EQUITY RESEARCH Telecom, Media, Tech · Blake Indursky EVP & SVP Operatngs Merrill Lynch, Pierce,...

EQUITY RESEARCH

Telecom, Media, Tech

INITIATION REPORT Member FINRA/SIPC

Toll Free: 866-928-0928 ⬧ www.DawsonJames.com ⬧

Please find Important Disclosures beginning on 7. Page 1 of 18

June 4, 2018

Initiate at Buy as LiveXLive Creates Live Music Platform • We initiate coverage of LiveXLive Media shares with a Buy rating and a $7 price

target.

• It is a live music streaming and social media platform with an artificial intelligence

driven internet radio platform – Slacker Radio – that was recently acquired and is

being integrated.

• LiveXLive’s model is similar to that of ESPN as it seeks to become the go to

platform for live music events with all music genres including, rock, country, jazz,

electronic and hip hop.

• It mainly targets millennials but with so many music genres, it should have a wider

reach.

• Music in general and live music in particular is incredibly important to our lives

with the music of our youth staying with us through life. Music transcends race,

religion, politics, nationalities and other barriers that divide us and LiveXLive

strives to maintain this harmony in its platform.

• The company operates at the intersection of several cultural, financial and technical

trends with the time right to build an integrated, socially-based platform around live

music.

• We see the company in the first stage of what should be a three-stage process

involving building a schedule of festivals, attracting viewers to its platform, and

monetizing these.

• Most of its revenue today is from recently acquired Slacker Radio but we see

revenue building from $7 mm for FY 2018, ended in March and to be reported this

month, to $34.5 mm in FY 2019 and $147 mm in FY 2020.

• EBITDA will likely be negative this year, but its margins should be high if it

executes so we see $29.8 mm in FY 2020.

• The company had $13.7 mm in cash at the end of December, which covers our

EBITDA deficit, but we do expect a secondary offering to build more of a cushion.

We would not be afraid to buy ahead of a deal because we think the exposure of an

offering will be a positive.

• Our $7 valuation is based on a multiple of 12x FY 2020 estimated EBITDA which

is consistent with comps outlined in this report.

• The key risk is execution. It appears to be off to a good start putting the pieces in

place, now they must monetize. Surprisingly, competition does not look to be a

major threat as larger players have executed poorly and are exiting.

LiveXLive Media, Inc. (NASDAQ/LIVX)

BUY

LiveXLive Media is the first and only live music streaming and social media platform. It is

integrating its recently acquired Slacker Radio to create a unique offering.

Barry M. Sine Senior Research Analyst

646-422-1333

[email protected]

www.dawsonjames.com

LiveXLive Media, Inc. of 18

LiveXLive Media Inc269 South Beverly Drive

Beverly Hills, CA 90212

+1.310.601.2500

http://www.livexlive.com

Rating Buy

Target Price $7.00 Earnings Per Share Normalized to exclude unusual items

Ticker Symbol LIVX FYE - March 2018E 2019E 2020E

Market NASDAQ 1Q - June ($0.08) ($0.12) ($0.00)

Stock Price $4.45 2Q - Se9tember ($0.12) ($0.12) $0.08

52 wk High $90.00 3Q - December ($0.10) ($0.08) $0.13

52 wk Low $3.43 4Q - March ($0.10) ($0.07) $0.19

Year ($0.39) ($0.39) $0.40

Shares Outstanding: 50.5 M

Public Market Float: 20.5 M Revenue ($mm) $7.1 $34.5 $147.0

Avg. Daily Volume 46,795 EV/Rev 30.2X 6.3X 1.5X

Market Capitalization: $221 M

Institutional Holdings: 14.1% EBITDA ($mm) ($0.0) ($9.9) $29.8

Dividend Yield: 0.0% EV/EBITDA NM NM 7.2X

Common Ownership Profile

Senior Executives Shareholder Shares ('000) % of Total

Robert Ellin Chief Executive Officer Fidelity Management & Research Co. 4,020.0 8.0%

Mike Zemetris Chief Financial Officer Sandor Capital Management LP 3,018.6 6.0%

Douglas Schaer Chief Operating Officer Millennium Management LLC 70.3 0.1%

Jerome N. Gold Chief Strategy Officer Morgan Stanley & Co. LLC 2.0 0.0%

Blake Indursky EVP & SVP Operatngs Merrill Lynch, Pierce, Fenner & Smith, Inc. (Invt Mgmt)0.2 0.0%

Directors and Officers 18,164 36.0%

Capitalization

Market Value Basis ('000) 05/31/2018 %

Long-Term Debt $8,412 3.9%

Market Value of Equity 220,947 102.5%

Less: cash -13,754 -6.4%

Enterprise Value $215,605 100.0%

Book Value Basis ('000) 12/31/2017 %

Long-Term Debt $8,412 12.2%

Other Liabilities 19,962 28.9%

Book Value of Equity 40,783 59.0%

Total Capital $69,157 100.0%

Source: Company reports, Metastock and Dawson James estimates.

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http://www.dawsonjames.com/

www.dawsonjames.com


Building the First and Only Live Music Social Platform

We initiate coverage of LiveXLive Media with a Buy rating and a $7 target price.

LiveXLive has a bold strategic vision but is relatively early in its implementation. The

company is looking to build the preeminent media platform for live music events, similar

to how ESPN has come to dominate live sports. There are over 2,000 music festivals

around the world annually, with a combined revenue of around $2 bn. LiveX has already

announced plans to webcast 27 of these this year and it is regularly adding new festivals

and distribution partners.

We value LIVX shares at $7 per share. We note that the company has limited financial

history and while we are confident that the company does have a unique, monetizable

model, the trajectory of getting there is a little unpredictable. Having said that, we forecast

revenue of $35 mm this fiscal year, and $147 mm next with negative EBITDA of $10 mm

this year and positive $30 mm next year. We provide a comps table later in this report but

there are no exactly direct comps and those that are comparable vary widely in valuation.

But having said that, we use a multiple of 5x revenue and 12x EBITDA. On revenue this

yields a $3 valuation on this year’s revenue and $15 on next year’s. On EBITDA we only

look at FY2020 since we forecast negative EBITDA this year. At 12x, this gets to a $7

price target. We could easily justify a 15x multiple based on comps, which we would likely

move to as we see a couple of quarters of execution on the business plan. This gets us to

a $9 stock. We discuss risk factors later in this report, but would stress that this company

is in its early stages and has a lot of execution to prove.

At 12x FY 2020 Estimated EBITDA, LIVX Shares Worth $7

Source: Company reports and Dawson James estimates

Music is the Soundtrack of Our Lives

Music is an extremely important part of our lives. It transcends cultures, age, race, religion

and politics. For most people, the music they grew up with remains an important part of

their lives as it brings back pleasant memories from their youth. During the formative teen

and young adult years, live music events are an important part of social life. Several

important trends are combining to drive the LiveXLive strategy.

1. As noted, music is the soundtrack of our lives and is especially important

during our formative years

FY2019 FY2020

Revenue 34,450 147,040

Multiple 5.0x 5.0x

Enterprise value 172,250 735,200

Cash/(debt) (15,022) 14,794

Equity value 157,228 749,994

Per share $3.12 $14.86

FY2020

EBITDA 29,816

Multiple 12.0x

Enterprise value 357,792

Cash/(debt) 14,794

Equity value 372,586

Per share $7.38


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2. Millennials strongly identify with their social groups and are heavily

influenced by others. So much so that people with a strong social media following

are called influencers.

3. While live music is incredibly important, it can be expensive to travel to

events across the country or the globe. This is especially true for millennials, who

in many cases still live with their parents due a weak economy since the 2008

recession, have low incomes and high student loan debts. So a solution offering a

way to be part of the socially popular events, without the high cost of travel would

be ideal.

4. Live, mobile streaming has been enabled by device makers like Apple and

Samsung, 4G network providers like T-Mobile and Verizon and backend network

providers like Amazon Web Services, Cloudflare and Akamai.

5. People have shown a willingness to pay for better versions of what was once

free. Cable TV began supplementing free broadcast TV in the 1970s and two

decades later, Sirius and XM (now merged) did the same thing for radio. Today,

subscription services for web-based content like Netflix are now commonplace.

6. Putting all these trends together, the time is right for LiveX’s strategy.

The music industry has evolved with technology and is once again thriving. While we

once had dozens of “record labels” today the industry is dominated by three major music

publishers: Warner, Sony and Universal. While transition from physical medium such as

vinyl records, cassette and eight track tapes and CDs to digital media was traumatic, today

a highly lucrative industry has evolved. The early days of free, pirated music sharing by

companies like Napster are gone, replaced by a legitimate profitable distribution system.

Apple and Amazon dominate the sale of digital copies of music, but even these are being

replaced by paid subscriptions to music. And the publishers are generating record profits

without the need to produce, inventory and distribute massive amounts of physical media.

Radio is also rapidly morphing. In 1884 Guglielmo Marconi invented the first radio in

Italy. After World War I, with the adoption of amplitude modulation technology, the first

AM radio station, KDKA of Pittsburgh, went on the air. Radio was the first “internet

bubble” driving the bull market of the roaring ‘20s. Surprisingly, today advertising

supported free radio is still very popular nearly a century later.

But just as cable TV supplanted free broadcast TV, Sirius and XM (now merged)

successfully introduced paid subscription radio. Now that most consumers have a smart

phone and subscribe to high bandwidth data services, subscription web-based radio

companies like Pandora and Spotify are taking off. Broadcast radio stations are now

commonly webcast over phone apps and websites as well.

The live music space is dominated by Liberty’s Live Nation with over 25,000 concerts and 90 music festivals

annually. They are followed by other smaller festival promoters like AEG, Insomniac and Superfly. There

were early attempts by Red Bull Media and Verizon’s go90 to create live music webcast businesses but neither

really focused their efforts and both have largely exited the space. Google’s YouTube does stream some events

like Live Nation’s major Coachella festival, but they only provide bland, passive images of other people having

fun at music festivals. What if someone could create a full, branded, interactive live music experience the way

ESPN has done with sports? Enter LiveXLive.


www.dawsonjames.com


Building the ESPN of Live Music

CEO Rob Ellin acquired the company as a shell corporation in September 2011 via his

investment company called Trinad. It was previously a Canadian 3D printing company

called Loton found in 2009. The current business started under the brand name Festream

in February 2015, but fortunately, they adopted their current cooler name a few months

later in May 2015. The whole company was rebranded as LiveXLive in July 2017 and on

December 27 they sold five million shares at $4 per share giving the company meaningful

float and institutional ownership as well as a nice cash cushion.

One of Ellin’s first tasks was building a team of experienced media executives with an

incredible combined rolodex. Ellin got his start in finance, at one point serving as an

institutional salesperson for LF Rothschild. He morphed into the investing business and

led a leveraged buyout of bra-maker S&S Industries where he served as CEO for two years.

More recently, he was executive chairman of Mandalay Digital, a mobile solutions

company.

Among the industry leaders he brought on board are Phil Quartaro, who formerly headed

both Warner Bros. Records and EMI and later went on to found Virgin Records America

for Richard Branson. Jerry Gold, who is now the chief strategy officer, was the CFO of

Warner Music. Mike Bebel was an EVP at Universal Music and went on to be CEO of

Napster in its heyday. He also ran two joint ventures between Sony Music and Universal

Music: Pressplay and Total Music. He also held senior digital entertainment positions as

Nokia and Microsoft. COO Doug Schaer previously founded Hero Ventures which

launched The Marvel Experience with Marvel Entertainment partnering with Ticketmaster,

WWE and Magic Johnson Enterprises. Most recently, Mike Zemetra has been brought in

on the finance side as the new CFO about a month ago. We have had ample opportunities

to work with him on understanding the company and its financial potential and have found

him to be a straight shooter equally willing to discuss both the company’s enormous

potential as well as the nuts and bolts of the business. Among the board members, we note

that Tim Spengler was formerly president of Clear Channel Media, one of the largest radio

companies. So overall, our reaction is wow – a very connected, experienced team.

On December 29, 2017 the company acquired Slacker Media for total consideration of

$55.3 mm. Slacker was primarily a B2B business model selling subscriptions through

wireless carriers and car companies. It had approximately 1.5 mm subscribers, although

most were free subs with about 450,000 paid subs. It offers paid subscription plans at $3.99

and $9.99 per month to individual subscribers. With B2B subscriptions, we estimate an

ARPU around $5 per month.

A key aspect of the acquisition was the technology. It was this technology that led Elon

Musk to personally select Slacker as the built-in music app for Tesla cars. With Slacker’s

computer learning algorithms, consumers can skip songs they don’t like, and the software

will learn the consumer’s tastes over time.

Slacker had experienced declining revenue and losses with the loss of a key Samsung

relationship ahead of the acquisition. But since then, momentum has turned and the

company has reported a gain of about 10,000 subscribers. We model essentially flat

Slacker revenue this year, and accelerating growth next year, but early momentum suggests

we may be proven too pessimistic.

LiveX is already incorporating marketing for Slacker into its live music broadcasts, driving

some success with 10,000 new subscribers in the March quarter. Over time, likely next


www.dawsonjames.com


year, we look for full integration with a combined, and likely rebranded,

LiveXLive/Slacker service.

The company mainly targets the millennial demographic and we think its product is ideally

suited to the unique aspects of this generation. First, millennials are largely group-thinkers

and heavily follow influencers on social media. LiveXLive has hired several of the leading

influencers such as Amanda Cerny. Second, like all generations of youth, millennials are

passionate about their music and closely follow their favorites. Thus they are likely to be

intensely aware of major upcoming events like music festivals. Third, with a poor

economy until recently and degrees in popular college majors that offer low compensation

and high college debt, millennials have little disposable income. Thus the record high

incidence of youth living with and being supported by their parents well into their 20s and

even 30s. So while they passionately follow their favorite artists, they cannot afford to

attend the major music festivals around the globe. Fourth, millennials are incredibly

technologically savvy. Many have incredible advanced computer programming skills and

thus their ability to master multiple social media internet platforms. Fifth, millennials are

willing to pay for content, with most subscribing to more than one streaming music service.

LiveXLive is at the center of these trends, offering a mobile web-based, low-cost solution

for millennials to watch their favorite artists perform at music festivals and virtually

interact with them.

With the pieces in place, we believe that LiveX is ready to start booking significant revenue

with a rapid ramp. The company is early in the stages of a three-step process to build its

revenue base:

1. Build a robust schedule of festivals

2. Build a user base with a target of up to 100 mm views this year

3. Monetize the festivals and visitors

The company is well on its way to building a robust schedule and it is developing a solid

relationship with festival promoters such as Live Nation, AEG and Insomniac. In FY 2017

it kicked off streaming four festivals. In FY 2018, the company webcast five festivals. It

is on track to webcast 27 festivals this year, and we estimate as many as 70 next year.

Many of its festival contracts are for multiple years, so as it signs for one year, it is also

building out its schedule for future years

The second step in the process is to build loyal viewership and it is off to a good start.

During the weekend of May 18 – 20 it webcast three major festivals and drew 14 mm

views. Thus it is off to a great start to getting to 100 mm this year. In this business, success

begets success. Not only with LiveX utilize its own platforms to cross promote other

festivals and Slacker, its user can also leverage social media, including that embedded in

the LiveX app, to engage their friends.

The most impressive metric in this industry is the 45 mm views Beyoncé Knowles-Carter

generated for her appearance at Coachella over YouTube in April. Mrs. Knowles-Carter

widely publicized the ability of her many fans to view her live appearance through

streaming over her social media accounts. She has over 100 mm followers on Instagram,

her preferred platform and, according to Variety, she “broke” Instagram with her

pregnancy announcement (fortunately, it has since been fixed). The 45 mm views

reinforced her already superstar image, but sadly, YouTube did nothing near what LiveX

envisions to monetize these views. To YouTube owner Google, 45 mm views is just

another day at the office. To LiveX, it would be half a year’s business plan. Coachella is

owned by Live Nation, which LiveX has a budding relationship with.


www.dawsonjames.com


LiveXLive Festival Streaming Schedule


Festival Start Date End Date Location 2017 / 2018 Lineup Organizer

FY 1Q 2017

Rock in Rio [Lisboa] 5/19/2016 5/29/2016 Lisboa Metallica, Motley Cure, Royal Blood and Gorjica. Live Nation

Total 1 Festival

FY 2Q 2017

Outside Lands 8/5/2016 8/7/2016 San Francisco, CARadiohead, LCD Soundsystem, Duran Duran,

Lionel Richie, J. Cole, and Lana Del Rey.Superfly Presents

Breakaway Music Festival 8/26/2016 8/27/2016 Columbus, OhioRae Sremmurd, L Grime, Dillon Francis and Young

Thug.Prime Social

Country Night Lights 9/23/2016 9/24/2016 Athens, Ohio Jake Owen, Sam Hunt and Brett Eldredge. Prime Social

Total 2 Festivals

FY 1Q 2018

Hangout Music Festival 5/19/2017 5/21/2017 Gulf Shores, AL

Mumford & Sons, MGMT, Weezer, Frank Ocean,

Chance The Rapper, Major Lazer, Twenty One

Pilots and DJ Snake.

AEG

Summerfest 6/28/2017 7/29/2017 Milwaukee, WI

Red Hot Chili Peppers, Paul Simon, Tom Petty &

the Heartbrerakers, Will Nelson, Bob Dylan and

Cheryl Crow.

City of Milwaukee

Total 2 Festivals

FY 2Q 2018

Paléo Festival de Nyon 7/18/2017 7/23/2017 Nyon, SwitzerlandRed Hot Chili Peppers, Arcade Fire, Macklemore &

Ryan Lewis.

Outside Lands 8/11/2017 8/13/2017 San Francisco, CA

Metallica, Lorde, Gorillaz, The Who, Solange, Fleet

Foxes, A Tribe Called Quest, Thundercat and

Queens of the Stone Age.

Superfly Presents

Rock in Rio 9/15/2017 9/24/2017 Rio de Janiero, BrazilMaroon 5, Justin Timberlake, Aerosmith, Bon Jovi,

Guns N' Roses, The Who, Red Hot Chili Peppers.Live Nation

Total 3 Festivals

FY 1Q 2019

EDC China 4/29/2018 4/30/2018 Shanghai, ChinaMarshmello, deadmau5, Alison Wonderland,

Hardwell, Martin Garrix, Mija and Disclosure.Insomniac

EDC Las Vegas 5/18/2018 5/20/2018 Las Vegas, NevadaArmin Van Buuren, Diplo, Kaskade, Marshmello,

Martin Garrix, Tiesto, Hardwell and Zeds Dead.Insomniac

Hangout Music Festival 5/18/2018 5/20/2018 Gulf Shores, ALThe Killers, The Chainsmokers, Kendrick Lamar,

Zedd, OdeszaAEG

Rock On The Range 5/18/2018 5/20/2018 Columbus, OHTool, Avenged Sevenfold, Alice in Chains, A

Perfect CircleAEG

Country 500 Music Festival 5/25/2018 5/27/2018 Daytona, FL Toby Keith, Chris Stapleton, Dierks Bentley AEG

Rock in Rio [Lisboa] 6/23/2018 6/30/2018 LisboaBruno Mars, The Killers, Muse, The Chemical

BrothersLive Nation

Montreux Jazz Fest 6/29/2018 7/14/2018 Lake Geneva, Switzerland See Website Mathieu Jaton

Total 7 Festivals


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Festival Schedule Continued


Festival Start Date End Date Location 2017 / 2018 Lineup Organizer

FY 2Q 2019

Audiotistic Bay Area 7/14/2018 7/15/2018 Mountain View, CAMarshmello, Lil Uzi Vert, Nghtmre, Slander, Keys n

Krates, Joyride

Paléo Festival de Nyon 7/17/2018 7/22/2018 NyonRed Hot Chili Peppers, Arcade Fire, Macklemore &

Ryan Lewis (2017)

Global Dance Festival 7/20/2018 7/21/2018 Denver, COTiesto, Deadmau5, Future, Adventure Club and

Gucci Mane.AEG

HARD Summer 8/4/2018 8/5/2018 Fontana, CA TBD Insomniac

Sziget 8/8/2018 8/15/2018 Budapest, Hungary Arctic Monkeys, Kendrick Lamar, Mumford & Sons

Rock en Seine 8/24/2018 8/26/2018 Paris, France The xx, PJ Harvey, Flume, Franz Ferdinand

Bumbershoot 8/31/2018 9/2/2018 Seattle, WA Flume, Lorde, Odesza, Big Sean (2017) AEG

Nocturnal 9/14/2018 9/15/2018 San Bernardino, CADillon Francis, GTA, Excision, Zomboy, Keys N

Krates, Sub Focus, Claptone (2017)Insomniac

Breakaway Festival 8/24/2018 8/26/2018 Columbus, OH Halsey, Odesza and Migos. Prime Social

Country Night Lights Sept, 2018 Athens, OHJake Owen, Brett Eldredge, Brothers Osborne,

Frankie BallardPrime Social

Total 10 Festivals

FY 3Q 2019

Escape 10/26/2018 10/27/2018 San Bernardino, CATiesto, DJ Snake, NGHTMRE, Marshmello,

Afrojack, Alan Walker, Eric Prydz (2017)Insomniac

EDC Orlando 11/9/2018 11/10/2018 Orlando, FL

Armin Van Buuren, Marshmello, Galantis, Dimitri

Vegas & Like Mike, Seven Lions, Jauz, NGHTMRE

(2017)

Insomniac

Dreamstate SoCal 11/23/2018 11/24/2018 San Bernardino, CAArmin Van Buuren, GAIA, Paul van Dyk, ATB, Paul

Oakenfold, Andrew Rayel, MaRLo (2017)

Countdown 12/30/2018 12/31/2018 San Bernardino, CA

Alison Wonderland, Borgore, Deadmau5, Diplo, DJ

Mustard, GTA, Galantis, Porter Robinson, What So

Not (2017)

Insomniac

Total 3 Festivals

FY 4Q 2019

Decadence NYE 12/31/2018 1/1/2019 Denver, CO Armin Van Buuren, Justice, Galantis (2017) AEG

EDC Mexico Mexico City, MexicoAbove & Beyond, Zedd, Eric Prydz, deadmau5,

Tiesto, Dillon Francis (2018)Insomniac

Beyond Wonderland SoCal San Bernardino, CADiplo, Hardwell, Alison Wonderland, Yellow Claw,

GTA, Markus Schulz, NGHTMRE (2017)Insomniac

EDC Japan Tokyo, JapanMartin Garrix, Kaskade, Marshmello, Axwell ^

Ingrosso, Armin Van Buuren, Afrojack (2017)Insomniac

Total 4 Festivals

Feb, 2019

Mar, 2019

Mar, 2019


www.dawsonjames.com


Even if it does not pick up Coachella or other mega-festivals, LiveX can and does embed

the YouTube feed on its website, preserving some monetization capability and building its

rep as the go to platform for live music. The artists appearing at the festivals LiveX has

announced have a collective 2.2 bn social media followers. As they see Beyoncé, and other

stars, build their presence through publicizing festival streams, we expect them to do the

same, building LiveX’s brand. In turn, LiveX builds the festival’s brand so it becomes a

virtual win-win-win cycle for artist, LiveX and the festival promoter. That’s the dream

anyway.

How to Win Friends and Influence Millennials

It has also engaged its own army of influencers and has signed three of the biggest:

• Amanda Cerny – she rocketed to fame in October 2011, posing nude as Playboy’s

Playmate of the Month when they still did that. She leveraged that by posting

comedy sketches on now defunct Vine and today has two million followers on

YouTube and 20 mm on Instagram. Cerny is now the head of LiveX’s digital talent

division and has already directed a music video for LiveX.

• Jake Paul – he got his start on the Disney Channel in the series Bizardvark in 2015,

but as happens with many young Disney Channel stars, he graduated to more, shall

we say, adult themes and was terminated. Today he is a highly popular and

controversial YouTube star with 14 mm followers and another 11 mm Instagram

followers.

• King Bach – real name Andrew Bachelor - got his start on Vine and is now popular

on YouTube with 2 mm followers and another 15 mm on Instagram. He has also

morphed into traditional media appearing in 15 movies and 12 TV shows since

2011.

LiveX CEO Rob Ellin invited all three to his home recently and put the video on YouTube

generating tremendous buzz and new subscribers for LiveX. The company is also building

a stable of younger, but lesser known, up and coming influencers. Each of these has

thousands of followers on social media and their millennial fans will almost slavishly

follow them.

The company’s secret weapon is the vast array of artists at these festivals. Collectively

these artists have over 2.2 billion, that’s billion with a B, followers on social media. And

they are certainly not shy about publicizing the ability of their fans to watch their

performance live. This presents a perfect opportunity for a poor millennial living with their

parents to still engage with the cool crowd, on a very limited budget.

The most impressive metric we have seen in this industry was the 45 million views

Beyoncé Knowles-Carter generated for her appearance at Coachella which was streamed

over YouTube in April. Mrs. Knowles-Carter widely publicized the ability of her many

fans to view her live appearance through streaming video over her social media accounts.

She has over 100 million followers on Instagram, her preferred platform and, according to

Variety, she “broke” Instagram with her pregnancy announcement (it has since been fixed).

The 45 million views reinforced her already superstar image, but sadly, YouTube did

nothing near what LiveXLive envisions to monetize these views. To YouTube owner

Google, 45 million views is just a day at the office. To LiveXLive, it would be half a year’s

business plan. Coachella is owned by Live Nation, which LiveX has a budding relationship

with. Even if it does not pick up Coachella or other mega-festivals, LiveX can and does


www.dawsonjames.com


embed the YouTube feed on its website, preserving some monetization capability and

building its rep as the go to platform for live music. The artists appearing at the festivals

LiveX has announced have a collective 2.2 billion social media followers. As they see

Beyoncé, and other stars, build their brand through publicizing festival streams, we expect

them to do the same, building LiveX’s brand. In turn, LiveX builds the festival’s brand so

it becomes a virtual win-win-win cycle for the artist, LiveX and the festival promoter.

That’s the dream anyway.

It also has a number of partners who have signed deals to distribute LiveXLive content

including Tencent, Twitter Live, Dailymotion and Cinedigm. It has apps for both Google

Android devices and Apple IOS devices and one the Amazon Firestick, Roku and Apple

TV devices.

LiveXLive Has Multiple Revenue Levers to Pull

The last and most critical step is to monetize the first two steps. We see six major buckets

of revenue:

1. International distribution

2. Advertising/sponsorship

3. Branded sponsors

4. Subscription

5. Ticket sales

6. Merchandising

The company is off to a great start in signing in international distribution deals and has

already signed deals with the most important media company in the most important market:

Ten Cent in China to carry LiveX’s EDC stream. These deals bring in additional revenue

with no additional cost since the company is just providing its partners with its own feed.

This feed will include proprietary LiveX branding and its own talent. The company is

already streaming festivals from the US, South America, China and Europe and so it is

building a global brand. We expect to see some modest revenue in the June quarter from

distribution, ramping over time.

Advertising/sponsorship is another major revenue source potentially, but first the company

needs to build viewership, which it is doing. The millennial market is highly sought after

since at this age, people are developing purchase habits that will last a lifetime. Consider

how banks give out credit cards like water at universities, knowingly absorbing high credit

losses, just to build customer bases. Companies in nearly every consumer category should

be attracted to advertising on LiveXLive platforms. But while the company’s customer

base is largely millennials, its programming attracts a wide demographic, with rock,

country, electronic, hip hop and jazz music events. So, it should also have an even wider

appeal to advertisers.

Branded sponsors are another category. LiveX can do virtual “wraps” of festivals using

technology and have sponsors actually brand shows on LiveX. One of its flagship projects

is its LiveZone daily program with updates on the live music scene including interviews

with artists, modelled after ESPN’s hugely successful Sports Center. In late May, when it

webcast three festivals simultaneously, it also shot pilots for 15 potential new shows. It

featured dating events at festivals as well as candid interviews with artists including its

promising “Golf Cart Confessions” series. This content leverages the camera crews, hosts

and access to talent LiveXLive enjoys at festivals, so the incremental cost is low.


www.dawsonjames.com


Subscription revenue is another source. We note that Live Nation sells annual subscription

packages to attend all of its festivals, charging $5,000 for a VIP pass, and these are all sold

out. One thing the entertainment industry has definitely learned is that consumers will pay

for content, especially millennials. In fact, most millennials subscribe to more than one

music channel, so there is plenty of room for Spotify, Pandora, LiveXLive and more. In

fact, LiveXLive should be complementary since it features live events and will increasingly

feature live events with artists. Slacker gets about 10% of its revenue today from

subscriptions, and LiveXLive added 10,000 subscribers to it in the March quarter, reversing

years of losses. While today Slacker and LiveXLive are still separate, they heavily cross

promote and we expect them to morph into a single platform over time.

Two other revenue streams are ticket sales and merchandise, but management has de-

prioritized these until at least next year. In terms of ticket sales, the LiveXLive apps will

know where you are and what kind of music you like, including specific artists. Imagine

if the app sent diehard Guns N’ Roses fans a notification when the band was coming to

their town and let them buy tickets with a tap on their phones. Again, obviously they need

to build this subscriber base up first, but if and when they do, the potential seems strong.

Merchandising should also be strong. We believe that a key benefit will be LiveXLive’s

ability to let poor millennials still be part of the in-crowd, virtually participating in live

events. What if they could get a T-shirt from the concert shipped to them the next day,

purchased via the app. It would be like they really attended the concert and they could

wear the T-shirt while everyone was still talking about it. We also note that a big part of

LiveXLive’s marketing mix is influencers, due to their strong ability to influence

millennials. So they should be able to influence millennials to buy things.

Revenue Should Ramp Quickly

In our model we break revenue out between Slacker Radio and the LiveXLive business.

In the near term, we expect the vast majority of revenue to come from Slacker. In the

December quarter, before being acquired by LiveX, Slacker posted $6.8 mm in revenue,

down 5% from the year ago period. Slacker had recently undergone a 25% headcount

reduction, and was facing challenges, so we assume that revenue will stabilize at $7 mm

per quarter FY2019 before growing 5.5% in FY2020. Management has made positive

comments about the integration of Slacker, so we could prove to be too pessimistic. We

also believe that ownership under a company with a larger strategic vision should be

inspiring for Slacker’s San Diego based workforce, whereas previously their private equity

owners were in sale and cost cutting mode.

The LiveX business had five festivals in FY2017, ended March 31, 2017 and 7 for FY2018.

It already has 27 on the books for FY2019 and we forecast 70 for FY2020.

Based on the above monetization discussion, we build a monetization per festivals

schedule. In FY 2018, revenue was just $400k from five festivals or $80k per festival. As

we noted previously, it is currently in the eyeball acquisition stage, and monetization was

not the priority in FY2018. We see this changing in FY2019 starting slowly and ramping

quickly. Some international distribution deals have already been announced and we should

see modest revenue in the current quarter. So we model $100k per festival in the present

June quarter, ramping to $2.5 mm per festival by the fourth fiscal quarter of FY 2020. As

we noted, the company has a massive ramp ahead of them. We do not break our revenue

per festival into the six buckets we discussed because at this point, we have no visibility.

Some areas may prove more successful in the future than expected, and vice versa.

However, the key takeaway is that in our opinion, LiveXLive has a solid business plan,


www.dawsonjames.com


and an untapped market, but as we note in the risks section, execution is the key risk facing

the company.

Costs Should Ramp With the Number of Festivals

We assume $500,000 in production costs per concert. The company has its own in-house

production team and relies on third party camera crew contractors. At the festivals, it uses

well known hosts, looking to elevate their own careers and pays them just $500 per day.

One of the hosts at its May festivals was Allison Hagendorf, Spotify’s global head of rock

music. Our model simply multiplies the number of festivals by $500k to get cost of goods

sold. With this cost held flat, and revenue for festival growing exponentially, LiveX should

be a profit machine. But we note, that we don’t have the festival business at breakeven,

i.e. over $500k in revenue per festival, until FY 2020.

For now, the company’s financials are dominated by Slacker. In the company’s most

recent Q it provides a pro forma with Slacker so we can see that was unprofitable, with

SG&A alone exceeding the $6.8 mm in revenue and another $1.2 mm in quarterly R&D

spend. Now some of these costs will likely come down. For example one of the things the

new CFO mentioned was bringing Slacker under LiveX’s benefits plan.

Two great things about the LiveXLive model from a financial perspective are that content

costs are lower, in fact much lower than internet radio companies. The company pays fees

to festival promoters, which it hopes to keep low as it adds value to each festival through

its streaming and social media marketing and becomes the streaming platform of choice.

Even YouTube does not do this. Once they pay this fee, they get the right to stream the

live performances of the artists who have signed agreements with the festivals. Thus this

content is cheaper than paying per song rights for songs as traditional streaming radio

companies do, and the content is unique and exclusive.

The second should be a lower CPGA or cost per gross add. This is where its influencers

and the social media accounts of the artists appearing at its festivals come in. As they

remind their collective 2.2 billion followers to watch them on LiveXLive, it should pick up

a good deal of these to be subscribers. At a subscription fee of $10 per month, the revenue

from just 0.1% of these followers would be $264 mm, and the CPGA should be negligible

with perhaps some small fees to influencers.

Longer term, out into FY 2020, our crystal ball gets murkier and we suspect, so does the

company’s. Given the astronomic growth in revenue we forecast, and the sources of

revenue we discussed, it will take money to build the business. In this case, success may

lead to higher spending if for example a particular marketing strategy proves fruitful. We

expect the company to adopt a nimble, flexible, opportunistic approach to SG&A, but do

expect it to move higher. With very little basis to go on, we model SG&A at 60j% of

revenue in FY 2020.

Our model yields $35 mm in revenue in FY 2019 surging to $147 mm in FY 2020. We

show negative operating income at negative $15.9 mm this year, flipping to a positive $23.8

mm next year.

Converting operating income to EBITDA we add run rate $1 mm per year of D&A and $5

mm per year of stock-based comp to get negative EBITDA of $9.9 mm this year, and a

strong positive $29.8 mm next year.

The company’s balance sheet is flush with $13.7 mm in cash as of the end of December

from the late December secondary offering. Debt of various forms is a manageable $8.6

mm and the Slacker deal closed before year end, so this is in there. Surprisingly, cash on


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hand just about covers the next five quarters of negative EBITDA in our model, but its

close. And remember, our model has a high level of variability given the execution

challenges both in turning Slacker around and monetizing festivals.

Given the potential of running low on cash under our model, we expect a secondary

offering in 2018. The company is building a base for this appearing at multiple investor

conferences and feeding the market a steady diet of disclosure with copious, timely

operating metrics to gauge the company’s success in near real time. For example, just a

week after the big late May festival weekend, we had the number of viewers in a press

release.

So the next challenge is valuing the company. In the figure below, we put together a range

of what we loosely call comps but the challenge is no one has done what LiveX is

attempting. ESPN may be the closest model, but megacap Disney is certainly not a comp.

Other web-based, millennial focused companies like Pandora or Twitter may be.

The comps we selected have a range of revenue multiples of 0.9x to 14.2x – quite a range

– with an average of 1.5x. We use 5x in our valuation work. On an EBITDA basis The

average is 9.0x with a range of 2.9x for Cinedigm and 49.9x for Twitter. We use 12x. On

a revenue multiple basis, that gets us a value of $3 per share on this years startup revenue,

and $15 per share on next year’s revenue, based on our less than certain forecast. For

EBITDA, there is nothing to value this year with expected negative EBITDA and $7 per

share on next year’s EBITDA at 12x. If we get a few quarters of risk reduction and

execution, we would use 15x or $9 per share and if it looks like they will even come close

to hitting our numbers, more like 20x or $12 per share. But let’s not get ahead of ourselves.

For now, this is a $4.45 stock, that we expect to move to $7 or 57% upside.

No True Comp For LiveXLive, and Our Loose Comps Have a Wide Range of Valuations

Source: FactSet Data Systems

The chart on the following page shows LIVX’s recent trading history. We ignore its

illiquid history prior to the late December secondary. A couple of things stand out on this

chart. First, it looks to have a solid base of investor support at $3.50 with the stock

bouncing off this level on eleven separate trading days this year. The theory behind looking

at support levels is that presumably one or more investors see value at that level, have

stepped in to halt declines in the past, and are still out there to do so in the future. That

would be 17% downside if we revisited support. On the other hand, on May 17 the stock

Company Fiscal Shares Market Outstanding Enterprise Value/ Value/ Value/

Name Period Price Outstanding Value Diluted Value Sales EBIT EBITDA Sales EBIT EBITDA

LiveXLive Media 12/31/2017 4.21 49.65 209.03 36.54 203.69 0.08 (9.29) (9.22) 2537.8x - -

Live Nation Entertainment, Inc. 12/31/2017 42.63 208.88 8,904.39 204.92 9,321.67 10,337.45 110.43 545.96 0.9x 84.4x 17.1x

Cinedigm Corp 03/31/2017 1.58 34.95 55.22 8.05 115.09 90.39 7.14 40.58 1.3x 16.1x 2.8x

Dolphin Entertainment Inc 12/31/2017 3.22 11.04 35.54 10.61 39.01 22.41 (0.84) 3.78 1.7x - 10.3x

Dover Motorsports, Inc. 12/31/2017 2.10 18.26 77.22 36.28 77.37 46.74 7.28 10.66 1.7x 10.6x 7.3x

Speedway Motorsports, Inc. 12/31/2017 16.70 40.97 684.12 41.04 849.46 453.59 70.12 123.90 1.9x 12.1x 6.9x

Pandora Media, Inc. 12/31/2017 7.22 256.70 1,853.35 243.64 2,085.57 1,466.81 (322.46) (259.51) 1.4x - -

Netflix, Inc. 12/31/2017 351.60 434.69 152,838.06 446.81 156,786.77 11,692.71 838.68 7,169.06 13.4x 186.9x 21.9x

Sirius XM Holdings, Inc. 12/31/2017 7.10 4,478.74 31,799.08 4,723.54 38,532.90 5,425.13 1,686.89 1,985.49 7.1x 22.8x 19.4x

Twitter, Inc. 12/31/2017 34.70 752.67 26,117.55 732.70 23,397.32 2,443.30 45.44 441.31 9.6x 514.9x 53.0x

Snap, Inc. Class A 12/31/2017 11.39 944.62 14,349.19 1,166.09 12,544.04 824.95 (3,485.58) (3,424.29) 15.2x - -

Meet Group Inc 12/31/2017 3.65 72.50 264.61 68.74 289.00 123.75 11.57 23.14 2.3x 25.0x 12.5x

Match Group, Inc. 12/31/2017 41.15 67.00 11,395.40 296.08 12,367.53 1,330.66 365.77 399.85 9.3x 33.8x 30.9x

PeerStream, Inc. 12/31/2017 6.00 6.72 40.34 6.45 36.83 24.84 (4.98) (2.85) 1.5x - -

Spotify Technology S.A. 12/31/2017 157.71 178.15 28,096.04 183.85 27,414.70 4,613.25 (426.36) (365.45) 5.9x - -

Average 1.5x 30.8x 8.9x


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opened at $3.80, its low of the day, and went straight up to $6.95, its close for the day,

representing a 65% gain and taking the stock into overbought territory. The stock quickly

gave most of this back the next day, but since then has settled in with higher volume and

somewhat higher prices.

LIVX Shares Still Trading Near Support Levels


Looking ahead, we see several catalysts:

1. Management is presenting on Tuesday June 5 at the LD Micro conference, and

more conference appearances are likely to follow.

2. As we note in this report, it has an active schedule of festivals already announced,

and will likely continue to update investors with metrics on a regular basis.

a. Rock in Rio, Lisbon, Portugal, June 23 – June 30

b. Montreux Jazz Festival, Geneva Switzerland – June 29 – July 14

3. Financial progress. The company’s fiscal year is March 31 so its K is not due until

year end but even that should be uneventful with one quarter of Slacker, and no

festivals. Future Qs should show modest signs of festival revenue generation, a

turnaround at Slacker and give us a better sense of run rate expenses. By then, the

company’s now month-old CFO, should have a finely honed financial message to

guide investors with more clarity than we provided in this report.

The Key Risk is in Execution

We have tried to stress the risk factors throughout this report, but we will recap them here.

While the company has an all-star management team, a great business plan and an untapped

market, the risk is in execution. It has already retired risk by getting so many festivals on

its calendar. Now it must monetize. If it can, we see significant EBITDA materializing

given the nature of the model, but we stress the word “if”.

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www.dawsonjames.com


We don’t see competition as a major risk because live music is a separate category and at

least to date, LiveXLive has the field to itself. Verizon tried with its go90 platform but it

appears that a century old phone company was unable to successfully connect with

millennials, despite enormous expenditure of resources. Red Bull Media was also in the

game but is now down to just two festivals and we believe it is likely to exit altogether,

setting it up as a potential partner for LiveXLive. YouTube does provide live steams of

concerts, but these are boring stagnant camera feeds like watching security camera footage

while LiveXLive engages with known millennial hosts and spruces its content up with

talent interviews, dating contests and more while offering messaging over its app, so the

viewer feels connected.

For now, we believe that the current low level of the stock more than factors in these risks,

and does not reflect the potential upside. Thus, we initiate at Buy.


www.dawsonjames.com


LiveXLive Media Income Forecast


Dollars in thousands, except per share data 2018E 2019E 2020E

Fiscal years ended March 31 1QA 2QA 3QA 4QE YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR

June Sept Dec March June Sept Dec March June Sept Dec March

Slacker Radio 6,500 6,500 7,000 7,000 7,000 7,000 28,000 7,140 7,280 7,420 7,700 29,540

YoY grow th 7.7% 330.8% 2% 4% 6% 10% 5.5%

Seq grow th

LiveXLive 276 124 - - 400 700 2,000 1,250 2,500 6,450 20,000 30,000 30,000 37,500 117,500

# of events 2 3 - - 5 7 10 5 5 27 20 20 15 15 70

Revenue per event $138 $41 $80 $100 $200 $250 $500 $239 $1,000 $1,500 $2,000 $2,500 $1,679

YoY grow th

Seq grow th 185.7% -37.5% 100.0% 50.0% 0.0% 25.0%

Revenue 276 372 - 6,500 7,148 7,700 9,000 8,250 9,500 34,450 27,140 37,280 37,420 45,200 147,040

YoY grow th 2687.4% 2318.4% 46.2% 381.9% 252.5% 314.2% 353.6% 375.8% 326.8%

Seq grow th 18.5% 116.9% 91.7% 115.2% 185.7% 137.4% 100.4% 120.8%

Cost of Revenue 79 72 - 151 3,500 5,000 2,500 2,500 13,500 10,000 10,000 7,500 7,500 35,000

Per festival 39 24 30 500 500 500 500 500 500 500 500 500 500

Gross Margin 197 300 - 6,500 6,998 4,200 4,000 5,750 7,000 20,950 17,140 27,280 29,920 37,700 112,040

As a percent of revenue 71.4% 80.7% 100.0% 97.9% 54.5% 44.4% 69.7% 73.7% 60.8% 63.2% 73.2% 80.0% 83.4% 76.2%

Selling General and Admin 2,288 3,754 2,618 9,000 17,659 9,240 9,000 9,075 9,500 36,815 16,284 22,368 22,452 27,120 88,224

As a percent of revenue 828.1% 1008.7% 138.5% 247.0% 120.0% 100.0% 110.0% 100.0% 106.9% 60.0% 60.0% 60.0% 60.0% 60.0%

Related Party 90 90 90 90 360 - - - - - - - - - -

As a percent of revenue 24.2% 1.4% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Operating income (2,180) (3,543) (2,708) (2,590) (11,021) (5,040) (5,000) (3,325) (2,500) (15,865) 856 4,912 7,468 10,580 23,816

Operating margin -65.5% -55.6% -40.3% -26.3% -46.1% 3.2% 13.2% 20.0% 23.4% 16.2%

Interest expense (635) (759) (901) (900) (3,194) (900) (900) (900) (900) (3,600) (900) (900) (900) (900) (3,600)

Fair value of w arrants - - - - - - - - - - - - -

Earnings from investment in aff iliate - - - - - - - - - - - - -

Impairment loss - - - - - - - - - - - - -

Loss on sale of investment in aff iliate - - - - - - - - - - - - -

(635) (759) (901) (900) (3,194) (900) (900) (900) (900) (3,600) (900) (900) (900) (900) (3,600)

Pretax Income (2,815) (4,302) (3,608) (3,490) (14,215) (5,940) (5,900) (4,225) (3,400) (19,465) (44) 4,012 6,568 9,680 20,216

Taxes - - - - - - - - - - - - - - -

Net income - continuing ops (2,815) (4,302) (3,608) (3,490) (14,215) (5,940) (5,900) (4,225) (3,400) (19,465) (44) 4,012 6,568 9,680 20,216

Net income margin -1019.1% -1156.0% -53.7% -198.9% -77.1% -65.6% -51.2% -35.8% -56.5% -0.2% 10.8% 17.6% 21.4% 13.7%

Diluted shares outstanding 35,528 36,016 36,543 36,568 36,164 50,500 50,525 50,550 50,575 50,538 50,600 50,625 50,650 50,675 50,638

Seq change 487.8 527.2 25.0 13,932 25.0 25.0 25.0 25.0 25.0 25.0 25.0

EPS diluted ($0.08) ($0.12) ($0.10) ($0.10) ($0.39) ($0.12) ($0.12) ($0.08) ($0.07) ($0.39) ($0.00) $0.08 $0.13 $0.19 $0.40

EBITDA (1,562) (2,890) (1,339) (1,090) (6,882) (3,540) (3,500) (1,825) (1,000) (9,865) 2,356 6,412 8,968 12,080 29,816


www.dawsonjames.com


Important Disclosures:

Source: Metastock

Price target and ratings changes over the past 3 years: Initiated – Buy – June 4, 2018 – Price Target $7.00

Dawson James Securities, Inc. (the “Firm”) is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).

The Firm does not make a market in the securities of the subject company (s). The Firm has NOT engaged in investment banking relationships with LIVX in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has NOT received other compensation from the subject company(s) in the last 12 months for services unrelated to the managing or co-managing of a public offering. Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of May 31, 2018, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company (s) of this report. The Firm, its officers, directors, analysts or employees may effect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may effect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm's investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report. Although the statements in this report have been obtained from and are based upon recognized statistical services, issuer

reports or communications, or other sources that the Firm believes to be reliable, we cannot guarantee their accuracy. All

opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice.

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11.0LIVEXLIVE MEDIA ORD (4.21000, 4.39000, 4.01100, 4.21000, +0.20000)


www.dawsonjames.com


Information about valuation methods and risks can be found in the “VALUATION” and “RISK FACTORS” sections of this report.

The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. Additional information is available upon request.

Ratings Definitions:

1) Buy: the analyst believes the price of the stock will appreciate and produce a total return

of at least 20% over the next 12-18 months; 2) Neutral: the analyst believes the price of the stock is fairly valued for the next 12-18

months; 3) Sell: the analyst believes the price of the stock will decline by at least 20% over the next

12-18 months and should be sold.

The following chart reflects the range of current research report ratings for all companies followed by the analysts of the Firm. The chart also reflects the research report ratings relating to those companies for which the Firm has performed investment banking services in the last twelve months.

Analyst Certification:

The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Ratings Distribution # of Companies % of Total # of Companies% of Total

Market Outperform (Buy) 19 86% 6 100%

Market Perform (Neutral) 3 14% 0 0%

Market Underperform (Sell) 0 0% 0 0%

Total 22 100% 6 100%

Company Coverage Company Coverage


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