Live Company Group PLC

Live Company Group PLC (LON: LVCG) is an FTSE AIM All-Share listed live events, entertainment, and sports events company.

Investment Rationale for Valuation – Watch at GBX 10.50

• KPOP Concert: As per an update on 14 March 2022, the company is planning to hold the KPOP.FLEX festival in Frankfurt in May 2022. It anticipates a decent income stream from the event, with revenue from the first festival received in May 2022. Streaming for the show would directly impact the bottom-line profitability, as costs are already covered by ticket sales for the event. The Group has also raised funding of £0.825 million for working capital needs from institutional investors, at 5.0 pence per share.
• Streaming Contract: On 4 May 2022, the Group announced that the Heads of Agreements for the streaming of the KPOP.FLEX festival have been assigned with Doors Live AB. The contract is based on a pay-per-view basis on Doors' streaming platform throughout the world. Doors is expected to retain between 38.5% and 35.0% of total net revenue, Seoul Broadcasting Service (SBS) retaining between 1.5% and 5.00% and LVCG retaining the 60% balance.
• BRICKLIVE Contract: On 26 April 2022, the company has updated that it has signed a new contract for BRICKLIVE Paddington.
• Muted Performance: During the period H1FY21, the Group reported revenues of £622,000, compared to £968,000 in the prior corresponding period. Net loss stood at £2.11 million in H1FY21.

One Year Share Price Chart

 (Source: REFINITIV; Analysis done by Kalkine Group)

Technical Insights

LVCG has shown a decent rally in the past couple of months and recently started to correct from the higher levels after facing resistance from an upward sloping trend line. Prices also formed a negative divergence with the RSI (14-period) where prices made higher highs, but RSI was unable to do so, further supporting a downside correction. On the daily chart, the MACD indicator is showing a negative crossover whereas the RSI is moving southward from an overbought zone. However, the trend-following indicators 21-period SMA and 50-period SMA are below CMP and may act as the support levels for the stock.

Conclusion

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Based on the uncertain macro conditions, muted financials and unfavourable technical levels, we have given a “WATCH” recommendation on Live Company Group PLC at the current price of GBX 10.50 (as of 04 May 2022, 10:24 AM GMT+1).

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’ 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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