Forum Archive Index - May 2000

["nick" <acummin@es.co.nz>]

       I have spent some time analysing Force corp in the last few days.
 I have spoken to a couple of brokers also, neither could give me a reason
why i should not buy.
           Force tends not to recieve much attention from institutional
investors
because of its small size. Yet the company has done nothing wrong.
         Remember when ihug wanted in, the shareprice hit 1.00.
    The suprising thing is it was the force shareholders who voted down the
move.
 It was the ihug boys who ended up upset.  This shows Force must be in
fairly good shape else it would of jumped at the merger.
       As previously stated the company is fundamentally in a good position
and trading at a very low p/e.  The price is currently lower than at any
time in the
last few years  (.45)and is unlikely to go any lower.  Anyone who wanted to
sell has had
plenty of opportunity with the ihug associated price rise.
    They own 25% of the village/hoyts/force joint venture and had 3.7
million admissions
 in the six months to december. Despite star wars being the only big
grossing film
         The company has completed the Force entertainment centre which is
now
fully leased and is pulling in 6.8m a year in rent. They are supposed to be
selling to
trust company of australia ltd but there is a dispute over settlement.
   My broker dosent see this being too much of a problem, besides any
potential bad news is already covered by the low share price.
      The centre is performing very well, force also has an 80% stake in
planet
hollywood, which is proving to be performing well ahead of budget and
is very complemetary to the cinema next door. The twelve screen cinema is
now new
zealands number one
      In argentina Argentina
Admissions for the six months to December 1999 were 2.9 million up from 1.4
million for the same period last year. Village SA contributed $1.2 million
after tax to the half-year result.
A significant contribution was made by Recoleta which opened in July 1999
and
bought the total number of screens in Argentina to 69, (47 at December
1998).
Recoleta is now fully leased with cinema admissions being well ahead of
budget.
          Force also have a stake in a moviemaking company
Force's one-third interest in South Pacific Pictures continues to produce
good results. Its production of "What Becomes of the Broken Hearted" was the
fourth largest film at the NZ box office last year and has since been sold
to
35 countries around the world. The upcoming feature film "Jubilee" scheduled
to release in April should also perform well at the box office.
         The labour govt is very supportive of anything to with local film
making and
this is one company that shouldnt suffer to much under labour.
         The film currently being made in New Zealand (lord of the rings) is
sure to be a massive hit in this country with huge cinema attendance.
     Cinema going is making a world wide revival and is being increasingly
linked with modern technology and trendy restaurants etc to be a whole
evening entertainment package.
        I went to london imax at xmas which has europes biggest screen
it was an amazing experience all in 3d, gave me a glimpse of the future
of cinema.

 nick







> That's very interesting Nick.
>
> What's the situation with the new complex - wern't there issues around the
> sale?
>
> Just looked at the fundamentals - current ratio is very low..otherwise
looks
> an excellent time to buy.
>
> Also: 69 screens in Argentina!! theoretically the whole of Latin America
> could be a potential market?
>
> Cheers
>
>
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