AMU quite rightly appears to be developing a small following, hence I have updated the header with a 'carrot' and the charts.

PTH

UK smallcap opening - Air Music & Media gains on Investors Chronicle tip
AFX


LONDON (AFX) - Buyers came for Air Music & Media, 1.13 ahead at 7.75 pence, after the Investors Chronicle advised readers to 'buy'.

With trading looking strong at the music distributor, and a share price target of 13 pence from broker Seymour Pierce, the shares look oversold, the IC concluded.

1704 looking on the positive side though AMUs Final Results also stated the following......

Results for the 12 months ending 31st March 2005, include a six-month
contribution from Redworth and its subsidiaries. This period includes the
strongest trading months in a seasonal business. The Group's activities have
generated a 216% increase in turnover to 49.8m (2004: 15.8m) with a 126%
increase in profit before tax, interest, goodwill amortisation and exceptional
items to 4.3m (2004: 1.9m). Acquisitions contributed 35.4m to turnover and
4.1m to profit before tax, interest and goodwill amortisation. Normalised
earnings per share are 0.90p (2004: 0.68p). In view of this performance the
Board is recommending a maiden dividend of 0.012 pence per share for the second
half-year trading period.

With no indication or an announcement of a profit warning theres no reason to believe that the momentum stipulated above has changed..... The dividend has also remained the same hinting that AMU are tracking where they want to be!!!

I am holding out for positive news especialy regarding distribution lines being in place moving into Q3 and Q4. As AMU have stated many times their business is seasonal. With the run up to xmas and year end, it will be distribution channels to market which will sink or make waves in the market place..... ;-)

Exposive-

Thanks for your post. I agree with the points that you raised.

As far as running the company on a profitable basis is concerned
you cannot fault the Board Members. However, having said that after
the results over 2m was cut from Broker Profit Forecasts in the year
ending 31 March 2007 because of lower budget DVD sales. Pre-Tax
Profits are expected to be 5.10m in 2006 and 5.60m. If these
forecasts are met without any nasty surprises hidden in the results
the SP could move sharply upwards.

Has anyone looked at the results from Home Entertainment
Corporation (HET) released yesterday. The company is listed
as a General Retailer of DVD Film Rentals. HET has a Market Cap
of 21.38m but its shares are trading at 1.18p the dividend
payment is just under 7p. However, the pre-tax profits forecasts
of AMU are set to be higher HET over the next couple of years.
I just wish the share price will be too.

Seymour Pierce and Teather and Greenwood are the covering
analysts for HET. The fundamentals and broker forecasts of the
company and AMU can be viewed by clicking on the Digital Look website
(www.digitallook.com). Any comments would be welcome.

Logging Off now.

Won't be anywhere near a computer tommorrow so will catch up
with you all on Friday.

All the Best

1704 - I agree with your post. With one exception of the financial brilliance of the Board. Noted with last Final Results is the rather high level of debtors 11m+, this potential revenue needs to be addressed. 2004 debtors were 5.7m so a considerable increase, there is no indication of how much of the 11m was gained with the acquisition of Redworth either!!

Lets see how Redworth Ltd and Music Box have been integrated and if the synergies particularly in distribution have been addressed/exploited.

Digital Look forecast figures show eps growth at 05-7.35% 06-11.11% & 07-13.00% all positive. Seymore Pierce covering broker also recommends the share as [Strong Buy] a position held for the past 3 months+.

Like yourself I can't see why the sp has fallen, RNS may be lacking in news but as they say no news is good news!!

Another day of sells in AMU 154,368 to be exact. Nothing to worry about here just looks like small investers...

Thanks for your last post-Explosive.

Interesting 'buys' going through this morning.
400k, 100k and 50k. The price spread has also
shortened. What is going on here then?

1704 - I see no announcements, can only assume that the markets waking up and expecting positive news.... Buys are 2:1 to sales approx (300K diff)..

Took a masive loss on Berkley Scott earlier today after reading there trading statement, mind you can't complain the rest of my portfolio is doing well to cover it.... At 5.75 AMU is a snatch so may be buying more meself very soon....

Exposive

Would love to know what has led to the buying spree
today. However, typical of the MMs to not to reflect
the buying of shares in a upwards movement. Are they
afraid of heights or something.

I'm feeling a lot more happier about holding these shares
than I was a few days ago. Anyone had a look at the
results for Rank Group released today. They have been
looking to sell their Deluxe Media susidiary which sells
DVD Films for over a year and are currently in negotiations
with an unnamed suitor. Hmmmmm!

Does the Deluxe Media susidiary make a profit I ask ?

Skyhigh your answer below regarding Ranks Deluxe Films.

Overall, Fridays interim numbers, at the pre-exceptional level, came in as expected. But weakness in the gaming business, where profits fell despite a 21 per cent rise in sales, was something of a wild card. More disappointing was what the management had to say on the Deluxe films and media businesses. Deluxe media, which continues to lose money, is due to be sold by the end of the year. But it may not be. The much larger films operation, due to be spun-off, will also now be sold - perhaps.

Source http://news.ft.com/cms/s/aa63f87c-1b99-11da-9342-00000e2511c8.html

Mabe a loss maker for Rank a gaming business but I'm sure Deluxe Films would complement AMUs inventory which already contains structure to take straight to market!!

Explosive...Thank you for the answer... we'll see what happens...

Buys today - 1,473,500 Sells - 343,679................ 1704 a :-) for the weekend!!

I'm unsure whether or not AMU are in negotations with
Rank Group for Deluxe Films but I reckon something must
have triggered the 'buying' spree today.

Correct me if I'm wrong but AMU have made at least one
acquisition to its business every year. I think the last
acquisition they made was in October 2004 when they
bought Redworth Ltd. About time they added another
one methinks. I'm hoping for a share consolidation
to take place after the next major acquisition as we
have too many shares issued at present and I reckon
it is having a hegative impact on the SP.

Explosive

Thanks for showing the 'buys' and 'sells' today they look
great don't they?

Definetly cheered me up and now looking even more
foward to the weekend. Have a good one. I know I will.

All the Best

1704 - Found this on Bloomberg.

Sept. 2 (Bloomberg) -- Rank Group Plc, the owner of Grosvenor Casinos and Mecca Bingo, abandoned a plan to spin off its Deluxe Film business and said it may keep the unit a year after announcing plans to exit DVD distribution and movie processing.

The plan to distribute stock in the movie-processing company to Rank investors was cast aside amid concerns that the business may not be strong enough on its own to fulfill long-term contracts with film companies, Chief Executive Mike Smith said today in an interview. London-based Rank still aims to sell the unit and is in negotiations with at least 10 potential buyers, he said.

``We put a lot of work into a demerger which we were hoping was the simplest way of separation,'' Smith said today. ``We have not made that work on a satisfactory basis and we're now looking to see if that business can be sold. It not a business we would let go for any price and we're keeping the option to retain that business if we can't find a satisfactory outcome.''

Rank, which has distributed movies for more than 50 years, wants to focus on its gambling business as the U.K. government plans to relax legislation governing the country's $3.8 billion gaming industry. The company has still to find a way of exiting the movie industry a year after it said it was seeking to do so.

Loss of Contract

Plans to sell the unprofitable Deluxe Media unit, a maker and distributor of DVDs, have reached an ``advanced'' stage and a transaction should be concluded by the end of this year, Smith said. More than one buyer is interested in the unit, whose loss widened in the fiscal first half after the ending of a contract that accounted for almost half its DVD production, he said.

Definatly looks intresting and you are correct with the timing of past mergers...

1704 - Have a great weekend too!!

The company, founded by J Arthur Rank and strongly associated with the British film industry, making hundreds of films including the Carry On series, will end its 60-year association with movies by selling its Deluxe Media business before the end of the year.

Deluxe Media manufactures about 200 million DVDs and videos a year, and distributes many more. It is estimated to be worth around 700 million.

"The sale process is progressing but, as we have said previously, it is a complex transaction and will only be completed on terms that the board consider to be in the best interest of shareholders," Mike Smith, Rank's chief executive, said.

"The people interested in that business fall into two categories. There is a category that are already big players in that industry and who would look to buy our business and get synergies and so on," Mr Smith said.

"And the other parties are those who are on the edge of the industry and see our business as a way of getting much bigger and of getting much closer to important customers."

Source http://business.timesonline.co.uk/article/0,,9071-1762125,00.html

Estimated to be worth 700mil...... Says it all AMU Market Cap 22.84mill.., so can't see an AMU aquisition here..

Anyone know what Deluxe Films estimated worth is?

Explosive

Thanks for the info about Rank Group. There was an interesting
article about the same company a couple of weeks ago in the
Mail on Sunday which highlighted the problems about Deluxe
Media. It has been trying to sell this part of the group for I year.
A year ago it was rumoured to be willing to sell Deluxe for 50m
if my memory is right but now is expecting around half that
figure because of the poor performance.

Anyone read the RNS Statement today 5M shares sold in
AMU by an ex Director. Could explain the large volume of
buying today.

All the Best

2,028,500 number of 'buys' today.

343,679 number of 'sells'.

It makes lovely reading doesn't it? Despite the
large volume sold by Michael Infante there
appears to be a large investor/s ready to
scoop them up. Next week should be interesting
in fact I reckon the next few weeks could be
interesting.

Wooops! Explosive I take back some of the things
I stated earlier about Deluxe Media.

Just been reading an article about Rank Group on the
Hemscott Website regarding the results and the Deluxe
Media part of the company. An analyst for Seymour
Pierce puts a much larger valuation on the business
than what I thought. But having said that are many
parts to the division of Deluxe Media which I feel could
still see AMU taking an interest unless another buyer
with more cash buys the whole of Deluxe Media.