Replies to post #16891 on United Communications Partners Inc (UCPA)

[michaelmcl]

Based on what I've read I'm in agreement with naturalborninvestor. For the sake of an analogy think of Local Planet International as a franchisor while the individual agencies are franchisees, a simple example would be Dunkin Donuts.

Dunkin Donuts as a company may report billions upon billions in "revenue" that their franchisees generate, however very little of this actually trickles up to the franchisor as revenue and net income.

I understand this isn't exactly a franchisor structure, but based on the reporting the situations seem very similar.

It'll be interesting to review Q1 financials to see if they have any "fees due to affiliate".

[medimpact]

If LPI is not reporting any consolidated fins, where is the $ 100 millions in dividend distribution that the CEO hinted at is going to come from? Can't be from the alleged fees collected from individual agencies because it does not make sense. You collect fees and then you redistribute according to the owned stake in the holding? This is confusing and UCPA management, as usually, does not do a good job at explaining their involvement with LPI.

[I_Am_Ram]

Ok but LP claims they will be handing out dividends to their shareholders... it’s in the YouTube video where they are interviewing the LP exec. How is this possible if it’s just an umbrellaed group of companies? This is my point. We can’t say there is no benefit to being a shareholder when they’ve clearly stated there is.