The Launch of MYFLIX requires two L.A. trips during July - plus one web-hosting visit to Seattle. The L.A. trip will also allow for some face-to-face meetings with key MYFLIX suppliers and other major studios that we are seeking to enlist. The aggressive Q3 / Q4 home video & digital release slate for the HHSE / Medallion core distribution business will also benefit from direct meetings with key wholesalers and distribution partners in the L.A. metro. And of course, we anticipate one or more day trips during July to meet with the auditors (current Form 10 project), should issues requiring clarification not be easily resolved by calls or Skype.
Hannover's original production of the Period-Thriller, THE RIOT ACT, will likely be rescheduled for theatrical release in SEPTEMBER in order to access a retail cross promotion and a College / Universities support campaign. Previously, we had planned this title for theatrical launch on Aug. 24... but the mid-to-late September date is looking more interesting. HHSE / Medallion also have two other titles for theatrical release - both planned for OCTOBER (neither acquisition has yet been announced, so out of respect for the stature of the films, the company will announce the titles via separate wire-services press releases).
With all of this exciting activity and results, some current and prospective shareholders are asking about the HHSE stock and timing. Accordingly, we share with you below the summation of notes from large traders / professional funds that have been in communication with HHSE management over the past few months.
WHY IS THIS A GREAT TIME TO LOOK AT HHSE?
1). STABILITY - Company has been in business for 25-years (since 1993).
2). DIVERSITY - Original business of BOOK PUBLISHING evolved into DVD Distribution and now into THEATRICAL and INTERNATIONAL Distribution as market conditions changed.
3). NEW MEDIA - the new MYFLIX Venture into digital streaming (www.MyFlix.com), has over 30-studio and film library participants, collectively with over 10,000 feature films and television episodic hours of entertainment. This platform will have (literally) THOUSANDS of movies not available on any other streaming site. Less than ten years ago, NETFLIX was a mail order video rental business. NOW they are among the top movers and shakers in the entertainment industry DESPITE having a very limited selection of programming for viewers. We believe that MYFLIX could be a revolutionary new streaming destination - and a massive turning point for Hannover House.
4). STOCK REGISTRATION - HHSE is currently on the "OTC-Pinksheets" exchange. This status has impeded some large, institutional investors and hedge funds from buying into the stock. However, the pending Form 10 filing (including audits), will elevate the stock to the OTC:QB status as an initial step towards possible further up-listing. The OTC:QB status will open the door to significant new shareholders, which most professional traders and investors feel will dramatically improve the PPS and trading volume for HHSE.
5). NO STOCK ISSUANCES / NO DILUTION - HHSE has not issued any new shares in the past three years, and management has repeatedly stated that there are no plans to dilute shareholders through any deals now in motion or anticipated in the future.
6). PRESENTLY UNDER-VALUED PPS - Based on the Price-Earnings ratio for other publicly traded film / entertainment distributors, HHSE should be enjoying a 22X share price based on earnings. HHSE is on target to realize $1,250,000 in earnings for FYE 12-31-2018. This supports a share price of $.034 at present... and does not take into account the tremendous good-will and enthusiasm factor for the upcoming launch of MyFlix. Some highly respected stock analysts have communicated to HHSE management their prediction that the company's activities could support a share price of $.15 - which is more than ten-times current pricing. Even if their predictions are off by 75% - there is still an easily justifiable share price that is many times more than current trading levels.
7). TIMING-TIMING-TIMING - The launch of Myflix is a "second generation" site, in that the digital streaming technology and consumer acceptance have already been established. With that essential battle already won, MyFlix can concentrate on becoming "the better mousetrap" for digital entertainment. You combine this ideal market timing with the company's stock registration uplist, the presence of significant new shareholders post-registration, and new distribution pacts for the company's core film distribution activities (SONY / CINEDIGM), many feel that NOW is the ideal time to take a position in HHSE shares (while the HHSE Price Per Share is artificially low). Are these professional traders right? We will all know very soon!
HHSE makes no representation, guarantee or warranty that our share price will improve significantly as a result of these and other current activities. Every stock investment involves risks and factors outside of the control of issuers and management. But we proudly share with you the above information, projections and rationale' that professional traders have identified as the basis for why they believe that NOW is a great time to look at HHSE.
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