The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Thanks ThereSheGoes. Good to get that level of insight. This is a sizeable commitment on your part and here's hoping it rewards handsomely. I emailed Sarah after the RF announcement but heard nothing back on this occasion. Good to get your take on the CFO - it explains a lot. Still, operational delivery now key for the company on all fronts.
When BM gave that interview, the Iron Ore price was $149. it peaked shortly afterwards but I can see how the 50% reduction in price from the $161 peak on early April hampered negotiations. Currently at $126 so let's hope we stay around/above that. Brazil seems to be betting on a much stronger Chinese economy this year with a huge delegation led by President Lula to meet Xi for a multi-day visit this week.
Thanks you ThereSheGoes for your detailed posts.
I am pleased to see the exit of Riverfort and was also pleased to see the exit of looks like a mediocre CFO. A concern that the board needed to resort to these steps in the first place.
How did you get other shareholders involved? What was the shareholding threshold to get involved?
You presumably have confidence in the profitability of the different parts of the business. Were you given any indications regarding future profitability/ demand outlook?
And any indication regarding the publication of the much trumpeted and imminent broker note? I am baffled why this has been in the offing for so long yet has not been published!
But again, thanks for your comprehensive posts.
It’s a terrible deal - but possibly the only way to keep the ship afloat… We were all delighted when we broke free of Riverfort last time. MB10 seemed understandably annoyed when this deal was announced. Not sure what brought him/her back to lvcg.
If we see “an exponential rise in profits” - then yes, we should definitely see a healthy re-rate - providing the profits are net profits, thereby taking expenses into account. The potential is there and that is why I invested. But in a challenging global economic environment, I don’t doubt it is challenging for a consumer discretionary business.
Yes it is the CEO’s fault when he says the company
Is vastly undervalued and II’s walk away. They don’t believe him regarding delivery of net profits and are selling up even with the SP so low. He has no credibility.
Earl - what is "big"? I thought Frankfurt was supposedly "big" (second night etc), but LVCG made no money. Ticket sales, events, contracts etc mean nothing until we see the profit they generate.
Don't get me wrong, LVCG has plenty of reasons to be very profitable. But execution and delivery are what drive share prices. It requires committed management who are eager to reward patient shareholders.
MB10. So let’s see the numbers! How much was actually received by lvcg net of discounts, expenses and commissions?. The KPop event in Frankfurt was a very disappointing financial performance despite much fanfare on ticket sales and the extension to a second night. But will be extremely happy to be proved wrong.
And of course last month there was the Glencore/CSN iron ore offtaker deal
https://www.infomoney.com.br/mercados/csn-mineracao-cmin3-fecha-acordo-de-minerio-de-ferro-com-glencore-com-pre-pagamento-de-us-500-mi-impacto-acao/
US$500 million paid by Glencore for 13 million tonnes
It won't have any impact on the SP because any "profits" will be swallowed up by expenses. Let's see LVCG prove they deliver a good return on these events . Same thing with K-POP - the German concert last year was a big financial disappointment.
Indeed DCat. In another article displayed in your link, the following quote is telling:
“ One of the top priorities for the next administration is the fact that Brazil needs to encourage mining exploration and for that we need to ensure that mineral titles are a guarantee to finance this activity. That would enable this activity to be taken on by small and medium-sized companies," Marcos Gonçalves, president of mining technology association Adimb
Lula’s economic team may not have gone down well with the Brazilian banks, and his fiscal rule changes are a concern, but consensus suggests mining is safe from too much Interference.
Very true Cattleman . Patience has a limit though I think NvS and the team are as keen as we all are to move ahead fast and doing everything they can to do so. What is it Keynes said …”in the long term, we’re all dead”.
Yes...the broker's note! Why haven't we seen one yet?
On FE, it's a concern there is potentially no race in China or USA in 2023. That's 60 % of the global car markets and two key areas for EV's. China is easier to understand, but why is there doubt about the event in NY? Still, let's hope Cape Town gives the formula some glamour and a boost.
I admire your analysis MD10, but I'd like to see a hard £ target set, and delivery against that target - like any professional company. What's the £/performance target? What's the outcome? Explain the gap. Simple! I think K-pop is currently underwhelming given the opportunity. The streaming was a fiasco. I have yet to see how Smart*Art works. I was at the Saatchi Gallery event but would like to see £ targets. Can't see how this will make much money but would be delighted to be proved wrong. I discussed this idea with gallery owners at the Frieze art fair in London in |October and was left further in doubt. There is so much competition and so much "crap art" out there. Similarly, I was at the Battersea park Bricklive event with my godson in August, and that 10 day run had to be cut short. At the same time, we've had deals foisted on LVCG that still appear to be disadvantageous to the company - dispute the good efforts of shareholders to renegotiate . If DC is to recover any credibility and trust, he needs to deliver hard numbers for shareholders. The halcyon days of spinning insignificant news stories on Proactive Investors to keep investors interested have passed.