THIS IS NOT A TIP OR RECOMMENDATION. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITE. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY. I HAVE A LARGE PORTFOLIO AND I USE DIVERSIFICATION TO SPREAD RISK ALONG WITH TRICKS LIKE HEDGING AND OCCASIONALLY BY THE USE OF STOPLOSSES - IF YOU BUY ANY STOCK YOU REALLY SHOULD FOCUS ON HOW IT FITS IN WITH THE REST OF YOUR PORTFOLIO AND KEEP RISK MANAGEMENT AT THE FOREFRONT OF EVERYTHING YOU DO. BE AWARE THAT ALL INVESTORS/TRADERS GET THINGS WRONG AND MANY STOCK SELECTIONS WILL WORK OUT BADLY.
Live Company Group LVCG has been a bit disappointing recently and came out with a Profit Warning on Friday 17th January 2020 which you can read here: https://www.voxmarkets.co.uk/rns/announcement/6c81371b-b106-4716-a126-e96c59f8f96f/ They also held an Investor Event the same day at Wembley Stadium and kindly James @fsjamescampbell on the Tweets shared with me a recording that he made on the day. You can listen to that here, but I understand it is about 2 hours long: https://drive.google.com/file/d/180TzeyvnkpDXFl3TUYiUwnDITZzS7jTN/view Following this, my mate Charles @charles32576349 made the notes below from listening to the Recording and he very kindly agreed to let me send it out as a Guest Blog.
And to round things off, here is a link to a recent Podcast on Vox Markets where David Ciclitira discussed the recent events:
https://www.voxmarkets.co.uk/media/5e259d94052336001724ec70/ To be very clear about my own thoughts on LVCG at the moment, I hold a very small Starter Position and I had hoped/intended to add to my Position as the story developed but there have been a few negatives recently which are encouraging me to bide my time and let things play out. I like the various opportunities and partnerships that LVCG has lined up but I want to see more evidence of progress in the Financial Numbers before I commit more funds to it. LVCG is very much a high risk, speculative, AIM Stock and therefore care is needed with regards to Position size and Risk Management, such as a Stoploss. Let me also suggest that it would be extremely unwise to have all your money in this Stock and you must have a diversified Portfolio if you want to avoid heavy losses from having ‘All your Eggs in one Basket’. Here is a link to a Blog I wrote about LVCG some time ago: https://wheeliedealer.weebly.com/educational-blogs/stock-buy-rationale-live-company-group-lvcg Many thanks to Charles and James for sharing this useful information with us all, Regards, WD. Things mentioned by the Board of Directors at the Wembley event yesterday: 1. 25 new bright bricks builders have been hired to begin working on the new touring sets. We are building at full capacity in 2020 and 2021 to maximise the number of touring sets to maximise revenues and profits. 2. Andy was invited to Nickelodeon’s AGM, and Bricklive was on Nickelodeon’s list for exciting things this year in the UK. Nickelodeon love the company. 3. Breakeven on NEC Birmingham show. No longer doing show. Better financially elsewhere. Third party to run shows going forward. 4. Higher revenues from IPs (WD Note – I take this to mean Model Sets where LVCG own the Intellectual Property and/or work where a Company commissions LVCG to build models such as a Mini or something as a marketing device). £1,000 a day from BIDs/shopping centre deals. Usually 2-4 week rental. The big touring sets rent for 4 months on average at a time. 5. Asia to make a comeback with growth expected in 2020, particularly in Japan. 6. Demand has been staggering in Germany. 7. New partner in Italy is ex-Disney manager for Italy. David Ciclitira (Chairman) keen to point out exciting things happening with him. In fact, he asked for a Paw Patrol set already but we don’t have a spare to give him. 8. DC admitted the timeframe for the buyout has changed (It has always been DC’s intention to sell the business once it is established enough). He says this year is about the growth of the assets. DC said he thinks our partners and client book will be what makes us attractive to a buyer. Hinted that 2021 is when the business is completed and ready for the buyout. 9. DC’s salary was brought up. People told him his salary should be £100-200k. DC didn’t say anything in response. 10. DC doing some interviews on Monday. Didn’t say which ones - guessing Vox and Proactive? 11. New broker note coming out. 12. £3m Revenue already secured for 2020. 13. Every quarter in 2020 will be profitable. 14. Late China money coming in March. 15. Further IP deals expected to be announced. 16. Canada zoos. 17. Netherlands zoos. 18. Marwell zoo now in 4th year and have signed a 2-year deal. 19. Avoiding South America. Too many issues. 20. Switzerland news coming. 21. We don’t want anything to do with Lego. What we have with Nickelodeon & Hasbro, using our own bricks, is exciting. 22. Paw Patrol Birmingham had 70k visitors. 23. 15% of Blackburn population turned out for the Paw Patrol display. 24. Q3 gross profits were better than expected. Hence profit not being down as significantly as the revenues. 25. Penguin Snowman very popular. Andy Smith (Chairman of BrightBricks) didn’t expect sets to be rented out at Xmas - but they were - demand is high. 26. China really let us down in 2019. Even in mid Dec, DC was expecting the money to come in. 27. Israel Brickosaurs in July. Demand for Brickosaurs so high we are building a second one now. 28. Will be 31 touring sets in total by year end, with building already underway. 29. Looking to have the South Africa JV (Joint Venture) up and running by December; So tours can be in South Africa and Australia during the colder spells here. 30. Second Dallas show this year. 31. The nomad got a battering from all sides: DC, Trudy Norris-Grey (Non-Exec), Andy Smith and Riverfort included. 32. Sets are being booked before we’ve even built them! 33. The team admitted there had been several own goals. But 2 years into the company and we’re making a profit - very good. 34. Long debate about whether the trading update should have been in 3 parts, with Sponge Bob and Dallas being in separate RNSs. Investors present said it should have been. DC and Andy said they’d been told by shareholders in the past to make less regular, more detailed statements, perhaps quarterly, as DC was accused by many as RNSing too much in the past. Some investors want news everyday, others want big chunks every few months.... can’t please everyone! 35. Riverfort guys explained the finance arrangement in great detail too.
1 Comment
WheelieDealer
1/23/2020 01:14:06 pm
I've had it clarified since publishing this Guest Blog that the acronym 'IP' is referring to the Partnership Deals such as the Nickelodeon and Entertainment One agreements.
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