Member Info for MB10

This is a public board and everyone is entitled to post what they want, positive or negative, holder or non holder. I’ve always advocated that anyone reading should take account of the whole investment case. But equally I’ve always advocated that you need to take account of who is posting and why.

On the whole investing is not a team sport, and everyone talks their own book. The day traders (although if some actually held for a day that would be a long term investment for them) and flippers and those wanting a cheaper entry can be easily seen. Then you have the ex holders who have lost money, who given that lvcg is close to a historic low is pretty much everyone. They can be seen easily too, there’s plenty of DC haters (and let’s face there’s plenty to despise) that keep coming back to post. Then there are those who are attached to the brokers and financial institutions and those who are part of the pump and dump crews or are part of the company management themselves, and let’s face it there are some aim companies, especially small natural resource companies that are likely never to generate anything other than confetti or are mearly vehicles to offload debt in some kind of poorly constructed equity arrangement.

But actual shareholders (I.e. those who have actually risked their own money) will on the whole have at least something positive to say about their investment. Sure there are some shareholders that will raise negative comments, especially if the share price is down and they are underwater. But unless you are really weird, being completely negative about something you have risked your own money in (and still have money in) is as rare as the proverbial hens teeth IMO.

So since January, LVCG have
1.landed £2million in risk free annual recurring liscence fees, with the promise of even more coming from Japan.
2.gained more contracts with bricklive zoo sets, and posted financial information about how much that is worth (and if you look at Detroit, they are actually renting two sets to them, so it’s likely to be above the top figure mentioned).
3.landed a new contract for KPOP that gives lvcg a bigger share and allows live streaming, plus landed a new KPOP festival in Madrid.
4.Sold out of formula E tickets and hospitality as well as landed sponsorship revenue.
5.Hosted the ocean race
6.Landed even more StartArt festivals.

Sure not everything with lvcg has been positive, for example cash is tight and there is a short term lending facility (my own position on that is clear), but I would say that you have to question the motives of any poster that hasn’t said a single thing about any of the points above in their posting history, especially the ones that claim to actually hold shares.

No doubt there will be the usual protestations from the usual subjects, which normally takes the form of more trolling and personal abuse.

All sold out.

Funny that those trolling who said first of all that they would never get permission, then said that the race would never take place, or that the track would never be upgraded, or then that the works would be late, and then that even if they did finish the works that no seats would be sold, or that even if they sold some seats they wouldn’t sell out, and wouldn’t get any sponsorship either just got that completely wrong. Did they ever admit to getting it wrong I wonder? Think you know the answer already……

All seats sold out. Hospitality sold out. Sponsorship achieved, and title sponsorship for next year in active negotiation.

Indeed JS, there’s no censorship from what I can see of anything that’s reasonable. But I’ll just point out too that those claiming that there’s censorship of “certain narratives” are the same posters who have had posts censored for posting libellous and false information about the company.

Nearly £2m in risk free license fees announced just recently, with the promise of even more in the future. Sponsorship of formula e announced too and working on title sponsorship for next year too. The position and prospects of the company for this year is materially better than at the start of the year, but there are short term cash issues that have been highlighted. I expect that the lack of volume and the drift in the share price has everything to to with that and the mezzanine finance than anything else.

Their current CFO has been with the company for more than 3 years so bennster’s statement is simply false, and the previous CFO is still on the Board after more than 5 years.

All you can tell from the tr1 yesterday is that Miton sold shares and crossed a threshold that they were required to report to the market (something that Ranjit failed to do 3 times). It says nothing about them having finished selling or otherwise. But note that last time they trimmed their position they subsequently bought more to bring it back to 10%.

https://www.news24.com/sport/motorsport/cape-town-to-benefit-from-r2bn-economic-injection-in-formula-es-first-year-report-finds-20230215

Agreed suedee5 sells for sure. Those trades look like the Miton sells, which would tie in to the tr1 today. Equally could be the RF first £50k of the short term facility?

Lod, you can cross reference the revenue in todays RNS to the research notes here :

https://www.livecompanygroup.com/investor-relations/documents-reports/

The larger tours command between £25k and £50k per month and a typical zoo rental is between 3 and 6 months. That cross checks all the info in the research notes. There are 28 tours of various sizes for which the capital costs have already paid for over the years.

Daedalus, KPOP LUX Ltd is a 100% owned subsidiary of LVCG. You can check this out on Company House (company number 14132899). So 100% of the licence fee for the Japan concert and the rights for merchandising, sponsor ship etc is retained by LVCG.

Nice new bricklive contract in the USA.

“The larger zoo contracts generate revenue roughly between £125,000 and £250,000 each so they are an important part of the BRICKLIVE business”

Nice to see them including an indication of the rental revenue in the RNS too.

HL, you are perfectly entitled to your opinion, but the reality is you have absolutely no idea why the CFO went.

I would just point out that you said in January that you sold lvcg shares to buy dark shares and your main complaint was “What news have we had from the BOD on this share? NOTHING!”

Since then there has been the start art news of £500,000 in risk free annual recurring fee, plus the JV in Japan with its $1,000,000 annual recurring fee and the promise of more, plus updates on other areas of the business.

Your response to that news, and IMO the Japan news is the biggest news to come out of the company in years, was to say absolutely nothing.

Draw your own conclusions from that is what I say.

This 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.

Worth noting too that LVCG already have an international livestream provider lined up (RNS of 4 May 22) in Doors for which they get circa £9 per stream.

Todays agreement saw lvcg retain the live streaming and distribution rights in Japan and internationally.

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

“However, we did learn earlier that Enhypen's concert on November 15 (Jake's birthday) will be live streamed in some 100+ theaters throughout Japan. I figured that if I can't fulfill my dream of sitting in the front row of the Yokohama Arena with a picket that says ???????? on it then I can at least send my disembodied love for them through the screen. And the price of admission for the theater seats was no ####ing joke either --- roughly 5000 Yen, with the actual concert being 11000 Yen. I figured, well, maybe this time I'll actually be able to go.
The ticketing for the live theater was also by lottery, and whaddya know, I still didn't win anything.”

Less than a week ago the JV was set up in Japan. That gave lvcg a £100,000 annual recurring licence fee plus it out £650,000 working capital into the JC, and it cost LVCG nothing.

Less than a week later there’s a $1m annual recurring fixed fee contract for the next 4 years (which is a contract worth half of the current market cap) plus more to come from merchandising, sponsorship and life streaming. Plus another festival on the same terms being negotiated in September.

Whatever anyone thinks of DC, that’s a brilliant deal by anyone’s standards.

By my ready rekoner that $1m guaranteed fee recurring for the next 4 years is worth between 3-4p on the share price. And that’s before you factor in the merchandising right, sponsorship right and live streaming rights. Or indeed the intent for a 2nd KPOP festival in Japan in September on the same terms.

If the promoter is prepared to pay up an upfront fee of $1m for a single KPOP concert in Japan, then the market is seriously underestimating the value of the 3 European KPOP concerts already booked for this year IMO.

I’m sure that immediate cash will come in handy too.

I’ve been quick to criticise lvcg for not including details in their RNS’s but this one spells it out in great detail.

Wow. Zero costs to lvcg. $1m recurring fee for 4 years. Plus merchandising, sponsorship and live streaming rights retained

For anyone interested in just how big kpop is in Japan this concert was not only sold out, but all 163 theatres it was live streamed to across Japan were sold out plus it was live streamed on the internet on the 2nd the night. Enhypen were just one of the acts at Frankfurt 22.

https://mb.com.ph/2023/01/23/k-pop-boy-band-enhypen-holds-first-solo-dome-concert-in-japan/

Continued…..

Central op costs are £1.5m so even allowing for some inaccuracy, somewhere between £2.5 and £3.5m profit this year. Indeed it’s getting to the stage where the central op costs are covered by the fixed licence/management fees, with over £1m announced so far.

I think a forward P/E of 10 is very conservative so that’s 10-14p on the business that’s been announced for this year so far, and if they land more KPOP festivals could be a lot more. Plenty of growth in 2024 too. In the same way that it’s undershot on poor sentiment, I believe it would overshoot if sentiment changes.

On the negatives cash is clearly tight as it’s taken longer to recover from covid than thought, hence the short term loan facility to bridge the next 6 months. That facility will be drag on the price IMO; needs good news and high volume to overcome. Jason Lee was subscribing for a further £750,000 @3p. That’s late and is causing uncertainty (although with the share price recovered a little, that price doesn’t look unreasonable now). There’s also the £0.5m cash owed for StartArt aquisition that’s adding to the short term uncertainty. Then they are slow in getting the KPOP acts out, plus the efest and concert look unlikely to add much to the bottom line. The brokers note has been delayed and delayed and the negotiations on additional KPOP festivals have taken longer than anyone would like. Communications with investors has been poor (understatement!), although that has shown signs of improvement recently. Add the “DC factor” and the actions of Ranjit selling without proper declarations and it’s not hard to understand why the share price is in the doldrums. Sentiment is very poor due to a combination of all those factors, but that could all change in a heartbeat as is the way on AIM.

I think it’s always useful to have a rough ready reckoner in your mind: it really comes down to if you believe that LVCG will make a profit this year and is growing (which I do), then IMO for every £1m in profit that should add 4 to 5p of value to the share price. The actual share price however is down to loads of other factors, many of which aren’t even related to the company.

GLA DYOR

Thanks suedee5 and others. I laid out my reasons last week; all I can say is that it’s right for my own particular (complicated) circumstances right now. Equally I said that I still believed that the company is significantly undervalued. I still do, and I’m happy to share my own assessment of what’s going on for what it’s worth. Plus for the record, I still have a shareholding (I retain the right to turn up to shareholders meetings), and if circumstances change I’ll change my mind.

On the positives, business is recovering from covid, the company is way more diverse than before, there are big opportunities for cross selling and all parts of the business are in areas of significant growth. Bricklive cost are down significantly, liveshows are returning, and tours are being booked again. Bricklive division a hould be well in profit this year. This was acquired for over £9m and is in a much better state, with £6m in brick stocks and 28 tours already paid for and new markets like zoos entered. I think circa £0.5m profit this year, could be more.

KPOP now has 3 concerts (annual recurring) in the bag with over £1m coming in, a renegotiated contract with SBS to drive costs down and with merchandising and live streaming plus sponsorship adding to that. If some of the headline acts being touted materialise, these festivals will sell out. There are clearly many more festivals in active negotiation and I’ve previously shown that if Frankfurt was sold out the lvcg share of the profit would be closer to £1m. This division has the best potential of any of the divisions. £1.5m profit from those 3 concerts wouldn’t be an unreasonable assumption. Any additional KPOP festivals that appear will add straight to the bottom line profit, same with the merchandising and the streaming ( particularly if it’s live).

StartArt is is doing well and there’s been a flurry of licensing deals and art fairs added. Can see this division making its £1.5m EBIT target just on the physical shows and art sales, possibly more when the digital side gets into full swing. Then there’s the £500,000 of annual recurring zero risk license fee for the start branded coin. £2m profit IMO.

LCSE washes its face on the cycling. The ocean race will be 3 weeks of fees and then there’s the 10 year Formula E contract. They get a management fee of €350k plus a share of the sponsorship, which is now more than anyone thought just a few weeks ago. The most interesting statement was about being “close to negotiating a title sponsorship for next year”, which would be significant. I’m not sure about a share of the ticket revenue or the partners revenue, would need to see more detail. But between £0.5 and £1m profit this year IMO. Plenty of room for growth and significant uncertainty removed (remember those saying it wouldn’t happen, then if it did happen they wouldn’t sell any tickets or get any sponsorship?)

Continued……..

Good luck everyone. Can’t say I’m happy with the latest development. But I vowed never to be involved with a company that did business with a mezzanine finance provider. No matter how good the prospects, they have over 5 million shares at 1p to dump plus death spiral finance arrangements for even more (its a no lose scenarios for them). While the share price might recover some (and it’s an even more rediculous market cap vs the price) I won’t touch them again until the death spiral finance provider has gone again. Although Sarah assured me earlier that this is just a short term loan, the sad fact is they issued shares at 1p, and the last time they said they wouldn’t enact the death spiral, they ended up doing exactly that. If it’s any consolation I’ve taken a massive loss. Good luck everyone

I don’t see any sell yet though, so it’s a bit odd.

10% of the market cap in a risk free recurring annual payment announced this morning and the share price is down. Very odd.