![]() While I personally believe that this is a bad bet - I think that livestreaming concerts have a limited market appeal compared to sporting events - my opinion on the matter doesn't actually mean much. LIVX is making a bet that broadcasting live music will follow a similar pattern and evolution as broadcasting live sporting events and is acquiring the broadcasting rights to as many of the top live music events and festivals as it can. The fact that this financing took place below the 52-week low, at a level that was at half of the price of the IPO and half the price of the stock at the start of the month shows management's desperation to find funding and/or lack of respect for shareholders and the lack of demand for institutional investors to finance this company unless it is at very steep discount to market. However, when looking at the chart through July, it's not too hard to surmise that the price was walked down in preparation for the financing: Data by YCharts ![]() LIVX announced a 5 million share offering at $2.10 last week, and it actually rose 27% last Friday immediately following the news on more than double the average volume for this seldom traded stock. What is surprising is that the stock price has done reasonably well since, staying above $4 and trading over $6 for a significant part of 2019. That $80 million variance was going to have to come from somewhere at some point in time. But that was downsized to 5 million shares at a $4 share price, raising only $20 million. The initial IPO was set to be for 7.7 million shares at a $12 to $14 share price, raising around $100 million. Red flags first popped up for LIVX during the IPO stage in late 2017. What can't be debated is that its IPO has so far been a money-loser for shareholders, and they need to be prepared for more tough times ahead as a steady stream of dilution looks likely for the foreseeable future. ( LIVX) is attempting to monetize music in a unique way through its Slacker Radio service and online concert streaming, but there are some question marks as to the viability of its business.
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