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Hotstoqx.com Releases Entertainment Media Analysis Report: Hannover House and Gaiam posed for gains

Vancouver-based stock analysis firm releases report and recommendations on value of USA Independent Studio Media Stocks

PRLog - Oct. 22, 2012 - Hotstoqx.com Releases Entertainment Media Analysis Report

Hannover House and Gaiam are positioned for significant stock price appreciation


(VANCOUVER, B.C)   Stock market website Hotstoqx.com has completed its study of publicly-traded, Independent Media Distribution companies and has issued a Strong Buy recommendation for Hannover House, Inc. (HHSE, OTC) and a buy recommendation for Gaiam, Inc. (GAIA, Nasdaq).  The research report looked at twelve USA-based entertainment companies, and excluded privately held firms and publicly-traded companies that had not posted current financial reports.  Companies reviewed in the Hotstoqx study included Hannover House, Gaiam, Image Entertainment, Genius Products and Convenience Television.  

Hotstoqx.com believes that the smaller, independent entertainment companies offer a greater upside potential to private investors than the Major Studios stocks.  Deciding which entertainment stocks are best positioned for growth requires an impartial analysis of key fundamentals, including earnings per share, assets-to-liabilities ratio and insight into the company’s current and upcoming product releases.  For more information on this Entertainment Media Analysis Report, visit www.Hotstoqx.com

COMPANY RESULTS SUMMARY

Hannover House, Inc.,
(HHSE-OTC) is a 20-year-old full-service distributor of films, videos and books.  The company is based in N.W. Arkansas, near its largest retail customer (WalMart Stores, Inc.), and boasts a catalog of nearly 200 titles.  Revenues and bottom-line profits for Hannover House have been growing in a positive trend line over the past 2-1/2 years since the company began public-trading of shares, and the 2013 release slate features several very high-profile theatrical titles.  Hannover House video titles are available in most major video retailers, mass merchants, bookstores, grocery stores and rental kiosks.  The company has an impressively low overhead and an equally impressive ratio of assets-to-liabilities (a key factor in the Hotstoqx analysis).  Bottom line profits for Hannover House in 2011 were $1,420,000 against approximately 489-million shares in issue.  Current share trading price for HHSE is at a 52-week low of only $.015, which indicates an upside potential of 643% to the Hotstoqx target share price of $.0964.  Hotstoqx.com has issued a STRONG BUY recommendation for HHSE shares, from the currently low share pricing, all the way up to $.075 per share.

Gaiam, Inc. (GAIA-Nasdaq) is a Colorado-based, multi-faceted company with significant activities in the media and entertainment sectors.  Launching with a series of hugely successful Yoga videos more than ten years ago, Gaiam expanded their entertainment focus with the acquisition of Goodtimes Entertainment in 2005, and more recently, with the 2012 acquisition of Vivendi Entertainment from Universal Music Group.   Gaiam posted significant revenues in 2011 (more than $250-million), but acquisition costs, overhead and one-time expenses resulted in a book loss for the year of $27,136,000.  Despite the 2011 loss, new revenues from the Vivendi acquisition should impact the company positivtely in 2012 and 2013, and the ratio of assets-to-liabilities is one of the highest in the industry.  Hotstoqx.com projects a value of $8.41 per share, and has issued a BUY recommendation for GAIA shares, from the current price of $3.38 all the way up to $7.60 per share.

Image Entertainment, Inc. (DISK-OTC) was acquired earlier this month by RLJ Entertainment (RLJEW-OTC).  Accordingly, shares in Image are not currently available as an offering separate from RLJ.  New, consolidated information on the combined companies sufficient for Hotstoqx to analysis has not yet been released.  Accordingly, no recommendation has been made on this issue.

Genius Brands International, Inc., aka Genius Products and Genius Entertainment (GNUS-OTC), is in a touch position at present, suffering from declining revenues, accrued losses, a negative assets-to-liabilities ratio and an uncertain future after sublicensing out its distribution rights.  However, in respect of the evergreen value of the company’s “Baby Genius” products (including the “Baby Animals” videos), the Hotstoqx.com recommendation is to HOLD at this time, in the hope that management will adjust their overhead burn-rate to better match the revenue streams from the otherwise streamlined operation.

Convenience Television, Inc.  (CRPZ-OTC) seems stalled in a perpetual start-up mode, with almost non-existent revenues, mounting losses and a toxically unhealthy negative ratio of assets-to-liabilities  (1-to-19).  Hotstoqx.com recommends to SELL this issue, with the possibility of reconsidering a stake if management can show progress on the implementation of their business model.

ABOUT HOTSTOQX.COM – Established in 2012, Hotstoqx.com is a Vancouver-based stock analysis and promotions firm.  The four principals of Hotstoqx collectively have more than sixty years of stock trading, Investor Relations and corporate analytical experience.  

(To view analysis chart, go to: www.HotStoqx.com)

CONCLUSIONS:

Hannover House (HHSE-OTC) and Gaiam  (GAIA-NAS) are both well positioned for significant PPS Growth.  Hannover House has been consistently delivering profits (with a positive trend line in quarterly bottom-line results and a healthy ratio of assets-to-liabilities).  Gaiam has shown impressive revenue growth in the past two years, and has an extremely healthy ratio of assets-to-liabilities (enough to compensate in this analysis for the company’s 2011 loss of $1.56 per share).  

Shares in Image Entertainment (DISK-OTC) are no longer available as a separate stock issue from  their new parent company, RLJ Entertainment  (RLJEW-OTC) since the Oct. 12, 2012 acquisition.  

The current price for shares in Genius Products (GNUS-OTC) appears inflated relative to years of consecutive losses and a worrisome ratio of assets-to-liabilities.  Shares in Convenience Television (CRPZ-BB) have been buoyed by stock speculators as the company has virtually no revenues and a 19-to-1 negative ratio of Assets to Liabilities.  

METHODOLOGY : Media Stock Valuations

In addition to looking at the Price-Earnings ratio, this Analysis places a premium value on Short-Term Assets as compared to Liabilities to create a “Bonus Per Share” valuation to be factored into each stock.  The application of a “Bonus Per Share” value assumes a baseline of two-dollars in Short-Term Assets for every one-dollar in Liabilities, and applies a bonus only for Short-Term Assets beyond this level.  To determine the impact of these assets to the per-share stock value, assets in excess of the baseline are divided by the total of shares in issue.  The adjusted PPS value is then multiplied by the amount required to equal the media industry sector Price-Earnings average (21-X) and this amount is applied to the stock’s PPS level prior to adjustment for the Bonus asset factor.  For companies without earnings (and thus, no applicable P/E ratio), a factor of 1-X has been applied to match the market’s current perception of the stock’s value.  Long-Term assets, including intangibles, “goodwill” and unearned film library rights are excluded from the determination of Short-Term Assets.  Data for each company listed in this report has been obtained from the issuer’s most recent, full-year public filings.

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Contact Email:
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Source:HotStoqx.com
Phone:604-751-3597
City/Town:Vancouver - British Columbia - Canada
Industry:Finance, Entertainment, Media
Tags:stocks, Entertainment, Movies, Finance, investors, otc
Shortcut:prlog.org/12005913
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