past they have always only paid either a final or an interim never both until maybe recently.

what do you guys think of VRLPA the prefrence share, it is currently trading at a discount and has a minimum div of 10.75 cents ( provided a div is paid to VRL)


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## Tysonboss1 (13 May 2009)

Does any one know where you can find info on village roadshow pictures profit and loss.

I would like to see figures of the cost of production of each film and the revenue generated both by each flim, but also the on going revenue of the library.


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## So_Cynical (18 May 2009)

So_Cynical said:


> I took the punt today...i figure the SP just cant go much lower. :dunno:




Well they did go a little lower a week later, however was interesting to see how
buyers appeared to be chasing the dividend since the announcement last week.
VRL's share price went clearly against the market, as it has done for the last 5 months.

Anyway took 90% of my capital out toady @ 90c and left my 9.8% profit in.


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## Tysonboss1 (10 July 2009)

So_Cynical said:


> Well they did go a little lower a week later, however was interesting to see how
> buyers appeared to be chasing the dividend since the announcement last week.
> VRL's share price went clearly against the market, as it has done for the last 5 months.
> 
> Anyway took 90% of my capital out toady @ 90c and left my 9.8% profit in.




Have you thought about investing in the prefrence share, It seems such good value, I can't see why it should be trading at such a big discount to the ordinary share when it has a minimum dividend of 10.75c or 3c more than the ordinary div which ever is higher.

Info on the pref share is scarce, so I was just wondering if there is somthing I am missing here.

All of vrl's share buy back have been aimed at the pref share also, which kind of points to the fact that management see it as being undervalued.

I am thinking of using this stock to bring a bit more cashflow to my portfolio while also having exposure to vrls great assets.

it's currently trading at less than 60c which means it has a dividend yield of about 18%.


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## So_Cynical (10 July 2009)

Tysonboss1 said:


> Have you thought about investing in the prefrence share, It seems such good value, I can't see why it should be trading at such a big discount to the ordinary share when it has a minimum dividend of 10.75c or 3c more than the ordinary div which ever is higher.




I didn't know there was a preference share....looks interesting 

VRLPA - VILLAGE ROADSHOW LIMITED - CLASS PREFERENCE

Market Cap: 56,640,162
Issued Shares: 97,655,451
52-wk High: 1.85
52-wk Low: 0.49

Interesting that while management hold about 60% of ordinary shares they hold almost 
no preference shares...over 75% of preference shares are held by instos...ANZ, USB, 
HSBC, CITI etc.

Has consistently payed higher dividends than the ordinary shares...yet trade well 
below the ordinary's at the moment, and has done for 8 or so months.


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## Tysonboss1 (11 July 2009)

So_Cynical said:


> Interesting that while management hold about 60% of ordinary shares they hold almost
> no preference shares...




The pref shares Have no voting rights attached to them, So the kirby brothers (management) wouldn't be interested it accumulating them. 

How ever they have been investing in them indirectly Through VRL's on market share buy backs all year which has been targeting the prefrence shares and not the ordinary shares, Which makes sense for them to do, Why buy back an ordinary share when you can buy back a pref share for less and then not have to pay out the 10.75c dividend into the future, clearing pref shares means there is more funds to pay divs to ords.


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## So_Cynical (11 July 2009)

Tysonboss1 said:


> The pref shares Have no voting rights attached to them, So the kirby brothers (management) wouldn't be interested it accumulating them.
> 
> How ever they have been investing in them indirectly Through VRL's on market share buy backs all year which has been targeting the prefrence shares and not the ordinary shares, Which makes sense for them to do, Why buy back an ordinary share when you can buy back a pref share for less and then not have to pay out the 10.75c dividend into the future, clearing pref shares means there is more funds to pay divs to ords.




Thanks for that analysis Tyson...makes perfect sense ...ive added VRLPA to my 
watchlist rotation and will follow with some interest.

_____

Also Tyson im wondering if u would like to give us your thoughts on VRL's debt position, 
im thinking they would love to raise some money from somewhere....however i cant see 
a way they (kirby brothers) can do this without diluting themselfs or having to put alot
 of there own money in.?


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## Kremmen (29 July 2009)

VRLPA usually trades little. Today, there was large volume, mostly one big trade:

29-07-2009  	12:54 PM  	$0.600  	1879509  	$1,127,705.400  Crossed


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## Tysonboss1 (5 August 2009)

So_Cynical said:


> Also Tyson im wondering if u would like to give us your thoughts on VRL's debt position,
> im thinking they would love to raise some money from somewhere....however i cant see
> a way they (kirby brothers) can do this without diluting themselfs or having to put alot
> of there own money in.?




I havn't taken a close look at the debt position for some time, from memory there was a fair bit of debt, but alot of it is held at the asset level. A couple of the assets operate on low interest cover which is a bit of a worry, But I believe the worst of the GFC is over so it shouldn't be a problem.

Another thing I find comfort in is that the kirby bros have such a vested interest that they are going to do everything possible to maintain value and not conduct any suicide capital raisings, and if they did have to it would be good terms for share holders.

I have real confidence in the kirby bros management style, they know theirs assets and have proven them selves very astute managers, Saying that I am annoyed with my self for selling out at $1.05. I just hope the stars line up again and I can buy back in sub $0.90


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## So_Cynical (10 August 2009)

VRL & VRLPA up significantly today on the announcement of a proposed management buyout/takeover, John Kirby, Robert Kirby and Graham Burke, want to go from 61% to 100%...early days yet and many details to come.

http://www.villageroadshow.com.au/press_releases/pdf/Project Darwin 100809.pdf

I expect there is some chance of more significant SP upside to come. :dunno: so glad i brought in at 
82 cents, even happier i gave the trade time to come good.


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## Kremmen (12 August 2009)

Tysonboss1 said:


> Have you thought about investing in the prefrence share, It seems such good value




I've got to say thanks for that reminder. I'd stopped watching the prefs ages ago and hadn't realised that they'd lost so much ground to the ordinary shares in recent times.

Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.


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## So_Cynical (12 August 2009)

Kremmen said:


> Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.




WD Krem...great timing. 

Anyone got any ideas about what sort of price the Kirby's etc would be prepared to 
pay, i wouldn't know where to start trying to figure out fair value etc. :dunno:


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## Kremmen (14 August 2009)

So_Cynical said:


> i wouldn't know where to start trying to figure out fair value etc.




Surely they have only made this move because they think the company is way under-valued? Book value as of Jun 08 was $4.80/share.

In the past, obfuscation of finances seems to have been part of their way of running things. Dividends have been highly variable (between 3.75c and 34c), which makes it even harder. They have almost always exceeded analysts' expectations on earnings, sometimes by huge margins.

If an offer comes, depending on the quantity of franking credits available, they could pay a large dividend as part of the deal. That would make it attractive to shareholders to accept a lower price than we would for an all-cash buy out.


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## Tysonboss1 (14 August 2009)

Kremmen said:


> I've got to say thanks for that reminder. I'd stopped watching the prefs ages ago and hadn't realised that they'd lost so much ground to the ordinary shares in recent times.
> 
> Be happy to buy you a ton of drinks sometime, esp. as my VRLPA buy of a couple of weeks ago is up over 100% now.




:bonk: unfortunatly for my self I sold out at $1.05 to buy another stock (which hasn't done to badly $1.20 to $1.79).

The idea rumors that the kirby brothers want to privatise have always been in the back ground, and at current prices it is probally a good time, 

I wonder what the offer price will be, it will be sad to see this company leave the market, I think it's a great mix of businesses.


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## So_Cynical (24 August 2009)

Tysonboss1 said:


> it will be sad to see this company leave the market, I think it's a great mix of businesses.




VRL aint going nowhere...the buyout has been called off...RE: today's ann 

http://www.villageroadshow.com.au/press_releases/pdf/Project Darwin 240809.pdf

The board of Village will consider alternative capital management 
strategies in due course....what ever that means.


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## Kremmen (26 August 2009)

So_Cynical said:


> VRL aint going nowhere...the buyout has been called off.




Looks to me like it may have all just been a ploy to ramp their own shares. There's been massive turnover, for sure.


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## Tysonboss1 (27 August 2009)

Kremmen said:


> Looks to me like it may have all just been a ploy to ramp their own shares. There's been massive turnover, for sure.




Yeah it could be a ploy, But it makes me wonder why they would want to ramp up the price considering they have been purchasing at such good levels though the buy back .

maybe they were close to a margin call.


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## oldblue (27 August 2009)

Tysonboss1 said:


> Yeah it could be a ploy, But it makes me wonder why they would want to ramp up the price considering they have been purchasing at such good levels though the buy back .
> 
> maybe they were close to a margin call.




Recent shareprice movements don't support that theory.

If anyone was close to a margin call it would have been back in May when the SP was around 77-80c.

Perhaps it *was* a genuine buy-out attempt that didn't get off the ground. Or is that just me being naive?

Disc: Not a holder.


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## Tysonboss1 (27 August 2009)

oldblue said:


> Recent shareprice movements don't support that theory.
> 
> If anyone was close to a margin call it would have been back in May when the SP was around 77-80c.
> 
> ...




The margin call wouldn't have to be on VRL, it could be on another investment they were using  vrl as security for, or perhaps they wanted to boost the price so as to allow them to borrow more for another investment.

Any way I think informing the market so prematurly was a mistake. if I were them I would have just kept quitely buying the prefrence share through the buy back as they were.


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## Kremmen (23 October 2009)

Massive on-market buy-back for VRL and VRLPA during November announced today, so both shot up about 20c.


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## So_Cynical (23 October 2009)

Kremmen said:


> Massive on-market buy-back for VRL and VRLPA during November announced today, so both shot up about 20c.




Yep ive just been reading through the The explanatory memorandum and came to the 
inescapable conclusion that my purchase of VRL shares @ 82 cents has turned out to 
be absolutely brilliant timing. (we need a pat on the back smiley )

http://www.villageroadshow.com.au/p... Memorandum & Indep Experts Report 231009.pdf

With today's close of $1.70 my investment has more than doubled and im earning a fully 
franked dividend return of over 11.5% PA.  

I thought the valuation of $3.69 per ordinary share was a little over the top as were 
many conclusions in the Grant Samuel’s valuation.

Anyway VRL up 11.8% today and VRLPA up 15.6%...also noticed that both are hitting 52 week 
highs, amazing considering the bottom was only about 5 months ago..happy days ahead for 
the holders.


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## Steven12 (23 October 2009)

Hi Guys,

I am seriously considering purchase VRL as it is trading at 33% of its Book value!!!


I am not quite sure which shares to purchase, whether ordinary shares or preference shares...


can somone tell me the advantages and disadvantages of both? thanks


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## imajica (24 October 2009)

I am also thinking about buying on Monday, for those who have held VRL for a while, what are your predictions over the next few weeks with the buy back for the share price?


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## hesitationkills (27 October 2009)

*VRL - thoughts?*

Hi all,
First post for me 

I own VRL picked them up at 1.31 a few weeks ago. Any thoughts on their realistic price, there recent announcement has given them some upward movement and would be interested to hear thoughts..

I am considering selling to move elsewear but feel they have a little further to go yet.

Matt


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## Kremmen (12 November 2009)

*Re: VRL - thoughts?*



hesitationkills said:


> First post for me



Hi, Matt.

Great topic to start with, given your 40% profit in a few weeks.

VRL and VRLPA usually trade very lightly -- often no trades in a day. There is currently a massive demand in the market, in the form of the buy-back. When that demand goes away, surely the prices will plunge back towards where they were prior to the buy-back announcement?

This is a game of chicken. You want to wait it out for the best price you can get, but you know that if you wait too long, you might be hosed.


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## bloomy88 (12 November 2009)

Steven12 said:


> Hi Guys,
> 
> I am seriously considering purchase VRL as it is trading at 33% of its Book value!!!
> 
> ...




Remember that book value includes intangible assets which warren buffet usually takes out when calculating the book value figure. This is because intangible assets often have no resale value on the open market.

Using VRL's 30 June balance sheet the in fact have negative net tangible assets of $144million. So if you were looking to buy VRL soley based on their SP/Book value i think you should reconsider....

Cheers


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## Kremmen (12 November 2009)

bloomy88 said:


> So if you were looking to buy VRL soley based on their SP/Book value i think you should reconsider....



Another thing to mention to those who haven't followed VRL(PA) before, is that they trade infrequently. Indeed, one could go as far as to say that, under normal market circumstances, they are almost illiquid. The buy/sell spread can be huge for long periods.

Once they finish buying back almost half of VRLPA, there will be a lot fewer shareholders. That's certainly not going to help liquidity.


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## So_Cynical (12 November 2009)

*Re: VRL - thoughts?*



Kremmen said:


> When that demand goes away, surely the prices will plunge back towards where they were prior to the buy-back announcement?
> 
> This is a game of chicken. You want to wait it out for the best price you can get, but you know that if you wait too long, you might be hosed.




I wouldn't necessarily think so...there will still be a take over premium in the stock and due to the buyback less stock available to the general public, sure VRL will go back to a being a low volume stock but that dont necessarily mean a low or falling/stagnant SP

And then you have to consider the dividend yield will still be a healthy 5.2+% (approx) with the SP at around current levels....with economic activity on the up and keeping in mind that senior management hold over 65% and im sure they like those divis rolling in.


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## bloomy88 (12 November 2009)

Plus VRL aren't going to be buying back their stock unless they beleive that it is significantly below what the directors think is fair value.

That is unless the directors that own 65% of the stock want to increase their percentage of holdings by buying back other people's shares and not participating in the buyback themselves....


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## Steven12 (12 November 2009)

> Remember that book value includes intangible assets which warren buffet usually takes out when calculating the book value figure. This is because intangible assets often have no resale value on the open market.
> 
> Using VRL's 30 June balance sheet the in fact have negative net tangible assets of $144million. So if you were looking to buy VRL soley based on their SP/Book value i think you should reconsider....
> 
> Cheers




Thanks mate, it's good point and I will take that into consideration, however VRL is operating in a business environment where intangible assets do counts a lot, because for example a radio station itself with its radio brocasting equipment does not worth a lot of money, its the brand and hosting personalities that sell ads so trying discount that would be slightly unfair to VRL, although it is still a very valid point


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## bloomy88 (13 November 2009)

Steven12 said:


> Thanks mate, it's good point and I will take that into consideration, however VRL is operating in a business environment where intangible assets do counts a lot, because for example a radio station itself with its radio brocasting equipment does not worth a lot of money, its the brand and hosting personalities that sell ads so trying discount that would be slightly unfair to VRL, although it is still a very valid point




I understand what you are saying but the radio brand and hosting personalities are internally generated goodwill and aren't actually recorded in the balance sheet and therefore wouldnt contribute to the companies book value. The is an intangible asset for the radio licence but this doesnt include the hosing personalities or the brand, merely a right to broadcast on the air.

It's like how Woolworths has built up such a reputation as a quality supermarket that provides goods at a great price. It would definately encourage people to shop there and increase the wealth of their business, but it isnt actually recorded anywhere in their balance sheet.

Don't get me wrong, i realise that having a good radio brand and personalities would increase the value of VRL's business and it is quite common in businesses like VRL. However, it wouldnt contribute to their book value...
Cheers


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## So_Cynical (6 January 2010)

*Re: VRL - thoughts?*



Kremmen said:


> 12/11/09
> VRL and VRLPA usually trade very lightly -- often no trades in a day. There is currently a massive demand in the market, in the form of the buy-back. When that demand goes away, surely the prices will plunge back towards where they were prior to the buy-back announcement?
> 
> This is a game of chicken. You want to wait it out for the best price you can get, but you know that if you wait too long, you might be hosed.






So_Cynical said:


> I wouldn't necessarily think so...there will still be a take over premium in the stock and due to the buyback less stock available to the general public, sure VRL will go back to a being a low volume stock but that dont necessarily mean a low or falling/stagnant SP
> 
> And then you have to consider the dividend yield will still be a healthy 5.2+% (approx) with the SP at around current levels....with economic activity on the up and keeping in mind that senior management hold over 65% and im sure they like those divis rolling in.




VRL hitting a new 52 week high today (Up 4.3%) and closing in on the inevitable $2 mark, seems my analysis (Above) of VRL post buyback was pretty much spot on.  all that's needed now for a $2 break through is one or two positive little announcements.


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## Tysonboss1 (8 January 2010)

Gee VRL(PA) has certainly been an interesting stock to watch recently.

I can't help but think that the kirby brothers will make a move to privitise VRL.

They have expressed interest in the past and are not getting any younger. I think they will try and make a sprint to the finish and privitise within the next 3 years. They already own >70% of the company and will use buy backs to mop up outstanding shares so as to lower the amount they have to pull out of their own pockets to fund the take over, while also increasing the chance of succes of any take over offer.

If I were them I would be doing the exactly the same thing, 

The only problem is that VRL already has a fair amount of debt and these buy backs will be lumping the company with alot more debt, But the company can work through this debt over time.


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## So_Cynical (8 January 2010)

I whole heartedly agree with your analysis Tyson, my only surprise was it only took 1 day for my $2 prediction to come good.  ill be a little brave and say $2.50 is on the cards sometime this year...IMO


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## danbradster (22 January 2010)

Getting closer So_Cynical - $2.19 close today.  I am happy with this company, I got in at $1.31.


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## So_Cynical (22 January 2010)

danbradster said:


> Getting closer So_Cynical - $2.19 close today.  I am happy with this company, I got in at $1.31.




Good to see your still in Dan...ill have to put some thought into the coming top and where it could/should be....any ideas Dan?


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## danbradster (25 January 2010)

So_Cynical said:


> Good to see your still in Dan...ill have to put some thought into the coming top and where it could/should be....any ideas Dan?




I am taking 50% of my portfolio out of the market (including VRL) and putting it into property.  I am selling the bigger companies, and keeping the smaller ones.  You are part of the reason I am convinced to take profit - 

- America has a growing budget deficit
- 10% of their GDP goes toward loan interest, which will continue to increase.
- Social security and medicare are already 44% of the federal budget, and rising fast.
- Their people have a negative savings rate.

I am no expert, but this seems very bad for America, and the rest of us.

The property that I'm looking at is student accomodation, a safe 7% yield after expenses not including capital gains.  $125k for $270 a week rent in the middle of Brisbane city, near a uni.

I have 50 minutes to sell some more before the end of the day, before tomorrow's public holiday...


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## So_Cynical (25 January 2010)

I wholeheartedly agree with your American thoughts Dan...however im of the opinion the US will die a long, slow, and painful death..the US is to big to fail (to important to the global economy)...so they will be propped up by the rest of the world for decades to come.

As for VRL im gona hold till at least May due to CGT considerations, that and i think we have further to go and more great dividends to come.


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## danbradster (25 January 2010)

Plus analysts don't expect the ASX to break 5200 this year, which is only ~10% above the current point.  The risk of correction or crash are too high for me to go for a 10% gain.

Although like you hinted at, pulling out causes tax problems and some shares are safer than others.  VRL seems to trend fairly independently of the markets.

If the JPY/AUD exchange rate reverses its trend I'll considering investing in Japan.  But for now I'll be transitioning toward 50% shares (mainly smaller companies), and 50% property.


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## samgribbles (2 March 2010)

*VRL / VRLPA*

VRLPA has historically always traded consistently lower than VRL.

Why has this relationship changed recently?  Insights would be appreciated.


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## So_Cynical (2 March 2010)

*Re: VRL / VRLPA*



samgribbles said:


> VRLPA has historically always traded consistently lower than VRL.
> 
> Why has this relationship changed recently?  Insights would be appreciated.




The market has re-priced VRLPA :dunno: VRLPA has always paid significantly higher dividends too and perhaps now that there is some confidence about VRL in general..the slightly more risky preference shares are not seen to be as risky as before. 

http://www.villageroadshow.com.au/upload/Document/VRL Half Year Report 31Dec2009.pdf
~


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## newbie trader (23 March 2010)

VRL's been holding above 2.25 which is a good sign breaking new highs as I speak. I think they will eventually try to privitise again, well I hope this will be the case.

N.T


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## So_Cynical (13 August 2010)

I totally sold out of VRL today @ $2.30 for a total pre tax profit (including dividends and less costs) of about 190% approx....easily my biggest % and $ winner....VRL was the first trade i entered with my new trading plan and its the first stock that has come full cycle.

I took a small profit early on to establish free carry, reduce exposure/risk and free up capital to buy another stock, and then simply let the general market rally off the low take the SP back up...and collected dividends along the way. 

I recycled the VRL money, plus a little extra into TSI figuring the yield on offer (13.4%) combined with the entry on offer due to general sentiment over the last few months, as an  ideal time to buy yet another quality bottom.

Good luck to the holders.
~


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## danbradster (2 September 2010)

So_Cynical said:


> I totally sold out of VRL today @ $2.30 for a total pre tax profit (including dividends and less costs) of about 190% approx....easily my biggest % and $ winner....VRL was the first trade i entered with my new trading plan and its the first stock that has come full cycle.
> 
> I took a small profit early on to establish free carry, reduce exposure/risk and free up capital to buy another stock, and then simply let the general market rally off the low take the SP back up...and collected dividends along the way.
> 
> ...




Congratulations on the profit.  Hopefully you had a fair amount invested in the free carry.  I simply bought with cash and held, 90% ROI so far.  I will be holding longer though, with the perpetual buybacks EPS just keeps rising!

I bought TSI on your recommendation.  Another VRL would be nice.  

Right now I am waiting for the OAK capital raising to come, I love capital raisings.


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## So_Cynical (2 September 2010)

danbradster said:


> Congratulations on the profit.  Hopefully you had a fair amount invested in the free carry.  I simply bought with cash and held, 90% ROI so far.  I will be holding longer though, with the perpetual buybacks EPS just keeps rising!
> 
> I bought TSI on your recommendation.  Another VRL would be nice.
> 
> Right now I am waiting for the OAK capital raising to come, I love capital raisings.




Hey Dan.. good to see im not the only one that's done well outa VRL  i agree that there's more upside to come, for myself i just felt it was time to recycle my capital, thought that the TSI low just wouldn't last so was keen to switch over...so far that thinking has proved to be correct.

Dan i have to say that i would hate to think that anyone did anything on my recommendation or acted on my posts/actions..i post all my buys and sells here for entertainment purposes only, i would never encourage anyone to act on anything i post or take anything i say as advice.


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## danbradster (9 September 2010)

So_Cynical said:


> Dan i have to say that i would hate to think that anyone did anything on my recommendation or acted on my posts/actions..i post all my buys and sells here for entertainment purposes only, i would never encourage anyone to act on anything i post or take anything i say as advice.




Don't worry about it.  I need somewhere to put my money, and your pick is probably better than mine, since you picked VRL for a reason...I was just lucky.  If I lose on TSI I will be fine, and if I profit I'll be happy.

I did read their annual report btw, I didn't buy solely on your recommendation.


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## absolute1 (5 December 2010)

VRL is a preferred stock fro 2011 according to naos asset fund management fund manager sebastian evans according to the financial review 1(dec)

announcement of new theme park, wet n wild sydney, loacted at the old  wonderland was announced it september and is "being billed as one of the best water parks in the world"

inaddition with the companys increased profits it looks to be interesting.


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## Tysonboss1 (7 December 2010)

absolute1 said:


> VRL is a preferred stock fro 2011 according to naos asset fund management fund manager sebastian evans according to the financial review 1(dec).




What do you mean by this.

VRLPA is the preferred stock. is this changing?


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## ParleVouFrancois (7 December 2010)

He means preferred as in rated "buy please" by "naos" asset fund manager, Sebastian Evans, whoever they are. I doubt he's actually talking about the preferred stock.


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## absolute1 (23 December 2010)

"Village Roadshow Limited (“VRL”)  announced on the 17th decthat it has entered into an agreement to sell its aquarium and attractions businesses to Merlin Entertainments Group (“Merlin”), Europe’s leading and the world’s second-largest visitor attraction operator. The businesses to be sold include Sydney Aquarium, Sydney Wildlife World, Oceanworld Manly, Sydney Tower Observation Deck and Sky Walk, Hamilton Island Wildlife Park and Kelly Tarlton’s Antarctic Encounter and Underwater World, in Auckland."

vrl currently $2.65


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## danbradster (12 February 2011)

newbie trader said:


> VRL's been holding above 2.25 which is a good sign breaking new highs as I speak. I think they will eventually try to privitise again, well I hope this will be the case.
> 
> N.T




It feels like every day we come closer to privatization.  $3.23 now with less shares on issue, less assets and far less debt.  I am waiting for more big changes to occur.

I can no longer guess at the return I'll get from this share, but I'm assuming it'll be posisive if/when it's privatized.

I see further easy gains in this share.  As the shares on offer reduce, my % holding increases.  Privatizing should also see a premium to the trading price, right?

I would love to spend this cash elsewhere, but VRL seems too good of an opportunity to pass up.


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## piggybank (9 August 2013)

Long time between drinks....


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## ft2tak (9 August 2013)

there are no news on VRL. What's making it go this high?


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## rbgmauq (9 August 2013)

Looks like it is going to break the resistance of 6.24. Positive technical buying signal at au.stoxline website.


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## ft2tak (12 August 2013)

There is lots of money going in at $6.15. Great sign of support.


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## ft2tak (20 January 2014)

With Vegas, Sydney and at the end of the year China water parks opening, we should see even higher prices


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## So_Cynical (30 January 2017)

So_Cynical said:


> (Aug 13, 2010) I totally sold out of VRL today @ $2.30 for a total pre tax profit (including dividends and less costs) of about 190% approx....easily my biggest % and $ winner....VRL was the first trade i entered with my new trading plan and its the first stock that has come full cycle.




Ah those were the days 

7 years later and VRL is looking cheap again, over the years the business hasn't changed much, they have bough and sold a few things but mostly same same, revenue is growing very slowly while debt has doubled over the last 5 years, Top 20 still hold over 80% with the Brothers Kirby and Burke substantial holders.

Share price getting hit by the Theme park downturn, div should/could be cut, still a solid business with multiple revenue streams thats been around for ever, a long term yield play for the contrarian minded.
~


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## notting (19 February 2018)

Had a couple of good days as it reports. Udonno maybe people think they are going to get a bonanza from suing google. -

_Village Roadshow co-chief executive Graham Burke has slammed Google for "facilitating crime" by allowing piracy, saying the multibillion-dollar company is welcome to sue him for his comments.

Mr Burke believes Google is partly responsible for hundreds of thousands of illegal downloads of the films Lion and Mad Max: Fury Road causing "millions of dollars lost to piracy".

"If piracy isn't nailed ... the Australian film industry will be over," he said.
Lion has been downloaded illegally more than 350,000 times and is likely to have been streamed more than 1 million times, he said. '_

People who download it can't be bothered waiting for it to come out on one of the other countless platforms or get off their ass and go see it.  Much easier just to do it at home and if they couldn't they still wouldn't go see it.  People aren't even going to the Malls anymore to do their shopping.
With all the insane overcrowding and overbuilding in the livable cities, why would the f&ck would anyone go out it's a nightmare out there!

Maybe he's just trying to keep his salary by making lame excuses.







Note final market sale was ramped to 3.56 and it matched out at 3.39. What will it do at the open, one wonders!!


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## notting (18 April 2018)

A couple of months later as expected.
At this rate you have to go back to a monthly chart to see where the blood may stop flowing.
It indicates about .90c


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## Redbeard (6 June 2018)

To beat the download/streams you have to learn chinese/thai/viet, thats where all the full movies are on youtube.
Aside from that, is it correct VRL have not paid a dividend in the last two years?  at least thats what my OLbroker data is saying.   And if so why is anyone holding onto them?


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## greggles (14 July 2018)

Things just keep on getting worse for VRL. The latest blow was the $51 million entitlement offer priced at $1.65. A ~$10 million loss expected for FY18 with theme park and cinema exhibition attendance numbers down. The pressure is on to turn things around.


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## So_Cynical (14 July 2018)

425 Million in debt with a market cap of 290 million, not a happy place.


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## bigdog (17 July 2018)

How many million bas been paid to to *bribe* the political parties for video piracy actions implemented?

The government has now placed actions were the Australian telcos have all banned access to all these sites

$1.5 million paid was reported about three years ago!


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## BlindSquirrel (19 December 2018)

SP finally seems to be moving up again. How long until they are likely to reinstate dividends? I'm having a good look at this ticker. I disagree with their greedy grubby anti-piracy stance but they're pretty well established and gains are gains.


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## Ann (6 January 2019)

BlindSquirrel said:


> SP finally seems to be moving up again. How long until they are likely to reinstate dividends? I'm having a good look at this ticker. I disagree with their greedy grubby anti-piracy stance but they're pretty well established and gains are gains.



G'day BlindSquirrel, I have just been charting all the January Tipping picks and your pick is one of the choices I like the look of chartwise. Its Positive Volume Index (PVI) is moving up nicely and it has a couple of overhead resistance lines it needs to overcome at $2.95 and $4.00. If it can overcome these then it may well be on its way back up again, maybe even to $7.00 in the longer term view. Interesting to watch, good luck!


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## Value Collector (6 January 2019)

BlindSquirrel said:


> I disagree with their greedy grubby anti-piracy stance but they're pretty well established and gains are gains.




What have they done that’s greedy and grubby? Or are you just against the idea of film makers earning a return on their investments into creative content?

At the end of the day you can stream any movie you like for the whole family to watch for like $4 or $6 that’s cheap as, or you can have unlimited access to groups of movies and tv shows through Netflix etc for like $10 a month, not to mention all the free to air stuff.

I think if prefer to illegally download movies rather than pay a few bucks, it might be you who is greedy and grubby.

At the end of the day if don’t think the movie is worth $4 or $6 dollars, then simply don’t watch it, but if you really want to see it, then it must be worth that small amount.


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## Smurf1976 (7 January 2019)

Ann said:


> Its Positive Volume Index (PVI) is moving up nicely and it has a couple of overhead resistance lines it needs to overcome at $2.95 and $4.00. If it can overcome these then it may well be on its way back up again, maybe even to $7.00 in the longer term view.



There's also the simple aspect that the price continued to trend up when the overall market was firmly heading down. That in itself is a positive aspect.


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## BlindSquirrel (7 January 2019)

Value Collector said:


> Or are you just against the idea of film makers earning a return on their investments into creative content?




I'm absolutely not against the film makers being paid for their exertions. I am against their attempts, during the court case v Iinet, to bully a lower tiered ISP that had less financial backing than the bigger competitors because they would be easier to outspend in lawyer fees.
I do pay for my content for the record because the streaming providers actually provide an attractive product at a price point that I acquiesce to paying.

There is also the matter of the expiration of copyright which Disney is fighting against because they want to keep making money off the characters long after Walt's death. When should the idea become public domain?


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## Value Collector (7 January 2019)

BlindSquirrel said:


> I'm absolutely not against the film makers being paid for their exertions. I am against their attempts, during the court case v Iinet, to bully a lower tiered ISP that had less financial backing than the bigger competitors because they would be easier to outspend in lawyer fees.
> I do pay for my content for the record because the streaming providers actually provide an attractive product at a price point that I acquiesce to paying.
> 
> There is also the matter of the expiration of copyright which Disney is fighting against because they want to keep making money off the characters long after Walt's death. When should the idea become public domain?




Is VRL bullying isp’s?

What does Walt’s death have to do with whether characters should be copyrighted?

The fact is the Disney company is still creating new content with its characters, all the time, constantly investing and developing the characters keeping them relevant.

Some one that comes along and pirates Mickey T-shirt’s for example, isn’t adding value to anything, simply trading off other people’s work, they have done nothing to build mickeys presence, but just wish to profit from it.

Unless a body of work has been abandoned, and the public would benefit by a third party publisher distributing the abandoned work, or new creators using the characters in new ways, there is no reason to strip copy right away.

I think works should only lose their copy right if they have been abandoned for say 50 Years, but if the company that owns them is still creating and developing the works across multiple formats, there is no reason to lose copy right.

Mickey is not really under threat as much as people think though, because he is a trade mark, and trade marks don’t expire.


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## BlindSquirrel (7 January 2019)

Value Collector said:


> Is VRL bullying isp’s?




Why would VRL lodge a court case against iinet rather than an ISP like Bigpond with a higher number of customers that would arguably be stealing on a larger scale? The main reason would be because iinet would be seen as easier to push over and therefore establish a precedent when taking on larger ISPs. 

You raise some good points on Disney; would they claim copyright infringement on some of those early 1950s cartoons if they were publicly shown (unaltered, without paying) now that it's been 50 years after Walt's death? I'd bet that they would. Should they be entitled to profit off his work into perpetuity as a company?


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## Value Collector (8 January 2019)

BlindSquirrel said:


> You raise some good points on Disney; would they claim copyright infringement on some of those early 1950s cartoons if they were publicly shown (unaltered, without paying) now that it's been 50 years after Walt's death? I'd bet that they would. Should they be entitled to profit off his work into perpetuity as a company?




I don’t know he details of the VRL case to comment, but if I felt I was in the right and I good achieve a similar legal outcome cheaper by attacking a small target, I would do that.

Films made in 1950’s wont come out of copy right until after 2045.

But in my opinion, if a work was truly abandoned by Disney, I personally wouldn’t have a problem with others distributing them in there original form, as long as they were able to keep non abandoned characters and stories perpetually.

With the current system where everything with eventually go out of copy right, then why let things go earlier?

But yes I do feel copyright should be perpetual if there is still ongoing stewardship of the content.


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## ducati916 (9 January 2019)

Value Collector said:


> Films made in 1950’s wont come out of copy right until after 2045.
> 
> 
> 
> ...




Intellectual Property Law is a bit of a minefield for laypersons.

When talking about 'film' copyright, you are actually talking about a number of copyrights: you will have the copyright in: the soundtrack, the script, etc. The copyright of the 'film' will depend [very much] on the duration of the underlying copyrights.

As an [further] example of the complexity, a 'film' is not a dramatic work: it may however be the 'means' by which a dramatic work is fixed.

Prior to 1962, [in some jurisdictions] the soundtrack was part of the 'film'. After 1994, this [is] no longer the case. Prior to 1962, 'films' had no copyright. Rather, they were copyrighted as 'dramatic works' pursuant to 1913 legislation. This was for 'fictional' dramas. However due to the broad scope of the language, non-fiction [newsreels etc] would probably be included.

Therefore when calculating duration of protection for films, it may be necessary to consider transitional provisions in the relevant jurisdictions. The US is quite different to England/Aus/NZ.

jog on
duc


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## ducati916 (9 January 2019)

Value Collector said:


> Mickey is not really under threat as much as people think though, because he is a trade mark, and trade marks don’t expire.




This is too simplistic a position.

First and foremost, you would probably need to consider whether any breach of ownership created a cause of action in: common law, viz. passing off or a breach of a registered trade mark[Trade Mark legislation], or a breach of the Fair Trading Act.

So if it were a 'registered' trade mark, registration and thus the trade mark, could very well 'expire'.

jog on
duc


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## Parse (10 January 2019)

While the copyright argument is a big one, there is also another elephant in the room. Australian suppliers of film - on dvd/blu-ray etc are notorious for poor quality. VRL is one in the forefront of this. If anyone has ever bought a movie blu-ray from the USA and then compared it to the edition supplied by suppliers such as Roadshow in Australia, then you will know what I am talking about. The picture is of a lesser quality and the soundtrack is generally over compressed and often of a lower quality codec.
Apologies though, all this really has little to do with the VRL stock as purchases of hard copy movies etc isn't a big market these days. Btw, VRL is the only company I know of that have been forced into recalling certain blu-ray movies - because what was advertised on the box was not what was on the disc inside (lower quality).


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## bigdog (19 January 2019)

https://www.theage.com.au/business/...sing-on-village-roadshow-20190118-p50sa8.html

*A cinematic feud: Are the curtains closing on Village Roadshow?*

The angry emails began on June 20 when John Kirby fired off a lengthy missive to the Village Roadshow board. The subject line was: “The Diagnosis”.

Kirby had resigned as an executive at Village - the film*, *entertainment and theme parks business run by his family for decades - five years earlier.

He remained on the board, however, and watched with growing frustration as the company’s share price tumbled from $7.15 five years ago to as little as $1.77 in July.

The 71-year-old had stood back as his younger brother and executive chairman Robert Kirby and chief executive Graham Burke, a family friend, called the shots over that time. But now he’d had enough.

In the email John outlined his frustrations. He accused Village’s management, led by his brother, of issuing overly optimistic financial forecasts, weak corporate governance and poor capital management.

He concluded the business behind Hollywood blockbusters such as Happy Feet, The Matrix and Zoolander was sick, and needed urgent attention.

The email received a cursory reply and was then followed by several others. Sources familiar with the contents estimate they would run to more than 150 pages if printed out.

John’s arguments are contested by other members of the Village board who dismiss him as disgruntled and jealous.

Earlier this week, Burke called him “disgruntled and bitter”. But there is no question about the trajectory of the company that is still worth $554 million, boasts a 70 year heritage and was one of corporate Australia’s great success stories.

Since 2014, Village Roadshow’s market value has tanked from $1.2 billion to as little as $370 million. The market decline was keenly felt by Burke and the Kirby family who own 42 per cent of the company between them.

The rise in video streaming services such as Netflix and Stan slowly hobbled Village’s DVD distribution business.

A string of box office bombs, including the 2015 flop Jupiter Ascending starring Mila Kunis, eroded an investment in Village Roadshow Pictures, the Hollywood film studio the Melbourne company once controlled.

And suddenly too its theme parks were in trouble. In 2017, Village reported a $67 million loss.

The other undeniable fact about John’s emails is that they exposed tensions with his brother that some people believe have existed behind the scenes for years.

The family feud remained a private matter last year but earlier this week John went public with his grievances by confirming he had hired an investment bank in an attempt to break up Village. It is a proposal Robert vehemently opposes.

With both brothers seemingly intractable, the question is who will prevail?

*The greatest showman*
One of the earliest memories Robert, now 67, has of Roscoe “Roc” Kirby is of him standing over the kitchen table, sketching up dreams for what the company’s next cinema would look like on huge sheets of white paper. Robert says he remembers “clear as crystal” his pioneering father drawing lines representing the parking ramps and planning out the way it would look.

The idea for the new drive-in theatres was based on a photograph Roc had seen in a newspaper while serving in WW2.

Hearing his family were cinema operators, an American soldier showed him an article of the US’ most recent drive-in innovation and the idea returned with him from Papua New Guinea.

At the peak of the drive-in era, Roc’s businesses Kirby Theatres Pty Ltd and Village Drive-In Pty Ltd would have 14 drive-ins, mostly in Victoria, and many other traditional theatres.

The business rapidly became a household name and today Village has 74 cinemas with 704 screens, owns some of the country’s biggest theme parks in Movie World, the Gold Coast’s Wet’N’Wild and SeaWorld and is associated with classic films _Gallipoli, Mad Max, Red Dog, Muriel’s Wedding_ and _Breaker Morant_.

Roc is described by those who knew him as the “ultimate showman” and an instinctive businessman who knew that fresh ideas, glamorous openings and promotion were the secret sauce for getting Australians out of their home and into his venues. And he would put everything on the line to get the job done.

Known for sayings like “your word is your bond”, “always do what you say you’ll do” and “an ounce of loyalty is worth a ton of know-how”, Roc ignored naysayers who laughed at him because he wanted to put “pictures in a paddock” at a time when indoor cinemas were closing due to the growing popularity of television.

He launched his Croydon drive-in in the 1950s. It was a sensation with innovations such as BBQs, a fish and chip unit and a glass-fronted cafeteria (which now-defunct newspaper _The Argus_ reviewed as “expected to be a huge success with Melbourne people who have taken to espresso coffee in a big way”).

As the 20-acre plots he owned for the drive-ins surged in value after land was rezoned to cater for a growing and sprawling urban population in Melbourne, Roc was able to sell out for a big profit in subsequent decades

He [Roc Kirby] turned a paddock and a creek into MovieWorld ... he mortgaged his house [to do it].

Graham Burke
He used the money to buy a prime Melbourne CBD location on Bourke Street from Alan Bond who had been using it as a Walton’s department store until 1983. The business spent $30 million redeveloping the site into a five-level cinema, retail and office complex (the head office would later move to South Yarra).

The drive-ins are just one of the achievements the Kirby sons and Burke idolised him for.

“He turned a paddock and a creek into MovieWorld ... he mortgaged his house [to do it],” Burke says.

Village continues to be controlled by the Kirby brothers and Burke who started working for Roc part-time aged 14 at the Ararat cinema in south-west Victoria

By the time he was a young adult, Burke was managing a large part of the business (at 21 he wrote the operations manual) and says he had come to see Roc and his wife Beatrice Kirby as “my Melbourne mum and dad”.

Those who know the family well refer to Burke and Robert as “like twins” who grew up together, visiting St Kilda’s Luna Park, and the empty drive-ins during the day-time, for fun. Burke, 77, has spent his entire career at Village and remains very close to Robert to the point where they call each other “at least four times a day”.

The close friendship between them may explain why John’s resentments are bubbling to the surface. Some observers believe jealousy over his brother’s closeness with his father’s business protege plays a role, as does that pair’s dominance over Village. Sources close to John dispute this.

Roc died in 2008 (Beatrice in 2011) but his strategy of turning a deaf ear to negativity has been a defining part of the Village story. His business style has left an indelible impression on Robert and Burke.

Even today, on the wall of Robert’s office, is a sign that reminds him to have “contagious optimism” - a motto that has been vigorously tested over the last few years.

*Echoes of a tragedy*
No one saw it coming. On 25 October 2016, a balmy Tuesday on the Gold Coast, Ardent Leisure-owned holiday venue Dreamworld was on the verge of a tragedy that would send shockwaves through the theme park industry.

A malfunction on the wildly popular Thunder River Rapids Ride left four people dead, in a disaster that was traumatic for witnesses, dominated the news cycle for days after and led to a government inquest.

It didn’t just close down Dreamworld for more than a month – and the ride forever – it saw the public lose confidence, at least temporarily, in all theme park operators.

Burke says mums were “spooked about taking their kids to theme parks” afterwards and the tragedy turned a steady stream of local and international tourists to Village’s entertainment venues into a trickle.

“It was the single biggest turnaround in our fortune,” he says.

Unlike the Village of Roc’s era, a large swathe of the company’s income comes from its theme parks rather than cinemas. By 2016, losses from Village’s movie production business had hit $487 million. In the same year, $88 million of earnings came from theme parks, $82 million from cinemas and $24.5 million from film distribution.

After the Dreamworld incident, Village’s earnings (before interest, tax, depreciation and amortisation) from the theme parks division fell from an $86 million average in the five-years prior to $56 million in 2017 and $39 million last year.






“There's no doubt the biggest low the company here has had over its whole period of existence was the Dreamworld tragedy,” former board member David Evans says.

Evans, a prominent Melbourne businessman, was chair of corporate governance until November 2018 and is a friend of Burke’s.

“It didn't have anything to do with Village, however its roll on effect was substantial. That is only just starting to right itself,” he says.

While no one disputes there was an impact from Dreamworld, sources close to John claim Burke and Robert “overstate” the fallout and failed to use the issues facing a competitor to get ahead.

For John, Wet’n’Wild Sydney was the final straw.

The park was sold last year for a loss of $25 million after draining cash despite great hopes when it opened in 2013.

It wasn’t Village’s only problem.

The company blamed broader financial woes on a smorgasbord of uncontrollable factors, including the Dreamworld disaster, “low attendance” to the Commonwealth Games on the Gold Coast and wet weather.

But it was the aqua park’s problems, and a call for the Kirby brothers to inject $7 million each into the company to pay down debt, that was the focused of John’s ire.

Burke, a film lover, is described by supporters as highly knowledgeable about the entertainment business and devoted to Village.

But he is criticised by detractors as being too interested in “Hollywood” despite film production now being on the sidelines.

*Under the spotlight*
In July 2018, John hired former Rothschild boss David Kingston, an erstwhile investment banker turned property tycoon.

Kingston knew Village and the Kirby brothers well, having previously sat on the board of radio network Austereo when it was controlled by the company.

He had worked on property trusts for management in the past.


Kingston is well-known for his aggressive approach. In 2015 he attempted to evict Justin Hemmes from the Coogee Beach Palace Hotel in 2015 when the Sydney pub baron was two days late paying the rent. Kingston was out of pocket by $85.74.

Kingston and John detailed a litany of issues ranging from the acquisition of businesses with no connection to the core theme park and cinema operations to accusations Burke and Robert were using the company to enrich themselves and their children. Robert’s son Clark works as the theme park division’s chief executive on a salary exceeding $1 million a year.

Since 2015, Village has paid $1.4 million to purchase wine from Robert Kirby’s vineyard Yabby Lake, another $90,000 renting the family artwork, and about $70,000 to buy bikinis from Burke’s daughter Lisa.

All these related-party transactions are legal and disclosed in Village’s annual reports but most listed companies try to avoid them.

Tensions between the board grew and sources close to John Kirby say his constant questioning was the reason the company started tightening spending.

Kingston is among those who does not accept the Dreamworld tragedy as a valid reason for the overall decline in shareholder value and who considers John a “white knight”.

In the interests of all shareholders to fix the future performance of Village, John is seeking a new independent chairman.

David Kingston
“In the interests of all shareholders to fix the future performance of Village, John is seeking a new independent chairman in line with corporate governance standards [the] injection of new senior management, more non core assets sales and further reduction in excessive expenditure,” he says.

“With cancelled dividend, a $50 million rights issue, very poor share price and fire sale of Sydney Wet’n’Wild, since June 2018 John has done the heavy lifting and has probed extensively and constructively on multiple issues and concerns.”

The extent to which John can marshall a rebellion remains to be seen. The rest of the share register features few institutional investors with the exceptions of American outfits Dimensional Fund Advisors and Mittleman Brothers.

The few market analysts who continue to watch Village are lukewarm about the company’s turnaround. Citi analyst Sam Teeger said in August that Village could struggle to grow earnings.

“This could be challenging given the structural challenges in cinema and plans to reduce capital expenditure … divestment of underperforming divisions such as Roadshow may assist,” Teeger wrote.

Deutsche Bank’s Wassim Kisirwani was similarly unimpressed, and told clients that Village had “a poor record of delivering on expectations”.

The company had “attractive assets and an undemanding valuation”, but investors would “prefer to see some evidence of cost out traction before taking a more positive view”, Kisirwani wrote.

But a note from Baillieu a week ago said the company's share price has "rebounded strongly from the deeply discounted capital raising" in July.

The broker attributed the rally to capital raising to reduce debt, cost initiatives, successful refinancing and an improved trading outlook with a strong domestic box office and recovering theme park ticket sales.

*The show must go on*
Roc and Beatrice Kirby famously gave very few interviews, though the couple spoke in-depth to former Victorian premier John Cain for his 1998 book _On with the Show._

One of Roc’s great thrills was seeing Village blossom, and in 1994 he said that when he first started the business it was a “struggling little outfit [and] my vision had to survive through the ruthless competition in those early days”.

“When this became apparent, I had a clear dedication for Village to achieve a commanding cinema circuit throughout Australia... My vision now is for Village Roadshow to become an overall world entertainment identity,” he said.

My vision now is for Village Roadshow to become an overall world entertainment identity.

Roc Kirby in 1994
Robert shows similar optimism in 2019 after the company’s toughest year on record, saying “there are strong and encouraging indications of a turnaround, especially in our biggest business, our theme parks”.

“And of course the Queensland summer has been blessed with superb weather.”

He refuses to speak publicly about John and the family feud (John also declined to comment) but regardless, February 22 will be a landmark for the company when it publishes half yearly results and faces shareholders.

Either Burke and Robert deliver a strong return to growth - and importantly, start distributing money to shareholders again - or their leadership of Village will look increasingly untenable.

Investment banks are already sceptical, interest from major fund managers is scarce, and the board is riven by a bitter feud.

And what’s at stake? Only the future of the Village name and the legacy of Roc, Burke and the Kirbys.

702


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## bigdog (21 January 2019)

ASX Ann today
21/12/2018 2:23:18 PM Refinance Completed





Further update by the Age to report today

https://www.theage.com.au/business/...ys-former-hollywood-exec-20190120-p50shj.html

*Village Roadshow 'stopped at the drive-in', says former Hollywood exec*

A former executive at major Hollywood entertainment company Warner Brothers has hit out at embattled local operator Village Roadshow, describing the company's management as being "stopped at the drive-in" and failing to understand the future of the film business.

Edward Frumkes, the American film giant's president of international distribution and marketing until 2001, said he had worked closely with Village Roadshow chief executive Graham Burke and chairman Robert Kirby during his 13-years at Warner Brothers, but now thought the company was "not in any kind of position to compete with today's world in the media industry".

Mr Frumkes, now a senior executive at Shanghai Hippo Animation – a Chinese production studio backed by private equity billionaire Michael Kuan – oversaw the launch of several international hits for Warner Brothers including _The Matrix_, which was co-produced by Village Roadshow.

Village Roadshow also operates Warner Brothers Movie World on the Gold Coast under an agreement with the Hollywood studio, and a production partner through its Village Roadshow Pictures business for a string of movies including _Ocean's 8_, _Ready Player One_ and _Into the Storm_.

"Take a look at Netflix, at Amazon, and you'll see they are disrupting the (film) industry on a worldwide basis through technological innovation, entrepreneurial endeavour, their lifestyle leadership," Mr Frumkes said.

"In order to guide a media entertainment and leisure company, you have to be savvy. In my opinion, Village Roadshow has stopped at the drive-in.

"I definitely agree they are well-positioned, but this is purely an issue of poor performance, and that is a black and white issue."

Mr Frumkes comments follow revelations in the _Sydney Morning Herald_ and the _Age_ that John Kirby, a former Village Roadshow executive and a current board member, is pushing for Mr Burke, the company's chief executive for three decades, to be sacked and replaced.

The future of the struggling company, which has dropped in value from over $1.2 billion in 2014 to $575 million today, has caused a major rift between John Kirby and his brother Robert, who several Village Roadshow insiders suggest is positioning his son Clarke Kirby to take over.

Since John Kirby's departure as executive, the company has written down the value of its stake in Village Roadshow Pictures, which is now controlled by American hedge funds, to zero.

It was also forced to sell Wet 'n' Wild Sydney at a loss in a fire sale after the theme park continued to lose millions of dollars, forcing the company into a $67 million loss in 2017.

Mr Burke, in earlier comments to this newspaper, said the board had full confidence in management, and a turn-around in the theme park business was expected to deliver stronger profits for the company, pushing the share price to a six month highs of $2.98 last week.

John Kirby has appointed former Rothschild merchant banker David Kingston and Melbourne law firm Arnold Bloch Leibler to act on his behalf, and is pushing for the company to divest underperforming businesses like its Roadshow film distribution arm.

Citi analyst Sam Teeger told clients in August Village Roadshow "needs to demonstrate the ability to generate sustainable earnings growth" which "could be a challenge given the structural challenges in cinemas and plans to reduce capital expenditure".

"Divestment of underperforming divisions such as Roadshow may assist," he wrote.


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## $20shoes (3 February 2019)

Chart wise VRL is at an interesting bullish juncture on the weekly, and on Friday popped out of its daily channel to say hello to the longs. I like the cut of its jib at the moment.


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## BoNeZ (19 December 2019)

Nice jump today up 19% on an offer from private equity. I took the opportunity and sold.


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## System (4 January 2021)

On December 30th, 2020, Village Roadshow Limited (VRL) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between VRL and its shareholders in connection with the acquisition of all the issued capital in VRL by an entity owned by funds managed by BGH Capital Pty Ltd.


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