Forum Archive Index - June 2000

["Krypt Or" <kryptz@hotmail.com>]

There has been some discussion on Force recently.

I've just had a good look at them and there are a few concerns:

1) Cinemas in Fiji. We all know the recent instability in Fiji. Anything 
could happen, it's quite feasible for the country to shutdown.

2) Cinemas in Argentina. Latin American economies are characterised by high 
debt, high inflation and cowboy style management of the economy. Argentina 
is just coming out of recession but I wouldn't count on anything in the way 
of consistent profits.

3) Recent IMAX company difficulties. I find the future of IMAX highly 
questionable. Many people I have spoken to see Imax as a one off... and 
complain about sore necks. I think if Force buys Imax this increases the 
risk of Force shares considerably.

4) High debt. Current Ratio is poor and Force needs to sell it's properties 
to bring the balance books back to less risk. The Force Entertainment Centre 
is STILL not sold...

5) Amalgamation with Hoyts probably won't go ahead.

6) Market saturation. The NZ market is pretty much catered for.

7) Whilst it just takes a couple of blockbusters to dramatically improve the 
bottom line..the converse is true. A poor movie season also affects profits 
significantly. This means the shares are a high risk.

Criticisms welcome.

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