The closest they come to disclosing this is that they say they sold 2.2 million shares "recently" fpr $10 Mil., according to the 10Q. Their pumper press release states that they raised $9.7 Mil form a $10.0 Mil gross selling price in January. (Doesnt say anything about number of shares. So if you connect the dots, you know the 2.2 turned into 6.6 million shares. But Scottrade, Yahoo, and The Street arent smart enough to do the math (shame on them).
LIVE was hoping for this kind of misinterpreting of their vague disclosures. What #$%$ they are.
LIVE sold 2,214,612 shares during january for $10,000,000. Since it was during January, those shares must have gotten the 3-for 1 split, making it 6,644,000 new shares. The 10Q just released gives no share counts or EPS info. The 10K issued in January put the share count at 3,779,000 shares as of 9/30/13. So those old shares total 11,337,000 new shares. Adding the recent stock sale shares of 6,644,000, the total share count is 17,981,000 shares.
At a current price of $9.39, this scam company is worth $169 Million in market cap. But Yahoo, The Street, and Scottrade all put the market cap between $128 Million and $131 Million.
There is no way the company is worth $130 Million. (The Street has a sell rating based on their wrongly figured market cap). But the stock isnt valued at $130 Mil, its valued at around $170 Mil.
Nice work LIVE. And longs - tell me if there is anything wrong with my math.
$7.34 is what offering price? The new 10Q says they "recently" sold 2.2 million shares for $10 mil. That is either $4.50 or $1.50 per share. They dont say whether it was pre or post split. What a fraud!
Why dont they state the date, "recently"????
Why dony they say whether it was pre-split or post split?
Why dont they disclose the shares outstanding as of quarter end?
Why dont they disclose the shares out after the "recent" sale?
What a bunch of slimeballs. SEC wont like any of this.
When you dilute shares you have to let your shareholders know exactly what happened. You can't say .... by the way "recently" we sold 2.2 Million shares for $10 Million. You cant be so vague that nobody knows if you sold 2.2 Million shares for $4.50 of current shares, or did you really sell 6.6 million shares at $1.50 / share. We have a right to know which it is. The buried that "recently" statement right near the bottom of the 10-Q, and there was no disclosure as to how many shares are now outstanding. They just dont want people knowing they are selling shares for either $4.50 or $1.50. They are con artists.
The 10Q is deliberately vague in report a "recent" sale of 2.2 million shares for $10 Mil. If this was done pre-split, the 2.2 quickly became 6.6 Million (purchased at a price of $1.50/ share), and diluting the ownership of all other shareholders by just about exactly 50%.
Even if the sale was post split, the sale price was $4.50/ share for the current shares and dilution would be about 20%. But my bet is that the dilution was pre-split, and at 50% dilution.
And then have not even truly reported the sale. What slimeballs!
The 10 Q says LIVE "recently" sold 2.2 million shares for $10 Mil. So was that before or after the split? They don't say. Stating that stock sale so vaguely is itself an illegal act.
This little nugget is contained in the very incomplete 10Q issued late Friday. When you just did a 3 for 1 split, it would be nice to know when "recently" was. Before or after the split? Doesnt say in the 10Q. Did they really get 6.6 Mil shares? Depending on when "recently" was the share price for the offering was $1.50 or $4.50/ share of current shares.
The P&D has been genius (though probably illegal). Their friends/ partners invested $10 Mil in a scam company... and got even richer... I presume. I would think they paid $10 Mil knowing they could double or quintuple in the matter of a day or so (depending on if their cost was $1.50 or $4.50).
Does this management smell bad or what? And now they have a warchest of $8 or $9 million to continue to play games with. They were out of cash till they did this deal. Saved from BK in the nick of time.
So do you think they sold the shares for $1.50 or $4.50, and dont you think they ought to let their shareholders know which it was?
LIVE management did not separately disclose this sale of shares. The good news for LIVE is that the electric bill will get paid this month and for the next coming months. (They were in danger of going under very quickly without this money, as the 10Q shows that working capital went from decent liquidity to a disastrous negative number of ($42,000).
But nowhere in the report does management disclose the number of shares outstanding at 12/31. They dont even say whether the 2.2 million shares were sold pre or post split. (It was "recently"). So Live maybe has $8 or $9 Million of cash. (The $10 Mil was before commissions and expenses - which were not disclosed).
So 2.2 Million shares were sold "recently" for $10 Mil, or for $4.50/ share. So was that pre-split, meaning the buyer now has 6.6 Million shares that cost $1.50/ share? Or was the sale done and quoted in post split shares? Dont know. The report is vague to put it mildly.
Anyway, management has disclosed that they have valued their shares at either $4.50 or $1.50. Take your pick. It appears creating confusion is an important part of their business plan.
The previous 10Q (for the 6/30/13 quarter) gave per share earnings (errr loss), balance sheet, cash flow statement, income statement, schedule on gross profits, detailed info on number of shares outstanding. None of these items is included in the 10Q filed late Friday evening (when nobody was looking or caring).
The 12/31/13 10Q gives a narrative walk through the 12/31 quarterly income statement without actually showing the income statement.
While we have seen the pumps on their entry into the NYC market and the 153% increase in traffic, everything we know about both of these items is included in this sentence. How did they enter the NYC market? Was it an e-mail blast addressed to the 25 restaurant that a clerk in their office could find e-mail adresses for? Did they rent 500 sq. ft. of office space in the basement of a mixed use building in Brooklyn? Maybe they even did both of these things. Who knows? (They do but wont tell us, even in their quarterly report to shareholders). The increase in visits to their web site is up. But how many hits were there? They dont tell us. (It has been posted on this MB that a large part of the visits comes from India - which I do not know to be true). There have def. been alot of visits by longs and shorts looking only at the stock, not looking for a meal out in San Diego. What percentage of the visits has that been? 10%? 30%? 70%? Dont know, but I am sure it is a significant percentage.
We also know that the legacy business is slowing going away, while the new Internet site has nominal revenues, not even worthy of mention for a public company. OK here it is. New Internet revenues were about $110,000, while legacy revenues were down $89,000 to about $483,000. So total revenues were $593,000. LOCM reported yesterday, and this competitor reported revenues of $27 Million for the quarter. LOCM has a market cap of $36 Million. LIVE's market cap is way over $100 Million. What is going on here??
teamster - Your are right. Bashing is really stupid. Lets keep just to facts - no bashing. So, what is your opinion of LIVE's 10-K. Are you concerned that LIVE's CPA firm just issued a "going concern opinion" in the 10-k filed just over a month ago. The GCO means that by definition, the CPAs are doubtful the company will survive even 12 months as a going business. CPAs are required to issue GCOs when their professional opinion leads them to the conclusion that the end is near. I think that opinion is pretty important, as it does affect my investment decisions regarding LIVE.
What is your opinion on this topic?
revenues slip from a puny $600K to around $500K, when LIVE reports for the 12/31 quarter. Those kind of revenues warrant a market cap around $10 Million, $15 Million if you're smoking crack (figuratively). The market cap is fallen all the way from $90 Million to $60 Million. Its a huge drop from here to $10 Million.
By the way doing TWO 3-for-1 splits wont fix this valuation problem!
Maybe if they do a 3 for 1 split every day.....
Little things like the going concern opinion letter from their CPA just filed a month ago with SEC is never refuted or commented on. They dont even say that it doesnt matter. They just hope reality and posts about reality would just go away.
The quarterly report is out in about a week, maybe 10 days (if they dare!). Last quarter they had revenues around $620,000 and a net loss around $1 Million. I predict sales slip to around $500,000, with their older lines of business slowly evaporating. So if revenues are $500,000 (or $0.04/ share after the share split.), how much is LIVE worth? Ten times annualized sales? (Share price would be $1.75 post split, which is equivalent to to a price of $5.25 on the 3,800,000 current share count).
But pricing LIVE at ten times sales is saying that LIVE deserves higher share pricing than Google or Groupon. Live is better than Google? I dont think so. Google is priced at 7 times sales and Groupon is at 2.9 times annual sales.
So LIVE cant be worth more than 3 times sales, which puts the market cap at $6 Million, and the post split share price at $0.53. (or $1.59 based on the pre-split share price.)
Lets hear your predictions Longs!!
LIVE's CPA firm says LIVE is going out of business, and will likely cease to operate within 12 months. That is a company with strength? I dont think so. Got any solutions to the business going out of business?
Longs, don't forget to read the 10-K filed less than a month ago. The following quote is called a "going concern opinion", which means the exact opposite of what it sounds like. It means their own CPAs doubt the company will survive a year as a going concern. Here is their own verbiage:
"The Company's consolidated financial statements are prepared using the U.S. generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company had a net loss of $5,747,014 for the year ended September 30, 2013 and had an accumulated deficit of $27,333,647 as of September 30, 2013. These factors, as discussed in Note 3 to the financial statements raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to the matter are also described in Note 3. The statements do not include any adjustments that might result from the outcome of this uncertainty."
I almost never short. I own about 20 stocks now. Favorites are INFU, EBIX, RAD, PSEC, and RAS. The last two have yields of 12% and 7.5%.
I do have one short. LIVE. It is somewhat risky, as my downside risk is theoretically unlimited. But what are the chances that a scam stock can keep its price up through earnings season? It is a sure bet that LIVE is headed back around $2 to $4, and their CPA firm puts the price at zero within a year. (Read the CPA's cover letter to the audit they just published in the 10-K).
How will the price react if sales continue their downward trend? Companies that have high growth (like GRPN and FB and CRM)) can trade at 10X sales. Companies with declining sales (like LIVE) should trade at one or two times sales. Currently LIVE is trading at about 30X sales. What a great short.
I predict a close at $7.50, and it is back in the $4s in a week. In a month to 6 weeks it will be $2, with the split actually converting that price to $0.67. Then they do a reverse split ( 1 for 5), which brings the price to $3 and the market cap to $6 million.