SM's financial statement‏ & Stock

[-ochre.livejournal.com]

Since the anouncement of the lawsuit that involves TVXQ and SM, the company stock dropped:

Yesterday Situation:

At 9:06 am yesterday, SM stock is worth for 3,715 won fell about 11.02%.



Today Situation (as drawn in the graph):

Stock fell until -10.1%, a loss of 5% on the current value. It’s increase a bit from yesterday, but not much.

Kim Chang-won, an analyst from Daewoo Securities on the August 3rd said, “BoA, TVXQ, Girls Generation, Super Junior, and SHINee are non arguably most important asset of SM. If there’s something happened to one of these 5 main stars, the negative impact to stock price is expected.”


Financial Health of SM

Growth trend



Blue spot > Total assets (ressources/funds)
Purple stick > Total Liabilities (hindrance/puts)
Yellow stick > Total shareholders’ equity
Blue stars > Sales

If you look at the 2008 growth curve and if you do the ratio, we can see that Mirotic album was a breath of air fresh for SM.

Revenue Structure (the most interesting part)



Blue line > Sales
Purple line > Operating profit (EBIT, Earnings Before Interest and Taxes)
Yellow line > Net income (profit)

Can you see the incomes and sales’ increase at the end of 2008? The main artists that were promoted at that time were TVXQ. Don’t you remember all the performances at all end’s year ceremonies? If you were wondering why the members didn’t claim for their rights earlier, now you know.

note:

EBIT (Earning Before Interest and Taxes): company’s earning (sales minus all expenses) excluding effects from interest income/expense and tax.
Net Income: EBIT with the effects of interest and tax.


Source: SYC

There is a fair amount of personal opinion from the source. So please don't misunderstand.



Aug. 3, 2009 (Seoul)

**S.M. ENTERTAINMENT SLIDES ON NEWS OF LEGAL FEUD**

S.M. Entertainment Co fell after several media reported on Saturday that members of Tong Bang Shin Gi (TVXQ), a South Korean boy band, filed an injunction in a Seoul court to terminate their contract with the talent agency.

'For investors, it's reasonable to worry over the news, since Tong Bang Shin Gi is one of the major sources of revenue for SM Entertainment,' said Kim Chang-kwon, an analyst at Daewoo Securities.

S.M. Entertainment could not be reached for a comment.

S.M. Entertainment shares fell 10.06 percent to 3,755 won as of 0141 GMT, while the junior Kosdaq rose 0.82 percent.

0141 GMT

Source: Forbes

Comments

[sushi-rox.livejournal.com]

LSM'S mother must be so proud ;_;

[shuttist.livejournal.com]

owh wow 0.0
i guess now SM has to consider about giving his stars more sleeping time and not making them work 24/7 :x

[freakymysty.livejournal.com]

I will never understand the stock market.

[sarcasmichime.livejournal.com]

THIS.

[blooberrie.livejournal.com]

Hmm, still seems like a big drop.

And I laughed at Purple Line ngl

[chibi-rei.livejournal.com]

XD lol didn't get that until just now. You win the internet (at least for today). Take good care of it.

[djlancerock.livejournal.com]

probably because they don't pay them lol

[cherrieeme.livejournal.com]

LOLOLOLOLOLOLLOLOL!

IN YOUR FACE SM!!!

[xxsmiiles.livejournal.com]

Hm, well, SM will continue to be successful, unless this whole lawsuit ordeal gets settled and SM is screwed over, so the stockholders don't have much to worry about yet :\

[loveisasia.livejournal.com]

WE GOTTA PURPLE LIKE THAT

[yumenii.livejournal.com]

MY TIME IS STILL GOING ON

[belle-loon.livejournal.com]

GOOD RIDDANCE.

now i'll just be waiting for a news report on an unusual type of riot at SM headquarters.

[erbalurbal.livejournal.com]

stock holders are not going to be happy about this since this is a recession. The last thing they want to worry about is losing their money. I am sure they aren't going to give in immediately but if their stocks keep sliding it will put pressure on them to settle.

[risu-risu.livejournal.com]

this.

it seems that a lot of people mentioned the issue of timing since two of the members are currently in the middle of filming. but maybe it was good timing in the sense that SM might be more vulnerable due to the recession & the potential reaction of stockholders?

Pointless Comment is Pointless

[amorspesfides.livejournal.com]

*clicks*

*reads*

*sees numbers*

*eyes glaze over*

Re: Pointless Comment is Pointless

[michi-michuu.livejournal.com]

LOL THIS.
I do not understand at all :'D haha.

[srsbsns.livejournal.com]

Lol all I saw was "Purple Line" and then I totally got lost.


Shame ow.

[dominique-franc.livejournal.com]

stocks are forever confusing
even when you dumb it down

[nicoleviolence.livejournal.com]

take that SM

[parkjinyoung.livejournal.com]

im not srs enough for this talk

[michi-michuu.livejournal.com]

Ohh! JYP ♥
:DDDDDDDDDDDDDDDDDDD

/creeper

[cajaalonso.livejournal.com]

(http://s31.photobucket.com/albums/c360/caja_alonso/?action=view&current=zjtcut.gif)

[nicoleviolence.livejournal.com]

Happy Chang min make me happy :D

[mellamochelsea.livejournal.com]

I bet this lawsuit will be settled out-of-court asap by SM, since it is already taking a toll on their profits.

[rockerista03.livejournal.com]

Looking at this made my head throb. I will never get stocks in my whole life.

[-ochre.livejournal.com]

You people might not get stocks, but I'm sure you will be able to understand the charm of this GQMF.

[ennuixo.livejournal.com]

changmin = first kpop love forever

[ennuixo.livejournal.com]

when their money drops, SM will definitely freak. on a side note i'm still emotional over the last post ;_;.

[blooberrie.livejournal.com]

You're not the only one. I say you watch some full House or something. Suju crack cures just about everything.

[cakedomination.livejournal.com]

I FINALLY GOT IT, after reading 5 times

Well, SM had it coming, wouldn't he have made the contracts different seeing as what went down with HOT ? D:

Re: OT.

[blooberrie.livejournal.com]

Neato

[-ochre.livejournal.com]

lmao there are 800,000 Cassies in name. If each of them donated USD$1.....

[sup-homeskillet.livejournal.com]

good. SM's earned this.