Avesco Still going strong.

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!
Viva!

Dan

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No Responses

  1. Doubting Thomas Today says:

    Dan,
    I want to believe your here for the PI… But when you say things think it was the 23rd May!!! Come on mate, get a spreadsheet/chart page like Tom Bulford, with all the dates, tip price, percentage rise, etc. You are getting massive amounts of bad press on the boards now. Its a shame as i know you have had some timely tips. But we need to see some transparency if you want to maximise your credibility. Its very hard to follow your blog, a chart is a simple solution. I hope i get a reply this time. Thx

  2. MikeST says:

    Hi Dan, apologies but don’t understand this part – “Will they fend off Celadors appeal?” is this supposed to read fend off Disneys appeal? At which time the special dividend will be paid to shareholders, have I understood that correctly? Cheers and all the best.

    • Brokerman says:

      Thanks for that it should of read Disney. I’ve corrected it. Head full of other stuff for upcoming posts etc
      Cheers Mike

      Dan

  3. Rosalimacat says:

    Hi Dan
    BZT should be @ 70 to 80 pence
    Any help.

  4. MikeST says:

    Cheers Dan, appreciate it!

    Doubting Thomas Today don’t be nitpicky twat, im pretty sure he’s not trying to win a popularity contest on the boards…

    Rather the Blog’s been a tremendous help for PI’s like myself, with pointers on stocks and reasoned fundamentals to watch list the companies the Blog chooses to follow…

  5. JAmes says:

    Dan’s getting stick because people have lost cash due to the commodity downturn. This blog focused on commodities so it’s inevitably going to get a bit of stick. Unfortunate timing for a website launch, but there we go.

    This was why Avesco was an intelligent suggestion, for diversification purposes and has paid off. If I was a holder I’d start looking at future macro-indicators. The market is in limbo land at the moment, the FTSE has maintained (roughly) its position, while the small-caps have fallen away. The question therefore is which has the greater predictive power for the next six months. I say ‘limbo’ because the market (on all levels) seems to be waiting for a definitive signal to either swing upwards or downwards. At the moment contradictory macro-info is confusing traders and that’s why we are seeing a lot of volatility – at all levels. (although small cap volatility has been largely downward of late, but if you holding productive resources, with restricted supply chains and low inventory levels in the main ‘user’ countries (read China for coal, etc) then you have a little less to worry about. However – money supply in China is growing dramatically…so all this is a long winded way of saying, A) Avesco worked out as a good diversify and market beater and b) now you have the profit watch the futures’ market for indicators so as not to see it drip away.

    (that’s said Dan clearly knows more about the company specifics than I can ever hope to…so if you have a good micro reason for holding then stick with it, but I’d be careful a 40% premium to the risk free base line is not to be sniffed at).