TDGI (hannover House)

Discussion in 'Stocks' started by PolymathMind, Jul 30, 2010.

  1. Hi, I wanted to alert everyone here to a stock that is going to be seeing very nice potential within the next couple of weeks.
    I've been holding this stock for a couple of months now, it is a diamond in a hayfield to be frank. It's a pinksheet stock though, please read on;

    I know what your thinking, that i'm here to 'pump' the stock so I can dump my shares on you. That is not the case at all, if you spent an hour or two to look at the financials of this stock, and how much stock the ceo is actually holding (im talking common shares not restricted), you'd get the idea. Please look at my join date and view some of my other posts, I am a real investor.

    I know elitetrader is basically the Godfather of all stock forums and most people here are bigboard players. I purchased this stock at around 0.027 and now its holding solid at 0.054.

    The reason that you see a raise in the pps in the last couple of weeks is because they announced the big news shareholders were awaiting - they signed a distribution pact with 20th Century Fox (yes the big corp). Very odd and rare for a pinksheet company to sign with someone as big as 20th Century Fox.

    Not sure if you've heard about it, but there is a movie called 'TWELVE' coming out august 6, it's Hannover house's film. There is also 3 other big pieces of news due out in the next couple of weeks.

    My pps sell point for this is around 0.25 (25 cents).


    I have put together a small DD document which other investors have taken the time to create, check posts below:

    Outstanding Shares: 461,206,692
    Restricted Shares: 191,606,114
    Float Shares: 269,600,578


    Top 10 reasons to invest in TDGI

    1) Assets worth over $21 million
    As of September 30, 2009, the unaudited and unreviewed balance sheet for TDGI listed total assets of $21,112,938, including a library valuation of $16,015,670 (the value of the Hannover library does not include recently acquired titles and other libraries added since Dec. 1, 2009).
    http://www.otcmarket...Id.pdf?id=27997

    2) Exponential 2010 Growth
    Projecting 2010 Revenue of $22-$39 million with earnings of $3.75-$8.55 million dollars.
    http://investorshub....age_id=52133892

    3) New Projects Pipeline
    VI-a). Base Business Forecasts for 2010 – Based upon the Company’s current release slate of 30 video releases, 4 theatrical titles (now 6) and 5 books in 2010:
    http://www.otcmarket...Id.pdf?id=27997 (Page 6)

    The 6 releases to theaters include:
    "Racing Dreams": Award-winning documentary from academy Award-nominated documentary filmmaker Marshall Curry.
    "Twelve": Joel Schumacher's teen thriller starring Chase Crawford, Emma Roberts, 50 Cent and Kiefer Sutherland.
    "The Wild Hunt": Award-winning action/adventure
    "Happythankyoumoreplease": 2010 Sundance Film Festival Audience Award winning debut from writer-director-actor Josh Radnor ("How I Met Your Mother") starring Josh Radnor, Malin Akerman and many more.
    Plus 2 Unannounced Major Titles for the fall of 2010

    4) Experienced, Competent, Share-Holder Friendly CEO
    Eric Parkinson, former NASDAQ CEO of Hemdale Communications, Inc. where he managed to achieve more than $150-million in revenues through the release of 90 feature films. Including "The Terminator" and Oscar Winner "Platoon".
    http://www.imdb.com/name/nm0003826/bio
    http://en.wikipedia..../Eric_Parkinson
    http://www.empirefil...eparkinson.html


    5) In process of Financial & Library Audits with Hogan Taylor, LLP to become SEC Compliant and Uplist to a higher stock exchange
    http://investorshub....age_id=51949024 (Questions 5,6,7)

    6) Low share structure
    A/S recently reduced to 700,000,000 from 10 billion (was inherited from the reverse merger)
    O/S 461,206,692
    Float: 269,600,578
    Restricted: 191,606,114 (Now includes Hannover's Shares for Merger).
    http://investorshub....age_id=51964738
    http://www.marketwir...ers-1144319.htm
    https://wyobiz.wy.go...=2009-000565408

    7) No Dilution Policy!
    Share Structure unchanged since TDGI formed in December 2009.
    ITEM “C” – Limitation on Future Stock Issuances – The Board held a discussion and unanimously agreed to not pursue new financing for the company that would require an issuance of additional common or preferred shares.
    http://www.otcmarket...Id.pdf?id=28922

    8) Established Distribution Footprint - Nationwide Key Retailers
    Retailers carrying Hannover House products include thousands of independently owned and operated retail video stores and book stores, including Barnes & Noble, Best Buy, Blockbuster Video, Borders Group, Circuit City, Fred Meyer Group, Hastings, Hollywood Video, Movie Gallery, SAM’S Club, Transworld Group and Wal-Mart as well as all major Internet retailers.
    http://www.hannoverh.../key-retailers/

    9) Lucrative Business With Opportunities For Growth
    "We're looking for a film we can hang our hat on," Parkinson said. He points to Summit Entertainment as an example of a company that went through an instant transformation. The company had annual revenues of $8 million, he said, and then it acquired the rights to Stephanie Meyer's Twilight series. When "Twilight" came out, their revenue grew to $400 million, Parkinson said. The second film in the series, "Twilight Saga: New Moon" was released in November and grossed almost $700 million worldwide. Summit will release the third film, "Eclipse," in June. "We're in the same business," Parkinson said. "If we can acquire a franchise like that, we can transform our company from $10 million annual business to a $500 to $600 million annual business."
    http://investorshub....56009&txt2find=

    10) Diversification of Products, Hannover House is active in five arenas of media distribution
    a.) DVD & Blu-Ray Sales
    b.) Book Publication and Distribution
    c.) Theatrical Releases
    d.) Video-On-Demand
    e.) Yet to be announced by CEO
     
  2. TDGI Assets Valuation

    Any day now TDGI will have official Audited Financials. There will be greater transparency of the Company for investors. While we are waiting I thought I would take another look at the TDGI Properties Library and other Assets.


    "Notwithstanding the goodwill value of the Company’s distribution pipeline and favorable revenue forecasts, Hannover House owns or controls significant assets, including a large film library, DVD and book product inventories and motion picture production equipment and facilities. As of Dec. 1, 2009, Hannover owned or controlled a significant library of film, video, television and literary properties, with approximately seventy-five (75) items in current release. The unaudited and unreviewed balance sheet for Hannover listed total assets of $21,112,938, including a library valuation of $16,015,670 (the value of the Hannover library does not include recently acquired titles and other libraries added since Dec. 1, 2009)."
    http://www.otcmarket...Id.pdf?id=27997

    Is the Library Valuation reasonable? $16 Million Library Valuation divided by 75 Items = A Value of about $213,333 Per Item in the Library. Seems realistic to me.

    The Production Equipment and Library are Assets valued at $21 Million that TDGI owns and has value to its shareholders. IF TDGI were to cease Operations tomorrow, the $21 Million in Assets could be Liquidated and divided up among the shareholders. ($21 Million Assets / 461.2 Million shares = $0.0455). So, the TDGI Assets on December 1, 2009 had a Cash Value to TDGI shareholders of 4.5 Cents Per Share.

    --------------------------------------------------------------------------------------------------------------------------------------------------------------

    After December 1, 2009 TDGI added many Titles to the Library. As verified in TDGI Press Releases and Amazon.com Listings TDGI introduced or is in the process of introducing about 80 Items to the TDGI Library. The following PR's detail the new Items, with the number of New Items being added highlighted in red.

    12/10/09 1
    Target Development Group and Hannover House Acquire Acclaimed Suspense-Thriller, "Sensored"

    12/11/09 8
    Target Development Group and Hannover House Announce Eight New Titles for Q1 Release

    12/16/09 61 ( Eventually 81 Titles) from the TDGI Filings: "As of Jan. 15, 2010, the total number of titles within the Elite Entertainment and FOCUSFilm libraries totaled 61 titles. Additionally, both companies plan to provide Hannover with new releases in 2010 and 2011, which are expected to add approximately 20 additional titles to the venture."
    Target Development Group and Hannover House Enter Into Film Library Ventures With Elite Entertainment and FOCUSfilm Entertainment

    12/18/09 10
    Target Development Group, Hannover House Acquire 10 Video Titles


    Effectively, the 80 New Items PR'd in mid December 09 doubled the size of the TDGI Library. Considering some of the new additions are new releases, a higher level Title, and a more recent date, it is not unreasonable to estimate the value of the TDGI Libray is twice what it was in September 09. So, $16 Million doubled plus the $5 Million Production Equipment is now $37 Million. A Value to TDGI shareholders of about 8 Cents Per Share ($37 Million / 461.2 Shares). It must be noted that in the majority of new Properties, TDGI negotiated Distribution Pacts, as such I have no idea whether they bring a partial or full value to the Library, however, it is safe to say the Value of the Library has increased significantly.

    Conservatively, based on Assets alone TDGI has a value to shareholders of between .04 and .08 per share. This is Assets value ONLY. IF TDGI were to close their doors tomorrow, these Assets could be sold and liquidated, and provide a cash value to TDGI shareholders of between .04 and .08 per share of TDGI stock.

    This does NOT include any Revenue and Profits from DVD Sales and Rentals ("Base Business"). This does NOT include and Revenue and Profits from the 6 Theatrical Releases. TDGI has Forecasted a Base Business & Theatrical Releases Revenue of $39 Million and Profits of $8.55 for 2010.
    To get a true, fair value for TDGI stock you would have to calculate 2010 Profits into a Earnings Per Share Value (about $0.0185 EPS, using 20 PE Multiple gives a TDGI stock price of $0.37) and ADD the EPS Value to the TDGI Assets Value.

    Lastly, the TDGI current Asset Valuation does NOT include the Value of the Theatrical Releases "Racing Dreams", "Twelve", "The Wild Hunt", "HappyThankYouMorePlease", "Thru The Moebius Strip" "The Countess", the 2 yet unnanounced major Theatrical Titles, and 5 yet to be introduced Books.

    When you do the DD and perform the evaluations, you begin to realize just how undervalued TDGI really is. For those of us that have established a position in TDGI, all we have to do is sit back, relax and wait till other investors "wake up and smell the coffee". You are fortunate to be among a limited number of astute investors that realizes the fair value of TDGI. It is just a matter of time till other investors figure out the real value of TDGI, then we are golden.
     
  3. I tried to tell everyone here to buy it, its at .06 now and about to break out to the .10
    Anything under .10 is a bargain.