M O K A R I M A K K A
Research
Company – Entertainment
One
Ticker – ETO
Market Cap – $966m
Current Share Price – 326p
Entertainment One focuses
on the acquisition, production and distribution of film and television content
rights across multiple media platforms worldwide. Predominantly in film and television, its most famous assets
include, 12 Years a Slave and Pepper Pig and as such creates alternative income
streams via, the distribution and licensing of characters stories and series
for children and families. Based in Canada but listed in London,
ETO is a global company.
Shares traded for 320p in
January 15, falling to a low of 269p in February from where the price has steadily
risen back to 320p – 330p. Final
results for 2014 (Dec) revealed that eOne generated £44m profit on £785m
revenue, with profits predicted to continue to rise in 2015 to £96m on £870m
revenue.
Current threats to eOne
are minimal; given the barriers to entry into the industry are significant. Weaknesses
are only realized by the poaching of scriptwriters from eOne’s staff, for which
eOne mitigates this risk by looking for the best writers in the industry and
retaining them with attractive packages.
Acknowledging the limited
threat above, there are opportunities here, eOne has an impressive back catalogue
of assets ready for launch and license to T.V broadcasters, in addition it is
expanding its asset class to the service sector with the launch of Pepper Pig
world, (Hampshire) which saw over 1 Million visitors in its first year of
opening, and a second site being launched in Italy this year.
The biggest pot of gold is
yet to be realized, eOne is actively seeking a route into China; a resource yet
untapped by western media. If successful,
the size of eOne could double at an incredible rate.
MOKARIMAKKA - …I’m very
excited, Buy!
M O K A R I M A K K A
Research
Company – Aga Rangemaster Group
Ticker – AGA
Market Cap – $65m
Current Share Price – 100p
Aga Foodservice is famous for its luxury domestic cooking appliances, although it is also responsible for retail home fashions and refrigeration equipment, Aga Foodservice trades under the ticker AGA.
Aga is the worlds leading luxury kitchen appliances retailer. The principle asset is the world famous period Ironware cookers; following a series of acquisitions Aga has expanded its product range to meet the demand for more contemporary design, therefore broadening potential revenue streams.
Shares traded for 188p in March 14 on rising revenues but declining profit; at present shares are trading between 90p – 100p on rising revenues AND rising profits, with 2015 forecasts to be £13m from £700’000 in 2014, up 1700%!
Current weakness in Aga is the extant pension deficit, at circa £70m, this will eat into operating profits. Under the current pension deficit reduction plan, Aga will pay £4m this year and £10m from 2016 – 2021. Coupled with the pension deficit, Aga doesn’t pay a dividend.
Despite the weakness above, there are opportunities here. Extremely undervalued at a P/E of just 7, Aga is being misrepresented by investors who’s aim are for ‘quick’ profits, there are 100’s of companies in the FTSE AIM, FTSE 200, FTSE 100, on the verge of bankruptcy with astronomically high P/E’s, and investors love them!
2015 sees expansion into the Far East, with results from a flagship China store expected Dec 15. Trust in at this price and you will be rewarded!
MOKARIMAKKA - Double your money here - Buy
*Quick update, I've taken 20% gains in this stock and now my position is closed, however there may be more upside potential given the new 'take-over' interest, possibly up to £2.00 per share. I am watching this one closely.
*Quick update, I've taken 20% gains in this stock and now my position is closed, however there may be more upside potential given the new 'take-over' interest, possibly up to £2.00 per share. I am watching this one closely.
M O K A R I M A K K A
Research
Company – Amara Mining
Ticker – AMA
Market Cap – $65m
Current Share Price –
15.6p
Amara Mining was
formed in November 2003. The
Company floated on the London Stock Exchange’s AIM in December 2004. In October 2012 the Company changed its
name to Amara Mining PLC and trades under the ticker AMA.
Amara’s principle
asset is the Yaoure Gold mine project located in the Cote d’Ivoire in West
Africa. Although not currently in
operation, the Yaoure mine has had a Preliminary Economic Assessment (PEA)
which has revealed better that expected results, including a total resource of
6.3 million ounces of Gold (2.7 Indicated, 3.6m inferred) and a Net Present Value
(NPV) of US$688 Million.
The project is fully
funded up to the Bankable Feasibility Study (BFS), Q4 2015, after a recent
round of funding by selling more shares.
Amara will now move to the next stage of the development by completing a
Pre-Feasibility Study (PFS) to ascertain the ‘quality’ of the resource; with
all signs pointing to positive results (Q1 2015). Amara’s exposure to price fluctuations in the price of Gold
are mitigated by Yaoure’s economies of scale that see the project break even
with Gold prices of US$800.
Not to forget, Amara
has Baomahun Gold mine in Sierra Leone, Kalsaka/Sega in Burkina Faso both with
huge potential yields. Amara is an
attractive takeover opportunity for larger mining companies.
When production starts
(early 2016), Yaoure will be Africa’s 8th largest Gold Mine; this is
a long term Investment, with risk of 4.2% the potential reward is 40% (25p) possibly
233% (50p) when production begins.
MOKARIMAKKA - Hold
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