Good evening folks,
My last post was around 4am this morning after spending the entire night putting in diligence on LYJN. I promised to post a summation of what I found in an effort to make more sound decisions. Please read and sound back. You should know that I just started posting on investorshub because there are a few of you out there who post valuable fact which I was able to verify. That's what I am after, that's how I make my decisions.
John Maynard Keynes had a famous quote: "When the facts change, I change my mind. What do you do, Sir?"
For brevity's sake I will not be listing sources of information in this post. I will be glad to follow the thread and reply to questions in the future. So in the name Due Diligence here are the PROs of what I've found. CONS and QUESTIONS to follow. LYJN has teamed with Marty Josephson of Stonefield/Josephson Inc. CPAs and Business Advisors. In interesting management decision given that we have no financial statements on LYJN. We have been left to trade based on chart movement and public announcements. In my earlier post I was concerned that LYJN was listed as caveat exemptor (buyer beware) on OTCmarkets.com due to lack of financial information and various other arbitrary reasons. One can only speculate that the decision to utilize a large accounting firm is an effort to clean up their financial closets so that the world may look at them. Trading on the NASDAQ-NSM like TRLG requires accurate reporting of earnings and financials. I have a realtor friend who is hyper successful with revenue through the roof but no time or skill to manage it. LYJN is not a private realtor, it is my speculation they aspire to be a successful public company.
Not all companies, who trade on the PINKSHEETS bring their businesses public for the right reasons. Nor do all those companies have sound management. Couple the aforementioned financial management decision (teaming up with SJaccounting) with the well known fact that LYJN has lucrative rights to dozens of lyrics for their products. Add to that their big licensing deals with the largest music publishing companies in the world including Warner Chappell, EMI, Universal, Sony/ATV and Disney Music Publishing to name a few and it's hard to deny that this company has goals of one day competing with TRLG, RockandRepublic and the like whose Industry Average Market Capitalization is around $2.57B. It would seem more likely that LYJN would be acquired by such a company before competing with them!
Which brings me to the CONS, or QUESTIONS that I still have and I hope to sound off of you all. Number one, does LYJN have the capacity to meet a massive influx in demand? I could not find a reliable publication with that type of inside information. I know all about this company's recently built "Advisory Board" of professionals in the industry but there is no way to know if this is PR hyperbole or if these folks will be having meetings in earnest to steer the company straight. If they do have such capacity, did they take the necessary steps to protect their intellectual property. Certainly the lyrics are not their original idea but embroidering them on high quality clothing might have been. Was this protected? Does it need to be? I could not find anything on uspto.gov, then again you need a patent attorney to find what you need in that archive. Another question, what happens to the value of our stock should LYJN sell minority or majority ownership to another entity? You can see that these questions are more attuned to the investor and not the trader. That's because I have changed my position on this stock from swing trade to long-term hold, at least in majority part. I think their value will ultimately rise when they start providing accurate financial information. It would seem that they are taking action to do just that. Hard to tell unless someone at SJaccounting wants to hop on here and enlighten us. That would actually be great.
I think the Bloomingdales, Target and Nordstrom PR is smaller scale than all the hype. Of all their websites I was only able to find some Lyric clearance items on Bloomingdales. More than likely LYJN is gathering market information by placing units in select demographics for S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities, Threats) While the celebrity appeal could be another part of their marketing effort called 'branding.' These are some of the questions we have, it's the volatility of this market that makes it exciting, as well as profitable! I look forward to hearing from the more astute of you all. The rest of you, who denigrate the new or ill-informed people here, or talk down to folks as if they were stupid and you are the almighty holder of information, keep your comments to yourself. When you throw such garbage at others, you end up looking like mental midgets.
Happy Trading
~brownplanet, out
