Investing in the Cinema Business at Good Valuation- Orange Sky Golden Harvest
Trading at just 0.12x Book Value, Orange Sky Golden Harvest is indeed an opportunity that deserves greater attention. The Golden Village branding is iconic, an established and trusted name in the cinema industry. They started the first multiplex in Singapore on May 27th 1992 at Yishun 10.
Not all is green pasture as not surprisingly, they are having tough times over the past few years. Their financials are also under strain but we do see recovery on course. There could also be a possibility of a cash call in the mode of a rights issue to boost up their financials.
With positive operating cash flow seen in 2021 and further new investments, Orange Sky could be prime for a good ride to the recovery of the cinema business.
However, the trend of alternatives such as Netflix and Disney Plus would be a threat but Orange Sky is trying to innovate by overhauling their cinemas to be multi-purpose so as to provide optionality to the changing landscape.
We do feel the current price is an attractive proposition if recovery is on track for a slice in the cinema business. We just hope there are no more surprises on the pandemic front- another prolonged lockdown.
Click Here for the Full Article:
https://thebigfatwhale.com/investing-in-the-cinema-business-at-good-value-orange-sky-golden-harvest/
$Hang Seng Index(800000.HK$ $S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$
Not all is green pasture as not surprisingly, they are having tough times over the past few years. Their financials are also under strain but we do see recovery on course. There could also be a possibility of a cash call in the mode of a rights issue to boost up their financials.
With positive operating cash flow seen in 2021 and further new investments, Orange Sky could be prime for a good ride to the recovery of the cinema business.
However, the trend of alternatives such as Netflix and Disney Plus would be a threat but Orange Sky is trying to innovate by overhauling their cinemas to be multi-purpose so as to provide optionality to the changing landscape.
We do feel the current price is an attractive proposition if recovery is on track for a slice in the cinema business. We just hope there are no more surprises on the pandemic front- another prolonged lockdown.
Click Here for the Full Article:
https://thebigfatwhale.com/investing-in-the-cinema-business-at-good-value-orange-sky-golden-harvest/
$Hang Seng Index(800000.HK$ $S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$
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whqqq : Thanks for your useful article