AIR MUSIC & MEDIA OFFICIAL THREAD

Grant Mac

Thanks for your post.

I really wish I could believe that a former
Director dumping all of his remaining shares would
enable the share price to recover but I doubt it?

I also don't agree with the view that now his holdings
is below the disclosable level we would not know when
he has sold out completely. Companies often release RNS
informing the 'market' when a large shareholder has sold
all their holdings. I'm sure Alex Sorrell would be aware
of this soon after the event.

I'm of the opinion that even at these bargain basement levels
investors are still cautious of investing in these shares
because of the Hollywood DVD problems and concerns about
the future trading performance of the company. The shares
are now worth less than the price they were issued when they
were listed on the AIM.

On a positive note and the reason why I believe they will
eventually recover is the Redworth Management Team. Over the
past 12 months they have shown they can continue to produce
good turnover and pre-tax profit figures in tough conditions.
Unfortunately, this has been completely overshadowed by Hollywood
DVD. The interims show this to be a fact. The re-location of the
Head Office and integration of all the different systems
(Distribution, Finance and IT)also overshadowed the impressive
performance of Redworth. I fully agree with this move and applaud
it as I believe it will reduce overheads and lead to cost savings.
However, the people that really matter in the 'City' need to see
real proof of that this has been achieved in the July 06 results
and the next Interims. I think Quotes made this point yesterday?
I believe the Redworth Team will achieve their aims despite the
tough conditions they are operating in. My observation of the
Directors are that they like to be very 'hands on' and focused on
achieving real sales and profits growth. These are the type of
Directors you need to take the company foward. Just imagine what
type of situation we would have on hands without the input of
sales and profits from Redworth over the last 12 months.
Take away the Hollywood DVD problems and re-location costs and
the interims would look very good. I think the 'City' and the
finacial press will re-rate these as a good recovery play next
year but want to see solid proof in the figures before they do.
Hopefully, now with all the bad news crammed into this financial
year the company will now be judged on its Distribution business
and that is going well.