Member Info for x66rjp

As the title suggests, stupid question incoming...how do MelodyVR make their money?
As far as I understand they have developed an app which is free to download and you dont need a VR headset to use with the app unless you decide to. I assume you pay to watch a gig? Does anybody know how much?

Final stupid question - what are peoples view on the long term aspects of this business? I can see vlaue during this covid period but afterwards? Not sure there is a substitute for being their live?

AA is another company in a similar position - saddled by debt but it's share price has doubled (almost) during the pandemic. Similar 5-year sp decline for both also. I'm holding out for a decent rise but also understand the risks. I'm not so bothered about the holiday side, more the insurance business. Imagine the risk of price comparison sites is a problem for lots of companies - just have to adjust price or differentiate/explain why you're different and can charge more. Be interesting to see how things play out here.

Insurance is the larger part of this business in any case. I guess the cost of the two ships are high given they are generating no revenue but hopefully hedged by insurance business. I have to say the long term decline in the sp is a bit of a concern but think 30-35p is achievable by the end of this year. A share for the bottome drawer now I think.

Agree short term not great with companies cutting back budgets and this will be one area. However WPP will stick around having seen off previous crises since its inception. Can see sp dipping once recession bites / furlough ends in October but buying now with a view to averaging down if necessary later on.

Admire the optimism but think they might do that with social distancing, notso much quarantine rules.

https://uk.news.yahoo.com/spain-holiday-quarantine-british-tourists-065833730.html

They dont need full capacity. Agree over the last 12 months the sp has been sliding but I dont see any reason this doesnt reach £1-£1.20 by the end of the year. I am not convinced of £2 - the financials will be dire and while getting out the Cineplex deal was good it will likley have repercussions.

Whatever way you cut it - it's a sizable amount. Hopefully the dirty laundry is being cleared out and it's onwards and upwards from here.

I am not convinced the goodwill was from the IPO as this doesn't make sense. For it to have been from the IPO this would essentially be self generated goodwill which is not allowed. Goodwill comes from business combinations and acquisitions - so the goodwill is then recognised by the buyer in their balance sheet. In the case of this IPO, Saga were not the buyer. My thoughts for what they're worth are the goodwill was generated from Saga acquisitions and they overpaid or haven't got the synergies from the purchase they expected so have to write down some of the goodwill.

Just come back from a walk and there were lots of people eating ice cream from the ice cream van. Nobody seems that bothered about the virus - think it will be the same here. People will go to the cinema especially if they cant travel and so on just to escape and feel a sense of normality.

Not sure it will mean a placement/rights issue but in reality all companies carry this risk at the moment.

Deal not going ahead is a good thing imo. I don't think cine would just cancel it without first reviewing the legal basis. In any case a settlement is better than putting the business at risk long term.

I agree - not really sure as despite being the main subject of the 2019 annual report it's difficult to understand why. I'm not sure if the auditors basically told them to do it or they'd qualify their opinion but as I say not clear. It's a difficult one - the sp is low so quite attractive but that impairment plus the long term drop in sp seem red flags. Not sure the markets work as we expect though - AA is a good example of sp which would have doubled in last few months despite its financial position being debatable. Sentiment I guess and I wonder if Saga could be the same.

https://uk.reuters.com/article/us-cineplex-m-a-cineworld-grp/britains-cineworld-scraps-deal-to-buy-cineplex-idUKKBN23J37D

Have they made poor acquisitions as that could be the reason (i.e. paid over the odds and now have to write it down).
Another poster indicated that the goodwill was from the IPO but I am not sure.

This was the most I could find. Slightly bothered me as suggests they dont believe their insurance business will be as successful as they thought and this is the main part of Saga.

From FY2019 financial statements -
"However, based on the new plans for the Insurance business, excluding Bennetts, there has been a material reduction in the carrying value of the business compared to the valuations undertaken in previous years. In addition, once certain stress
scenarios are considered in relation to the insurance cash flows, for example, relating to the selected risk discount rate, as
well as the expected return from new strategic investments, the Group has determined that the recoverable amount of the
goodwill of the Insurance business, excluding Bennetts, is below the previous carrying value. The Group’s results therefore
include an impairment of the insurance goodwill, excluding Bennetts, in the amount of £310m.

Agreed - and doesn't feel like it will stick. I guess if we use the recent lows as the bottom and we are now moving back to opening things up perhaps those lows can be viewed as the bottom? Or will markets sink when reality kicks in / furlough scheme ends? Risk reward decision.

Is an auction good or bad?

In an ISA you dont pay income tax on dividends or capital gains on share sales so best option. Agree you can trade if you have the time. However there are income investors who want dividends and the future yield here is good even at 1p (which it will likely be higher). It depends what you are looking for and how much time you have on your hands to trade.

Doesnt look like dividends are paid at present but they will be back. Even at 1p a share its a good yield (and thats being pessimistic based on historic dividends they were higher than that).