SM Entertainment (CODE 041510) showed earning shock [economic performance shows a lot lower than expectation]. Its business profits in this third-quarter were below analysts’ estimated profit – which were less than half of estimated figure.
SM submitted its report of this quarter to the Financial Supervisory Service at 14:12 without any public announcement. According to the report, its business profits for third-quarter was 11.7 billion KRW. It was more than the last third-quarter, but a lot less than expectation of stock market. Analysts had estimated its third-quarter’s business profits to be 20~23 billion KRW.
The stock price responded immediately. It started to falling slowly right after its report, and hit the floor of the lower limit at 14:25.
[irrelevant part omitted]
Analysts at stock firms are in a state of confusion and it is known that a shower of enquiries and complaints are coming from institution investors. “We haven’t even seen the official report yet, but everyone is in panic as there are telephone calls without a break. We are not able to find out exactly why SM had such Earning Shock at the moment”, appealed a [anonymous] analyst at a firm.
It has been known that SM explained about the reason of this Earning Shock is because of a big production cost of TVXQ and Super Junior’s Arena Concerts. However, general experts insist that SM’s explanation cannot be an underlying reason. “There might have been some [serious] problems in the company because it is just too lower than expected” – commented another analyst.
SM insisted that TVXQ and Super Junior’s concerts were the reason of its bad economic performance, but it used to be considered as one of the most favourable factor of SM as most analysts estimated that “Its profits of the 3rd quarter will be drastically increased because the results of the Arena Tour will be reflected in 3rd-quarter, not 2nd-quarter”, because about 1 million people were expected to come to the concerts in Japan in this half-year.
Due to SM’s Earning Shock, other entertainment stocks turned into a sharp fall. YG Entertainment decreased by 13.86%, JYP Entertainment, PAN Entertainment and Chorokbaem followed by 4~8%.
_____________________________________________________________
SK Stock Firm added, “The reason of its sharp fall is caused from a lot of difference between the market’s estimation and actual business performance. The problem was that the production cost of TVXQ concerts which were known to attract half a million people became too high”.
“A company like SM, its estimated profit tends to be entirely depends on what the company says. How are we supposed to believe it in the future, after announcing less than half the business profits of the market’s expectation?”, commented a analyst at another firm.
_______________________________________________________________________
+)
-Minus 14.88% in a day, after earning shock-
– Entertainment stocks are more like ‘a house of cards’ in Korea, because so-called ‘K-POP invasion’ is actually inessential figure if you know how SM tried to exaggerate it by using media, to make it as if they conquered the world. (Think abt who is really conquering the world as a Korean singer at this moment! )
– Korean entertainments’ overstated media-fuss is directly related to their stock prices. They have to keep the price as much as they can, whatever it takes, with every possible way because only media-fuss can make people deluded by slick marketing.
– Therefore, it always could decrease drastically as soon as any reality is revealed. (well, which I welcome the most)
– Also it could reflect that there is no enough cash-flow at SM, based on the situation that SM risks its neck to its stocks. (Actually SM is just lying in the court, insisting that it did nothing bad so cannot give a penny to JYJ for the compensation for damages from the lawsuit to clarify invalidity of its exclusive contract. -the compensation was set 3 billion KRW-. )
Source: Naver
Translated by: dedicatee.wordpress.com
Shared by: JYJ3
History repeats itself… Chunnie spoke TRUTH!
(Excerpt from “Untitled Song Part 1”)
More amazing things happened as more time passed.
Hearing that we had finally struck gold overseas and brought in results so unimaginably astronomical,
I walked into the office with a spring in my step to receive my pay.
Our team members were looking at each other with excited gazes.
We complimented each other on how hard we had worked.
But the statement of accounts we received said we were at a deficit
I thought I had seen the figures wrong so I checked again
Everything was listed under expenses
Damn it, how could all that money have gone towards paying expenses.
What kind of expenses were there to make that much money vanish?
I couldn’t believe my eyes so I asked them to show me the detailed statement of accounts that I had never seen before.
They told me they would show it to me, but I ended up never seeing those few sheets of paper as all I did was work.
The amount of questions I had grew the more time passed.
The headaches grew the more our team members got together and thought about it.
If I was to say just one last thing
Are the things we do for the company
Really and truly things that are for the company?
Sure, let’s say they were. We, the kind souls, will let that one slide.
We will forget it, for the company, and for us, who have been together for so many years.
But that isn’t right, those aren’t things you should be saying to us.
Were you seriously planning on disappointing us till the very end?
— Park YuChun (JYJ)
Noone from SM, refuted what Chunnie said/was saying. They just act like the song didn’t/doesn’t exist. Even Homin fans and sorry to say some industry “insiders” continue insist that it was all Junsu’s (family) fault, and Chunnie and JJ (family) just had some bad advice were frustrated.
SM’s story has changed so much from cosmetics, to greed, to mafia connections, to lord knows what will be next. JYJ’s story has stayed the same. The deal was shitty and you never have produced detailed statement of accounts. Even after all the litigation and arbitration, SM has not produced a complete detailed statement of accounts.
But now, they are “presumably” dealing with sophisiticated analysts and they still fell for it. Crazy really. Anyone with half a brain should know that the amount SM spends exceeds the amount of album and concert sells. Yes, SJ and Homin can sell out those big stadiums in Japan (SMTown may be able to do that as well), but that doesn’t mean that SM is making a profit when you factor in costs (venue, lighting, labor!!, transportation, insurance, etc…)
@warlesha21 ~ and snsd….hearsay, only 17 albums were sold in Paris after LOTs of promotion
@warlesha21 – I like your comment.
Sigh, no statement can be provided . Possibly most were under table.
And , the staff’s salary are the highest.
Those SJ…BoA, whatever…they are all in side business , not ONLY in Korea, but also in Taiwan etc ! coffee shops, bakery, language school…..film production
Just to clarify, I didn’t mean exceeds, instead I should say cut substantially into its profit margins. The funny thing is, SM knew this and instead of warning the market, they hedged on this information. The outside analysts were stupid. Why would you believe a company was going to make 200% with all these expenses?
@warlesha21 ~ someone were thinking they are buying casino stock.
@warlesha21 said: …SM knew this and instead of warning the market, they hedged on this information.
That’s the big no-no here. When companies don’t issue these warnings it throws the whole market into a panic. In the past, even Apple has issued warnings when they saw high market expectations exceeding what they knew was going to be reported.
If I were an investor, I’d be taking a good long look into who inside SM may have sold off some of their stocks before this announcement.
@warlesha21
“SM’s story has changed so much from cosmetics, to greed, to mafia connections, to lord knows what will be next. ”
Oh, I think the writing is on the wall there: it’s going to be “Oh, poor little us, we’re so broke, we’re having a hard time, if we have to give JYJ all that money all the rest of our artists will get NOTHING.” That’ll certainly stir up the know-nothing SMTown fandom into a high frenzy, I would imagine. Then JYJ looks like the baddest of greedy bad guys, literally grabbing the bread from the mouths of the entire SM roster. HOW slimy and low is SM Entertainment? Oh, I think easily that slimy and low.
@lilibaiyu
“Oh, I think the writing is on the wall there: it’s going to be “Oh, poor little us, we’re so broke, we’re having a hard time, if we have to give JYJ all that money all the rest of our artists will get NOTHING.””
Ah, my VE sister. It’s called selling off some assets. That’s why you have them, to be used as collateral when you need cash. Simple, no? 🙂 Probably too much for those who have a trouble understanding simply economics.
But then, they should be made to answer why they engaged in questionable acquisition moves if they knew they were going to have a bad reporting quarter. SM does not have to be let off the hook. As for those delusional, low information fans. Well, they are going to be that way no matter what.
JYJ have survived despite all the silliness. 😉
@BAF
“But then, they should be made to answer why they engaged in questionable acquisition moves if they knew they were going to have a bad reporting quarter. SM does not have to be let off the hook. ”
Wow, that’s an interesting point. SM just acquired that entertainment company with all the actors for NO cash – stock only. Isn’t the guy who got all of that stock going to be a little perturbed that he just lost hundreds of thousands of dollars because SM did not disclose their true financial lack of health in those negotiations? Isn’t that kind of illegal??
@lili
There really isn’t anything illegal about doing a stock transfer instead of cash. If the head of the acting agency did not do a good job on the financials with SM, that’s on him. If he was operating from a position of trust, shame on him. He may or may not assume he was shown a different balance sheet. Again, he should have been more careful. At the very least, his law firm who handled the transaction should have done a better a job.
My reasoning is, how do the shareholders allow mgmt to make so many acquisitions when mgmt knows it doesn’t have cash to make these buys. (Can you imagine the major shareholders of Disney allowing the company to purchase Lucas Films for 4B!, if they didn’t go over the deal with a fine tooth comb!)
I know this is going to sound funny. That travel agency deal, it was an internal SM company that purchased another SM company. That is the only thing mentioned on the Bloomberg site regarding SM deals. I smell money laundering.
If there are not some very concrete answers coming from SM to these institutional investors, there just might be some inquiries for investigations. Wouldn’t that be loverly?! 😀
@BAF
“There really isn’t anything illegal about doing a stock transfer instead of cash. If the head of the acting agency did not do a good job on the financials with SM, that’s on him. ”
Oh, I know it’s not illegal to offer stock instead of cash, but is it really legal to misrepresent your company’s financial solidity to a potential buyer? Isn’t that fraud?
“but is it really legal to misrepresent your company’s financial solidity to a potential buyer? Isn’t that fraud?”
Yep, it sure is. In this case, SM was supposed to be the buyer. But if the law firm who handled his transaction didn’t do a good job of ferreting out info, they too need to be made to answer. But in any event, it will be interesting to see how this plays out. If there is no ‘escape’ clause in that deal, that to me would also be a mind bender. What I’m curious about is why not wait until the full year is posted instead of setting the deal in the middle of the 3rd qrtr?
One thought I’m having. How many folks at that agency have contracts coming due soon, and wish to remain with a company who floats the way SM floats? Nothing says they can’t look elsewhere. And, if folks start leaving once contracts are over, it’s not like SM is going to have a great deal of sway to stop them from signing with other agencies.
Oh, the Karma of it all. Sweet! 🙂
This is for Butterfliesarefree2:
“If there are not some very concrete answers coming from SM to these institutional investors, there just might be some inquiries for investigations. Wouldn’t that be loverly?!”
Couldn’t happen to a nicer company…. >.>
I’ll toast the lead investigator if he really does something – like put certain people in jail, confiscates or audits books, etc.
@plumblossom
Hello! Long time no see! NYC & JUNSU TIME! Waiting in lines, you meet the most interesting people. 🙂
I keep reminding myself…no one/company is too big to fail. There is a first time for everything. At some point in time, the well is going to run dry on SM, and no rain insight to replenish. I’m keeping my fingers crossed for some fresh air in the Blue House and a progressive head of the county. Time will tell. It’s a possibility. Take care.
Yes it was really nice meeting you in person at Junsu’s solo concert back in August, Butterfliesarefree2. 🙂
It would be nice if SME kept losing money – maybe the investors could “uninvest” and sell their stocks b4 the company goes bankrupt (or even help move that along). Then we could pull out the champagne and celebrate. **dreams a little dream**
As far as the Blue House changing their tune….I don’t foresee it happening any time soon, but I’ll tell Santa to put it on his list for ya!
Amen. I don’t get why its so hard for people to open their eyes and see there’s something wrong with that company, after hangeng and dbsk left, and even hot and I think ftts. I was just curious of what you meant when you said they blame junsus family. What do they blame them for?
@Zaynb
“I was just curious of what you meant when you said they blame junsus family. What do they blame them for?”
Before the whole lawsuit deal went down, Junsu’s father sort of became the spokesman for the group when it became apparent negotiations were going to break down. Because JS, JJ, and YC were interested in investing in the cosmetic company Crebeau, SM tried to make this the focus of the discontent. The guys were going to sacrifice all that DBSK worked for to leave for a cosmetic company they were investing in. Junsu’s mother has a couple of franchises, and if I’m not mistaken one of Jaejoong’s sisters has one as well.
But this became SM’s rallying cry, and the other two members and their families took the ball and also ran with it. Even though all of this was bogus, it was still used as the basis for attacking Junsu’s family, since his dad was the lead family spokesperson.
Small minds use small tactics to try and prove their points, even when they are wrong. There are still certain factions that try and sell this swill, but the court has let it be known, the cosmetic business has nothing to do with the lawsuit issue. End of story.
@dbullock ~ legal dispute since 2009, more & more facts come out, JYJ telling the unshakable truth. Even China CCTV reported the news about JYJ unfair working clause recently.
Think of JYJ even gave up last breath to earn $ in Japan, but chunnie can’t even able to
support his father’s high medical expense, I can never forgive SM.
you mean, what chunnie said when he called up their president to ask for help and he was turned down–which left him so shocked–was for his dad’s medical expenses?!
@broomhilda~ hello, in fact , more than that, because JYJ in previous group got irregular salary payment intervals. Sometimes 6 months got salary once, but than next time payment is never stable.
That push them into loan ( or advancement ) of their salary for all the home expenses, tax payment , medical etc 😦 ( living like ” begging” SM, is the truth) ><
whaaat getting a LOAN!? that’s ridiculous! they were hugely popular back then–though I barely knew them. but I would come across articles about them and they were HUGE! & I thought they were already rich!
That was really unfair. how could sm treat them like that?! good thing the boys decided to leave. look at where they are now!
Thanks Aurora, for explaining to me 😊
…?? I’m sorry, correct me if I’m wrong but… Chun can’t support his father’s medical expenses because of SM, I’ve never heard of this fact. I’m just saying this because he wasn’t on good terms with his dad after the divorce, and apparently reconciled sometime before his father passed away. Is there a source saying that he couldn’t help his father due to SM?
@dbullock ~ SM accounting sheet = shit .
All Asian insider/ entertainment agencies owners / journalists, CANNOT believe top DBSK
team is not even earning a 7- eleven part-time helper ‘s salary.
Those debut in 2003 , and similar age like JYJ, with that fame & intensive working hours , already thousand million $ artists now.
Poor JYJ
Cheap SM taking all the hard earned money and then putting the blame on their idols… Tst tst tst
Shameless goes down a new low.
But Lady Karma’s at work! Yes!!!
Yes indeed my JYJ3 Sistah! Lady Karma is doing her thing!! Can you see the silly grin on my face from where you are? I hope so. 😀 It’s going to be there for quite a while.
I have a watermelon grin my face. Admin thank you for this news it brings a smile to my face.
@BAF
My sister! Today’s a good day to be alive!
😀
You got that right! LOL!
Hi BAF Sis… It’s been a while but I couldn’t help commenting about this.
Coz I’m so looking forward to the day Lady Karma strikes hard…
One at a time… *side-eye avex*
All we need to do is be patient. Good things come to those who wait. 😉 Take care, talk to you soon.
@shadow – yes, after hearing this comment , i wonder if Homin still HAPPY to perform on this coming saturday & sunday seoul concert. Hey, thier CEO accuse you duo are spending too much ….bla..bla…bla…no profit earned…bla bla..bla….A~G~A~I~ N
Of course the duo will always be happy no matter what. Working for the glory of their ROLE MODEL LSM, and to stay in the company with that 2vxq name. As what their fans are always saying, they are the most down to earth idols and never are money_hungry! Therefore I conclude: they are and will always be happy.
It’s true. Fans do always say that money doesn’t matter to HoMin & that JYJ are greedy for putting too much importance on money. Say what? Wanting to get paid for your blood, sweat, & tears is not a bad thing.
I’m sure SM will get their goons to spin this around somehow.
For now, is it wrong to glory in their bad press?
@Jae chunsu fan 4eva
“It’s true. Fans do always say that money doesn’t matter to HoMin & that JYJ are greedy for putting too much importance on money. Say what?”
Only people who are too young to have ever worked for a living can say things like this. (Let them ask their parents who are paying all their bills how important it is to get paid for your honest work..) This merely gives an indication of how young and gullible the average SMTown fan is. It’s ridiculous to even give it much thought.
@kris ~ big sigh, their ” Keep Your Heads Down” mind set not only ruin themselves, but sure to their family , and next generation. Blindness Loyalty.
Exactly like legendary warrior Yue Fei in ancient China , Serve the Country with the Utmost Loyalty .
However , the duo serve the SM NATION with the Utmost Loyalty. Together almost drown 3 ex-comrades to death 😦
Good people , NOT equal to capable people, once again verified so vividly.
And sometimes Good people , their decisions and policies will KILL others who look for reform.
LOL ^_____^ @kris
bastards. because of their constant lies they affect YG stocks as well. Grrr.
@Teemeah ~ perhaps this is trump card to pull down PSY effect, 😛 just saying
I do not like wish harm to anyone, but SM deserves this and more, because they hurt my beloved JYJ in the depths of their hearts.
Lady Karma at attack!
I will not gloat…I will not gloat…I will not gloat…BS, Yes I will! 😛
For anyone who is interested, here is a link from Bloomberg in English…
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=041510:KS
@butterfliesarefree2 – thanks for your posting 😀
suddenly, i got an omen, this Jerk SM is trying hard to evade from paying back a penny to JYJ , which owed them many years ago. And NONE can be compensated to JYJ, even they have been malicious banned for years. 😦
You’re welcome Aurora.
The only issue I have with Bloomberg’s site is they never have any articles pertaining to SME. Not sure as to the reasoning for that but, at least one can check out the numbers and know what they mean in English. I was curious to find their financial section did not have the up-to-date qrtly info it usually has. Sometimes you go in, and it is UTD. There is never any info on the executives of the company, especially their compensation.
And for anyone else interested, SME does not give dividends. So, whatever stock the investors have is all they are going to get for their money. When the stock price drops, the value of their investment drops. And given the paltry amount of stocks the artists were made to purchase, they aren’t going to reap any benefits at all.
Another big question, since it is known the entertainment companies provide information to inflate their stock prices, how is anyone going to believe them in the future? How are these companies going to explain themselves with regards to future endeavors? Oh, this is just too good to be true! 😛
@butterfliesarefree2 – agree ! For a moment i even think of bother Jim Roger for his advice 😛
This secret of SM , big sigh..not transparent, and possibly can’t even try list in SG or HK. ( the gatekeepers are harsh)
And those idols who become sharing holders this two years ( perhaps exclude BoA, ) guess most of their investment vanished.
” I can’t imagine how my son’s career future can be , if he left this National brand company – statement made by Yunho’s father. And he flied over to Japan to ” help ” his son….that year made me sick.
Now , make me more sick.
An educated scholar…tends to believe all the boosting.
( pardon me to all Uknow’s angels)
“A company like SM, its estimated profit tends to be entirely depends on what the company says. How are we supposed to believe it in the future, after announcing less than half the business profits of the market’s expectation?”
I know 3 men who could answer that question for you.
Me too ~~ KJJ, PYC, & KJS
SM so shameless
with all the lies
now blame TVXQ and Suju for it
i bet the ceo just use all the money for himself
They forgot to mention the gazillion teasers they (over)produced for EXO’s debut.
I find it hard to believe that expenses for 2 groups were the cause of all this… something smells.
yeah!!such a failure that one
That just goes to show you how low and vile SM is; after over spending and trying slight-of-hand tricks, now they shift the blame for the stock drop onto 2 of their groups!!! All that ‘family’ hogwash; it’s equal to the parents having blown the family budget; then blame it on two of the kids!!! I guess when shareholders stocks are totally worthless maybe they will finally wake up.
wow so ridiculous indeed. i even feel bad for the artists working in SM still, after all their hard work, they get the blame?
-_____- way to throw your artists under the bus SM…….SMH
@Ali ~ No need feel bad for the artists staying with SM. Really no need. They have been doing same harmful things to JYJ. Especially in Asia concert biz.
I don’t know if this is 1 of the answered prayers..the sky is clearing up…
…Prayers r the best weapon to all evil doers…!
Interesting, but not surprising. There are just too many expenditures at SM (too many mouths to feed so to speak). We also know that they have fishy acccounting practices to begin with (It would be interesting to see the Korean version of SEC investigate, because I am with the market analysts– someone is taking a little extra off the side). Not a OT5 fan, but it must be very frustrating/hurtful for Homin and also SJ. To be out there busting your ass, and to see no profit whatsoever, but to add injury to insult– then be blamed by company for your lack of performance. Remember, SM takes a “cut” of all its performers earned money. Variety shows, CFs, concerts, record sales. Meanwhile, these performers were given stock in lieu of better contract terms. smfh.
I am so glad that Yuchun, Junsu, and JJ got away from this situation, even with the ban. What I found profoundly interesting is the articles’ no holds bar comment that SM couldn’t pay JYJ compensatory damages even if they wanted to. It was the first time reading something like that in black in white. It puts the Judges’ lack of entry of judgment into prespective (though I don’t really think that it in the interest of Justice).
@warlesha21
“I am so glad that Yuchun, Junsu, and JJ got away from this situation, even with the ban. What I found profoundly interesting is the articles’ no holds bar comment that SM couldn’t pay JYJ compensatory damages even if they wanted to. It was the first time reading something like that in black in white. It puts the Judges’ lack of entry of judgment into prespective (though I don’t really think that it in the interest of Justice).”
But that can’t POSSIBLY be the reason for the delay, can it?? In what court in the world is a verdict delayed because the side found to be at fault “can’t pay the money it owes??” That would be seen to be corruption of the judge of the highest and worst sort.
I recall reading here sometime back that a large amount of money was being held in escrow were a possible verdict to not go in SM’s favor. What happened to that money??
And yes, we all know by now about SM’s outlandish accounting practices where somehow or other, when it comes to be time to pay their artists – Oops! — there’s no money left, it all went to expanses. We know this. It’s nothing new. It’s business as usual at SM, although now maybe a few SM apologists will wake up and notice that what JYJ said was happening to them is now happening again to their beloved SM group members.
And it must really really suck to be an SM artist today because nobody’s gettin’ paid for this 6 month pay period.
@warlesha21
“What I found profoundly interesting is the articles’ no holds bar comment that SM couldn’t pay JYJ compensatory damages even if they wanted to. It was the first time reading something like that in black in white. It puts the Judges’ lack of entry of judgment into prespective (though I don’t really think that it in the interest of Justice).”
If you go back and check, I believe this is a commentary from the translator mentioned below the source. Most of the bottom part is commentary. I went and did a translate on the original source. It’s not great, but none of the bottom of the piece is from there. So, I don’t think one can take for gospel that the financial reporting is reporting that info. Just saying. 😉
As I memtioned above, that’s what assets are used for, to sell off when you need cash. SM may be cash poor, but they are not without assests. Besides, that’s what company insurance is for…lawsuits.
@BAF
“As I memtioned above, that’s what assets are used for, to sell off when you need cash. SM may be cash poor, but they are not without assests. Besides, that’s what company insurance is for…lawsuits.”
But wasn’t there supposed to be a large sum held in escrow in case the judgement was for JYJ?
I saw that in a blog way back in ’09, not long after the lawsuit was filed. Just don’t ask me which one. To the best of my recollection, the quote was from a financial holding company that stated they had something like $85-90M USD equivalent, for SM. I’m thinking it’s the one that is now listed as a major stockholder in SM. Remember the company that used LSM as it’s cover boy a while back? They came onboard after Avex sold thier interests in SM. So, no matter what financial decision was made, there would be enough money to cover. But like I said, this is what insurance is for…lawsuits.
The money is there, all this delaying with the court is to hold onto the ‘no appearances on TV’ collusion thingy they have with the broadcasters in the music industry. What they are most afraid of is the explosion of JYJ’s popularity once they make it back onto the airwaves – TV & radio.
People hearing their voices and seeing their dynamic presence. THIS is what scares the beejeebus out of SM. How will they be able to compete with this? They fully understand WHAT and WHO propelled DBSK/TVXQ/THSK into the stratosphere. So, the longer SM can keep JYJ off the airwaves, the better for SM. But like all things, this too shall pass.
I’m not excusing the Judge at all, and no I don’t think it is the only factor in his failure to enter a judgment. I do think it is a mitigating factor. How important a factor this is, I don’t know.
I do not belieive it serves the interest of justice force to parties that have already been through litigation, with one party having a judgment in its favor, to now arbitrate the damages. It is in neither party’s interest to negotiate.
Also, I know that SM has a lot of assets that can be sold off, but I am not sure if they have insurance (under Korean law) against these types of lawsuits. Not that it matters, I am sure that SM has more than enough in assests to cover the damages.
should read, “to force two parties”
@warlesha21
I’m making a stab about the insurance thing. Reason being, if you deal internationally, one must be prepared for any eventuality. Take automobile companies. If you sell this product overseas, and it comes up defective, the buyer has the right to sue you, in their country. This would be harmful to your business reputation. I would imagine the same goes for Western auto makers who sell in foreign countries. I’m thinking reciprocity here. But I’ll accept being wrong if this is not the case.
However, in the event there is no such thing as insurance coverage for lawsuits in SK, yes assests should be on the table. And from Bloomberg’s site in the Financials section, at least from the 2011 report listed there, plenty of assests in $ amounts. So, the meme that there is nothing to pay is, BS. 😉
Not sure if this link helps or not…but there is a viberant industry so, I’m going to assume there is a risk management element here- claims of all sorts…
http://insurancenewsnet.com/article.aspx?id=338408&type=newswires
@BAF
“I’m making a stab about the insurance thing.”
I just asked my friend Don on Facebook whether there is such a thing as corporate insurance in SK. He should know. (I know there is no such thing as car insurance – people just agree to a settlement and that’s the end of that.)
I’ll let you know what he says.
@BAF
““I’m making a stab about the insurance thing.”
My friend Don got back to me and re-iterated twice that SM is positively loaded with assets. There will be no “selling of buildings.” Paying a judgement in any amount would be no problem for them. If they are self-insuring as is normal for corporations there, then the money is indeed sitting there in escrow. Don also said that arbitration is normal there. It’s the preferred means of settling monetary judgments. I’m going to venture a guess that the court will be doing some sort of oversight of the progress of arbitration and if there is none, after a certain point, it will step in and render a verdict.
Awww thanks for clarifying that the last part was the translator’s commentary. Cool. Thanks for the other links as well.
🙂 De nada.
So stupid of them blaming their artists or their production costs. I’m sure their artists are not getting enough like JYJ said so the blame should only goes to LSM and the management. No offense Kangta and sorry if I offended anyone here, but I love JYJ and TVXQ duo and not like some people here, I am wishing for their reunion. PEACE!
@Joong
So…. in light of this latest news, that SM is conducting business exactly as they always have, working their artists relentlessly and having all the money disappear in “expenses” leaving nothing for the artists… how likely do you think it is that JYJ are going to go back to that?
Thank you @lilibaiyu, When will some people get it!!!! SM has done wrong, to put it mildly and JYJ members had the sense to leave; there is no going back! Reunion!!! What reunion? TVX2 is owned by SM and have made no attempt to contact any of the JYJ members; even if they wanted to and it seems they don’t, just from a legal standpoint, it makes sense. You don’t fraternize with the opposition in a lawsuit @Joong.
@lilibaiyu
Well said. People still hoping for a “reunion” is blind to the fact that it won’t be happening. And as you’ve said, no one in their right minds would want to return to a company like that. Cutting all ties with a company run by tyrants is a rightly decision and I support JYJ entirely for this. However, as selfish as some fans are, they should not be considered fans in the first place when they’d rather defend what brought misery, despair, sufferings and disasters to JYJ’s career (or life for that matter) merely because they want to see a broken friendship mend for their own wretched and weak hearts that cannot bear to see reality. I’m sorry, but people who’d rather see JYJ suffer in a hellhole to create rainbows and unicorns in their own world weren’t, isn’t and never will be fans. I’d hate to see people like that claiming to be fans when all they see is “incomplete” whilst feasting their eyes upon the wonderful creations that are JYJ.
I think sm is not trying to blaming them.. It’s just, it really took a lot of money to make them seems like, the artist has owned the worlds..
And no offense, I love JYJ so much to think that they’re just better stay 3 than 5..
JYJ won’t go back to sm for sure.. And I hope if the duo left sm, JYJ would not even consider to take them in the group anymore..
Agreed. Having the other two join would change the image of JYJ and cause argument between fans. The other two just didn’t go through hardship and creative growth like JYJ did. The friendship may still be there but their way of handling music would be on different levels. A few collaborations in the future would be ok but I say no to a regroup.
*Pat pat. Reality sux, ya, I know. You can of course wait for their “reunion forever”. Oh wait! Do you need a bite form Edward Cullen? XD
ok; its probably bad news……………but that’s one of JYJ3’s best articles ever!!!!oh yes it iiiiiiiiiiiiiiissss!!! i am griiiiiiiiniiiiiiiiiiiig 😉
….ok i do not wanna go there!!! seriously …eh …b..but…but! caaaaaaaaaaan’t help it : IN YOUR UGLY FAT FACE SM ……….. I WISH YOU THE BEST SHOCKS AND PANICS 😉
@chamuwon ~ agree, need to send a trophy to this article. 😀
Big relief for JYJ being deprived for a decade, and Osaka shameful no singing allowed
appearing at KBEE.
@aurora:
right!!! there is a god ….the day JYJ will appear on stage again is near! i can feel it 🙂
SME is so good at pointing fingers to TVXQ and SUPER JUNIOR for high production cost, which by right, it is their own internal cash flow problems and mismanagement of funds and etc. Instead, they pocket in money themselves and pay the idols less, can just act dumb and not pay JYJ the overdue compensation. They really think the public is stupid. Well their shares seems to be dropping, a sign of their falling soon….
i hope some beans will be spill from this
because the public is stupid. the SM stans are brainwashed. Just go read the comments on Allkpop… It’s amazing how some people can be blindfolded.
I know. I did that earlier and came away shaking my head. But that’s what koolaid drinkers do, they drink the koolaid. The problem is, are they aware of what is in that koolaid?
@BAF
I can’t quite bring myself to go look at this story on AKP. It hurts me sometimes when people can be so deluded and act so foolishly. These poor kids have been addled by non-stop SM bullshit. I feel sorry for them.
“These poor kids have been addled by non-stop SM bullshit. I feel sorry for them.”
And that’s all you can do, feel sorry for them. Once the brainwashing takes effect, that’s all she wrote. Such is the kpop music industry.
For me the bigger question is how much HARDER are their groups going to have to work to make up a shortfall this HUGE. One can only imagine. If their institutional investors, read largest, are clamoring for information, this does not bode well. Investors usually do not like to be shocked with this kind of information. Oh would I love to be a fly on the wall at the next company stockholder’s meeting. Going to be some very fance footwork on display there.
@butterfliesarefree2 – pls include me. I like this kind of stockholder’s meeting. 😛
I’ll provide the popcorn, if you bring the drinks. What kind do you prefer? 🙂
@butterfliesarefree2 ~ I bring a cartoon of drinks, all you can enjoy ^^ and butter free popcorn is better,
afraid we may vomit after hearing any ” crazy ” ridiculous explanation in the meeting 😛
“afraid we may vomit after hearing any ” crazy ” ridiculous explanation in the meeting”
Have no fears. I will then go into Operation Butterfly mode ~ flitter around in my cute little butterfly self, and whisper sweet nothings in their ears…”Psst, don’t believe everything you hear!” 😉
@butterfliesarefree2 ~ agree …agree 😀
Their business plan is looking more and more like a new twist on a Ponzi scheme.
You think?! 😉
Does the name Bernie Madoff come to mind. LMAO!!
Oh sure, blame the kids that have been busting their as_s for you. Why don’t you? Didn’t they pull in more attandants than ever before? SM is seriously an A_S!
wat??haha wat happen to the great SM.. i tot they r so good at managing and taking ppl money
3 years, 85% money have been used to destroy JYJ all around the world . And God heard JYJ & our miserable prayers.
I wanna it go unlisted…bankruptcy asap.
( just very subjective fantasy)
– 100% web portals all prioritized SM videos , related stories whatever.
– eg to promote snsd Tiffany singing Adele’s ” Rolling in the Deep” , asked Youtube to place its video next to PSY Gangnam style. Huge $ spent. ( and though view rate is huge, netizens left critical comment and saw no reason related to PSY ; some even comment new rookie 15& version is much better.
– SM C & C, NO CASH transaction to swallow AM entertainment. Only give Jang 1,700,000 + shares. Which is shocking already.
– in China , SM already poured 80% of their $ & resource with yinyuetai , Asian Wave, and so many Taiwan tv drama / movie makers.
Their tv drama with taiwan Kelvin Chen ” When Love Walked In ” – so bad written & acted , SURPRISINGLY become NO# 1 view rate in a province of China. How much $ did SM has poured in the weibo , sina , QQ – all featured as rank 1 searching tag.
– 7/24 SM town tour….performance for govt….no $ earned. ( met with recent news report. Force idols to do event without pay)
Yet, even so, i strongly think ONLY retirement fund holders or other retail investor lost $. The major shareholders, however may
gain big $ through hedging fund. ( just saying)
– KBS on strike recently, claiming that no $ has been settled to the crew. Perhaps SM never paid a penny, all debt.
“Also it could reflect that there is no enough cash-flow at SM, based on the situation that SM risks its neck to its stocks. (Actually SM is just lying in the court, insisting that it did nothing bad so cannot give a penny to JYJ for the compensation for damages from the lawsuit to clarify invalidity of its exclusive contract. -the compensation was set 3 billion KRW-. )”
this is the problem i worry about. sm lying thru their teeth about their so called losses just to get out of paying what they owe JYJ. who to believe? man, what a mess they made. should have just sucked it up and taken their pride off the table a long time ago and just come to a fair decision for all. some people just have to learn the very hard way. i wonder if this will affect the duo any. i do love them all still despite sm and their evilness. i just have to support JYJ cause they are standing up to the bear and fighting a just fight.
I keep wondering too if this is the case. I just want JYJ to get the rightful amount of money they are owed (which I still think is lower than what they deserve). Hopefully JYJ are making sure to add interest compounded daily to that amount!!! Definitely don’t want SM to use bankruptcy as a way of getting out of paying. It is unbelieveable how SM would ruin their reputation worldwide in their effort to keep three strong minded amazing boys down.
I too was thinking this about SM. You know I believe it is a pride/ego thing with SM they will never and I mean never pay up. Also they will always block our boys in whatever they try to do. This along with their ego is their way of keeping the rest of their puppets in line and stop any thoughts they may have of doing what JYJ did.
@Koreamom ~ full investigation for overseas ” investment ” is a must. SM pulls 70% of its resource in China within these 2 years.
And in this summer, i worried JYJ may not get any penny, this nightmare come true 😦
AHAHAHAHAHAHAHAH!!!!!!!!!!!!!!
IN YOUR FACE SM!!!!!! AHAHAHAHAHAH!
THIS IS MUSIC FOR MY EARS!
SM DESERVES OF JUMP IN AIR! FOR ALL WHAT THAT HAS DONE TO JYJ!
with all the success story SM fed the medias, people would believe SM made it big.. i mean all those successful concerts in Japan, their Art Exhibition Show, their I AM the Movie, their cfs deals, all those big album sales, high ranking of sales for album/single/dvd concerts in Japan, their successfull and sold out SMTown concerts even, as they stated, in USA and Europe, all those OST and dramas their artists casted at.. and yet, the profit even almost less than a half of the estimated profits (in which was estimated by SM themselves)? with all those kind of success projects SM claimed they have, the profits should exceeded the estimated one!!
and blame it to TVXQ2 and SuJu? well not really new, since during the last hearing, SM even stated that TVXQ5 didnt profit them enough as TVXQ5 only brought less than 1% of SM’s overseas profit (in 2008 from SM’s overseas profit of 12,000,000 usd – or so, TVXQ ONLY making 880,000 usd of it aka less than 1% of SM whole overseas profit. they said the rest 99% were made by BoA, Trax (who i dont even know was active overseas in 2008), Go Ara (i dont know he was active overseas beside esp since i read that she only play in a Jpn movie in 2007. her other Jpn movie was from 2009. and both was out of context for 2008 profit count), and CSJH. this statement was so ridicilous, that even the audiences laughed when JYJ lawyer asked in disbelief that if GoAra earned more than TVXQ.. and many of us known that in 2009, Avex released a statement that THSK5 was their 2nd MOST profittable artists under Ayumi Hamasaki.
and about SuJu? well once, in an interview LSM said that SuJu members actually all were in the bricked of getiing cut by SM, but because they pitied them, they made them joined in a group, which is SuJu. and as far as i remember, at first, the group actually just for temporary since they will separated them in a group, but later they keep them together, but created sub-unit instead. no wonder SM never treated SuJu fairly, with repeated song style, weird concept, the same concept for MVs.. as far as i know, even many elfs are mad with the way SM treated their idols…
so, actually i’m not really suprised SM blamed their low profit to TVXQ2 and SuJu. they did it before. i just cant understand how their artists could possibly praised SM highly when they didnt even treat their artists with respect and valued them..
well, at least thanks GOD JYJ left SM, or they would be blame for SM’s low profit too..
@one_nee ~ I like your comment so much!
SM mass media strategy 99.9% botox!
Whenever related to them, is oh how beautiful, how gorgeous, how fast sold out, how full
audience event. ><
And in order to destroy JYJ in Korea & Greater China Region ( China, Taiwan, HK) , SM pushes up suju !
Reblogged this on JYJ's Fan Worlds and commented:
interesting post but not surprising……SM never gonna changes at all……they are gonna keep put a blame to another people to cover their own mistake……the history just gonna repeated again and again…… their idols not only a slave but also a sacrifice puppet which they can put as a blamed one….. always gave a lame excuse, coward and childish act,..never learn anything from the past
‘smirk’ i am really glad that JYJ already gone from those company, even though they are must endure many pains and unfair treatment but they can choose any project and their own path themselves, they can express their own feeling, act as their self, no more ‘fake’ image…..^^
is this for real or Tax evasion ?
i wish this article is real
SM deserve to Declare bankruptcy and close their doors
I honestly hope SM goes fucking kapoot so that their artists can be released and managed by other companies.
One word…KARMA!
Spend too much to manipulate many things, fake all things, block everything.
So this is the result.
I want to know how long this company could survive with their lies.
thank u Allah / god ..they deserve this.
I feel God’s justice has finally reached them. 🙂 for all the things they did with their artists. Even if JYJ won’t receive the money, I am happy they are out of this bunch of shit… I don’t think they did the lawsuit for the money, they have earned their own as JYJ and they do not lack in anything now. It’s more like the moral victory is what they are rightfully seeking, setting an example that you need to fight when injustice befalls you, and that you need to and must not be afraid to fight the “big wigs”. One way or another the truth will always be found out. I respect JYJ so much for this.
oh yeah they said its because production cost.. Even toddler understand in business we expect return greater than production cost! Where is those profit now? Oh maybe because u refuse to pay the bonus to ur shareholder than you make a lie? Moreover now you can pay less income to tvxq and suju with ur lying!! Oh or maybe to lower ur income tax? Indeed sme is the most wicked company that i ever seen
Who digs a pit for other will end up falling in it. Sorry for my English.
That’s really true!
What goes around, comes back around.
Karma…. its about time.
Yes,shit start to rolling.Hell time for SM,well deserved.
^_________^
Reality and Truth strikes again SM
“Light, I do give coz the night you do live” – JJ, Ayy Girl
I’m a bad girl, coz I’m happy to hear this. (≧∇≦)/
I have a double thought on this,
Is it really the truth or just a fruit of accounting manipulations to get out from some transactions? the company appears to be losing money, I wonder if the top men are losing too or might be keeping their big shares in some secret accounts.
If it’s the truth and stressing 2vxq production cost as a big factor, then where are those sm/2vxq lovers blabbering about their idols breaking out all records even surpassing the authentic TVXQ (which I take like a blasphemy) , I think you have a lot to discuss with sm management.
Whatever …
@kris
I don’t think they really can hide their shares in secret accounts. The buying and selling of shares has to be reported to the SEC. And SK does have an SEC, like we have here. That’s a regulation, because the sale has to be taxed as income. At least that’s how it works here in the U.S. Therefore, if anyone is dumping their shares, it will be known.
Oh, the top holders are losing some market value on their holdings, just not as much in comparison to the smaller investors. They can afford the hits. Once the turnarounds happen, they will recoup. It takes a while, but it can happen.
As for those who yell about so called ‘BIG NEWS’. They still have a disconnect about sales and actual paydays. None of them ever THINK about the fact, SM artists don’t make money off the sales of any product – physical or concerts. So, let them have their delusions.
We all know, for JYJ, as the saying goes, “They makes their’s the old fashioned way, they earn it.” And take it all the way to the bank. If at the end of the day, JYJ pays all their bills, let’s say 40% of income goes for everything…agency fees, taxes, etc., and they take home 60%…not to mention the fact they are probably investors in CJeS, guess who’s really living large and in charge? Bringing home 60% vs. 6-10% is huge! So, let them have their delusions. The only ones they are hurting are themselves. 😉
@BAF
It’s so nice to see you again 🙂
You’re right with the shares, but how about the cold cash? they always say LSM is a genius, I don’t think he’s willing to sink with the boat if ever.
Kris,
I’m sure LSM has a diversified portfolio. No one, and I mean no one has only one investment component in their portfolio if they want to keep from losing everything. Whenever LSM has cashed in some of his shares, I’m willing to bet a goodly portion of those transactions have been converted into other types of investments. He probably has funds in a mutuals, bonds, money markets, etc. These can also be easily disposed of, liquidated. He probably has Swiss bank accounts or accounts in whatever tax dodging nation is close to SK. Crooks like him go no where without a plan. So, as the largest single shareholder he will make out ok.
This whole thing is going to be interesting to watch because the shortfall has to be made up to please all those huge investors who don’t want to lose anymore. Institutional investors have clients they have to answer to – i.e., those pesky pension funds. Since these are govt pensioners, it wouldn’t look cool if they go to the powers that be and ask for investigations. Oh noooooooooo. 😉
Yes, LSM is no dummy. His major problem IMHO is his arrogance. I’ve stated before supreme arrogance leads folks to do stupid things. It’s like a sickness, they can’t help themselves. So, with SM it appears as if they cannot help themselves from doing stupid stuff, again. But I’m content to sit on the sidelines and watch the drama unfold.
The interesting thing about money drama, it’s way more interesting and lucrative than criminal drama. 🙂
@BAF
” Institutional investors have clients they have to answer to – i.e., those pesky pension funds. Since these are govt pensioners, it wouldn’t look cool if they go to the powers that be and ask for investigations. ”
As I was just posting elsewhere, these stockmarket/hedge fund analysts have a YEARLY review to look forward to – typically it is in December. They either get big bonuses or they get FIRED. So how likely are they to recommend a stock to their bosses/customers that has under-reported earnings by 50%?
@kris
LSM is a narcissistic psychopath. I don’t think he is capable of even thinking he, the great LSM, might fail at anything.
@BAF
“We all know, for JYJ, as the saying goes, “They makes their’s the old fashioned way, they earn it.” And take it all the way to the bank. If at the end of the day, JYJ pays all their bills, let’s say 40% of income goes for everything…agency fees, taxes, etc., and they take home 60%…”
This is why all three are now multi-millionaires. Even with EVERYTHING that SM has been able to bring to bear on them they have succeeded beyond anyone’s wildest dreams AND have vastly grown their fanbase. They are SM’s worst nightmare. There’s just nothing they can do to them that derails them. This is why all we JYJ fans can feel pride in JYJ’s accomplishments. We have literally protected them from the disaster that SM threatened them with. We have made the difference.
@BAF
My friend Don says “most Groups self-insure” and also that “SM has huge assets”… Interesting, no? So let’s put out of our minds once and for all that SM “doesn’t have the money to pay the judgement” that the court levies on them. If my friend Don in Orange County, CA can find out in 5 minutes that SM has huge assets to bring to the table then I really don’t think that SM can make that “poverty” argument in SK. I mean unless these people are fucking idiots and I really don’t think the officers of the High Court in Seoul are idiots.
Well, self-insure or whatever they call it, the money is there. I’m guessing Don has a subscription to one of those financial fact finding sources that give you detailed info on any company they cover. I’m not interested enough to pay money. 🙂 Besides, their online financials with Businessweek gives you a breakdown of what they show their investors. Under assests, the figures are not small. So, yes I’m going along with the theory that crying poverty is not going to help. But one day they will have to pay. 😉
Oh, by the way. Auto insurance in SK is required for auto vehicles…not sure where you got your information. Don’t go by the stuff in the dramas. 🙂 In ‘A Gentleman’s Dignity’, there was an auto accident and reference to an insurance company.
http://www.korea4expats.com/article-liability-and-insurance.html
@BAF
“Oh, by the way. Auto insurance in SK is required for auto vehicles…not sure where you got your information. Don’t go by the stuff in the dramas.”
Wow, no kidding! And you’re exactly right – I was going by things seen in dramas. lol They always show people pulling a wad of bills out of their wallets by the side of the road. 🙂
OK, gotta go to work. I’m in a great mood now! I was so sad to see our boys at that stupid KBEE thing, being brave, charming, once again helping Korean business and then being told they can’t perform…. but now I feel really happy. The end is in sight, kids! I can just feel it!
I believe that in life evil never prevails that the lies in which they were covering themselves to make them look good, sooner or later will come to light and that no matter what excuses they will use to try to clean themselves from so much BS they did all is going to make them look is so pathetic. SM are all about demeaning their celebrities and not giving them the recognition they deserve for their hard work and the more they do the more pressure they put into them to make them their money makers which are looked at as machines not human beings that deserve respect and should be treated with fairness. If we love and want the best for JYJ, not even for a second we would expect such a reunion, but if they have it in their heart to do so, SM will not be involve at all for the boys have chosen the right path which is to be treated with dignity, respect and deserve to be acknowledge for all their hard work, even if it means for the boys to go through so much with barriers and we have seen that they little by little are breaking,they prefer to be respected for what they are and do for themselves not for what others make them do against their will which all they do is take advantage of them; so stop living in denial and see the reality that they are better off from SM and they are doing what they love without the oppression and slavery treatment from such a low tactic company which mentally and physically abuse their celebrities. All I can say is that I hope those celebrities that are in such a disgraceful company now can open their eyes and see what they are worth, that deserve so much better recognition and not to deal with it anymore for everyone deserves to be praised for their hard work instead of disgraced.
I wait for next good news about SM’s.hey ….republik jyj’s you know what I means right?
Poor TVXQ… Now they are blaming them for their concert which actually was sold out in JAPAN! How does their production cost cost more than estimated? Its been the same production cost since when TVXQ and JYJ have been together -_- SM you liars you obviously knew how much it would cost TVXQ to perform there. What about the billion of music videos and production costs you used on EXO? Who are barely making that much as SUJU and TVXQ. Ugh SM… I hope you go bankrupt. I hope TVXQ leaves you too. Karma does come around… Does anyone feel like this is just an excuse now to not resign the contract with TVXQ and super junior? just like SM did with Shinhwa and HOT?
@horrold
” Does anyone feel like this is just an excuse now to not resign the contract with TVXQ and super junior? just like SM did with Shinhwa and HOT?”
What we always, always have to remember is that the heads of SM and of course all of their employees who do not DARE make one peep in protest– they are all inveterate liars. There is nothing that they will ever say that is not self-serving and self-protecting. I think at this point it is impossible for them to ever tell the truth about anything: the heads of the company because if they do the whole damn house of cards with cave in and the employees because to do so is professional suicide.
But consider: all of the elevated chart positions for their groups that they simply buy, all of the cronies who provide “services” for them that then give kick-backs to the top execs, all the people in the media they pay off in cash… and so much more malfeasance which riddles this entire company until it resembles swiss cheese…obviously these things can not show up on a profit and loss statement. So they lie, they fudge the numbers, they commit corporate fraud every single day.
All of the more profitable groups are literally paying for EXOs excesses in an attempt to launch what appears to be a lead balloon instead of getting the profits, the rewards for their labors, themselves — that’s the SM accounting system in a nutshell. They’ve touted this business model in the media many times. They are proud of the fact that they can “cross-collateralize” in other words take from one group the profits to shore up another less profitable group — a thing that is completely illegal in many other civilized nations, the US being one of them.
The sodden thought in this current fiasco is that if TVX2 can not be seen to be bringing in any sort of significant monies then they are merely a HUGE cash drain on this company. SM hung on to them in the first place because they hoped their fanbase would be dumb/brainwashed enough not to notice that the heart and soul of the group had departed. If that experiment has failed then they may very well be cut loose. If SM is enough trouble financially, then all bets are off as far as promises made to the likes of Homin. There is no betrayal this company is not capable of.
@horrold
I think TVXQ and Super Junior have already renewed their contracts. Nevertheless, if SM decides to terminate Yunho and Max contracts…I believe they are talented enough to get re-signed somewhere else..they have a large fanbase..I am disappointed, however that SM has chose to blame both TVXQ and Super Junior instead of their very own managements lack of effective business skills…it is not the artist jobs to make sure cost is low and profit is high…it is the very job of management to effectively plan and make sure that the company can cover cost and make a high profit and stick to a budget..no matter what.
TVXQ reportedly made close to $100 million dollars…for their Tone tour…not sure how much Avex profited…but SM should have made enough profit to cover cost, pay TVXQ, and make a profit…They are blaming groups who have made millions of dollars for them….instead of blaming themselves for mismanaging funds and making foolish business decisions using other peoples money….They have wasted money on their movie…S.M the Movie, most fans have seen the debut videos of these artist..to make a movie about it… is pure stupidity, their S.M.A.R.T Exhibition, SNSD’s lackluster American debut, paying Snoop Dogg to feature on their record, EXO’s debut falling short of expectations and the cost of EXO’s over promotion…
Training groups who haven’t debut yet..when they should just focus on the groups they have now..venturing into hotel and resort industries..hiring Tony Testa in my opinion one of the worst choreographers SM has ever had…among other things all a waste of money…its not the artist fault..its SM fault TVXQ and Super Junior made enough money…SM has a spending problem..and they need to get it under control and not blame their artist..it is totally disrespectful to their artist who have worked so hard.
@Daisy
The thing that I found so obscene about SM’s “explanation” – blaming the artists – is that everyone knows that SM acts have absolutely no control over budgets, who gets hired, how much they are paid, etc etc etc. They have NO CONTROL over any of it. The company decides and directs every single aspect of their lives and careers. So how on earth can they be blamed for financial malfeasance now???
umm.. dear, SM DID continue with their contract to HOT n SHinhwa. but in HOT, the 3 were dislike how SM unfairly distributed profits. thus the 3 decided to left SM whil KangTa and Moon Hee Joon stayed. but later Hee Joon also left, and have his own sad story of what SM did to him. and there were rumours that also belieavable as another reason of 3-2 break up was because SM met them separately, not as group and told them diff things, in which then led the separation. some also believe that the other 2 signed with SM believing SM’s words that the other 3 have agreed to stay and SM have discussed with them about the contract.
as for Shinhwa, SM did proposed 2nd contract to them, well all 5 of them except Kim DOng Wan (you can watched it in Win WIn Shinhwa eps). SM, like with HOT, also met them separately. and until in Win2, they thought all the 6 offered the same contract, and not only 5 members, in which SM did plan to broke the 6 members Shinhwa to 5 members only. and again the members didnt even know abt this. lucky that Eric, as Shinhwa leader were fast to think, and lucky that all the members were have the same goal together, stay together. and do you know why Shinhwa want to out from SM, in Win2, they said that the reason they refused the 2nd contract was because THEY WANT TO START MAKING MONEY. can you imagine, Shinhwa was so BIG during that time. they were like TVXQ in their prime time. heck, i was dislike TVXQ at first, because i thought SM was just tried to make another Shinhwa (i was a Shinhwa fan back then). but even with all those glory n successes, SM didnt give them enough money that they WANT TO OUT FOR SM AND START MAKING MONEY ELSEWHERE. and no one even blamed them. the diff between SHinhwa n JYJ was that, Shinhwa only have 5 years contract. while JYJ have to endured it for 15 years (13+2 mandatory military). i believe if their contract also 5 years, JYJ wont renew their contract and people wont blame them for leaving. heck, JYJ have wait till 6 years before they left SM (debutted in 2003 and left in 2009).
so you see, that since SM did proven met with each members of HOT n Shinhwa separately and even plan to separated the members, maybe what JYJ family said that SM did meet each member of TVXQ separately and have plan to separated them were true anyway. well, they did it to HOT n SHinHwa in their prime popularity, why not to TVXQ5 as well? thats why i think many Kcassie seems to support JYJ, since they now what have SM did to HOT n Shinhwa. as far as i know many Kcassies were also Shinhwa Changjo..
should i feel happy
UTTERLY SHAMELESS!!!
SM is the short form of SHAME!!!
I think SM is simply doing what they’ve done all along – cooking the financials to regulate the amount of profit they want to show. Since the company’s “accounting” practices are famously opaque, you have to assume this is all intentional. My bet is that either they’re overspending on promotion to artificially inflate various rankings (possible, but seems unlikely) or company management is siphoning money out of the company as fast as they can and hiding it. Failure to warn before announcing financial results is such a colossal mess-up it suggests the company really doesn’t care about the investors at all. In fact one could conclude they think the stockholders are just fools who can be ignored.
All in all, the company’s behavior is very consistent over time. Ugly. Wouldn’t own stock in SM on a bet. My guess is LSM will take out as much money as he thinks he can get away with, leave the company claiming he built a powerhouse (blah blah blah) and then go do something else. Work in the government? Become a regulator? An ambassador? /sound of barfing here/ After all, if he times his exit well, any implosion will happen after he leaves and can be blamed on new management, changing economics of the music business, etc.
wasnt there a news about LSM sold big portion of his stock before the annual report last year, knowing the report could make the stock fall down? i’m not really remember, but i think LSM even questioned by the authorities for this matter..
sigh, this is also why, i cant understand how SM fans could possibly believe that LSM have nothing to do with SM dirty tricks just because he isnt the CEO anymore.. as far as i know he still the biggest stockholder.. hell, he even met with KHD n some of other comedian to asked them to join SM C&C.. isnt that a prove enought that LSM STILL HAVE POWER TO DO WHAT HE WANT IN SM ENT?
@one_nee
“isnt that a prove enought that LSM STILL HAVE POWER TO DO WHAT HE WANT IN SM ENT?”
If I’m not mistaken, I believe he still functions as a producer. Once he was stripped of his chairmanship/board director positions, he went back to what it is he does best. I don’t like the man for many reasons, but I will give the devil his due. LSM knows talent, he knows how to produce it, and he knows how to market it. But his major character flaws keep him from being anything other than a bloodsucking viper.
People who assume LSM is not a powerbroker don’t get it. I wish they would come to understand this. His power lies in the fact that he is the singular largest shareholder, with 21.5%. Being a shareholder makes you an OWNER. The more shares you own, the more ownership you possess. This means more than any job position in the company. So for those who continue to harp about what influence this man has or doesn’t have, if nothing else, this is the reason everyone in that company kisses his ass.
yep, agree. i do dislike his character, but me too, have to admitted that he indeed knows talent.. and yes, i just really cant understand how people refused to see the fact that so many people kisses his ass which means he MUST be have smthg to make people do that. and to make people kiss your ass it always about money, power and fame…
i don’t think Lee was ever on the Hallyu wave thing or music, he is a liar and word twisting manipulative two faced greedy monster.
he was pocketing money all along, its a matter when will he have pocketed enough to flee.
Lee did flee the country before, why wont he flee again, unless he let big status”officials” shareholder on , on the plan, they might have earned just as much of chunky money as Lee did to give him immunity, so Lee might not flee the country after all. who knows, but one thing for sure, Lee is pocketing all that money. he definitely planned this the moment he gave powerless singers the imagination they can have share-holds in the company.
@Xtooline
“My bet is that either they’re overspending on promotion to artificially inflate various rankings (possible, but seems unlikely) or company management is siphoning money out of the company as fast as they can and hiding it.”
I’m betting on both of the above. We know they buy chart positions for their under-performing acts. SM is all about bravado and swagger – they’re all face and no substance. They were found to be involved in a major payola scandal involving every aspect of their business dealings ten years ago. What their acts couldn’t generate in sales, chart positions, radio plays, etc etc etc, SM just bought, simple as that.
And we know LSM has a history of bilking his company – he’s already been tried and found guilty for stock fraud. The reason it still appears to be going on is because it IS still going on. Nothing ever happens to this company – there are no consequences for this kind of illegal behavior. That’s SM. That’s what we’re dealing with.
Reblogged this on luminarytriad and commented:
Add your thoughts here… (optional)
i’m sorry but i don’t feel bad for those SM artist… not one bit… not an ounce… nothing… nada… they had it coming… i mean seriously at some point, when our boys left that good for nothing agency… (oh wait is that an agency?!) do they not know anything?! something?! they play dumb alright… ganging up on our boys… they keep it silent for what?! the “family”?! thats a load of BS to me….
and know this… serves them right… KARMA at its best…
i remember one member of SUJU saying SM artist should thank him bcoz of him they got their shares of stock… oh well… life! when it sucks, it sucks big time…
sorry if i rant his much… believe me… i’m happy about this news in a true sense of it…
well done LADY KARMA! 🙂
To all the liars, cheaters, users and abusers who think they can get away with treating other people the way they do and that karma’s not real…JUST WAIT SM!!!
@barelystable623
“do they not know anything?! something?! they play dumb alright… ganging up on our boys… they keep it silent for what?! the “family”?! thats a load of BS to me….”
Oh gosh, no – I would never say that it’s for “the family” – only someone truly brain dead would be able to rationalize that.
No, it is simple FEAR and self-interest and a desire to have a further career. That is what motivates the singers, etc still under contract at SM to keep silent and toe the party line. Fear is a great motivator, maybe the best one and SM is a master of intimidation. As their contracts’ stand, SM OWNS these people; they own their destinies for the next decade and more. Only a very few, only those who believe in themselves and their talents and abilities more than they fear SM’s threats will have the heart and the courage to walk out. This is what makes JYJ worth fighting for. They gambled on themselves and I think we owe it to them to take that gamble with them.
That’s why i’m so proud of my boys…. The power lies in being able to overcome your fear. To look past it and try to see the whole picture. Without risk what is there in life? You’ll Never Know If You Don’t Try, Fear should never be a factor in a decision to give something that can end up being so worthy, a try… ♥
OMG.. I love every word you said!! So true, I agree 100% Finally, someone said it!! It mostly fear that drives the SM artists, and JYJ’s bravery is what drove my respect and love for them to the roof!
However, here is something you might disagree with me on:
The reasons you mentioned are why I do NOT posses great hate and loath towards SM’s artists (including HM) that the rest of JYJ fans posses.. HM weren’t brave enough, they had reasons (whether reasonable or not to us) to hold them back, and prevent them from fighting; fear of loosing everything. Their fear doesn’t necessarily have to be for selfish reasons, it could be because of their families. Maybe in their eyes, they would be selfish if they ignored their families’ needs and fought for themselves. There are also so much more reasons I could think of.
Being a coward isn’t something that would gain people’s respect, but certainly it’s not enough to gain so much hate either. Sometimes choosing the right decision can be very unclear when you are put into the situation yourself, while others see it obviously wrong and knock you on your head afterwards. The situation that JYJ and HM were put in was really hard, I can’t even imagine what was going through their minds! I remember Yoochun once mentioned that they felt so cornered that they wanted to hide far in the mountains. Apparently, fear crept its way towards JYJ too, but they fought it off. This just shows how hard it actually was for all of them, that I can’t really blame HM for making their decision.
The one year and a half that HM spent on hiatus was long enough for them to get brain washed and convince themselves that they made the right decision. And I guess LSM didn’t hold back in convincing them that JYJ are traitors. During this time, I think HM were having a really hard time too, probably the hardest in their lives, and LSM -showing them a fatherly image during this time- will definitely gain him their blind loyalty.
I used to call myself a Cassie even after the break up, but I can’t anymore because I don’t love and respect HM like I used to. But I can’t hate them either. Think of it this way; Imagine you are a mother of five kids married to an abusive husband. You decide to divorce. 3 of your kids went with you as they believed their previous life isn’t a life worth living. While the other two stayed with their father out of fear. Years later, after no contact, you see your two kids and they turned into their father, you are shocked because you know everything he put them through, but despite that they became so loyal to him. They hurt your 3 kids with words and actions that you can’t understand… But despite all that, will you hate your 2 kids who stayed behind?
Well, basically that is my point of view. I don’t see myself as their mother of course lol since I’m much younger anyway. But I once loved them all to the depth of my heart, I loved their harmony, their brotherhood, and their honesty.. I really can’t just erase them and hate them. The things they say and do make me so mad and angry sometimes, but I always seem to find them excuses.. I was taught to always first assume good in people, think of all the reasons I can, put myself in their shoes, and remember that humans make many many mistakes.. don’t just jump to conclusions..
You must be wondering why on earth I’m writing all this to you anyway. Well, I always read your posts. You seem like one of the very few smart and rational fans out there. You put thought into every word and can express your opinions so clearly. I agree with you most of the times. But when you bash HM so harshly I just get really upset, even though I understand why you hate them, but I sometimes wish you would just put yourself in their shoes for once, and try to understand them. Or at least refrain from bashing them here.
Thank you. I hope you don’t misunderstand me. No offence intended…
@JYJae91
“But when you bash HM so harshly I just get really upset, even though I understand why you hate them, but I sometimes wish you would just put yourself in their shoes for once, and try to understand them. ”
No, of course I take no offense at your wonderful and thoughtful post! Here’s a cyber hug for you – >**<
And this may surprise you but I don't hate Homin. Not at all. Actually I don't hate anyone. Regarding Homin, I feel that they have behaved badly and have seemingly continued to compound their mistakes by making damaging statements about JYJ to somehow justify themselves and their choices – we all know about this so I won't belabor the point.
The other point I will allow which is probably correct is that these two knew deeply in their heart of hearts that they did NOT have the talent to survive and withstand SM's promised vendetta/career annihilation if they were to leave. They were realistic about that. Of course, they forgot about the brotherhood of the five and the fact that the members of JYJ would easily and willingly have carried them for the rest of their lives if they'd been given the chance but Homin close to believe SM and not JYJ. As they watched their brothers leave they were convinced that JYJ was completely and utterly doomed to oblivion. This makes their appalling statements in support of SM even more shocking, to me anyway. And now that JYJ has succeeded in surviving against all odds? Nothing from Homin. Not a word of support. Nothing.
I will also allow that when LSM realized that JYJ was definitely headed out the door he laid an intimidation on Homin the likes of which few of us could have withstood. No fool, LSM realized that without at least one and preferably two members in his hands, further exploiting of the name DBSK/TVXQ was not possible. So, yes, I'm sure it was very bad and very scary and the two caved.
Perhaps your estimation that in the hiatus that followed, the two poor helpless lambs were indeed cruelly brainwashed. Maybe it’s true. But are these two people as they are now anyone whom I or any reasonable person can say are people we “still love?”
I have to say, not really.
It begs the question of you, JYJae91: what is it exactly that you can find to “love” about them now? I find their music harsh, over-processed, mechanical, auto-tuned to death and quite soulless. Since I was never a Cassie, I was never encouraged day and night to “fall deeply in love with them,” the better to guarantee SM ravenous paying customers of everything they did, for life. You DO realize that this was a form of brainwashing too, right?
I choose to reserve my love for those whom I can admire and respect, whose talents amaze me and whose character humbles me. Love for me is not freely given nor unconditionally given. The Cassiopeia fandom directive, that The Five MUST be loved endlessly and forever is a lie, to my way of thinking. NO ONE ever is to be loved and followed without regard to their behavior and emerging character. I would suggest to you that you examine again the beginnings of your sense that you “had to love all five.” There is SM propaganda there, lurking in the shadows, I promise you.
Finally, I do not think that I need to presume to be anyone’s mother to somehow excuse the shortcomings of Homin. That’s a bit of a stretch. In life, as adults, you will find that people will not readily put themselves in the position of being a wrongdoer’s mother in order to excuse them. As I am an older adult, this is not an argument that can appeal to me or I would wager many other adults.
Betrayal, cruelty to beloved brothers to save themselves with no word or deed of mitigation ever – these are realities that cannot be sugar-coated. Your solution is, “remember the good old days and give them a pass” but I am not OK with that. Perhaps, if the reprisals and hardships for JYJ at SM’s hands were not so pervasive and ongoing, perhaps if there was an end to them, I might feel differently.
@lilibaiyu
This statement is one of the reasons you are my VE Sister. 😉
lol
SM is going to end up ganged up against by most SM singers.
they are going to go at each others throats LOL
i mean, please, who trust SM when SM says “get your stocks at SM” LOL , he said SM …….and they went for it ? LOL,LOL.LOL.
SM, say hello to Karma!
When TVXQ5 were together.. SM made massively new talents..let’s see… CSJH, Zhang Yi Lin, Super Junior, SNSD, Super Junior M, Shinee, f(x)… Those were all costs, because producing new talents or new groups means you have to spend more than your original budgets. Some old groups were leave too, but still you need to spend more with no guarantee you will make profit. But now after JYJ leave, SM only made one new talents Exo. And Boa have to return to Korea, Trax made their comeback. They used all of their old resources in full force but only make one new talents. You can see the pattern here. If they really dominate the world, they definitely will produce even more new talents like during 2008… But why only one new group in more than 2 years ?? Flow cash in SM definitely have something wrong in it.
“SM explained about the reason of this Earning Shock is because of a big production cost of TVXQ and Super Junior’s Arena Concerts.”
as always, the SME method “EXCUSES,EXCUSES” in order to convince/deceive you to believe their “EXCUSES,EXCUSES” SME never honest. LOL
i think maybe LEE , is taking all the money then maybe he FLEE . i don’t know, but maybe someone behind the scenes is ripping off more than just the idols off.
dammit,i love this news!!!!!!!!!!!!!
The stock is still dropping…WOW.
http://www.bloomberg.com/quote/041510:KS/
@butterfliesarefree2
Christmas Bell ! Panic sell !
I want to see it BECOMES 0.01 by this Friday SO MUCH !
Code name :Jackal ,
041510 – KS become HISTORY,
oh : I MISS YOU.
Love is like Snow Flake ~ innocent fans ^^
Anyone interested in an office pool to see when the bottom hits and how low it will be when it does? Just saying… 😀
@butterfliesarefree2
i hope hot blood Korean netizen set up a poll online , and let ALL netizen to VOTE 😀
vote and dreams come true 😛
** for those indifferent fund managers, or investors , never concern SM ethic controversies,
only looked for profit. Today, your well being will be burnt into trashes. 😀
@BAF
You’re better at these number crunching things than I am, Miss “Off By 2 Points Of The Electoral College.” I’m goin’ with what you come up with… 😀
Strickly a good guess my VE Sister, a good guess. It did feel good to come that close though. 😀
I heard the KOSDAQ halted trading on it after it opened this morning almost 30% down from yesterday’s high.
This is pretty serious stuff. I’m a little surprised there hasn’t been news about it but maybe I shouldn’t be given the way the SK media tends to bury a lot of stuff.
Wishful Thinking: I would love for the court to issue a ruling in JYJ’s favor right now. With the hit this stock is already taking, a ruling against SMe would crush it even more.
Yes, I know if it did, it’s bad for the SK economy but I can’t help wanting the revenge.
@dbullock
I just got some more good news from my friend Don! (he’s an American who advises Korean businesses on how to enter and succeed in the U.S. market. Very successfully.) He said the arbitration process does have a timeline. There IS oversight. If there is no resolution the court will “deal with it swiftly.” Now THAT made my day!
Really? *dances like crazy*
Lili
He didn’t by any chance mention what that timeline looks like did he? And at what point does the court decide enough is enough? I know, I’m asking for too much info but this girl’s inquiring mind wants to know. If it’s not too much to ask, can you see if you can get more specifics? 🙂 Thanks!
@baf
“He didn’t by any chance mention what that timeline looks like did he? And at what point does the court decide enough is enough?”
Oh, if I had my way I would have asked him stuff for hours! He is very busy and only answered the questions I did ask in a few words. Really, I don’t want to push it any more because I want to keep him as a last ditch resource.
I just sent you an email with our FB conversation. You can see what I mean. But I swear I am STILL hopeful all of a sudden.
🙂
Lili,
I got it. Sent you a reply. Thanks.
I was wondering about that. I checked it again first thing in the AM my time (EST), and then again later in the day. No activity. I thought that was a bit odd. Looked this up… The stock had jumped so high from a bit of a low back in the summer. While I was checking out from time to time back in the summer, it ran the crest around the mid 40s range. Then this huge jump up to the 70s, now crashing back. I guess that continuation slide after the news yesterday, was really not good news.
Definition of ‘Trading Halt’
A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.
Investopedia explains ‘Trading Halt’
A trading halt gives all investors equal opportunity to evaluate news and make buy, sell or hold decisions on that basis. The stock exchange can also halt a stock at any time if it suspects unusual activity related to a stock’s price. The stock will typically resume trading after 30 minutes, once news from the issuing company has been disseminated.
Read more: http://www.investopedia.com/terms/t/tradinghalt.asp#ixzz2CKVfPSGs
Well, given the last sentence in the second paragraph, it’s been longer than 30 min. Sooooooooo. It looks as if the investors are not happy with the information provided and want more detailed info from SM. If there are some huge sell orders placed, guess what will happen to the stock after the sells. And if these are your big institutional investors, who in their right mind will come along and make up the difference after a huge loss of faith.
Oh my, how The World Turns… 🙂
I am convinced either arrogant assholes or idiots run this company… not issuing a warning on expectations more than twice what you are going to report is HUGE! What were they thinking? It’s absolutely irresponsible to let that kind of forecast stand with no regard for their investors or the market havoc a surprise like that brings on.
I’d really like to see some gross profit numbers so that I can put these enormous productions costs they’re claiming into a better perspective.
No surprise here if investors file a lawsuit over this.
@dbullock
“No surprise here if investors file a lawsuit over this.”
I’ll be happy is they all just dump their stock like yesterday’s garbage. 🙂 Oh, and how about the former owner of AM Entertainment who just sold his company to SM in a no cash, all stock deal?? You think he’s feeling a little steamed right about now?
@dbullock
“I’d really like to see some gross profit numbers so that I can put these enormous productions costs they’re claiming into a better perspective.”
For what it’s worth, Businessweek has in the past, in the Financials section, Annual/Quarterly had figures available. I was checking those out for a while earlier in the year. They were there. Now for some reason there are no 2012 numbers at all. This may correct itself, not sure. But in looking for info on the Korean exchange, this is what I came up with. The spike in the upward trend is huge just after a day, then the huge drop. As another article piece on the same subject cited..”It’s almost as if there is something going on internally we don’t know about.”
http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp?isu_cd=A041510
@BAF
OK… here’s an interesting link to a forum on hallyu8.com discussing this. The first comment has a link to a PDF containing a KDB Daewoo Securities Company report on SMe that has been updated with information after their Q3 announcement.
http://hallyu8.com/topic/27012-sm-entertainment%E2%80%99s-third-quarter-results-fall-short-of-analyst-expectations/page__st__60
@dbullock
Thanks for the link, I’ve saved it. It still looks as if there is something missing. If they were projecting a 40% OP increase, they were really pressing it. I went through the thread, and the consensus seems to be some uncertainty about what is actually being reported. Either way, this doesn’t make for a healthy situation.
SM’s model with their huge talent base to support is finally catching up with them. They keep expanding because they need other sources of income to feed the trough so to speak. There is nothing wrong with diversifying, but at what point to your reach max. overload? Still w/o knowing how much of all of this is real income, revenue, expenses, debt, assests, liabilities, etc., the picture will remain murky. Even though a trade halt is not unheard of, it appeared that the thought was, WTF?! Special treatment or what?
I found it interesting they were making assumptions that once SNSD makes their comeback, all will be rosy again. Well yes, they can expect the fans to buy whatever gets thrown at them, but what if that product sucks? Or at best is marginally good?
Also, the comment about what SM may or may not have received from Avex from the tour receipts. So, much speculation and not enough facts. Seems like to me, somebody ought to be stocking up on some Febreze to spray around.
Again, thanks for the link. 😉
@BAF
“and the consensus seems to be some uncertainty about what is actually being reported. ”
HA! These people kill me! “SOME uncertainty about what is actually being reported!!???” LOL OMG. You mean they haven’t quite caught on yet that SM Entertainment is filled to the rafters with lyin’ ass dogs? About everything! Good Lord, when the full impact of this hits its going to be Korean stock market mayhem. If there’s one thing I’ve noticed about Asians it is that they don’t like people screwing around with their savings. And that is precisely what SM has been doing. Messing with people’s hard earned money and their plans for their future. That’s not good.
@BAF
LOL… yeah, I posted the link without really going thru all the comments first. After reading a bit, it seems a little better than AKP but what does that really say?
@dbullock
My fave was…the comment about a bunch of 15 year olds talking about business and finance (paraphrasing here), but I got such a chuckle out of that. It was worth the read, just for that one alone! 😛
Dear Lord, JYJ 3 guys now not in Korea, pls destroys 041510 – KS in your flaming ways .
Thank you for hearing our poor prayers ><
Reblogged this on dreamalexia and commented:
Add your thoughts here… (optional)
So what? SME r going down because they received so much curses from JYJ’s fans. SME, u r going to be bankrupt in the future! That is my curse on u morons! I don’t feel bad for ur singers, they can go to other companies.
@ramenswk – i know curse someone is not encouraged.
But whenever think of Yoochun can’t even able to hold his dying father’s hand at hospital to say final words, ( JYJ were on overseas concert tour because all Asian markets almost
blocked by SM ) , saw how Yoochun despair, Junsu heavy hair loss at the funeral, and Jaejoong collapsed at hospital for his soul mate….( just landed back to Seoul after long haul…)
I will , ask Lord to curse those devil as much as possible. ><
I don’t think it is right to make those kinds of parallels. The death of Yoochun’s father was a personal tragedy. SME added stress but they weren’t the cause for that. SME will be destroyed for they actions they did wrong not because JYJ fans are “cursing” them. That sounds a tad bit ridiculous.
@retrokim – hi, i understand your point. However, will a first born son deliberately chose to work remote overseas, even knowing his father is under critical health condition ? In oriental countries, definitely quite a few . Most will work nearby countries.
For YC case, China & Japan markets are nearer to Seoul, however, who directly or indirectly chopped away these two markets from JYJ’s hands ?
SM uses mass media pressure & under table deals to extinct them, now it is boomerang effect.
“Ridiculous ” , is SM & their snipers.
Blame ur artist bcoz of ur own fault is BS!
Reblogged this on murasaki 紫 and commented:
I believe in retribution. I am not even surprise.
It’s 9:20 am here in LA yo, and I’ll I can say is: WHOAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAAAAAAA!!!!!
SO HAPPY MY PRAYERS SLOWLY ANSWERED! NOUGH SAID. HV GREAT DAY EVERYONE!!!! LOVE YOU & GBU ALL!
I wonder how’s our boys react to this news. SM stock price was down by 10% when they filed the lawsuits in 2009.
SMe on KOSDAQ
Opened @ 48,800 KRW
High: 49,000
Low: 44,900
Currently trading at 45,250 KRW [09:38 KST]
Yes, went and checked both Businessweek, and Bloomberg. Somebody is dumping, they are not holding on. The previous 52 wk low was 36,061. If it gets anywhere near that, there are going to be some heads exploding because no way, can SNSD make up that kind of shortfall. And I don’t care what kind of analyst predictions there are for the upcoming tour events.
@BAF
I think you called it when you said the business model is going to sink this pirate ship. Crushing overhead, fudged numbers, no possible transparency, no straight answers…. shall I go on? MAYBE SM could stonewall the court in Seoul when they asked for accounting statements but NO WAY are they going to be able to hold off the tide of investors leaping off the sinking ship, plus the Korean SEC’s questions about “What happened? No, we mean exactly what happened.” I don’t think the “TVXQ and SU JU tour expenses” are really gonna cut it.
This is why I mentioned a while back, there is a time and place for BS people, screwing up finances is not one of them. The court being played like it is, simply shows how non-confrontational it is. I’m still amazed at how one of the parties shows up and doesn’t have all the material asked for. They would be held in contempt here so fast, it would make your head spin.
But now we’re talking other people’s money. At the rate the stock is being dumped, I’m wondering what will be left to dump? There appear to be 20.4M outstanding shares. At the rate this is going, it won’t take long. Cannot imagine what kind of skids SM can throw out to keep this from happening. If the comment was to wait until SNSD gets their comeback, that might not be a good thing to do.
On somebody’s site there was a picture depictation of the big 3 and their artists on their rosters. The top one – SM – looked like they would run out of room to put people in the picture, and I don’t believe for one minute that included trainees. The next of course was YG – about half the figures that were in SM’s, if that. Last, JYP – smaller even still than YG.
Looking at all these what struck me was, how many bodies do you need to fill up your space? Do you even know the names of all these people? There is a disconnect in that company about how omnipotent they really are.
@BAF
“But now we’re talking other people’s money. At the rate the stock is being dumped, I’m wondering what will be left to dump? ”
Yes, this appears to be a whole new ballgame. Screwing with other people’s money, on this scale, is not going to be dealt with lightly.
And I think we’ve all seen a whole host of U.S. companies who expanded far beyond their means to support themselves and who went out of business. This is nothing new in the U.S.
http://en.wikipedia.org/wiki/List_of_business_failures
The amazing thing is that the braintrust at SM didn’t think it was going to happen to them! Oh, it’s going to be a wonderful Christmas this year, my dear friends. I don’t know about you guys, but my number one Christmas wish is to see SM squirming on the hook of their own arrogance and greed.
My VE Sister,
“The amazing thing is that the braintrust at SM didn’t think it was going to happen to them! ”
What?! They didn’t get the memo that lies do not have foundations? Lies are shallow at best, are transparent, and hold no substance. So, when all you do is lie, all you’re doing is building on a weak foundation. When that foundation begins to shake, watch out. Willful arrogance leads to big time stupidity.
Yes, as you say, the world is full of examples of those who fail to understand there is an expiration date on lies. That’s when the truth comes knocking at your door and calls you out. 😉
I’m sure there is much scrambling going on, a lot of late night brainstorming sessions. Will be very interesting to see how they brush off the stench from this one. Kind of hard to come up smelling like roses when the plumbing backs up. 😛
@BAF and @lilibaiyu
Can sme lied about their revenue? I’m an art major know nothing bout finance..keke. I mean, when look at sold out concerts and high album sales plus cfs….the co made hundreds of million dollars here, right? I wonder if the costs include paying the idols cuz how come it’s so high?? Sure the arena tours are expensive, but even in the US it’s not that high!!
Maybe sme lied so that they wouldn’t be able to pay our boys….if this is the case, they will get caught, right? Deep down inside my heart and soul I wish they did lie or doing something illegal, got audited and charge with criminal actions!!!
Wikipedia even mention corruption among SK ent. agencies, SM is one of them and the investigation in ongoing!
@Chun
“Can sme lied about their revenue?”
To put it mildly, yes. The problem with SM is that they say one thing, but will not produce the correct documentation to back it up. This isn’t even about now. This is about how they’ve always done business. SME has been allowed up until now to get away with being footloose and fancy free with the truth. No one has really called them on it, until now with JYJ’s lawsuit.
SM’s practice is to throw out some kind of explanation and hope everyone falls for it. Facts? What are those? The problem here is that this is not some situation with a news reporter who will take your press info and run it as a legit piece of reporting.
Now they have to answer to people who can put their a***s in a sling. Stock transactions are openly regulated affairs. Don’t lie about other people’s money. You are going to be held accountable for what you report. SM is so conditioned to saying whatever they want to, they forget sometimes the need to be truthful. So, being truthful is sometimes a stretch for them.
Regarding the making millions of dollars. It’s really simple, just like anyone else…you earn something, income. You have bills to pay, expenses. Your income should be larger than your expenses, if you want something left over – money to have fun with – or profit. If your expenses are larger than your income, you have debt. You owe somebody. If there are others depending on how much you have left over, they may or may not be seeing any part of this depending on whether you have profit or debt.
Believe me when I say, I’m tickled pink when my checkbook balances with my bank statement. I may not be rich, but it makes my life really simple when that happens. 🙂
If SM is lying about how much they brought in, and need to still pay out, they will have to get rid of some assests to pay those they owe (JYJ). They really should have paid JYJ fairly over the years and none of this would be happening. But again, choices have consequences. 😉
Big time dumping going on…. the trading volume is up to almost 5,500,000 for a stock that normally trades at a daily volume of less than 500,000.
SoMeonE probably peeing their pants… ^^
“SoMeonE probably peeing their pants…^^” They forgot to pull up their big girl panties. 😉
Yes, 5M+ shares being dumped is no small thing here. Oh my, if the low gets any lower.
@dbullock
Can I get a “Hallelujah!” for the big time dumping?
😀
My question is what idiot is buying?!!
SM could be buying them back. Especially at this lower price. Kind of makes sense actually. But time will tell.
@mkverse: “My question is what idiot is buying?!!”
This chart shows buy & sell activity by type of investor: http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_5/JHPENG02001_05.jsp
Invest Trusts, Pension Funds & Misc. Organizations seem to be reducing their holdings while Privately Place Funds, Individuals & Foreigners appear to be increasing their holdings.
You can’t really tell if it’s a single investor or lots of individual investors buying until things settled down. I think (????) if an individual ends up with a certain percentage of the stock, it has to be made public who they are. When a stock drops like this some people will use it to increase their voting power as a shareholder and in rare instances it can also be used as a takeover opportunity.
Sorry… when I click the link I posted it brings up Samsung. I don’t know why because I compared the url to the chart I’m looking at for SM and it is the same.
Change the “Search” to S.M. [041510] and click the “Trading Performance by Investor” link on the left (Constituent Information Menu) and it will show you the buy/sell trading volume.
@BAF: “SM could be buying them back.”
That’s probably more than likely what’s happening.
Maybe SME is buying their stock back or maybe it is “concerned” fans. I remember that SME wanted to add 2 more members sometime around Hangeng’s departure and many ELFs wanted to keep the group at 13 so they grouped togther to buy like….0.1% percent of the stock. I suppose it had a much higher value at the time but if the Korean ELFs are paying attention then maybe they are taking advantage of the moment. They are the only fans from SME to do this. They believe that if they buy enough stock that they can protect SuJu from the neglect they have suffered under SME in favor of SNSD, Exo and TVXQ. BoA and her viper mommy could also be doing something. She has shared her “privileged” position as LSM’s favorite so maybe she is doing him a favor and buying back the stock dropped by the investors.
I’m just guessing here cause this isn’t my thing.
@retrokim
“Maybe SME is buying their stock back or maybe it is “concerned” fans.”
Anything is possible, BUT and here is the big But…at closing yesterday the price/share in USD was approx. $39 (using a converter — kwn 1097.695). The price/shr in kwn was 42,600. Approx. 8.9M shares were traded. If my arithmetic is correct this should be approx. $347,100,000 (39 * 8.9M) Hopefully, someone will correct me if I’m wrong.
Now, granted even SM is not buying all of it back, but there are groups out there who pounce on stocks which fall like this. These are your professional risk takers. They can afford to go in and out of the market. These are buyers who time the market. Some could even be international buyers. Buy and sell is what keeps any securities market going.
But I can guarantee, no group of SME fans, and I don’t care WHO they are, can cough up this much change. Think about what 0.1% of the above figure would look like. They are wishful thinking if they feel they can affect things in this situation.
@retrokim: “Maybe SME is buying their stock back or maybe it is ‘concerned’ fans.”
As I was watching the trades, I did see a lot of just 1 share being bought/sold so it also made me wonder if fans were trying to prop it up. TBS… most of the blocks being bought/sold were not tremendously huge but there were a lot of them. I did see a 5,000 block go by at one time and at the end of the trade day there were quite a few 2,500 and under blocks.
The trading volume for the day was ENORMOUS… 8,928,980 shares trades. The day before the news of the 3Q miss, only 286,566 shares were traded.
@BAF: ” If my arithmetic is correct this should be approx. $347,100,000 (39 * 8.9M) Hopefully, someone will correct me if I’m wrong.”
The 8.9M trade volume shows a trade value of 402,136,673,450 KRW which converts to $369,576,110.92 USD.
@dbullock
Thanks for the correction. My figure was based on rounding. But either way, this is a huge amount of transactions going on. Regarding the size of those blocks…It wouldn’t surprise me if these were done in batches. Timers especially go hour by hour, minute by minute. This way you don’t draw attention to yourself. It’s crazy!
My concern is for those delusional fans who feel they can do something in the name of their GODS to halt the slide. They obviously don’t understand the real inner workings of the company. If they did, they would comprehend how devious these people are.
Looking back on that story about an empty office setup in some town, that was supposedly conducting business no one knew about? What kind of nonsense is this? Any company that slides in and out of the shadows the way this company does, is way too sophisticated for teenage fans.
One of the concilations of this mess…A PR NIGHTMARE!! For guess who? 😛
@dbullock
“Invest Trusts, Pension Funds & Misc. Organizations seem to be reducing their holdings while Privately Place Funds, Individuals & Foreigners appear to be increasing their holdings.”
I just would hope that the government pension funds get OUT and stay out! That just creeped me out, the idea that fund managers had tied old people’s pensions to this criminal company!
@BAF and dbullock
And one other thing – any analyst or broker who would still recommend this stock to his clients should be run out of town on a rail. The writing is on the wall, people!
@retrokim
“Maybe SME is buying their stock back or maybe it is “concerned” fans. I remember that SME wanted to add 2 more members sometime around Hangeng’s departure and many ELFs wanted to keep the group at 13 so they grouped togther to buy like….0.1% percent of the stock.”
I don’t care if the ELFs buy it, I don’t care if LSM himself does it. I just want all simple, honest, decent people, I want all the Moms and Dads of SK, all the grannies and grandpas whose pensions are tied to this evil company to DUMP THIS STOCK! Leave it for the criminals, their sympathizers and the deluded fools to pick up the pieces. Let THEM own it. That seems about right.
Agreed.
@Lili
The thing about timers, they don’t always use a broker to make their deals, they do their own. Some of these folks sit in online rooms or cafes like video gamers. This is done worldwide, so they don’t even have to be there in SK. Or, they use brokers, they call the shots. So either way, whatever trading is being done, is for the most part probably being done by those who are huge risk takers and have the means to do so. Think of addicted gamblers, no really, this is how they behave.
I liken it to vultures circling a dying body, they’re just waiting for the opportune moment to make their descent.
, how can they blame suju and dbsk when it greatest revenue came from them? suju and dbsk sales always great compared to other sm’s idols. i dont get it. I wont say this result is sm’s karma, but everyone lived in rolling wheel, and sm slowly fall
You know what annoys me? That people are more upset that SuJu and TVXQ got dissed by their own company rather than the many injustices suffered by JYJ. How are people still surprised at this point? Hasn’t history taught us anything about what SME is willing to do to save its’ own skin? Who cares how much those two groups sell if the overwhelming majority of the profits will end up in tax haven accounts to line the pockets of rich men? Like helllooooooo………………
Still sinking… new low 42,850 KRW
I actually made popcorn while watching this… 🙂
you myt need a beer for that… lets celebrate my friend…. 🙂
It closed at a day low of 42,600 KRW (down 14.97%).
Cheers, everyone! [%]D
Well one way to look at this…42,600 is closer to 36,000 than 71,000. I wonder…since this is a freefall, do they have a safety net anywhere. That would be a good idea. 😉
@BAF
“Well one way to look at this…42,600 is closer to 36,000 than 71,000.”
Why? What happens at 36,000?
@Lili
The figure 36,000 is approx. the lowest 52 wk point, vs. the 71,600 high pt. If they hit that point or close to it, this will really signal some HUGE problems internally. They had that low at 12/19/11. Keep in mind this is the price per share. The lower that price gets, the weaker the value of the investment. Right now, the current value/share is approx. $39.00. If it goes to the low end again, that drops to about $33.00
To me, if they get this low again, with all the new acts, acquisitions, plans, etc., there will have to be some big explanations as to how they are going to recoup these losses. They will have to begin justifying their spending on everything. If there is no staunching of the bleeding, this spells trouble big time. If they have reserves, there may be demands they use those up first. Or calls to sell off assests. This could get real ugly, real fast. Investors require back stroking and hand holding or ELSE.
Keep in mind, SM does not pay dividends, so investors don’t even have those as a fall back position. There is only the daily value of the stock. It takes time for stock prices to bounce back. When we had the big bust a while back my tiny little portfolio with my club took a while to bounce back. You generally don’t want to keep moving in and out. Our investment isn’t large so, we could take a stand, and it did bounce back. But that’s only if you have purchases that can stand the test of time. Our stock is Disney…and the MF is a rather solid one (mid-cap size) with a double digit earning every year. So we waited it out. If you pick quality, your chances are better.
SM being the dodgy entity that it is, in an industry that can be in flux, all the more likely for problems. As someone mentioned on that other site’s discussion board that @dbullock referenced…SM has been getting favored treatment financially by the govt. Which we already know. What happens if others in the industry and out of it begin clamoring for the same treatment? Do you see the potential here?
Not yet the day for uncorking my luxury champagne (I’ll keep it refrigerated till the final victory) but… for now I will settle for a good bottle of Italian wine.
Kampai!!!! ( ^0^)/且☆且\(^_^ )
I love asti!
@BAF
Love you, my American Epicure!
@ dbullock (@___djb___)
LOL!!!!
Yippie
I don’t really understand about what’s going on here, can someone tell me in shorts what’s happening with SM in this article?
The value of SME’s stock is dropping fast due to the recent information submitted by SME to the Financial Supervisory Service. Their 3rd quarter earnings are less than half of what analysts predicted. Accordingly the stock market value is plummeting as investors are dumping SME shares like hot potatoes. Surprise, surprise….stock value is STILL going down.
This is obviously not good news for them. It seems that in a desperate attempt to keep the stock from further devaluating that SME or some other entity/individual is buying the stock. If it isn’t SME (highly doubtful) then it is someone who is taking advantage of SME at the moment.
@retrokim
I wonder what would happen if some other company or entity tried to do a hostile take-over? Where is Mitt Romney now that we could really use his expertise!!!?? lol
@Lili
“Where is Mitt Romney now that we could really use his expertise!!!?? lol”
Keep in mind, Mittens only does outsourcing to China! 😀
Forgot to mention, he’s in your neck of the woods, So. CA. — La Jolla. You lucky stiff! 😉
LMAO!!!
@BAF
“Keep in mind, Mittens only does outsourcing to China! ”
If Mittens would only do his usual thing, what he did for years at Bain Capital, which is move in on a company, take out MASSIVE loans against the company’s assets (pocket that) then hire himself as a “consultant” to help the now beleaguered company handle all of their brand new massive debt (at millions a year in fees) and then merely watch them flounder, fire workers, iiquidate anything they can, do anything to keep them afloat. It’s really a thing of beauty what Mittens does (and I think he’d classify it as “legitimate rape” too) and honestly it couldn’t happen to a sweeter bunch of criminals.
@Lili
“It’s really a thing of beauty what Mittens does (and I think he’d classify it as “legitimate rape” too) and honestly it couldn’t happen to a sweeter bunch of criminals.”
True. This is why I constantly say the Universe corrects itself when the need arises. Mittens just wanted to believe his entitlement included the office of POTUS.
So, all you little crooks, liars, and thieves, and you know who you are – LSM – don’t forget to look for the coal in your stockings over the fireplace on Christmas morning! Bye!
It is 9:28 AM in Seoul.
There is no trading on SM stock at all. It is at the same pt. it closed yesterday. ??????
http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_5/JHPENG02001_05.jsp
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=041510:KS
http://www.bloomberg.com/quote/041510:KS
@BAF
Do you think it’s possible the exchange put another Hold on trading of the stock?
Isn
t this kind of unprecedented, if they did?
Lili
That’s the way it looks to me. This was the reason I included more than one source to check. I looked at the time in Seoul to make sure this was correct when I refreshed the pages, especially the ones from the Western sources. I made sure to bring up the correct date on the Korean site.
And considering the source quotes I put up yesterday about trade halts, this does seem more than a bit odd. Supposedly, they are temporary in the short-term. It’s kind of hard to figure out the reasoning, because it would all be speculation. But something is definitely is not going well. I’m wondering if the entire sector is being affected by this. The thing is, sometimes one bad report can have a domino effect.
I’m not sure where @dbullock saw the trade halt info yesterday. If she comes back today, maybe she can let us know where she saw it. As I said before, this has to be a PR nightmare for SM.
@BAF
” It’s kind of hard to figure out the reasoning, because it would all be speculation. But something is definitely is not going well. I’m wondering if the entire sector is being affected by this. ”
My V.E. Sister — It would not in any way surprise me to find out that SM has threatened anyone and everyone on the heinous outcome of allowing them to fail. This company has no shame, no morals, they are criminals, there is no low to which they would not stoop to stay alive somehow. Picture a raft in the middle of the ocean – SM would throw everyone else overboard in a heartbeat to save themselves.
So with that in mind, I guess we’ll wait for the “official explanation” as to why the stock activity was stopped AGAIN. Honestly, I would not put any duplicitous manipulation past this company, They are rotten to the core.
Believe it or not, I actually first heard it from someone on AKP… ROFL!!… but if you go to the KRX (Korea Exchange) site and view S.M. [041510] by their “Daily Closing Price” and look at the dates, closing prices and volumes from 11/13 thru 11/16 you can get somewhat of a picture of what went on.
11/13 was trading as usual. It actually looks like they hit their 52 week high on that date… probably because of investor anticipation of a good report. Stock closed at 69,200KRW; Up 2,100KRW/shr. The trading volume was at 286,566 shares which is on the high range of normal trading for SM on a per day basis.
11/14… this is the day the report came out. By the end of the day, it lost 10,300KRW/shr. and closed at 58,900 KRW. Trading volume had jumped to 729,750 shares which is way over their norm already.
11/15… This is the day of the halt. Looks like they tried to open but it started dropping so fast that KOSDAQ stepped in and shut it down to give a cooling off period and to let the news catch up to investors who had not heard about the report yet. They closed it down at 50,100KRW (which was down 8.800KRW/shr.). The trading volume was 132,550 shares. You can tell there was a halt because of the really low volume of shares traded.
11/16… Reopened and shit hits the fan. EOD Close: 42,600KRW (down 7,500KRW/shr.). Trading volume: an incredible 8,928,980 shares.
Correction: I said 11/14 was the day the report came out but I believe it was actually the day the NEWS that the report was going to be bad came out. I think SM produced the actual report on the 15th which confirmed the previous day’s news.
@dbullock
“Believe it or not, I actually first heard it from someone on AKP… ROFL!!…”
I’ve written to Jonathan Hicap at the Manilla Bulletin today regarding this stunning development. He has kept up religiously with JYJ news in a very straightforward and dispassionate way. We like this. 🙂
If I hear back from him about writing a news story about the SM stock plunge I will send him your timeline of events. Thanks so much for posting this because this really helps, in a multitude of ways. I like facts, I like documentation, I like to give further references for the things I say are true.
Cheers!
@Lili, @dbullock
“Believe it or not, I actually first heard it from someone on AKP… ROFL!!…” Will wonders never cease! A sign of intelligence in the universe. 🙂
What I’m trying to figure out is, how much time will be considered enough to keep the stock off the trading floor. It’s not unheard of here, to remove a stock from trading when irregularities occur – Enron.
Looking forward to see how this progresses.
@BAF: “What I’m trying to figure out is, how much time will be considered enough to keep the stock off the trading floor.”
First let me say: “I am not an market or financial analyst… I only play at being one on the internet!” 🙂
TBS… I’m not sure what you’re asking but if you’re asking about how long do they halt trading on a stock, it can vary. My understanding is that normally it’s not for a long period of time… it can even be as short as 30 minutes. In the case of SM, based on the volume number, it looks to me like it may have been shut down pretty quickly after opening and kept down thru the end of the day but I haven’t seen any news that verifies that… in fact I’m more than baffled why there hasn’t been further reporting on this after the initial news of the miss.
@BAF
OK… my old age is causing blind spots… I completely zoned out on the part you wrote about Enron.
I don’t think we’ll get the pleasure of seeing it go down the same road as Enron but a stock can be delisted when it violates the regulations of an exchange which can be for a number of reasons… not maintaining a minimum share price (it has to go pretty low for this) or not maintaining certain financial ratios. The exchange usually issues a warning to the company to comply and if they don’t within a certain period of time, they are removed (delisted) from the exchange.
@dbullock
Believe me, I’m no expert either. 🙂 But having dabbled a tiny bit thru an investment club where we actually had to do study courses to learn about investing, I know there are times when the regulators takeover.
No, SM may not be an exact case like Enron, but that doesn’t mean they can’t endure some hardships because of failed company policies. And I’m figuring the SK exchanges have to have similar rules as those in the western markets. So, the actions taken should follow a similar path.
SM is expanding so rapidly – so many different directons – trying to find ways to bring in much needed revenue. Their training system is such a huge drain financially. And having the biggest roster of talent to support ain’t cheap either. By diversifying their income sources, they probably feel more secure. But since their business practices are so shady, looks to me they are having a hard time keeping up. Those bubbles have a tendency to burst from time to time.
But this downtime, so to speak, is a bit longer than was stated in the description of a trade halt. So, come Monday evening EST, it will be interesting to see what unfolds. I still think there is some mad scrambling going on to try and fix the narrative to make it more palatable to the investors.
@BAF: ” I still think there is some mad scrambling going on to try and fix the narrative to make it more palatable to the investors.”
Yeah… I wish this had happened at the beginning of a week instead of at the end… the weekend gives them time to regroup and possibly come up with the cash to prop it back up.
@BAF
“It’s not unheard of here, to remove a stock from trading when irregularities occur – Enron.”
Yes, and we all saw what an effective strategy that was to stop the bleeding and turn things around… lol
The only difference being in SM’s case they are Connected. To the government, at the highest levels. In SK, when a company fails the whole country feels that they look bad in the eyes of the world. Especially SM, who has been so very high profile internationally, LSM giving lectures on his fabulous business model at Stanford University ( I STILL can’t get over that one) and SM’s endless bragging to the international media that they are leading the Hallyu Wave. So I agree – it WILL be interesting to see how this goes. But I bet all the unlisted backroom telephones in the highest places in SK are ringing off the hook right about now.
@BAF
“I still think there is some mad scrambling going on to try and fix the narrative to make it more palatable to the investors.”
lol Understatement of the week and it’s only Sunday.
😀
No trading on Saturday & Sundays.
so where are we today?! still going down?! 😀
It’s Sunday in South Korea so the market is closed. I’m on the east coast in USA… their market in my time zone will open tomorrow evening at 7PM.
Stay tuned.
@dbullock
” their market in my time zone will open tomorrow evening at 7PM. Stay tuned.”
Oh, you know it. lol This is pretty much the only story I’m following right now on JYJ3 because this puppy is a Game Changer. The implications of this situation could change everything for SM, for JYJ – for the whole K-Pop music scene, really.
Good people and lots of them are losing their shirts over SM’s “business as usual” approach to creative accounting and stonewalling any questions as to what they say is happening. The pathetic rationale they’ve tried to float so far probably only made analysts more nervous and regulators more determined. If these sorts of financial wizards have antennae for being bullshitted, I’d imagine those antennae were twitching wildly.
See you back here tomorrow night!
🙂
“Its profits of the 3rd quarter will be drastically increased because the results of the Arena Tour will be reflected in 3rd-quarter, not 2nd-quarter”, because about 1 million people were expected to come to the concerts in Japan in this half-year.
No excuses then for stashing away cash if the 3rd quarter reveals exponential profits. But for now, I take delight in SM’s foolish strategy in manipulating its stocks and sabotaging his alliances for its own gains. SM will stand to gain something for sure– LESS FRIENDS AND MORE FOES… bwahahaha!!! (lightning and thunder)
KOSDAQ opening in a few minutes but there may be a 15 minute lag before we actually see what the buy/sells are.
In case anyone wants to follow, here’s the link: http://eng.krx.co.kr/por_eng/m2/m2_1/m2_1_1/JHPENG02001_01.jsp
Just make sure the stock name is “S.M. [041510]”. If it isn’t, put “S.M. [041510]” in the search and hit enter.
Looks like it’s opening on the UP side. Opening (Top): 43,150 High (Top): 43,550 Low (Top) 43,650
Trading Volume already at 507,495
thank you
OK… it’s official.
11/19… SM opened at 43,150KRW. Currently trading at 43,350KRW… UP 1.76%. Volume currently at 864,730 shares traded.
Well, the last time they were in this range (low to mid 40K range) was back around June of this year. There was obviously some heavy explaining going on, to get the stock moving again. The idea is to see what kind of movement happens…slow and steady, or fast out of the gate. Can’t imagine what will allow the stock to jump fast again. I’m willing to bet this will be watched day and night like a hawk. The growth going too fast may well become suspect. So, we’ll see what happens. The next quarterly report for the 4th qtr will not be due until 3/15/13.
There will have to be some significant happenings at SM to satisfy the investors. There can be no shortcomings in any of their next projects. The artists are going to have to produce and produce well. The pressure will be on. Just what they need. (snark, snark) Expect to see some heavy promotions and fancy PR for everything coming out of SM.
I follow diffrent kpop site online and found out that even sm’s fans start to complaint bout the company’s lack of creativities, using shitty ol dance routines and concepts, poor song writing and bad music. They rely only from their excisting fanbase to sell their stuff. They need to do much better if they want to make more $$ cuz the cost of running will always be high or higher.
I’m not a religious person, but I believe there’s a high power at work. If sm really doing some shitty business, hope they’ll go down..down hard.
funny that the very people they blame for this fall, are having a world tour and a come back before the end of this year… i was wondering if this is a stunt thing or this is how those sh*t roll…
i would really want to see those people fall flat in their faces.
@barelystable623
I can’t believe this is a move engineered by SM. It is too dangerous to their over-all financial health to risk their stock desirability rating over the keeping or firing of TVXQ. Granted the group has been a serious cash drain for them as opposed to the platinum plated cash cow of the old five member group. Perhaps that awkward juxtaposition is confounding to the financial decision makers there. If they’d asked me, I could have told them two years ago that Homin without JYJ was doomed. JYJ is the heart and soul, the living breathing guts of DBSK. Without them, there’s no group worth having. Then, add to that SM’s disgraceful, inexcusable behavior over the last two years, shocking decent and fair minded people – well, it looks bad and getting worse.
And as JYJ continues to succeed and solidly expand their foothold on the SK entertainment scene, perhaps that too is maddening to them. The members of JYJ are successful in everything they do. They are everywhere in the entertainment press. Each in his own way has established himself this year as a superstar of S. Korea. And they ALWAYS identify themselves as members of JYJ.
People like winners. People avoid floundering, desperate losers. If I know anything about the SK populace’s mentality, it is that they love having winners represent them. JYJ are winners. This must make the powers-that-be at SM CRAZY.
UPDATE: SMe Stock
After a positive day on 11/19 and an 11/20 opening at 44,200KRW and a rise to 44,500KRW, the stock is currently experiencing a downturn after less than 2 hrs. into the trade day. It is currently trading at 41,700KRW (down 4.36%). Trading volume is 701,376.
I’m watching the red figures and the stock chart http://www.bloomberg.com/quote/041510:KS/
I want it to go below 40,000 soooooo bad!
*bwahahahaha*
@dbullock
“I want it to go below 40,000 soooooo bad!”
I want it to plummet far further. I know this makes me a not very nice person. Oh well.
🙂
LOL @lilibaiyu… well that’s the longer-term goal for me too but I was looking for my entertainment in the short term with just today’s dips! 🙂
I checked them out a few hours ago, and just now, it was down to 41,450. The trading vol. was 1.4M. My guess is the fluctuation is going to be like this for a while until some sense of stability occurs.
Yesterday, I saw mention of the fact that SNSD was not making their Korean comeback until Jan. 2013. So as was previously reported, if there was hope this would be a game changer for the EOY, not going to happen now. I guess if they are looking for contributions by artists’ promotions, then the international tours of those whom they applied the blame for the shortfall ought to do the trick.
Seems like to me, if there is going to be any shortcomings through the EOY, they don’t want their biggest money maker caught in the trap. Save their efforts for reporting for the new year.
Hold onto your hats my friends, this ride is far from over.
@BAF
“Seems like to me, if there is going to be any shortcomings through the EOY, they don’t want their biggest money maker caught in the trap. Save their efforts for reporting for the new year.”
I’m thinkin’ TVXQ is on the way out the door: destination Palookaville. And oh no, God forbid that LSM’s darlings SNSD get caught in the crossfire of a company purge. This freakin’ corporation is a piece of work. They are making up the rules of the game as they go along. Let’s see it the Korean stock exchange chooses to go along with the subterfuge.
@Lili
Even if TVXQ were to be fired by SM..which I don’t think will be happening anytime soon. TVXQ I believe would still do well..their both talented young men. They would still be signed to Avex and could work in Japan..the identity of TVXQ is not just a group name anymore..Yunho and Changmin just like Jaejoong, Junsu, and Yoochun are like one name singers now…for example like Beyonce or Prince…
@Daisy
Butterfliesarefree, do you want to dig out the videos of Homin attempting (and failing) to stay on pitch live or shall I? Daisy appears to have them confused with Beyonce and Prince.
Uhmmm Daisy,
I don’t think using one name only is a signal of great talent. I can go by my first name and be very distinct because it is an odd one. Not a whole bunch of folks with it, always went to school and was the only one there with the name. Doesn’t mean much actually.
Both Prince and Beyonce are known for having talent. Beyonce has a voice and can carrry a tune, dances like crazy. But the main thing is she doesn’t have to dance with a voice like hers.
Prince, sings, dances, – well not so much now since he has hip joint issues – but he’s also 50+ years old, plays about 6 instruments – plays the guitar like a demon – and composes in his sleep.
I hate to break this to you, but neither Changmin nor Yunho matches up here. There is no comparison at all.
We’re talking LONGEVITY here. Come back in 20-30 years and let’s have this conversation. Sorry.
Testing…
I was having reply issues.
@Daisy
I understand you are a fan of Changmin and Yunho.
But seriously, you have to know neither Changmin nor Yunho in any way compare talent wise with Beyonce or Prince. Just because an artist is known by their first name singular, doesn’t mean they are superstar caliber material.
Come on now. When do you think Changmin or Yunho are going to be invited to perform at the Super Bowl?
@lilibaiyu
I think @Daisy is just joking 🙂
@kris
“I think @Daisy is just joking ”
LOL Yes, now that you mention it, she’d pretty much have to be, no?
😀
@BAF
“Come on now. When do you think Changmin or Yunho are going to be invited to perform at the Super Bowl?”
lololol OK, this is just a rough guess but…. When Hell Freezes Over?
I think they going to be in a real hurt soon. They’ve diluted the stock a couple of times this year already for the AM Entertainment merger and to give their idols those shares… and, correct me if I’m wrong, but didn’t they acquire the travel agency with a stock swap too? It gives me the feeling they’re really cash poor… they’re sticking their fingers in a lot of pots but I’m not seeing the results.
I thought I saw a 2012 4Q forecast somewhere but I can’t put my hands on it now. Has anyone else seen it?
“Merger/Acquisition
SM Culture & Contents Co., Ltd. (KOSE:A048550) entered into statutory merger agreement to acquire SM Town Travel Company for KRW 1 billion in stock on June 28, 2012. SM Culture & Contents Co., Ltd. will issue 2.0366599 shares for each share of SM Town Travel Company. SM Culture & Contents Co., Ltd. will issue 0.41 million share. SM Town Travel Company will be merged with SM Culture & Contents Co., Ltd. During the year ended December 31, 2011, SM Town Travel Company recorded total assets of KRW 180 million, capital of KRW 100 million, total liabilities of KRW 376 million, sales revenue of KRW 183 million, total stockholder’s deficit of KRW 196 million and net loss of KRW 217 million. The Board of Directors of SM Culture & Contents Co., Ltd. resolved the transaction on June 28, 2012. The period of submission of objections from creditors will start from August 2, 2012 to September 3, 2012. The resolution date of Board of Directors for a merger approval is July 31, 2012. The general meeting of shareholders for merger approval is scheduled for September 4, 2012. The transaction is expected to close on September 4, 2012.”
This tidbit came off of businessweek’s transactions tab. This is the only activity info provided from either of the two western stock info sites. I don’t know about anyone else, but as I said before, the above cited deal smacks of money laundering to me. All these sub-companies for an entity that has less than 500 employees. What is up with that?
Regarding the stock options distributed to the artists…if I’m not mistaken the entire transaction only covers about $800K+. That’s really not that much when you think about it. The distribution I saw on someone’s site said the upper tier artists got that 480 share deal, and groups like f(x) got 340 shares. So, the deal was not the same across the board. I’m not sure how much BoA has in total, but I’m assuming her holdings are more than Kangta’s, given her marketability. I believe they were both included in that distribution package as well.
Yes, that deal with AM Entertainment is one that I find interesting. Is this the same AM Entertainment that was included in the UAE merger, the one that includes YGE, JYP, Keyeast, etc.? For the life of me, when checking that story out, I could never find anything on that particular company. I’ve always wondered, who initiated the discussions that led to that merger. This is one piece of the puzzle I would love to know.
Since they are all now suppose to be under one umbrella, it’s no wonder their stocks/financials (should some not be traded) are going to be effected. Even if this is usually a cause and effect type of thing in sectors, being tied to SME has got to more of a hinderance than a help.
“I thought I saw a 2012 4Q forecast somewhere but I can’t put my hands on it now. Has anyone else seen it?”
Is this what you are looking for? I’ve been doing some searching, and this I believe is one of the pdf’s that was cited on that blog you referenced earlier.
Click to access 1337216359704.pdf
@BAF
I was looking at their number of listed shares… on 11/21/2012 it was 16,571,040 and today it’s at 20,426,764. I don’t have a great grasp of what may have gone on but it seems to me the stock was diluted to bring in new subscribers/investors in order to raise cash.
Maybe you have a better explanation after looking at some of the articles timelined in this link: http://www.reuters.com/finance/stocks/041510.KQ/key-developments
Sorry… I should have said… “on 11/21/2011 it was”
That could very well be the case. If you check above to one of my earlier comments…their lowest price/share occurred 12/19/11. This is where it was 36,061. During that time period they probably were looking for extra cash.
Remember, EXO was suppose to debut back in 2011, but that was pushed back and they didn’t debut until this year. And then they wound up apparently spending a TON of money to promote their debut.
I’m willing to bet their over-populated training program is beginning to take it’s toll. None of the other companies has a training program that loaded down. I could be wrong, but for the two years they have been involved with that Star Search program, they haven’t signed anyone have they? YG and JYP are going the route of using this as a means of finding talent that does not require several years of support. I think BoA is on the show for show’s sake.
@BAF
“YG and JYP are going the route of using this as a means of finding talent that does not require several years of support. I think BoA is on the show for show’s sake.”
Young singers who are talented, who have experience and who are ready to begin their careers tend to be a little older. What this brings them is more maturity and less simple boundless enthusiasm to be idol singers. They are more likely to understand that they need legal representation before signing a contract that will bind them absolutely for 7 years. No entertainment attorney would allow his client to sign an SM contract without spelling out clearly what the poor kid was getting into. THAT’S the problem. That’s the essence of the “SM business model.” That’s why they have to sign such young inexperienced kids with naive parents as their only representatives.
Lili
If I’m not mistaken, I think one of the guidelines for the new rules is that an attorney is required to handle all contracts now. So, I don’t know how much this is going to play now. Besides, all contracts are subject to review by the KFTC. Not a whole lot of leeway at the present time.
@BAF
“Besides, all contracts are subject to review by the KFTC. Not a whole lot of leeway at the present time.”
ALL contracts?? Are you kidding me? Where did you hear that? You mean every entertainment contract gets sent off to the FTC before it’s considered a done deal??
I’m referring to the situation with the music companies. Don’t know about the acting management companies.
Once the lawsuit was won by the fan group, the KFTC asked to see each contract of all artists, from all the music companies. They have the regulatory power to do so. There were some that needed to be revised because the rules have been changed due to the lawsuit. So yes, if a contract does not meet the basic standards that are set, it has to be changed. I recall there was one SME had to revise. I don’t recall if the particualr artist was named, but they had to redo a portion of the contract.
I’m working on memory here…
* Each contract has a minimum of 7 years.
* No longer can a company force appearances without the artist’s agreement
* The penalty formula for ending a contract has been revised. No where as draconian as SM imposed.
* I’m sure I’m missing some others, but yes there are some decided differences now.
And now with this new bureau set up as a resource center for new, young artists, there is less of a chance of the kind of past practices becoming the industry standing.
Well damn… a burst of activity in that last hour. Closing Price back up to 43,000 but still down 1.38% off of what it opened at.
It’s to be expected. Fluctuations in the 40s range is probably what we will see from now until the end of the year. Starting from May until Sept, this is where the stock sat. I haven’t seen any 4th qrtr forecasts so I can’t help you out. Businessweek used to have the current quarterly info but now everything is all EOY 2011 info.
Is anybody else’s page jumping around like crazy??
so they’re up today huh?! or is it too early to say…
11/21… Open at 43,500KRW
EOD Close at 44,350 (UP 3.14%)
Trading Volume: 2,345,992 Shares
thanks for the update… but at 3.14% , is it considered relatively high or just about right.. sorry i don’t know much about stock trade, just bits of it…
The % concerns the change in share price from day to day. It is relative.
11/22 trading session… Opened at 44,850KRW and has managed to stay on the positive side so far. Volume is still running above normal daily averages (507,184) but it has slowed down significantly since Friday. Somebody just got a 12,914 block of shares at 44,700KRW/sh… that’s the biggest single block of shares I’ve seen go by in the past few days.
@dbullock
Thanks btw, for keeping on top of this. I appreciate your vigilance. As to the Big Block of shares, I just hope and pray that it has not gone to any organ of the SK gov’t., as in the Pension Plan. This group was the only one I worried about. I want them OUT of the SM Entertainment stock, like yesterday. I do not want the fate of the grand-moms and pops of SK to be tied to the fate of this criminal enterprise because mark my words, my friends — this company is going DOWN. If not now, then soon. There is no other fate for these terrible, dangerous, money mad criminals. Karma always self-adjusts. This is a universal law. All we need do is wait.