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Home Value Stock Idea Hastings Entertainment

Hastings Entertainment
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10:43 am
September 13, 2011


Jae Jun

Admin

posts 1464
3

I've looked at HAST before and passed on the inventory aspect.

I was looking at BAMM and HAST and both looked similar. I went with BAMM in the end and lost 50%.

Although HAST isn't identical, I see a few things that worries me about the traditional retail business.

A very small position (max 1%) may be worthwhile if you like it.

7:10 am
September 13, 2011


nell

Member

posts 103
2

hi,

 

just some notes..

- retail business, very tough ~ not sure they can earn their capital costs

- highly skeptical that "book value" is the correct valuation measure for a retailer ~ mostly inventory (a cost for them)

- illiquid

- insider sales 

 

Sep 7, 2011 VAN ONGEVALLE ALANOfficer 1,700 Direct Sale at $3.11 per share. 5,287
Sep 6, 2011 VAN ONGEVALLE ALANOfficer 2,000 Direct Sale at $3.06 per share. 6,120
Sep 2, 2011 VAN ONGEVALLE ALANOfficer 1,000 Direct Sale at $3.10 per share. 3,100
Aug 31, 2011 VAN ONGEVALLE ALANOfficer 2,000 Direct Sale at $3.21 – $3.3 per share. 6,5102
Aug 30, 2011 VAN ONGEVALLE ALANOfficer 1,000 Direct Sale at $3.30 per share. 3,300
Aug 29, 2011 VAN ONGEVALLE ALANOfficer 1,000 Direct Sale at $3.25 per share. 3,250
Aug 29, 2011 MARMADUKE STEPHEN SBeneficial Owner (10% or more) 25,000 Direct Sale at $3.30 per share. 82,500
Aug 17, 2011 MARMADUKE STEPHEN SBeneficial Owner (10% or more) 25,000 Indirect Sale at $3.25 per share. 81,250

 

best wishes,

 

nell

6:56 am
September 13, 2011


BKjay

Guest

1

My first idea post. Here goes:

 

HAST. This company operates chain of multimedia entertainment retailers in the Mid-west.  

 

FCF positive every year over the last 4 years. Net working capital ~$42m. Market Cap $23m. Oh did I mention, larger insider ownership. 

 

Pros: Large insider ownership. I feel good when the people in charge own shares along side myslef.

 Like I said, FCF positive and insiders own a lot of the company. 

 Co. lost money this last quarter (I see it as a Pro because it gave Mr. Market the opportuinty to over reaact and dump shares) 

 

Cons: I don't like that inventory makes up a large portion of the companies current assets. I would prefer a more liquid position, of coarse. 

  With every cigar-butt, I'm a bit concerned the busienss value ends up reflecting the present price, instead of the other way round. 

 

I think it should be worth at the very least it's net working capital. And seeing that it generates some cash, BV wouldn't be unreasonable. Book value being ~$100m.

 

Thoughts?
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