re: ** aoltimewarner profit rises on matrix reload
Hiya,
I think AFR seems to have some of suppression campaign on VRL. I am keeping all their silly articles so when matrix runs I can email the authors and say "which fund manager told you to do this"
Anyway, if you look at things in perspective, if you want value VRL has it all. Look at CMQ, it has double the market cap to VRL, and doesn't do anything.
VRL has extensive DVD distribution business, global cinema business, cinema advertising business, and makes many of the movies you and I see, eg Dreamcatcher, Cats and Dogs, Matrix 1,2,3. Also owns themeparks in Queensland, and also the land trust.
They can bag it all they want, but at the end of the day it is one of the worlds biggest movie production houses and if you go look at what dreamworks, WB/Buena vista are all worth it makes it a joke.
One thing that I think AFR did say, is that if VRL does not make money, then NCP never will. This is another eg, why is NCP so much better? It does TV as well, but really its in the same business with massive p:e.
Currently p:e VRL is around 10. Also NTA is around $2.24. Thus its very hard to lose on this one.
Eventually, I think it will be taken off the market since the market is not properly giving it true value.
So, all these people bagging VRL are all buying it, especially the funds, what the CEO said at the AGM, so if you want to believe all the spin people will miss out on VRL.
Since when it does show some earnings, p:e will not be 10 anymore.
Profits will not be shown for a while, that is because it needs to make more movies, it is committed with Warner Bros.
Anyway, they are cheap in my opinion, and I think AFR has it wrong. Do a search of at www.afr.com for VRL and look at the way they keep bagging it, its almost comical.
Buy low sell high, there is nothing wrong really with the company....
VRL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
