Parallel Media Share Discussion Threads

[eezymunny] 12/11/2015 18:54

Dear oh dear.

OK my recollection was wrong. They made an op profit once which was swallowed up and more by finance charges, and once because they sold a subsidiary. So 15 loss-making years out of 16 while DC enjoys Raffles Bar and Monaco with his fat salary. Great place to stick your money DD - how much are you down so far??? Go on tell us - we might buy you a sympathy pint.

If PAA ever buy out PCM I'll eat every hat ever made in Hat County! Please please give me your thoughts on why PCM even exists. We could all do with another DD comedy post!

[dusseldorf] 12/11/2015 18:41

britishb - Completely irrelevant comments re: operating profit. You stated they hadn't made any, I proved you incorrect:

"I've started posting about PAA because it has lost investors money non stop for 16 years and has never made an operating profit in that time (IIRC)"

"As shareholders have been shafted non stop for 15+ years and there has never been an operating profit in that time, if you're optimistic you're close to insane IMO!"

Whats wrong with admiting your 'recollections' were wrong?

RE:PCM

In consideration for receipt of the services provided pursuant to the PCM Agreement, PCM will pay any funds earned by it from the joint venture company, subject to the retention of an annual sum of GBP25,000 to pay for the running costs of PCM and any tax payable by PCM, to Parallel Media up to a maximum aggregate amount of GBP500,000. In addition, under the PCM Agreement Luna Trading Limited has granted the Company an exclusive option to purchase Luna Trading Limited's entire shareholding in PCM for the nominal sum of GBP1 at any time until the six month anniversary of the date at which the revenues received by Parallel Media pursuant to the PCM Agreement are equal to or exceed GBP500,000.

If you actually read RNS's instead of 'glance' at them you'd see that PAA can acquire DC's interest 'at any point' during the six months after which the JV has produced 'revenues' equal to or in excess of £500k, so at this rate when do you believe that will be?

[eezymunny] 12/11/2015 18:31

In 2006 they declared am operating profit due to sale of a subsidiary. It was not a trading profit.

In 2008 the declared op profit was 222k which was swallowed up and more by finance costs of 508k.

This company has been a loss-making disaster year after year after year.

If they don't get that £2m written off PAA is pretty much toast IMO. DC will walk away with his little music biz, a nice place in Monaco perhaps, a crowd of buddies at Raffles hopefully...and you'll get eff all just like every shareholder in PAA for the last 16 years.


As for as your steps above

Remove loss-making activities - NO! Still loss-making.
Golf income - I'll wager with you that they'll never host a European Tour event again after what happened last year.
Remove overheads - yes - because they haven't got a cent to pay anyone!
Sort out b/s - they're balance sheet insolvent and I suspect this will result in a "clarification of financial position" if the big creditor(s) aren't VERY kind!
DC's deal making skills have lost the company a fortune. Year after year!

I'm bored now. Clearly there's nothing I can say that you'll listen to.

And you haven't thought about why PCMI is taking all the music contracts. Have you?

[knigel] 12/11/2015 18:20

Duseldorf - I just cannot understand the guy - I cannot recall any other poster doing so much research on a share were they will never invest in!!! WHY!!!!!!!

[dusseldorf] 12/11/2015 17:29

I'm not sure why this whole concept is elluding you britishb. This plan has been work in progress for 18 months/2yrs ..driven perhaps by Sanlam/Mills

STEP1 - Remove all loss making activities and JV's, it will be painful, but do it (tick)
STEP2 - Convert golf into reliable income stream via Singapore PTE sale and annual fee (tick with hiccups, some uncertainty to date, but if event is staged could be £3m? to sell off, if Korea stays it's bonus)
STEP3 - Remove 90% of group (plc) overheads via 1 & 2 & outsourcing finance function etc.. (tick)
STEP4 - Sort out the balance sheet (ti... ok, work in progress, perhaps reliant on 2 also)
STEP5 - Make the companies biggest asset (DC's ability to 'swing a deal' / get sponsorship in Asia) the driving source of new business. Just look at his PCA ventures, a licence to print money, if it were profit driven he can get backing from major players
STEP6 - Receive all profits, knowing the business is very easy to fund if it's lumpy revenue as overheads will be low
STEP7 - Wait for the market to revalue the business

If PAA effectively becomes a low cost listed shell for receiving profits of JV's, it will eventually be rerated.

BTW, your persistant comment "PAA have never made an operating profit AFIK"
ANSWER: PAA produced an operating profit of £521k in 2006 and £222k in 2008 and £88k in 2013. Not great, but perhaps now you can get your facts straight

[littlemadam] 12/11/2015 10:43

Fair points EezyMunny.
Any company takes your eye at the moment?

[eezymunny] 12/11/2015 09:46

KN you said the other day that you HAVEN'T made any money doing this. Seriously, why not consider a change of strategy from hoping for daft spikes in horrible companies to buying some decent, profitable companies, at keen prices? Making money in the stock market is easy if your strategy and discipline is good.

Just trying to help!

[knigel] 12/11/2015 09:36

BTW I agree - most of AIM is junk hence why I try to trade and get in/out asap now a days... FITB going from 0.7p to 26p last year have kept me well in the profit zone for a while yet - PAA next?

[eezymunny] 12/11/2015 09:28

Would you like me to? I suspect you'd wouldn't like me to write the hard truths about your junky holdings. That's all I've done here after all.

[knigel] 12/11/2015 09:18

So we will see you posting on MTV, PTV, Phorm and Fitbug to name a few other AIM companies as bad - if not worse - than PAA.. in the near future? GOOD

[eezymunny] 12/11/2015 09:05

Au contraire KN. You post all over the place about shares you don't hold, no? Stocks that interest you. Nothing wrong with that.

I've started posting about PAA because it has lost investors money non stop for 16 years and has never made an operating profit in that time (IIRC). I'm simply trying to help people. My thread and track record suggests my thoughts are at least worth thinking about, no?

Buying loss-making companies with balance sheets in a desperate state is not the way to make money IMO (as you've demonstrated!)

[knigel] 12/11/2015 08:57

Well I never realised you had a thread because you have only just started posting here .. so I ask again, were is BritishB? BTW no harm telling us all were you are trading (no advice intended etc) but talk about having an EGO.
Re PAA - TWO RNS releases within a month! Doesn't feel/sound like a company about to go bust...
Final point - why are you posting here? I can only presume you are monitoring and looking at a possible trading/investing opportunity at some point - there can be no other reason as I don't view houses if I don't intend to at least consider making an offer!

[eezymunny] 12/11/2015 08:46

And KN. Go and look at my thread...



I'm the only person on ADVFN that I've seen maintain a portfolio, post trades in near real-time etc. EEZY1 portfolio's performance was about my average over 16 years. Take your pension pot, compound it at 25% over 16 years and you'll see how comfortably you could retire if you'd buy some decent stocks at decent prices!

[eezymunny] 12/11/2015 08:41

Just another tiny deal, no?

And is anyone really happy with the way this is being done through PCMI?

"PMG will receive all the revenue which PCMI receives after the deduction of certain approved operating costs and any VAT"

I mean who is approving the costs in PCMI? None other than DC I guess? I wonder if a few G&T's at Raffles will be approved. Bottoms up!!!

[dusseldorf] 12/11/2015 07:15

Interesting, looks like revenue will be accelerating due to the nature of the deal. Now if we resolve the golf issue we may just start holding some gains.

[knigel] 11/11/2015 22:51

Two of the shares you mention I TRADE.. BTW why are you not using your BB user name any more? So obsessed with what everyone else is doing... Is that because you got no money to invest/post elsewhere?

[eezymunny] 10/11/2015 13:50

KNIGEL. Wouldn't it be incredible if anybody owned PAA, PTV, and MTV?! The three greatest issuers of new shares that I can remember in my investing lifetime!!!

[eezymunny] 10/11/2015 13:34

I think it might be worth your while thinking what happened at The Championship 2014. PAA failed to attract a big sponsor and the event was mysteriously moved from Korea to Singapore at the last minute. It seems plausible that PAA simply didn't have the money to pay the host golf course in Korea and they (the GC) told them to get lost.

In prior years PAA contracted to pay the prize money for Tour events and it seems likely to me that they did in 2014. Without the sponsor they wouldn't IMO have had the cash to pay that prize money and the Tour may have had to pay it (and all the costs of competitors etc changing flights, hotels etc). That would have bee about £2m IMO. I reckon the Tour may have sent an invoice for all this to PAA. PAA have deemed this non-payable but I just don't see why the Tour would write this off (apart from there being no possibility of being paid of course!).

So the possible outcomes are

a) the Tour forgive the £2m but nullify golf rights
b) the Tour forgive the £2m but leave golf rights with PAA - and they go on to host future events
c) the Tour send a winding up order and it's all over, fat ladies etc

You can dream of b) and it may happen. And as I said I may win The Open next year....

I go for a) or c) and I don't see anything for shareholders in those circumstances.

Or there may be a completely different outcome. You just never know. As shareholders have been shafted non stop for 15+ years and there has never been an operating profit in that time, if you're optimistic you're close to insane IMO!

[dusseldorf] 10/11/2015 13:05

EezyMunny - I agree a) is possible and based on price action the one most people believe is likely - not me however. I'm not sure why writing the £2m off would mean giving up golf rights - the event in Korea (a tournament inc. Causeway match play) was going to be independent of the tour and Singapore the 'revised' Championship (formerly in Korea) date owned by PAA hence the PTE co. So Singapore is really the only thing left associated to tour. I've no idea what would create the £2m on the balance sheet in the first instance, but it wouldn't have been mentioned if it were not up feasible for removal and continue with the golf.

I await the update of european tour dates hopefully to include Singapore somewhere up to -> end June, then the association with the tour continues and sale of the PTE vehicle can carry on - perhaps inject significant cash.

As for music, hopefully some more ventures to bring it past break

[eezymunny] 10/11/2015 12:10

The problem Dusseldorf is if the European Tour won't write-off the £2m (if indeed it's them, who else could it be?) and the golf rights become worthless. In that case a) looks the likeliest outcome.

a) going bust is a clear favourite to me but clearly there are lots of possible outcomes.

[dusseldorf] 10/11/2015 11:47

At £290k it is priced to go bust. There are two things that can make this worse:
a) Going bust
b) Issuing stock at or below current levels

Obviously I'm not a fan of either. I'd much prefer option c)

c) Removing the mysterious £2m debt and issuing new stock to existing debt holders (DC et al are owed £750k and perhaps raise £250k? at premium to current price to create valued entity around £3-4m (Golf & music) with no debt and a potential to generate profits in h1 2016. I'd settle for 50p a share...

[mister md] 10/11/2015 10:28

.. and thats just the known unknowns, lets hope there are no further unknown unknowns ;)

[dusseldorf] 10/11/2015 09:21

Indeed, people have suggested PAA would have died a death many moons ago. I suspect a few big ticket news items due before year end as:
a) We've not had update an any golfing event (Korea or Singapore), the calendar should be finalised in next 4 weeks so all will be revealed either way
b) We've not had any update on the mysterious £2m on the balance sheet that 'may' disappear
c) We've not had any update about how the company will repay loans and director salaries
d) We've not had any update on the sale of the Singapore PTE rights 'valued' at 10x the market cap alone (in theory)