Home > Investment Idea > Hollywood Media: Market is sleeping to huge event

Hollywood Media: Market is sleeping to huge event

November 13, 2013 Leave a comment Go to comments

This one is a list minute idea so it could go away quickly, but just goes to show that market is not efficient.

Hollywood Media has been written up quite a bit. Baker Capital owns a nice 15% of the equity. Basically it is an asset play. The market cap is 33m w/ cash of 25M. The biggest asset that has been hard to monetize so far is the stake in movietickets.com. There has been a case going w/ AMC and Hollywood Media. HOLL saying AMC is in contract to sell tickets via movieticket.com. AMC broke this contract when it went to fandango.com. This has been a legal case that just has been dragged out for years. although AMC has been looking to go public and has impetus to settle.

The court case was suppose to go in-front of judge on Nov 13th, tomorrow. But if you look at the court website it says the case is now settled. If you google or search on SEC you don’t see any filings. I just googled the court page from google cache as of Nov 4th and the case was not settled. But today the same page says settled. so looks like it is an event that has just occurred but no one has really reported anything.

google cache – Nov 4:
http://webcache.googleusercontent.com/search?q=cache:7Nb2ld6-s4MJ:15thcircuit.co.palm-beach.fl.us:8080/web/guest/sasser/trialcalendar+&cd=1&hl=en&ct=clnk&gl=us

current page:
http://15thcircuit.co.palm-beach.fl.us:8080/web/guest/sasser/trialcalendar

Now this could just take off  but given that HOLL is a small cap, i wouldn’t be surprised if you get a day or 2 purchase window. We don’t know the details of the settlement, so there is an uncertainty here. But for 33M market cap, w/ 25M in cash you are basically putting very little at risk. Unless HOLL got out foxed in the negotiation, there should be plenty of value created for HOLL from this settlement to cover the risk at current prices.

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Categories: Investment Idea
  1. j
    November 13, 2013 at 11:14 am

    hey, look at taro 🙂

    • paras
      November 13, 2013 at 5:18 pm

      Taro reported very good numbers. Even after the jump today, the stock is cheap.

  2. brett
    November 15, 2013 at 2:19 pm

    Do you still hold all of these? Is there anything else you own? Its nice to see you have a little more frequent posts. Thanks.

    Bank of America, Class A Warrants (BAC.WS.A)
    – MBIA (MBI)
    – Chesapeake Energy (CHK)
    – XPEL Technologies (XPLT)
    – Sears Holdings (SHLD)
    – Fannie Mae Preferreds (FNMAS)

    • paras
      November 15, 2013 at 6:23 pm

      I sold my MBIA shares a while back, I posted a blog on it. I did buy the Jan ’15 MBIA call options. I think the upside is still there in MBIA, as they will likely get a credit rating upgrade in the coming months. I wanted the cash for some other investments, so I was able to still keep the upside via using options.

      I do own Freddie/Fannie stock. They have been a bit of a risky bet until Berkowitz came out with his plan. And today Ackmann came out with his 10% filing in the stock.

      I also own Hollywood Media. I bought the shares when I blogged about it earlier this week. I will post an update on my holdings.

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