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I have been following this company for some time now and really like what I'm seeing. I became involved with this one as a JCP some time ago and have been following it ever since.
Video Headquarters is listed on the Alberta stock Exchange (ASE) under the symbol VHS. The stock is currently trading around the $1.25 mark but I believe it's a sleeper. They currently have 21 video stores but are on track to have 50 by the year end I actually visited a couple of them and was very impressed by their merchandising and store layout. Company according to management is extremely profitable. Management has a proven track record in the video store business.
The real exciting part of this story is the little known fact that they have entered into a strategic alliance with a large US partner which will give them access to one of the largest inventories of new and pre-viewed VHS and DVD movie titles. I read last week in a local paper that the company is planning to start a new Internet site called www.themoviesource.com which will focus on selling these pre-viewed movie titles around the world at prices not currently available any where else. I tried "www.themoviesource" address and it takes you to the Video headquarters site.
Apparently they will be selling major movie titles for less than $4 each. If you take a look at a company called Hollywood video HLYW they announced a similar strategy in Oct of '98 and the stock went from $9 to around $35, the stock is currently trading around $25. Their movie prices seem to be a lot higher than what Video headquarters says they will be selling their titles for.
It is obvious that the market has not factored in the E-tailing news of the Movie source business. The company has not made any real promotional attempts with this news as they are currently concluding a recent purchase of a chain of stores in Saskatchewan and are in negotiations with a number of other video chains to grow through acquisition.
If any body else out there has been following this one it would be great to hear from you and learn all we can about this one, I think this one of the best opportunities I have found in a while.
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