VRL - Village Roadshow

[RichKid]

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.

 

[rozella]

Re: VRL Village Roadshow

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

 

[RichKid]

Re: VRL Village Roadshow

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.

 

[Gurgler]

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.

 

[Gurgler]

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.

 

[Sean K]

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.

 

[Gurgler]

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?

 

[Gurgler]

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.

 

[Gurgler]

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?

 

[Gurgler]

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.

 

[bloomy88]

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

 

[So_Cynical]

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.

 

[bloomy88]

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

 

[Indie]

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

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.

 

[So_Cynical]

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

I'm with Indie

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)

 

[Tysonboss1]

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.

 

[So_Cynical]

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.

 

[So_Cynical]

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:

 

[Kremmen]

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.

 

[So_Cynical]

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.