This week, Midas takes a look at virtual reality firm EVR Holdings, the Sunday Telegraph eyes Entertainment One and the Sunday Times considers whether it’s time to build an investment in Cineworld.
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Virtual reality has been a revolution in the making for years, says Midas.
Billions of pounds have been spent creating headsets and software that allow users to feel fully immersed in a parallel world.
To date however, the technology has fallen short of expectations, as virtual reality is still principally used by hard-core video game fans.
This is set to change as the number of virtual reality devices soars worldwide, the technology improves and uses proliferate.
EVR Holdings, a young Aim company, is at the centre of this fast-changing industry. The shares are 6.125p and should increase materially, as virtual reality comes of age.
EVR devises virtual reality musical experiences, from concerts to festivals to studio sessions.
The business could really soar in value when virtual reality technology finally takes off. An exciting punt for the adventurous investor.
A year ago this week, Peppa Pig was under siege. Entertainment One, owner of the muddy-puddle splashing kids’ character, was on the end of a £1billion takeover offer from ITV.
At 236p per share in cash, the bid looked appealing given it was at a 41 per cent premium to eOne’s average trading price in the prior month.
But two weeks later, it had come to nothing. ITV withdrew, saying the pair could not agree a price at which to begin more formal negotiations.
A year on and the firm is trading at 10 times forecast earnings and shares appear good value.
But more work must be done to demonstrate how its strategy will deliver for shareholders in the long term, with Peppa Pig remaining the driving force behind the group.
As a result James Ashton in the Sunday Telegraph’s Questor suggests a ‘hold’.
More work must be done to demonstrate how its strategy will deliver for shareholders in the long term, with Peppa Pig remaining the driving force behind the group
In May a camouflage-clad Brad Pitt sauntered past cinema screens and straight into viewers’ homes. War Machine, Pitt’s film about the Afghanistan conflict, was broadcast exclusively on the internet streaming service Netflix.
This is the sort of challenge that the FTSE 250 cinema chain Cineworld must face up to. Amazon and Netflix are breaking decades of dominance by the Hollywood studios by skipping the big screen and jumping straight onto laptops and TVs.
Yet experts have been predicting the demise of the cinema since the arrival of the TV set. Cineworld, Europe’s second-biggest chain after Odeon, is shaking off this latest challenge with gusto. Its shares have been on a tear, as it opens new cinemas across the Continent. They ended last week at 717p, to value the chain at £1.9billion.
Cineworld is upgrading its sites, too, with 35 in the UK being given a revamp. That doesn’t just mean a lick of paint: overhauls involve adding Starbucks units, VIP areas and 4D special effects such as wind, fog and smells.
Analysts at Investec reckon that if cinema chains were to overhaul their tired British sites en masse this could deliver a hefty jump in admissions within a decade, from an average of 2.6 visits per person per year to 3.4 visits.
Cineworld’s shares will not repeat the past few years’ runaway gains, but there is still room for growth. Buy.
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