Summary Due to aggressive accounting practices, EROS' reported earnings are significantly overstating the economic reality of its business model.
EROS' subsidiary financials reveal a lack of free cash flow and raise many questions about the company’s accounting. The company has enriched its controlling family at the expense of shareholders through a series of related-party transactions. Eros Now is poorly positioned to win the battle for streaming media in India and appears to have made meaningful misstatements to investors. Based on the company's persistent negative free cash flow and growing debt and share count, we believe the stock is worthless. Eros International PLC (NYSE:EROS <http://seekingalpha.com/symbol/eros>) ("Eros PLC") is a leading distributor of Indian language films. The company also operates a nascent streaming business known as Eros Now. While the company claims it has grown revenue and operating income, its consistent lack of free cash flow tells a different story. Digging into the company's foreign subsidiaries and accounting policies reveals that the reported numbers are a mirage and that the company has misled investors about its financial results and financial health. Finally, we believe the company has lied to investors about the content available on Eros Now and its user metrics. Our research suggests Eros Now is late to enter the streaming market, which already has numerous competitors. The competitive position of Eros Now is only likely to worsen once Netflix launches. We believe EROS is most likely worthless or worth only a small fraction of its current market value, and our analysis shows that. -- Kindly email stock reports at STOCKRESEARCHER@googlegroups.com For sharing knowledge -- NIFTYVIEWS.COM NOW A FREE OPEN SOURCE WEBSITE. http://www.niftyviews.com/ Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture.The administrator of www.Niftyviews.com just provide a platform for the authors to express their opinion and take no guarantee for the genuineness of the same."ANY member of this forum doesnt prepare or publish any research report; or ii. provide research report; or iii. make 'buy/sell/hold' recommendation; or iv. give price target; --- You received this message because you are subscribed to the Google Groups "Niftyviews.com" group. To unsubscribe from this group and stop receiving emails from it, send an email to stockresearcher+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
