Member Info for MB10

It’s 22 July.

With two massive headline acts Madrid will sell out quickly for sure.

The streaming for this one could be very valuable.

https://www.allkpop.com/article/2022/11/korean-fans-bring-attention-to-ateezs-popularity-overseas-as-they-sell-out-large-venues-in-north-america#:~:text=In%20fact%2C%20ATEEZ%20has%20been,teams%20proving%20their%20impressive%20popularity.

That is why one Korean netizen brought to attention the size of ATEEZ's popularity overseas and included a photo of one of their tour concerts.
In fact, ATEEZ has been selling out tickets to their concert in various large venues home to NBA teams proving their impressive popularity.

“The time for pleasuring yourself will soon be at an end”

Maximus Decimus Meridius

Some very big changes to the website since yesterday. Like they are gearing up for a very big announcement.

http://kpop-lux.com/madrid/

That’s going to be a bit #awkward for the trolling crew.

That new website appears to be in the course of being updated this afternoon with details of the venues, links being created to buy tickets and also artists appearing.

That’s a bit awkward for the “the festivals are obviously cancelled” crew

Upcoming Events

Madrid, 22 July 2023, Civitas Metropolitan Stadium
Nagoya, 10-11 June 2023, Vantelin Dome Nagoya
London, 22-24 September 2023, The 02

That’s the opportunity. If everything was hunky dory, this would be (well) above 10p and not down at 2p.

It back to that risk/reward equation. If the market cap was £10’s of millions or hundreds of millions that equation would be completely different, but the market cap is tiny. A swing of just £500k of profit would fully justify this on fundamentals never mind potential. And worth a reminder (before the random drivel generator starts up) that the latest delay to the brokers note was at the request of shareholders not the company.

Continued….

Significant news on all fronts is expected in the short term, but particularly on KPOP concerts and the long awaited brokers note. There’s more than 3 years worth of growth that’s unrealised IMO. Not only does lvcg have a low free float, but the remaining shares are concentrated in a relatively small number of investors. So once it’s clear the turnaround has started, the share price could rerate very dramatically. Worth noting too that capital is flowing back into not just aim, but the market in general, and that private capital lis on the hunt for acquisitions. There’s been a lot of offers made recently, and the stated aim of the Chairman is to grow the businesses for ultimate sale. If you like the risk/reward that represents they buy (or hold) shares, if not then look elsewhere.

People invest in AIM shares because they feel that the reward part of the risk/reward equation far outweighs the risk. For LVCG that balance has shifted significantly IMO over the years as the company has not just survived covid devastating its original business, but has grown to 4 high growth divisions. Those divisions are all making good progress, with bricklive also recovering to hopefully pre covid levels. The market cap, however, sits at a historic low, so the risk to the downside is lower than ever, while the potential reward has increased significantly.

LCSE has the cycling event and ocean race to cover op costs and have a 10 year exclusive deal to host formula E in Cape Town. The first event was a sell out and can only grow with LCSE having exclusive rights to sponsorship. StartART made a profit last year, and now has more physical shows and is growing its digital offering. There are £600,000 in annual recurring licence fees for that division announced alone this year, making hitting the target of £1.5m EBIT in 2023 look entirely possible. And KPOP now has 4 concerts on the books for this year, one of which in Japan is giving $1 million in upfront fees. All of those festivals are multi year and not only is there good growth prospects for each festival with the tv rights and live streaming, sponsorship and merchandising, but also good growth of further concerts around the world. We know that operating costs have been cut too. The potential is certainly there for the company to make a big turnaround this year and get into profit, and very significantly in profit too. £2 to £3 million would not be a surprise, which at a low P/E should give a share price well into double figures, and if it gets to the Chairman’s statement if “profits as big as the market cap” (£7m at the time) then that gap on the chart at 29p wouldn’t be impossible.

Problem is that until the financial guidance is restored (long promised) it’s all piecing together scraps of information. Plus there are short term cash flow issues, although it’s of note that anyone actually speaking of the company is comfortable about that. There’s also the chorus of trolls with their latest attempt to suggest that all the KPOP events have been cancelled, nonsense which was corrected by the recent company statement. Saw exactly the same all the way up to the formula E event (the trolls went from, it’s clearly cancelled to, even it it’s not they won’t sell any tickets, to they will only sell some tickets, to even if it sells out they won’t get any sponsorship, blah blah blah….yet it did happen, it sold out, they got sponsorship and are negotiating title sponsorship from ).
Continued…

Good link suedee. Just shows that tiny little lvcg are making a big splash in the global kpop world. Share price at historic lows and such a small market cap says that lvcg are basically priced to fail and none of the recent positive news has been taken account of. It wont take much to turn that around IMO. I still think that this could be one of the biggest turnarounds on the markets this year.

I gather from you and others that simple sold out yet there’s plenty of green boxes. Paying a lot of attention for someone who isn’t interested either that or he really is a sad wa###r.

Just waiting for news. Lots expected in the short term.

Those large trades at 14:06 and 14:25 were bed and ISAs.

https://twitter.com/lvcgplc/status/1648327757850370050?s=61&t=rl988v07FmcdorCM6_Ebvw

Message from the Chairman - LIVCG would like to thank stakeholders for their patience as we finalise our upcoming KPOP shows - we appreciate it has been quiet - we are working hard behind the scenes and can't wait to update you

If anything the real bid/ask went up from 1.93/2.08 to 1.98/2.19 today, but that dosen’t fit the narrative some are trying hard to push. #awkward

Indeed JS, loads of Bed and ISAs going through, which shows that plenty want them inside a tax free wrapper (no doubt the reduction in capital gains tax this year is a big driver for those anticipating big capital appreciation). Those are done at the bid price, and are very easy to identify. Anyone claiming that they are “sells” clearly dosen’t have a scooby doo

Not only is there nothing to suggest that Japan isn’t going ahead as planned, but Birdman (who are the ones organising and promoting the event) have signed the contract and made the first payment of $450,000, and before Madrid, I understand DC was in the far east. That concert will sell out in minutes IMO given the popularity of KPOP in Japan. Oh and M Group has also paid a £100,000 licence fee to lvcg and £650,000 of working capital into the Japan JV in Feb 23.

“Birdman Inc will be responsible for staging the Concert in Nagoya, the contract and hire of the Venue and all related costs and promotion throughout Japan as well as being responsible for selling 100% of the tickets. Subject to paying its contractual commitments, Birdman Inc will retain the monies from the ticket sales.”

Point of Clarification Birdman Contract

“Shareholders should note that for the avoidance of doubt all contracts announced on 13th February have been signed and the first payment of $450,000 has been received by the Company.“

The involvement of SBS ensures that there are going to be good headliners for all the events. Frankfurt has only announced minor acts so far, and seems to be leaving the bigger acts for last. Even with that, there are loads of tickets already sold, across both days. When the headline acts are announced it will sell out quickly IMO.

I understand that the line ups for Japan and Madrid will be announced in one go when the tickets are put on sale. Again, with good headline acts those 1 day events will sell out quickly IMO.

In Japan, KPOP is madly popular. The blog below worth noting. It’s the experience of someone trying to buy tickets in Japan last year for the sold out Enhypen concert (it sold out in 3 minutes) and then unsuccessfully trying to get tickets for the livestream in the over 100 theatres in Japan on the first night. The cost of those theatre tickets was over £30.

https://www.reddit.com/r/kpopthoughts/comments/ygdywf/my_experience_in_trying_to_buy_manifesto_tickets/

DC was in Madrid on Thursday/Friday.

That’s the big unanswered question. Personally I was expecting news to come sooner, but I guess these deals have a lot of moving parts to bring together. And worth noting pervious posts by TSG that noted the delay to the brokers note was from shareholders this time not the company, no doubt to ensure max impact.

Quick summary of the pros and cons of lvcg. Significant news on all fronts is expected in the short term, but particularly on KPOP concerts and the long awaited brokers note.

Pros
Covid recovery business
Now 4 x larger than pre covid and in 4 x growth areas.
Much less dilution than others over the years, plus the majority of that dilution has been targeted at growth.
Long term recurring contracts being secured (10 years for formula E and the KPOP festivals are annual recurring too)
IP deals secured with some of the biggest companies in the world (paw patrol).
Move to annual liscence fees (nearly £2m this year so far) yet also retaining explosive growth potential (sponsorship tv rights and live streaming).
Each division grossly undervalued, and the sum of the parts less than a realistic value for each division. (E.g bricklive has more than £6m in stock and was acquired for £9m in 2018).
Swing to a profit in 2023. “Profits bigger than the market cap” comment by the Chairman.
Removal of short term CLN facility and replaced by private placement (at a premium) with longe term holders with warrants that can’t be exercised unless the original shares held (no flippers).
Very low free float. Share price (and market cap) at near historic lows. Recent good news unrealised as it’s been sold into by RF and PM.

Cons
The DC factor (which to be fair accounts for almost all of the cons).
Short term cashflow issues
Over promising and under delivering (e.g. the brokers note)
Communications with investors has been poor (although it’s improving).
Financial guidance yet to be restored, so actual research is required.
Unloved.

It’s not just been a long wait for the turnaround in the original business to recover from covid, but also to grow 3 new divisions (and it’s now more than 3 times bigger with more than 3 times the potential as some of those divisions promise very significant growth and profits). Like any aim share (indeed any share) there are issues/risks that have to be evaluated but you have to balance that against the potential reward. If the market cap was in 10’s or even hundreds of millions, then the risks would be much higher, but the share price and the market cap sit at almost historic lows. If they do swing to a profit that’s as big as the market cap (£7m at the time it was said) then at a P/E of 10 (which is low for the sector and low for a growth stock) that’s more than a 10 bagger just on fundamentals, never mind the future growth prospects.