I really hope that the results/accounts (due in a fortnight) include a forward looking narrative that reflects the numbers attending events so far and the revenues/profits generated from them so that the market can estimate the future very likely significant profitability and cash generation of the company. If an average event has 20,000 attendees the revenue per event must be c. �1m. So if LVCG profit from that by just 5% that's �50k per event. At 60 events a year that is �3M profit before we add in cafes/creches etc. P/E ratio for the sector is a minimum of 15 so a minimum mcap of �45M.
From my research into the company and David, it looked to me that both got involved in the wrong type of events previously. Golf is in decline and sponsorship thereof was primarily coming from banks and other large corporates that needed to pull back on such investments. BrickLive is a totally different business using one of the best brands and products in the world and is respected globally - Lego. The new management and events delivery team have an impressive track record and David has the right links and sponsor networks in Asia where the big boys are doing well and will jump at the chance to sponsor such a safe and family friendly brand and linked events. So, I think the past is not a good measure for the future regarding LVCG and the opportunity, that they are well placed to take, is enormous.
Low volume this week, I assume a few profit takers are selling after the fast rise over the last 2 or 3 weeks. Hopefully lots of news to come and impressive early revenue and profit figures. The numbers attending the shows (that have been selling out) certainly look very impressive. The opportunity in China and the rest of Asia looks enormous to me. GLA
First thing this morning, another 10,000. The opportunity looks great. I wanted to be fully loaded ahead of what I expect to be very promising revenue figures that hopefully will be released to the market before too long. GLA.
GB, yes I am planning to buy more and also put them all in a SIPP. For an AIM listed company it is great to see an excellent BOD with a fantastic brand, a straightforward but ambitious strategy that generates revenue and profit quickly, have excellent global connections and opportunities (especially in Asia) and only a small number of shares that are free float. And, most importantly sells products and events that bring happiness and education for the kids. It has a real feel good factor doesn’t it? I think I might just have stumbled across exactly the sort of investment opportunity I have been looking for many years to find. GLA.