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Author: onparole Big red star, 1000 posts Old School Fool Coverage Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1219  
Subject: Continuing my nearly 1-man msg board rants Date: 7/21/2007 4:58 PM
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I have yet to see anything official from HAS with regards to the terms of the Transformers deal...I called investors relations and they told me that HAS will see zero from either the box office nor DVD...I find that EXTREMELY hard to believe...with any luck someone will ask about it on the conference call..

I just saw the CAPS comment from a TMF employee...I believe that it is the most recommended bear argument...in essence, his argument for NOT buying this company is one of valuation as HAS is currently about 18x FCF...

this is true...however, I believe that to be a view that may not understand the transformation that I think is occurring with HAS...if HAS does receive a reasonable amount of Transformers box office revenue and DVD sales we will be looking at a revenue stream for the next 2-3 years that will be at (or near) 100% gross margins...[not to mention the ridiculous toy sales]...

if HAS makes the transformation to an "entertainment" company of sorts then historical number may be meaningless...the revenue growth will be higher...the margins will be improved...more money will get to the bottom line...more FCF that the high amount that is currently generated will be happening...money will be falling out of everyone's pockets....

this monday we will see in the conf call...I am hopeful that we get some insight to the movie deal...I guess that if if doesn't work out the way that I am describing then I am one broke sucka...
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