KGIC Inc LGLTF

Trelawny whats your first/last name?

[bulltraderr]

Just want to check the validity of your post. Thanks.

[InternalAudit68]

This post has been removed in accordance with Community Policy

[Trelawny]

InternalAudit, I'm not arguing- I'm giving my perspective. In regards to your comments: The entire amount is not just attributable to the deferred revenue and the loan. $10.1mm of the working capital deficiency is due to the Short-Term debt (Note 9). Of this $8.9mm is because of breach of the line-of-credit covenants. As well an additional $6.68mm is Trade and other payables. So it

[Trelawny]

InternalAudit, while I was writing my response I thought that those trade payables may have been a red flag. I believe they point to an ominous future problem, and explain why income dropped so much. The trade payables for the Q1 2014 (March 31, 2014) the trade payables were $696,466. The current trade payables is $6.6mm - that is almost a 10X increase in trade payables. Loyalist has stopped

[schoolboy]

Yes, it's common knowledge in Korea that they have not been paying their bills. That's one reason their staff have been walking out. My school has been treating them as COD and they haven't been doing business with us since, which is perfectly fine with me.

[bulltraderr]

Schoolboy, did you ever talk to Ruy direcly about  this or any other matter regarding Loyalist Group's opreations??? Why were they on COD????  If yes, what was his reaction?? We need to figure this out. Thanks.

[schoolboy]

No. I've only met Ryu once and I wasn't impressed. By the time we put them on COD, it was obvious what was going on.

[Gerritos]

Pretty simple I think. LOY or their agents send you students who you teach and LOY is unable to pay the tuition. The students come for a six week program. You spend lots of time chasing LOY for payment, the program finishes the students walk and what do you get? You can't really throw out the kids as it reflects badly on your school.

[snootchybootchy]

Thanks for your informative posts, Trelawny.  What is your interest in V.LOY, if you don't mind me asking?  Did your fund participate in the February PP?

[Trelawny]

Snoochy, no we did not participate.  Just prior to that deal I had just begun to accumulate a position and had met with management. I went through their financials quite thoroughly, particularly around their ability to effect another acquisition.  They stated that they were confident that they could make more acquisitions with their current    Financial resources. Within 3

[Trelawny]

Snoochy, I didn't fully answer your question in the last post. I currently have no interest in LOY: I am neither long nor short. I do however care about people and I don't want anyone to walk into this trade, or stay in this trade without being informed. There is a lot a misinformation and misinterpretation on this board, so I am simply trying to be good neighbour and provide my insight.

[InternalAudit68]

This post has been removed in accordance with Community Policy

[Trelawny]

Internal, if they assumed their liabilities then it still has a material impact. Further, unless the acquisitions increased the firm revenue by 10X then this payables is a big issue. Closing costs - including audit and legals - would also not explain payables that large. Best regards, Trelawny

[InternalAudit68]

This post has been removed in accordance with Community Policy

[Trelawny]

Internal, I didn't realize I was required to disclose all of my research in a formal report. I am merely trying elucidate the financial situation of LOY at the Present time. What my research was in the past was based on old information, I'm trying to provide some insight on the current situation and, hopefully, help people make a more informed decision. In general I am responding to

[InternalAudit68]

This post has been removed in accordance with Community Policy

[Trelawny]

Internal, as I stated in another post - I got out of this stock after the deal closed. As to you doubting that I understand financials - I would wager that I could analyze a statement in seconds that would take you months. As to institutions making errors - of course they do. As to you presuming that you know more than me in reading financials: You are hallucinating in technicolor. Best

[Trelawny]

Colin Fisher, Portfolio Manager StableView Asset Management