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Entertainment One

May 2016

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:
  • 193.5p
Rumours that eOne is in bid talks with ITV just won’t fade away and the shares, which had been impacted by weak looking Q1 guidance (flat as it is up against a tough comparison of c.12%), have bounced off the bottom. One broker, Jefferies, says eOne would prove an excellent fit for ITV’s studio business and that it could afford to offer £1bn and it would still enhance ITV’s eps by 10%.Separately, eOne has bought reality television production company Renegade 83, which owns several successful unscripted television shows. The US$23m price for a controlling 65% interest comes from the remaining proceeds of the FY15 rights issue and enhances eps by 2% in its first year. Strong hold.  ...

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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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