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Entertainment One

May 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ETO
  • Price:
  • 151p
Having raised funds for acquisitions back in February, it’s no surprise to see ETO announce the first of an expected bunch of deals. It is buying Australian film distribution business Hopscotch for £12.9m of which £6.45m is in cash and the rest in new shares. That equates to an exit PE of 6.5x so is immediately eps enhancing.Hopscotch is based in Sydney and distributes both mainstream and local content. In 2010 Hopscotch released 15 titles theatrically and has a library of 300 feature film and television titles. The acquisition means that ETO now has all the major English speaking countries covered.Earlier in the month, ETO issued a pre-close update ahead of reporting results on 23 May. The update confirmed that the Fil ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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