Hive Chairman Bang Si-hyuk drinks water while delivering a keynote speech at the Kwanhoon Forum held at the International Conference Hall of the Press Center in Jung-gu, Seoul on the 15th. /Seong-il Seo, Senior Reporter
“I get angry every time I see you”
This was the news that emerged in the Hive stock discussion room (Chungtu Room) on the 16th. The conflict with Adore CEO Min Hee-jin, which began in April last year, has caused Hive’s stock price to plummet due to numerous negative news reports, and complaints from shareholders have been on the rise. In just four months, the market value has decreased by 3 trillion won. While securities analysts have suggested that it may be a buying opportunity at a lower price, some have pointed out that it is hard to ensure growth given the continuous negative news coming from management.
On that day, Hive’s stock price closed at 166,400 won, up 3,300 won (2.02%) from the previous trading day. Thanks to the trend of purchasing at lower prices, it rebounded after five trading days, but it struggled to surpass the 160,000 won mark.
Hive’s stock price has been severely depressed since the second quarter of this year. While entertainment stocks, in general, have underperformed, human risk has also played a significant role in Hive’s situation.
At one point, Hive’s stock price exceeded 230,000 won per share, but it began to decline rapidly on April 22 as the conflict with CEO Min Hee-jin escalated. At that time, Hive requested CEO Min’s resignation, alleging that he was attempting to take control of management, which led to a 7.81% drop in the stock price on that day alone. The stock price, which continued to decrease due to poor performance and the lingering “Min Hee-jin risk,” dropped further this month due to allegations of drunk driving against BTS member Suga Yoshihide and the “owner risk” associated with Chairman Bang Si-hyuk.
BTS member Suga issued an apology statement on the fan platform Weverse on the 7th. Weverse captured
The market appears to be particularly sensitive to Chairman Bang’s actions. Following Suga’s drunk driving charge, Hive’s stock price rose on the 7th and the following day, but it fell sharply on the 9th as the market began to reflect the controversy surrounding Chairman Bang.
Recently, Chairman Bang was seen walking with a well-known female BJ (online radio host) in Los Angeles, USA. The ongoing internal conflicts have raised concerns that escalating controversy over his personal life is inappropriate. Overall management is not performing well. Consequently, the stock price plummeted by 12.7% over four trading days from the 9th to the 14th, settling at approximately 160,000 won. From April 19th to the 14th of this month, around 2.8 trillion won in market value was lost.
Hive attempted to clarify the situation, but shareholders expressed their anger. Within the Chungtu Room, radical sentiments emerged, ranging from “I will never buy entertainment stocks again” to “The lack of management quality and leadership has been revealed” and “Chairman Bang should resign for responsible management.” As a result, management faced accusations of providing “false explanations,” further deepening distrust in the company.
Although some brokerages have lowered their expectations—such as Daishin Securities reducing its target share price for next year from 310,000 won to 270,000 won—brokerages are still recommending buying Hive. This is because the overall return of BTS expected next year could significantly improve profits. Comprehensive market forecasts predict that the anticipated target share price for next year is 276,942 won, representing a 68% increase from the closing price on the 16th. There is seen to be considerable upside potential.
However, there is currently strong public sentiment regarding Suga’s potential departure from BTS, and the future outlook for BTS remains uncertain amid ongoing internal conflicts, leading some to predict difficulties in stock price recovery.
Hive Entertainment: Navigating Market Challenges and Shareholder Sentiment
Hive Chairman Bang Si-hyuk drinks water while delivering a keynote speech at the Kwanhoon Forum held at the International Conference Hall of the Press Center in Jung-gu, Seoul on the 15th. /Seong-il Seo, Senior Reporter
Current Market Landscape
Hive has faced significant challenges since its stock price began to fall in April last year, starting with the highly publicized conflict involving Adore CEO Min Hee-jin. As a result of this turmoil, shareholders have voiced increasing complaints, and the company has witnessed a staggering market value drop of approximately 3 trillion won in a mere four months.
Recent Stock Performance
On August 16, Hive’s stock gained some ground, closing at 166,400 won, up 3,300 won (2.02%) from the previous trading day. This uptick is attributed to investor attempts to purchase at perceived low prices. However, the stock has struggled to maintain momentum, failing to break through the crucial 160,000 won mark after five days of trading.
Stock Price Analysis
The stock price has remained depressed for much of the second quarter of this year, influenced not only by the broader entertainment market’s underperformance but also by “human risk” factors uniquely affecting Hive. Specifically, the company’s shares hovered around 230,000 won before a sharp decline began on April 22. Key events contributing to this downturn include:
- Conflict with Min Hee-jin: Upon requesting the resignation of CEO Min Hee-jin amid management disputes, shares declined by an alarming 7.81% on the same day.
- Poor Financial Performance: Ongoing operational struggles and unsatisfactory returns further eroded investor confidence.
- Recent Scandals: The controversy surrounding BTS member Suga’s alleged drunk driving incident and Chairman Bang Si-hyuk’s personal life have exacerbated market anxiety.
The Impact of Scandals on Stock Performance
The fallout from the scandals and internal disputes has had a dramatic influence on Hive’s stock valuation. Following Suga’s charge for drunk driving, the stock initially saw a small rise but quickly fell as negative sentiment toward Chairman Bang’s decisions grew. After photographs surfaced of him appearing with a well-known female online personality, the public’s frustration mounted, leading to a 12.7% drop in stock value over four trading days.
BTS member Suga issued an apology statement on the fan platform Weverse on the 7th. Weverse captured
Shareholder Reactions
The turbulence has left shareholders voicing sentiments of anger and frustration on discussion forums. Opinions vary widely, from pledges to abandon entertainment stocks altogether to calls for the resignation of Chairman Bang. Concerns over his management style and the perceived lack of leadership have deepened distrust among investors.
Future Outlook for Hive
Despite the bleak outlook presented by some brokerages, including Daishin Securities, which adjusted its target share price for Hive from 310,000 won to 270,000 won, the recommendation to buy still holds. Analysts argue that with a projected return of BTS in 2024, profitability could significantly improve, hence restoring some trust in the company.
Projected Stock Performance
| Period | Expected Share Price (Won) | Potential Upside (%) |
|---|---|---|
| Current Price | 166,400 | N/A |
| Next Year Target | 276,942 | 68% |
However, the clouds over BTS’s future, particularly amid internal disputes and public backlash regarding member conduct, cast uncertainty on potential recovery within the stock market. Industry experts remain divided over Hive’s short-term rebound potential, given these factors.
Insights and Practical Tips for Investors
Investors should consider the following factors when evaluating their stake in Hive:
- Stay Informed: Keep abreast of news regarding both the company and the broader entertainment industry to gauge potential market influence.
- Listen to Analysts: Pay attention to financial analysts and brokerage recommendations; however, balance this information with your own research.
- Assess Risk Tolerance: Given the volatility surrounding Hive, ensure your investment aligns with your overall risk tolerance and investment strategy.
- Diversify Your Portfolio: Avoid over-concentration in entertainment stocks and diversify to mitigate risks.
Case Studies of Recovery from Crises
Historically, many companies in the entertainment sector have faced significant crises but managed to recover. For instance:
- Company X: After a scandal involving key personnel, they restructured management and launched a successful comeback album, ultimately restoring investor trust.
- Company Y: By focusing on digital engagement during a dip in public image, they increased their fan base and recovered market value within a year.
