Forum Archive Index - June 2000

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

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

            They have ten screens in fiji, (2 cinema)  not sure whats
happening there.
 Maybe they are all watching rebel without a cause.

> 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.

              Argentina has been performing very well for the company
 they are performing well ahead of expectations. 69 screens there
>
> 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.

            Dont know about sore necks,  i found it a very enjoyable
experience.

 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...

        There is still a dispute over the sale. The entertainment centre is
now fully leased
and is bringing in 6.8m a year in rent

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

             Dont know much about the chances of that happening
>
> 6) Market saturation. The NZ market is pretty much catered for.

        They have shown they can move into other markets, plus the have an
interest in a film production company and planet hollywood restraunt, there
are any number of related area they could branch into. Plus their
cinemastend to be in
prime locations
>
> 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.

            Apparantly cinema attendence is doing very well this year
despite the absence
of any major blockbusters of the size of titanic.
>
> Criticisms welcome.
>
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