LON:TEG | Ten Entertainment - Bowling You Over Yet?

14th Jun '18 by mmarkkj777

6 comments 3025 reads

I'm about to buy 10 Entertainment as a medium term growth play (watching with finger on the trigger).

What attracts me?

They have only been a PLC for just over a year and have had good results. Revenue up. Profits up. Expansion plans in place. Debt levels round about on a par with free cash flow. Not bad for an expanding company with these type of fixed asset requirements.

What really attracts me?

They are not retail, but in the high St. and retail parks. Amazon can't deliver it (to the best of my knowledge) and it's not Hollywood.

Thoughts anyone?

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About the Author

Mmarkkj777

Premium Member

I have been investing for a long time, but have become more serious about my investments over the last 3 years and am looking to use Stockopedia tools and info. to help maximise my gains. I have a Portfolio of 14 Buy and hold companies: 3 US, 1 European and 10 UK. I have held one for 20 years and one for 14 years. In the last few months I have added a growth portfolio (at least I hope they will grow!) . It is now up to 6 stocks.More recently Oct 2018, I have reverted to cash for a substantial part of my portfolio (over 2/3rds). I'm now looking for bargains and opportunities to reinvest. more »

6 comments

Steve L

14th Jun '18

I've been musing over an investment in Hollywood Bowl (LON:BOWL) Out of interest I'd be grateful if you could explain why you prefer Ten Entertainment?

mmarkkj777

14th Jun '18

Well Firtashia, This is all about personal opinion, really.

Fundamentals wise, The PEG for Ten is much, much lower, which means that it is growing, and expected to grow, much faster and that you are buying earnings growth for a much lower price. To be fair, one counterbalance to this is that the Operating margins for Hollywood are higher, but Ten's are quite good and I would see them equalling Hollywood later as the business matures (even exceeding as TEN seem to be slightly higher end).

I don't think there is anything wrong with BOWL, just that I feel, for me, TEG is probably a more sprightly alternative.

But everyone has to make their own mind up. I put this post out there to spark debate and discussions, and hopefully I will learn something from the thread in the process. Thanks for your Post and I hope I have explained somewhat?

mmarkkj777

14th Jun '18

I've just bought BTW.

andrea34

14th Jun '18

I bought Ten Entertainment (LON:TEG) early this week, I thought the stockranks and the whole stock screen looked very sound, and doing a comparison with Hollywood Bowl (LON:BOWL) I thought that Ten Entertainment (LON:TEG) looked rather better on underlying financial ratios

Steve L

15th Jun '18

Thanks both, appreciate the comments. I can't see a lot in it between the two TBH but the reason I edge towards Hollywood Bowl (LON:BOWL) is the fact that it appears to be subject to earnings upgrade revisions (whereas Ten Entertainment (LON:TEG) does not appear to be) and also that I prefer to value a company on trailing earnings as opposed to earnings yet to be confirmed. Should Ten Entertainment (LON:TEG) issue an "in line" statement or interims confirming its in line then this could well change. Just depends on one's individual criteria for buying, as alluded to.

gus 1065

15th Jun '18

i posted a link on another thread a few days ago to an article by Richard Bedderd comparing Ten Entertainment (LON:TEG) and Hollywood Bowl (LON:BOWL) that might be of interest to those following this discussion here that may not have seen it.

https://www.stockopedia.com/content/ten-entertainment-353448/?comment=11#11

Gus.

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Ten Entertainment - Bowling you over yet?

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About the Author

Mmarkkj777

6 comments

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