As a postscript to my blog entry this morning, I thought I’d mention that just under three years ago there was a blog post about HMV on the Interactive Investor site : Is HMV in the ‘buggy whip’ business?
A few quotes:
I bought HMV thinking it would go on growing but the question now is whether, one year into a three year recovery programme, the shares are cheap enough to warrant buying or, at least, worth holding in the expectation the price will improve with the company’s fortunes.
HMV’s five year PE is under seven. For a company that is still profitable, with relatively low levels of debt, and recovery potential, that seems reasonable.
For nearly a year, it’s moved sideways in a channel between about 95p and 135p.
So, three years ago HMV had low debt, two years to run on it’s recovery plan and a share price 4-5 times the current level.
Makes you wonder, doesn’t it!
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