It’s been a fantastic few weeks for holders of Avesco stock. We wrote a decent piece on them last month (I think it was 23.May). They are nearly up 40% since we here at the worlds favourite Blog highlighted the potential and gave you the inside track on the city view . Of course we don’t claim or try to take the credit that’s down to Avesco and the $60 million dollar question. Will they fend off the Disney appeal? Now we here can’t predict the result so what I shall do is repost the main body of the original article for investors to peruse.
Here’s a terrific potential 100%/175% gain that could have investors frothing at the mouth come late June,July.
The Avesco Group are an international provider of services to the corporate presentation, entertainment and broadcast markets, the company Blurb states;
Avesco Group plc is the parent company of a market leading international media services group. They provide specialist audio-visual equipment and services to live events, broadcast and entertainment industries. Their full service companies provide complete technical support for conferences, sports, music, corporate events and television programmes. To complement these, they offer broadcast services supplying broadcast equipment, systems, services and television studio facilities. The businesses growth has been both organic and through acquisition, increasing the number and location of base operations and further extending their ability to provide world-class service with real international reach.
Avesco through Celador, owner of Who Wants to be a Millionaire, recently won a court case against Disney in the California courts (July2010). On the sale of the business, Avesco retained its right to receive the benefit of the litigation case with Disney whereby it has been alleged that the show format was not promoted suitably. Judgement was given against Disney to the tune of $269.4 million dollars. Avesco’s share of the award is $60 million dollars which comes to approx’ 159p per share. Now take in the fact that Avesco have recently announced a return to profit in 2010 with sales of £117 million with a trading profit of £1.3 million and look set to steadily remain on course through-out 2011. The companys’ tangible net asset value is approx,15op per share; based on that fact alone Avesco are under-value by 30p! So here’s the crux of the matter Disney have appealed the Judgement even though they were beaten hands down in 2010. The appeal comes up for hearing at the end of next month(June) the downside is that if Disney win the appeal then Avesco will in turn appeal it, so we could be in for a long wait.The upside is that should the court dismiss Disneys’ appeal (REMEMBER THEY’VE ALREADY LOST ONCE) then Avesco will return to shareholders a special dividend of yes you’ve guessed it 150p! So just what are the chances of Avesco holding on to the Judgement? They are much better than any oil explorer world-wide. “To succeed on appeal, Disney will have to show that the trial judge erred, possibly in instructing the jurors. Appellate courts generally are reluctant to overturn jury verdicts,” said Michael Kump, a partner with Kinsella Weitzman Iser Kump & Aldisert in Santa Monica, California, whose practice has litigated numerous cases against Disney.
Could hit 200p,250p in the next six weeks!