IP81 I understand where your coming from but you may not fully understand destra business strategy. IMO this type of acquisition fits in well with the type of company they are building – as per my following points; 1) MPH own 1700 DVD titles – destra has the payless budget DVD distribution business both are similar as they are currently sell hard content through retailers. Further to this mph have cinema release films for 07-08 year earning which are new revenue streams to mph (I think). 2) In future year’s destra can digitalize all this content across all markets. 3) The titles may not be big budget films, but obviously neither Destra nor mph has the market caps to compete with the like of newscorp, and obviously these titles still sell as mph forecast turnover for 07’ = $33m. 4) Movie titles they have on the books look reasonable – Robin Williams, Reese Witherspoon and the Brats movie (my kids love Brats!!!). 5) Destra has an investment (10%) in quickflix – can a deal be done to add these titles to quickflix library??? 6) If you believe in the destra management team and not the mph management then you should see this as a plus as the mph team will be under destras guidance and hopefully grow this business to levels that you saw in its early potential. 7) As for a further stake in quickflix – quickflix is still underwater and may require further funding – I for one am a lot more happier with what they are trying to purchase in MPH – see my future up date on what this mean to destras earnings. 8) Note; Destra bought quickflix at 10 cents (6 months ago when nobody else was interested) are they again buying a company that has potential that is not yet reflected in its share price?
These are only my thoughts please do your own research.
DES Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
