RE: K-pop tickets15 Oct 2022 10:46
Why bother researching? Its a good question, as some have pointed out it seems to make no difference, or indeed anywhere else at the moment due to poor market sentiment.
If you don’t want any risk, then stick your money in a savings account at 4%. That’s actually better than you can get from a basket of dividend paying stocks. But people invest in AIM as the rewards for discovering the next trend can far outweigh the risks.
Asimpleinvestor says make sure you research the company properly, and I agree. That includes looking at the balance sheet, debt, cash, revenue, etc, but that only gets you so far in any company and all financial statements are a snapshot in history. You also need to look at the wider factors, the markets a company is tapping into, and if those markets are affected by world events. But most importantly you have to look at the future, which is really hard to predict.
Is everything about the company great? Of course it’s not, there’s always something someone can pick a hole in. But as I’ve pointed out before, those trolling lvcg aren’t exactly gurus themselves, go look at how the “wheelie quality companies” they push like BOOHOO are faring which is down nearly 90% in less than 18 months. Bottom line is nobody has a monopoly on wisdom.
The Lvcg share price has been totally smashed by covid, the effects of which were much further reaching and lasted longer than anyone predicted. But with the share price sitting at all time lows, and the market cap no bigger than the net assets of the company, or indeed the independent valuation of the latest aquisition, and almost 50% down on what was paid for Brightbricks, there lies the opportunity. You also have to ask why insiders are accumulating shares and why an external partner wants shares in the company too.
In any recession, experience companies tend to do better, especially those targeted at youth and children, so I personally don’t buy the “we are all doomed” posts, that’s simply not true. There’s no doubt that lvcg are trying to tap into the biggest growing market segments, of KPOP, Formula E and now NFTs. And while the company has historically made a loss, those new elements of the business have already shown they can make a profit in a short space of time and that there’s plenty of room for growth and changing the margins so that lvcg benefits even more. Even bricklive is showing signs of recovery, and hopefully it won’t be long until the company starts making a profit overall. Plenty of indication of positive news to come in all fronts of the company, and at some stage the company will restore the financial guidance. But if you join up all the dots, there’s also the indication of game changing news in the digital space; IMO in any gold rush it’s those selling the shovels that make the most money.
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