I hold this stock and this is why;
Last years accounts mainly highlighted the fact that PrimeEnt had inherited historic debt from Portman. Debt that was not transparent when PME bought from VTR. VTR basically denied cash to Portman. This left Portman with debts and a product gap and PrimeEnt had to finance it. PME are currently in dispute with VTR.
Portman product gap has certainly now been addressed. Many new productions are underway. Portman has set about establishing itself as the leading sales agent for films from Australasia, one of the most vibrant film production regions in the world. Other film deals are currently been struck with arguably the largest UK media player, news of which shall be forthcoming in the near future once the “t’s” are crossed and the “i’s” are dotted.
Alongside the film business, new TV programmes continue to be developed. For me the Martin Clunes series is the highlight. The second series of the contemporary horror stories, Urban Gothic shall again retain and no doubt add to its cult status. I for one will be very interested in the “Iron” Mike Tyson documentary, this shall no doubt be a worldwide selling production for many a generation to come. Projects such as Dark Knight, the sword and sorcery adventure series which has now started production on the second set of 13 one-hour episodes will again add to Portmans up and coming status and positive profile. The music industry seems an obvious link with Visuals DVD capability. I feel it’s a great ploy by capturing a series of the concerts featuring top pop stars staged at the Dome and what I consider the cream of the crop, a live concert by Eminem, one of the most internationally popular American rap artists, this shall be very beneficial for both parts of the group for sure. I am expecting to see strong partnerships built with suitable suitors in the music industry to enable PrimeEnt to capitalise on the huge potential market place before them.
The Portman debts have now been fully paid and are no longer a burden. Cash position is good. The bank loan facility was helped by the one-year loan period being increased to five in the later part of last year, thus helping with working capital.
The VTR litigation. There is no downside at all to this issue as far as the accounts are concerned. The amount having been written off in last years figures can only be seen as a huge bonus if amicable settlement is achieved, however the PrimeEnt board have made it quite clear that it is their unequivocal view that the case is strong enough to warrant vigorous action if that is necessary.
The current years half-year interims shall be published around the middle of February. I am expecting these to fall in-line with PrimeEnts forecast of around £5M to £5.5M turnover for trading between 01.07.200 – 31.12.2000. I am certain that this shall have a very positive effect as the interim turnover is more than double that of last years total plus, added to that is that the company shall be trading profitably in its second year since evolving from the SBC shell.
With regards to acquisitions and partnerships. This becomes interesting. I am assured that there shall be no burden placed on PME shareholders for the time been. I have had confirmation that there shall be no further share placement to raise capital in the near future and that under no circumstances would there be a placement at under 5p a share in the future.
I am pleased with Phillip Reids choice of contracting Simon Forrest of Impact. We have seen a far more transparent approach from PrimeEnt since his employment. Shareholders are now receiving near on monthly trading statements and I am very pleased about this “more professional” approach.
PrimeEnt has turned down a take-over approach in the not so distant past and shall probably have to in the not so distant future. It’s the boards opinion that the current market capitalisation is farcical so there is no way they would sell their shareholders short.
To conclude, lets take a comparison to peers, Entertainment Rights. They last reported a turnover of £1.8M and a loss of £2.9M, their market cap was somewhere around that of £44M at the time. Their current market cap stands around £20M having reported slightly improved interim figures last September with turnover up to £1.6 million from £1.0 million and operating losses of £0.8 million down from £1.3 million last time around. With PrimeEnts currently market cap languishing around the £12M market I clearly see PrimeEnt in a different league to ETR. On this evaluation alone I conclude PrimeEnt’s correct market cap should be nearer the £60M mark, thus valuing a share around the 10p mark. This I know will not happen overnight, but come 6 months time I have absolutely no doubts that the market will have come to terms with PrimeEnts true valuation.
Oh, and it goes without saying, the information I have provide is purely of my conclusion. I am not authorised to provide financial advice and have no intention of doing so. As always, I advise that you do your own research and make your investment decisions accordingly.
Wish you well
Mark
Last years accounts mainly highlighted the fact that PrimeEnt had inherited historic debt from Portman. Debt that was not transparent when PME bought from VTR. VTR basically denied cash to Portman. This left Portman with debts and a product gap and PrimeEnt had to finance it. PME are currently in dispute with VTR.
Portman product gap has certainly now been addressed. Many new productions are underway. Portman has set about establishing itself as the leading sales agent for films from Australasia, one of the most vibrant film production regions in the world. Other film deals are currently been struck with arguably the largest UK media player, news of which shall be forthcoming in the near future once the “t’s” are crossed and the “i’s” are dotted.
Alongside the film business, new TV programmes continue to be developed. For me the Martin Clunes series is the highlight. The second series of the contemporary horror stories, Urban Gothic shall again retain and no doubt add to its cult status. I for one will be very interested in the “Iron” Mike Tyson documentary, this shall no doubt be a worldwide selling production for many a generation to come. Projects such as Dark Knight, the sword and sorcery adventure series which has now started production on the second set of 13 one-hour episodes will again add to Portmans up and coming status and positive profile. The music industry seems an obvious link with Visuals DVD capability. I feel it’s a great ploy by capturing a series of the concerts featuring top pop stars staged at the Dome and what I consider the cream of the crop, a live concert by Eminem, one of the most internationally popular American rap artists, this shall be very beneficial for both parts of the group for sure. I am expecting to see strong partnerships built with suitable suitors in the music industry to enable PrimeEnt to capitalise on the huge potential market place before them.
The Portman debts have now been fully paid and are no longer a burden. Cash position is good. The bank loan facility was helped by the one-year loan period being increased to five in the later part of last year, thus helping with working capital.
The VTR litigation. There is no downside at all to this issue as far as the accounts are concerned. The amount having been written off in last years figures can only be seen as a huge bonus if amicable settlement is achieved, however the PrimeEnt board have made it quite clear that it is their unequivocal view that the case is strong enough to warrant vigorous action if that is necessary.
The current years half-year interims shall be published around the middle of February. I am expecting these to fall in-line with PrimeEnts forecast of around £5M to £5.5M turnover for trading between 01.07.200 – 31.12.2000. I am certain that this shall have a very positive effect as the interim turnover is more than double that of last years total plus, added to that is that the company shall be trading profitably in its second year since evolving from the SBC shell.
With regards to acquisitions and partnerships. This becomes interesting. I am assured that there shall be no burden placed on PME shareholders for the time been. I have had confirmation that there shall be no further share placement to raise capital in the near future and that under no circumstances would there be a placement at under 5p a share in the future.
I am pleased with Phillip Reids choice of contracting Simon Forrest of Impact. We have seen a far more transparent approach from PrimeEnt since his employment. Shareholders are now receiving near on monthly trading statements and I am very pleased about this “more professional” approach.
PrimeEnt has turned down a take-over approach in the not so distant past and shall probably have to in the not so distant future. It’s the boards opinion that the current market capitalisation is farcical so there is no way they would sell their shareholders short.
To conclude, lets take a comparison to peers, Entertainment Rights. They last reported a turnover of £1.8M and a loss of £2.9M, their market cap was somewhere around that of £44M at the time. Their current market cap stands around £20M having reported slightly improved interim figures last September with turnover up to £1.6 million from £1.0 million and operating losses of £0.8 million down from £1.3 million last time around. With PrimeEnts currently market cap languishing around the £12M market I clearly see PrimeEnt in a different league to ETR. On this evaluation alone I conclude PrimeEnt’s correct market cap should be nearer the £60M mark, thus valuing a share around the 10p mark. This I know will not happen overnight, but come 6 months time I have absolutely no doubts that the market will have come to terms with PrimeEnts true valuation.
Oh, and it goes without saying, the information I have provide is purely of my conclusion. I am not authorised to provide financial advice and have no intention of doing so. As always, I advise that you do your own research and make your investment decisions accordingly.
Wish you well
Mark
