MV Sports - outperform??

rabbit

Newbie
8 0
Any views on whether these shares are likely to outperform given slump in price over last 12m (for no real reason)???
 
rabbit,

looking at the chart this is a classic case of a stock that *may* be at the bottom.

IMHO this is not the time to buy unless you are a trader - much better to buy when the recovery is much more visible. You may pay twice the price but the risk is correspondingly less!

My choice is always to go for the low hanging fruit where the upward trend in price is already clear. It is too easy to "buy for recovery" to find that it just doesn't happen or it takes much longer than you expect.

Moreever with a penny share you have additional risk in terms of the spread on the share price.
I'm watching JJB and JD. at the moment - both companies have established management and expansion plans.

Good luck - whatever you do.
Let tghe trend be your friend!
 

Riz

Experienced member
1,266 5
Agree with Darth..no sign of recovery on the chart...best to wait for clear signals with such high risk shares...

Riz
 

rabbit

Newbie
8 0
Thanks. Agree that it looks too early from the chart.

However the Y/E results to12/00, released in March, showed a return to profitability and the accompanying trading statement from the chairman was extremely upbeat. The company holds a strong portfolio of licences, incorporating ranges such as Harry Potter etc and the future appears to be looking alot rosier.

I believe that this company has been overlooked to date and it will only be a matter of time before it is tipped. As you recommend it may be too early to buy at present but it won't be long - I'm watching the chart closely!!
 

rabbit

Newbie
8 0
Interesting article in the press the other day re Aim listed International Greetings. Amongst other things they offer Harry Potter merchandise - indication is demand is huge, to say the least, and orders are well ahead of expectations.

MV Sports also have licences for Harry Potter merchandise and if they encounter similar demand then this can only add to their already improving fortunes.

Not reflected in the price to date but as hype intensifies in the run up to the release of the Harry Potter film, 'Harry and the Philosopher's Stone', in November, buyers may well return in force looking for companies with exposure.

The price could be set to rise sharply as soon as the market wakes up! I have increased my holding and now intend to sit back and enjoy...
 

rabbit

Newbie
8 0
Took the plunge and puchased a few more today. Looking back at the last 2/3 days looks like I was not the only one - volumes remain fairly low but quite a lot of buying.

Quite a talked about stock in the London bars at present - fingers crossed it can only be a matter of time.....
 
I hope these do well for you although don't forget there are plenty more fish in the sea!

IMO. it's always best to avoid gossip, rumour and tips as they very really turn up and the right time. Some recent examples of tips: EDG, SUY, HRN, NAE. Curiously they were all tipped when the market needed buyers so that the smart money could take profits. That is not to say these companies would not make good investments - just that the timing was somewhat less than optimal.

Good luck.
 

rabbit

Newbie
8 0
Interesting article picked up on another BB. Cannot confirm accuracy of content and certainly not yet reflected in the share price (which is down further today)! Could be an interesting development though on a medium term view.

-----------------

MV Sports to finalise deal to fund acquisitions
16 August 2001 8:00:00 AM
MVS

MV Sports [MVS], the most actively traded stock on Aim, is in discussions to acquire two companies by the end of this year.

MV, which makes and sells children's outdoor toys, including Bob the Builder and Barbie merchandise, has £1.4m in cash but is on the verge of finalizing a three-year banking deal giving it access to another £6m. The company will use this money to buy more companies, including a stationery business, and develop new children's products.

MV will also reduce the number of its shares ' management believe this is one of the main reasons for their low price ' through a share consolidation.

There are 1.98 billion shares in the market, but the company has a market value of just £12m.

Financial results out this autumn are expected to show flat turnover, with sales forecasts to reach £27.7m for the year to June. This compares with £27.6m for the previous 18 months.

The company is also set to move into pre-tax profit, compared with a loss of £5.7m a year ago.

'We have had to undertake a lot of restructuring and reduce our spending levels substantially. We now have £1.4m cash compared with just £184,000 last year while the amount of stock is down 50%,' said Kevin Downes, MV's finance director.

Next month MV will unveil its new range of Harry Potter merchandise to coincide with the November release of the film. But Downes believes the next big hit in the children's market could be a set of characters called the Hoobs, who are said to be a mixture of Sesame Street and Tweenies.

The company is still pursuing a claim against power supplier GPU after a power cut last year cost it more than £2m.


We say...

MV's share price doubled last year after an article by the infamous City Slickers in the Mirror newspaper that they could reach 15p. However the newspaper article turned out to be widely optimistic and the price has slipped since then to 0.5p. Credibility has been questioned in the past because of accounting problems, but with a new range of products things are expected to pick up. It's early days yet, though, so this must be counted a speculative buy.
 
We've talke about the chart before but from a fundamental point of view twe have wo billion shares, flat turnover not much cash and no profits.

Any growth in profits will be heavily diluted by the massive number of shares in circulation...

Good luck to you but I see much many more interesting opportunities almost every day.
 

rabbit

Newbie
8 0
Positive news on RNS today
=======

RNS Number:3982K
MV Sports Group PLC
21 September 2001


MV Sports Group Plc ("MV Sports" or "the Group")

Facility Agreement


MV Sports is pleased to announce that it has signed a three year facility
agreement with Burdale Financial Limited, a subsidiary of Wachovia Corporation
(formerly First Union Corporation) to provide a #6 million facility supporting
the Group's ongoing working capital requirements.

This new banking agreement will better secure the availability of funds for MV
Sports which will enable the Group to fulfil its future plan for organic
growth coupled with an aggressive policy towards future acquisitions.

Dennis Levine, Chief Executive of Burdale Financial Limited, commented:

"MV is an exciting business with excellent growth prospects and we are very
pleased to have provided this financing facility to give the business
additionally flexibility as it embarks on its continued expansion plans".
==========
BF Ltd must have seen uptodate mgmt a/cs to agree facility. Therefore results due out end of Oct should be good, no hidden surprises.

Pleasing to see that share price held up today given market conditions - shame about the rest of my portfolio though!
 

rabbit

Newbie
8 0
Sustained buying over recent days, no way spectacular volumes, but encouraging. The chart may be about to turn!
 

rabbit

Newbie
8 0
OK, a bit overdue but look at recent trading volumes and the chart for MVS now. Looks pretty good to me!
 

ChartMan

Legendary member
5,580 46
My indicators suggest MVS is at or near a top...
 

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