EVRH - This stock is right where it needs to be (Maybe lower)

Wednesday, 22nd August 2018 09:18 - by Rajan Dhall

EVR Holdings are a virtual reality music company that has had a lot of hype over the last 2 years. The company essentially makes it possible to be at gigs if you can't get there through the medium of VR. The Co. has been signing deals with record labels and venues left right and center but when will this translate into a solid revenue stream. Below are the highlights of the today's earnings report. 

Completion of a successful equity placing to raise £20 million (before costs).

As at 30 June 2018 the Group had cash and cash equivalents of approximately £26.1 million for future expansion and development.

Gross profit at a loss of £0.2 million has been calculated after the deduction of content creation costs as well as amounts due to all rights holders

Adjusted operating loss before non-cash and recurring items was £3.8 million (H1 2017: £1.8 million)

The rest of the report is fluff. I don't think the market, in my opinion, will be happy about it taking so long to grow the revenue stream. From a technical point of view, we saw a lot of selling volume into the announcement yesterday and the 6p mark looks like it could be under threat this morning. Unless we get some news of deals done that can produce revenue I think investors may stay away. I personally think it may be a long road for this one.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.