Live Nation Entertainment Inc.

LYV-N

They manage large events at sport venues all over the world. The stock is very expensive. It is actively growing. It is far too expensive on valuation multiple. This is a consumer discretionary spending investment.

It has been in a great long term uptrend and is now consolidating. It is not in danger, but he would watch for a break below recent significant lows. He would not put new money into it, but would continue to hold.

He has not done a lot of work on this company, but is aware they have been putting up monster earnings results. They are consistent earnings beaters, but when there are not on guidance, it is usually earnings lower than target. This makes the stock too risky for his conservative investments, but would consider it a speculative buy.

(A Past Top Pick on April 17, 2017, Up 30%) They sold tickets to 30,000 concerts last year globally. Revenues up around 20% in 2017, though this growth likely won't continue at this pace. That said, sponsorship, ticket sales and beer revenues all point to good revenues this year. You can't download a live show.

A rollercoaster. Doesn't look good. Had support at $41.80 and doesn't see a bounce-back without a rise in volume. Wait till it hits $39.80 to see buying support. We don't see that now. If you hold, sell below $35.

(A Top Pick April 17/17 - Up 42.2%) Did better than he expected. Still would buy it here. Ticketmaster is own by this company. Parking and some of the sponsorship is covered by this company. Tremendous business. Problem is the secret is out.

(Market Call Minute.) People are going to concerts in droves. Millennial’s are spending big money going to these festivals. He likes the stock very much here.

(A Top Pick July 28/16. Up 44%.) He continues to like this. This provides access for artists, venues and sells tickets for them. It has about a 3^rd market share of the global concert going industry, which is very fragmented. Concert going has only declined once in the past 30 years.

Experiential Consumerism. Concerts and adventure travel. They make their money not on the concerts, but on the merchandise, the promotions, the sponsorships and they own a lot of the venues. They are out there buying more and more concerts and live events. They own Ticket Master. It does not pay a dividend and the balance sheet is not opaque. He thinks they can build their cash flow over 40% over the next couple of years. They have wonderful pricing power. (Analysts’ target: $33.00).

It owns many venues and Ticketmaster too. It is a perfect example of his theme of experiential consumerism, which he is keen on at present. The problem is that the financial statements are very difficult to understand. The controlling shareholder runs the company more for their benefit than for shareholders. He has been watching it as it goes up. It is clearly a very good company in a very interesting space. He wants to assure himself that he is not paying too much.

30% market share of the global concert industry. They make acquisitions and are increasing their penetration with secondary ticket sales. Good long term growth potential.