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I don’t think they will fizzle out. Someone would buy them for the customer base first, not suggesting Gamma, but someone like them. I don’t think that’s an immediate ambition to get bought for peanuts. That serves neither the founders or investors.
I still imagine their biggest single backer of all time who swooped in and bought a lot at the recent placing, the Scott bloke, would not do so without an agenda. He’s got extensive telco history and I can’t see why he would invest in a lemon.
I’ve suggested, even when the value was much higher, they could be looking for a MBO, then to get acquired… however this would be an exit strategy through desperation and even then they’d have to turn the business around. Could deals be orchestrated to complete post MBO?
The recent hires, and fuss on this forum over them is bizzare. A senior account director recently appointed in the US and previously in Aus is just a vanity title for a sales person that’s been around. Quite different to a VP or leadership role. I am much more concerned about the senior hire leaving, pushed for being crap, leaving a sinking ship, salaries too much of a burden vs more junior sales?
I am not a conspi******, I have a vested interest for them to do well, but the lack of information drives me to consider what could happen.
What we need to consider last year, they made a major proposition and product pivot. They didn’t become a vendor like a Zoom, it saw them as a competitor as they lost customers to them. Instead they joined the MSFT eco system with a proposition they are trying to differentiate by being a licensed telco in many regions. They must make that latter part pay off, and that’s where I wonder what’s the agenda, how does the Scott bloke and his telco background fit in.
Ocelot - Do you think these will slowly fizzle out and wrap up shop then? Should I say slowly it’s been a dramatic crash but do you think they have no future now?
Lemonade I partially accept your point about 5G and Wi-Fi… Loops strategic difference when providing Teams connectivity is their ability to on and off ramp PSTN.
While PSTN becomes irrelevant as the world transitions to soft switches and IP, the regulatory environment will continue to govern communications over IP in many geos. Where Loop are falling short, IMO, their entire focus should be providing partnerships to the Teams providers, rather than directly competing in the fiercely competitive market of selling Teams… many Teams providers have a much larger and complimentary portfolio.
ZOOM share price is actually up so far today....after falling 62% since August last year
climbed 7% off the morning low.....just a tiny snap shot of course......but....these sell offs are going to tempt the waiting buyers who are just waiting to see who makes the first move
"As 5G gets rolled out and more WIFI coverage their product will die even faster"
that did me make me laugh Lemonade311....you really do know the ins and outs of this business ...lol
Meeting Zone was debt free and paid for with :
" A placing of 12,500,000 new Ordinary Shares at 400 pence per share (the "Placing") to raise £50.0 million; and
· A new £17.0 million term loan from Bank of Ireland (the "Term Loan")."
so..all in all not that many shares were created and they have managed to cut the Loan back to £8.4 million gross debt
so.... debating about paying too much is done and dealt with ...maybe cost too much but 400p placing sorted that out in many ways
Turnarounds require good management for a start like Gamestop finally has (although it's way overvalued imo).
I don't believe management is good judging from their continued destruction of shareholder value and paying an inflated price for MeetingZone. And before anyone calls me an idiot again cause you don't like my opinion you can do a discounted cash flow valuation of MeetingZone on HMRC public accounts here: https://find-and-update.company-information.service.gov.uk/company/04300344/filing-history
And judge for yourself whether they overpaid for it.
Management needs to go before this stock does anything but fall imo as it management will continue to light shareholder cash on fire.
https://www.youtube.com/watch?v=NeViBcUkiL8 I know this is three months old but having watched this I feel a bit more confident about their offering. Given that companies have to go through lots of red tape to get phone contracts in countries and that Loopup offer this at a discount (than if a company negotiated their own telecoms deal) I think this is still a strong point.
Ok lemonade I get that. Let’s just hope they turn the contacts into some value and keep the clients. Do you think a turnaround is possible now or too late ?
Also, a bad product can still get some sales before it dies due to incompetent managers who are tech illiterate. However this is why they have such high churn rates. Because someone in management buys it and then they realise they have no use for it or realise that zoom is just better.
However if a product doesn't have product-market fit like loopup doesn't then it will struggle.
> However I don’t quite get how they can secure eight new contracts at the end of last year if the tech is useless?
Well, when these so called 'new contracts' translates to actual revenue I will be open to changing my mind. But for now in the previous RNS's management consistently tout Total Contract Value and somehow it never materialises.
Lemonade, appreciate your insights so the board and Steve Completely stringing investors along indefinitely. Would be good to meet Steve outside as London offices face-to-face so what the hell is going on ha ha. However I don’t quite get how they can secure eight new contracts at the end of last year if the tech is useless?
As someone who is in software engineering and uses teams/zoom regularly and tested the loopup software, it is complete garbage and doesn't solve a problem in todays world (maybe 5 years ago it did).
That is why they are doing acquisitions to try and extend the life of their dying company when what they should do is just liquidate the company.
As 5G gets rolled out and more WIFI coverage their product will die even faster.
Well time will tell and we will see if I am correct but so far the SP has been going down and not just due to the market conditions.
I have 0 agenda too. I don't short stocks due to it being too risky for infinite loss.
Everything is opinion on this board.
You guys shouldn't get so offended when someone comes in with a different POV just because you have ££ invested in this stock.
Michael Boggia was the previous Director , US Sales....he looked quite young in his photo....maybe he wasn't experienced enough??
Has he left and Brian replaced him ?..or has Brian become the Senior and Michael is now reporting to him ?
I think it a great sign Loopup have something very marketable to sell that they have just announced the recruitment of Brian J. Rappé as Senior Director, US Sales.
I've criticised the lack of evidence that they are achieving at a high enough level - so it's a great hire IMO and recruiting an experienced operator doesn't suggest there is no potential - they've got a job for him to do!
The product isnt garbage
The issue right now..is more about the world economy shrinking...and as such ...competition for business getting tougher ..
However....every company has to think more about costs and efficiencies ..and that can involve adding Tech systems
The recent job adverts usually come as a result of increased sales inquiries and contract gains ...
What is going on in the background shouldnt be assumed just based on share price movements in a politically wobbly moment
Eyes are all on the FED this week...and Putin game playing
" How have they got away with that without at least one of the CEO's losing their job, it's dreadful "
The main investor at the recent fund raise could have stipulated a change of BOD as a condition of further investing ...but did not...
If the main investors stay aligned to the BOD then nothing will change on that front
The markets are throwing a wobbly right now...... that is nothing to do with what any particular BOD maybe trying to achieve
it all just slows down all the contract decision making ....
You made multiple statements that are clear deramping and not factual and you know it.
I asked you not to be stupid because I believe you know what you are doing ( not a stupid guy), you're someone with an agenda - keep it honest and I'll debate with you.
No one is trying to suggest everything is rosy - but the company is not finished yet and you know it, it recently enjoyed support of major shareholders, clearly they believe in the proposition.
You said:
...The core issue for Loop is that it's product is just garbage. - not true or no one would buy it
...Doesn't solve a market problem - not true or no one would buy or give praise
...any stock options they have will be forever worthless - may turn out that way, but not true
...This stock is going to 0. - you don't know
The above are statements are either wrong or your opinion, you could write it about any company, but you present them as fact not opinion.
If they are your opinion fine, qualify them as such - but you're smarter than that.
Can we not call an EGM?
Which part of my comment was stupid?
I take some comfort in this and it's made me worry a little less.
Do you think they are okay for cash for the next year, will we see them going after more loans or have they the stable base to grow now?
I'm not that disenchanted that I think is a scam, but it sure is a mess and I don't trust the directors to do the decent thing - it's a lifestyle business for them and about self preservation, they appear to be in the mould of Boris Johnson - no integrity .
If we take the current market cap of approx £15.9m and take off the recent capital raise and the value of the new company bought it paints a very sad picture of what the market values the previous Loopup business and cloud business at just a few million.
I really pray they don't buy anything else as they appear only capable of destroying shareholder value in the process, each company purchase has been a disaster for shareholders.
How have they got away with that without at least one of the CEO's losing their job, it's dreadful. Having had capital from the listing and raised 10s of millions from placing and bought meeting zone then failed to integrate in properly - I'm not sure they are worthy of being given a mop and bucket to clean the office.
To be honest with you I’m almost seeing this as a complete scam at the moment it’s been forward sold into the last placing. We haven’t any real directed buys
We haven’t even had any holding statements, bar one.
Need to get my lawyers look into this.