Absolutely not. Just conducting research and de
Post# of 7290
Posted On: 06/08/2016 11:09:51 AM
Absolutely not.
Just conducting research and desire is to ensure what HHSE management is blogging is factual.
HHSE puts a library valuation in each Q Report, doubtful they just make up a valuation.
Based on my research, HHSE has been working the valuation for a long time - see below blog:
HHSE BLOG – SHAREHOLDER QUESTIONS – SEPT. 16, 2015
1). How close is the film library, new valuation to completion?
In order for the new Library Valuation Study to proceed, HHSE had to first prepare the new title additions (to the prior film library report), and edit out titles and media rights that are no longer current. Next, a review of title and media-specific sales from the past four years needed to be compared against forecasts in order to revise the new 7-year projections against current data and trends (for instance, the existing library report predicted a much faster decline in DVD sales and a much slower growth in streaming revenues… both of which, in retrospect, were proven wrong… DVD sales have held in solid and streaming has grown faster than valued). The new Library Valuation Study will show a net increase of about 120 more titles than the prior report. The forecasts in general represent a 7-year catalog value reduction across the board of about 20% to 25%. However, the significant increase in titles more than offsets the reductions on a per-title basis. Accordingly, management feels that the balance sheet value of the Library will increase quite a bit after the new study is completed. Timing wise, HHSE is waiting until late November for three primary reasons: 1). Revenue Forecasts for four current theatrical titles include significant Subscription Video-On-Demand licenses and Cable TV sales, but only after achieving certain release thresholds which will be achieved by late November – and thus impact the long-term value of those titles; 2). Management is still revising some of the “deep-catalog” titles, with a view as to whether or not some of the older or less-commercial product can be repurposed for budget bin DVD, or multi-pack configuration, or for Television, V.O.D. or even international. Some of the titles in the “comedy” genre, for example, have almost no catalog value if they are missing a name star. On the other hand, some horror titles, even if sub-marginal in production and star value, have been selling continuously, every week for years, to the surprise and delight of HHSE management. So the 7-year projections for each title require some marketing analysis, which is only about 75% completed at this time. 3). The Valuation firm is expensive, and this timing works better for the Company’s cash flow, especially in respect of the commitment to pay of primary debt holders through cash resources instead of debt-conversion / stock issuances. If we meet the target date of providing the complete Management-prepared study to the Valuation Firm by late December, we are told that the report and opinion letter will be ready by early January. The Valuation Firm that we have selected is highly credible (does two of the Major Studios), and their opinion on Valuation is accepted by the top entertainment banks as collateral value.
Just conducting research and desire is to ensure what HHSE management is blogging is factual.
HHSE puts a library valuation in each Q Report, doubtful they just make up a valuation.
Based on my research, HHSE has been working the valuation for a long time - see below blog:
HHSE BLOG – SHAREHOLDER QUESTIONS – SEPT. 16, 2015
1). How close is the film library, new valuation to completion?
In order for the new Library Valuation Study to proceed, HHSE had to first prepare the new title additions (to the prior film library report), and edit out titles and media rights that are no longer current. Next, a review of title and media-specific sales from the past four years needed to be compared against forecasts in order to revise the new 7-year projections against current data and trends (for instance, the existing library report predicted a much faster decline in DVD sales and a much slower growth in streaming revenues… both of which, in retrospect, were proven wrong… DVD sales have held in solid and streaming has grown faster than valued). The new Library Valuation Study will show a net increase of about 120 more titles than the prior report. The forecasts in general represent a 7-year catalog value reduction across the board of about 20% to 25%. However, the significant increase in titles more than offsets the reductions on a per-title basis. Accordingly, management feels that the balance sheet value of the Library will increase quite a bit after the new study is completed. Timing wise, HHSE is waiting until late November for three primary reasons: 1). Revenue Forecasts for four current theatrical titles include significant Subscription Video-On-Demand licenses and Cable TV sales, but only after achieving certain release thresholds which will be achieved by late November – and thus impact the long-term value of those titles; 2). Management is still revising some of the “deep-catalog” titles, with a view as to whether or not some of the older or less-commercial product can be repurposed for budget bin DVD, or multi-pack configuration, or for Television, V.O.D. or even international. Some of the titles in the “comedy” genre, for example, have almost no catalog value if they are missing a name star. On the other hand, some horror titles, even if sub-marginal in production and star value, have been selling continuously, every week for years, to the surprise and delight of HHSE management. So the 7-year projections for each title require some marketing analysis, which is only about 75% completed at this time. 3). The Valuation firm is expensive, and this timing works better for the Company’s cash flow, especially in respect of the commitment to pay of primary debt holders through cash resources instead of debt-conversion / stock issuances. If we meet the target date of providing the complete Management-prepared study to the Valuation Firm by late December, we are told that the report and opinion letter will be ready by early January. The Valuation Firm that we have selected is highly credible (does two of the Major Studios), and their opinion on Valuation is accepted by the top entertainment banks as collateral value.
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