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Russian business man increases HMV stake

By | Published on Tuesday 14 December 2010

Much comment may have been made about HMV’s woes when the music company and entertainment retailer announced its half year figures last week, but the Russian billionaire who has been quietly buying shares in the firm, that Alexander Mamut chap, hasn’t been put off.

And why would he? Assuming he thinks HMV has a good future beyond the collapse of high street entertainment retail (ie digital, live and artist relations), then now is a great time to be buying HMV stock, all that aforementioned negative comment sending the company’s share price downwards.

According to the Financial Times, Mamut, who recently increased his share holding to 3%, has now bought up more stock taking his share to 5%. There has been various speculation as to Mamut’s motivation for increasing his HMV stake, some wondering if he sees a potential for expanding the firm’s retail operations into Russia, others noting his interests in the mobile sector and pondering on whether he sees the potential of HMV’s interests in digital entertainment.

Or perhaps he just thinks HMV’s recent diversification out of entertainment retail has much more profit potential than the average City-boy Joe seems to realise, making taking a stake now while shares are cheap a good investment.



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