Save HMV - but the Facebook page is empty

Another one of Britain’s iconic brands in big trouble then. Share price diving down 13% today to the princely sum of 9p.

Much angst amongst the music industry that as a music retailer HMV must not be allowed to go bust.

Well ok then so what do their target market think about them having shops on the High Street ?

Number 3 daughter downloads only so never goes in there. Though she thinks a good vinyl collection might get her in, vinyl getting big now apparently. A music boffin that girl and sadly a definite thumbs down from her.  

Number 3 son however, also keen on his music, gives HMV a thumbs up. He likes to browse there for ideas of what to buy in the music sections he likes. Much easier and quicker in a shop than on the internet.   

Likes to buy cd’s for himself and for presents, you can’t really give a download as a present, fair comment I thought. He would also look at buying music equipment there whilst he was in shopping too.

But buying DVD’s there, a definite no no, get them much cheaper off Play.com.

He also thought the HMV Customer Service was good, the staff are generally young and up to date on the music scene.

Neither of them at all interested though in any more fanciful ideas of Starbucks in store or high speed download booths for music and movies.

It’s a tricky one though, how to make the high street stores viable. Any bright ideas leave a comment below.

Maybe the future for HMV going forward is to just shut all the stores and specialise in an integrated retail distribution website and live music company.

At 9p a share and a market capitalisation of £40 million HMV is ripe for a takeover should someone wish to make a grab for the iconic British brand then strip out some of the assets.

A hard numbers assessment of the finances for a takeover are right here if you fancy a punt:

http://www.dunover.com/investments/index.php?topic=1208.0

As an investor it’s a tricky call at 9p a share, where is the upside in the price.

It’s a mixed view from our target market focus group, they like the shops but don’t go there often.

Meanwhile all those out there who say “we must not let HMV go bust” seem to be doing very little about it, can’t even be bothered to join the Facebook “save HMV”  page can they.

Where is the brand loyalty these days ………………

Thorntons chocolates - yummy yummy, but not if your an investor

Why was I not surprised when Thorntons announced they were closing down another 120 stores today.

Thats because every time I look into a Thorntons store it is practically empty.

Why is that I have often pondered, I don't know the answer.

They are expensive, shops are rather dull.

Diana is a great chocolate fan but all she ever does at Thornton's is walk in and ask to see the discounted chocolate on offer.

Share price is down almost 50% since last October.

Recovery play, I think not.

What is the answer to Thorntons chocolates ??

No doubt soon going West, the same way as another iconic British brand i.e. Cadbury

Interest only mortgages - negative equity but still cheaper than renting

Well err yes, interest only mortgages. Thought they would be seen historically in a similar light as sub prime mortgages.

But a readers comment on FT Alphaville set me thinking as they suggested that actually interest only mortgages is effectively cheaper than renting but with greater rights than a normal tenant.

Novel way of looking at it I thought.

Being alarmed that the only way a first time buyer could buy a house in the infamous 2008 was to get an interest only mortgage, worry being, how would you ever pay off the equity.

I'm now seeing the way forward then, it's a kind of renting.

Guess there are no new entrants to that bandwagon now though as Banks are insisting on massive deposits for any loans.

But those already in this in betweenie group i.e. "owner renters" are actually in a good position in that it is cheaper than renting.

Slight drawbacks then:
- negative equity, mitigation being, just walk away at some point. But what is at risk is any deposit you may have put in the house
- propery repairs and maintenance, you don't have to pay those if you rent
- interest rate rises could blow you out but rates are not going up whilst the economy is in the doldrums.
- have to move house, well that may crystalise your loss and you won't get another mortgage

Otherwise, owner renters should just sit tight and enjoy being cheaper than renting.

HMV and Dixons front lining the internet war

Shopping is becoming more and more a social occasion where you meet up with friends and family, browse a bit, drink a Costa coffee and impulse buy a few things.    

Why would you go shopping on your own, you can do that on the internet.

Though I have to say buying clothes on line with ASOS which is the current trend would never suite me as I have to try things on first.

Food shopping on line, would never do that either as I generally want to pick my own food and don't want to have to wait around for delivery. 

So maybe clothes shopping and food still done face to face, but not much else for me to be honest.

Visions of a ghostly High Street then with all the units for sale or rent and all the shoppers sitting at home or spending at an out of town dedicated shopping centre.

It is fascinating though to watch the struggles of famous High Street names as they battle the relentless march of internet shopping.

I first became interested in the fate of Dixons when David (number 1 son) studying Accountancy had researched Dixon’s for Uni and said what a good company they were.

So I bought some of their shares in my self invest pension. Having bought at 23p,  I just wish I’d waited until they went down to 11p before I’d struck.

Currently at 15p David’s belief in them and my desire not to panic may be rewarded eventually.

Having got interested then in the battle of rescuing Dixons I also had a close look at HMV too. Both companies being heavily tipped as great recovery plays during 2011.

I became even more interested in HMV as a recovery play when their shares crashed to 9p. But even at that price I still did not buy.

HMV are at great risk of being the next Woolworths, a great traditional name famous for once having lots of customers.  

People are probably buying more music than ever before but the great overpriced CD rip off is now firmly behind us. Downloaded music for your iplayer in your bedroom is just a million miles from parking up and walking into the local HMV store.

DVD’s too then, hello Amazon, why would you shop anywhere else for a movie, then Amazon can even suggest what other similar films you might enjoy watching and tell you what everyone else is buying. It’s a great on line experience !!

Currently HMV are engaged in a fire sale of assets to pay off some debt. Waterstones just sold closely followed by the Canadian HMV today for £2 million.

Next up for them is a realignment. Selling electronic media in their shops like Ipods and Ipads and branching out into music gigs, festivals, events etc. Hmmmmm

Difficult to know where you would go with HMV shops.

But Dixons though are still sitting in my pension fund.

Well they look to be doing all the right things to me to battle against the recession and the internet.

What I want in PC World is advice when I need it and also to get things fixed. Apparently the most popular home service is installing wall mounted flat screen tv’s.

Their new tech service “Knowhow” will supply exactly this.

So Dixons not dead yet and I may well still go there to buy a washing machine or fridge.

But I did buy my last TV and laptop on line, oh dear ….

The bloody battle raging between the High Street shop and the internet to see which shops can survive and how is a compelling situation.

I was on our local High Street last Sunday and it was quite eerie, hardly any people and lots of boarded up shops. Meanwhile half a mile down the road there was barely a parking space to be had at one of the Worlds most successful shopping outlets, that being Bicester Village outlet store.

Just where will it all end ?

Investing in Gold

Interesting feature from the Daily Mail here about investing in gold:

http://www.dunover.com/investments/index.php?topic=1202.0 

It has often come up in conversation but no one is ever sure quite how to do it. 

And where would you keep it, under the mattress ? No thanks !!

The two amusing things I know about investing in gold:

- I've already heard the story of Gordon Brown selling off half of the UK gold reserves at $275 an ounce. By the time he left office gold was selling at $1,414 an ounce. So he had cost the country billions of £'s

- Warren Buffett is not a great lover of investing in gold, he described it as:

“[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

    

Lol, I think he's trying to say, Gold has no intrinsic value ....

Have you spotted a white charger near you ....

looking to rescue .........

knock the black horse into line ....

Hello - first day

Guess, to be honest I'm trying to make money by investing successfully what I have .

Who isn't !

Well actually a lot of people are not.

So a trade off of me trying to make money is that I would like to encourage everyone else to take control of their money too.

To get well informed.

So we have a website with all the information on:

http://www.dunover.com/investments/index.php

an informed view on how to invest and of what our family are broadly doing with their money.

Personally I am a big Lloyds Banking Group Investor and recommended my friends and family to be too. Have you seen the share price recently oh dear !!

Hence I'm struggling for friends at the moment, and for money for that matter :)