Member Info for 13martyn13

Hi Thordon, I’ve only speed read the article earlier, came up on my share pad reading list. I’ll have a read now.
I do appreciate/ enjoy all the commentary you and the other posters post. Been here a good few months now, 63p was my first purchase and have averaged up a few times already.
I think we have plenty of share price growth still to come. gla

growing its active users from 33.4k to 41.2k last year.
Estimates
Lockdown has clearly stimulated demand and the share price has responded to recent forecast upgrades.
Source: SharePad
This article is for educational purposes only. It is not a recommendation to buy or sell shares or other investments.
Do your own research before buying or selling any investment or seek professional financial advice.
4
The magnitude of the sensitivity is large. The company reported some intermittent service issues in
November and December which led to downgrades at the start of this year. A google search of reviews
confirms a number of issues with the service hanging. Then, following lockdown, the company reported a
40% increase in revenue in the first 4 months of the year to April 2020. 6 weeks later in June the company
announced again that it expected to exceed market forecasts. The pre close update for H1 to the end of
June, issued on 16 July, showed H1 revenue up 43% to £31.9m and EBITDA up 249% from £3.5m to
£12.2m, underlining the operational gearing of small companies.
With rapidly moving forecasts, consensus numbers can become out of date. With £31.9m delivered in H1
analysts appear to be expecting £24.2m revenue in H2 and £1.4m EBITDA which looks an unlikely rate of
decline from £12.2m EBITDA in H1. New users, I would imagine, tend to continue as users for some time,
and it seems to me the professional market is certainly set to continue having remote meetings for the
foreseeable future. I therefore suspect that over the course of H2 there could still be material upgrades to
come.
Source: SharePad
Valuation
In my view the downward sloping forecasts for 2021 look too low, but perhaps that is what the market is
valuing the shares from. The 43% decline in earnings would suggest that the era of video calls is drawing to
an end, which it isn’t. If we compare this to the markets’ assumptions for Zoom in the US, those analysts
make no such assumptions (below).
Zoom Video Communications Inc. Source: Sharepad
This article is for educational purposes only. It is not a recommendation to buy or sell shares or other investments.
Do your own research before buying or selling any investment or seek professional financial advice.
5
Thus, if LoopUp manages to grow its revenue in 2021 it could potentially turn out to be on a single figure
PE, rather than the 20.6X shown in analyst forecasts.
Source: SharePad
Conclusion
This looks like one of those classic turn arounds when analysts typically take a long time to catch up. While
there is a relative valuation play between Zoom and LoopUp, the upgrade cycle for LoopUp is significantly
lagging that of Zoom. With the twin drivers of valuation and upgrades this looks like one for both the short
and medium term, while in the long term the market is likely to start to mature and LoopUp could become
a consolidation target.

This is a good example of the relative value trade. Or perhaps when we look at Robinhood, the high
frequency trading app founded in 2013 and recently valued in a private fund raise at $8.6bn compared to
the provider of high frequency trading infrastructure, Beeks Financial Cloud which is valued at £52m.
It is this very attraction to cheaper look-a-likes that leads imitators with inferior businesses to attempt to
benefit from the valuation of the larger and better business. So we need to exercise caution when looking
at such a relative value trade. We need to make sure that the company’s product is not too far inferior to
the larger competitor. If the company has a quality product and effective distribution the larger peer is
ultimately likely to bid for the smaller peer, whereas if either the product or the distribution capability is
inferior the larger competitor will simply compete it away. These two assessments can make the difference
between a highly valued take over bid or a corporate failure.
LoopUp
Share Price 190p
Mkt Cap £105m
Product
Zoom can host meetings, webinars, conference rooms, phone calls and chat for up to 1,000 video
participants and 10k viewers. It is easy to use and highly scalable, and is a cost effective solution for heavy
This article is for educational purposes only. It is not a recommendation to buy or sell shares or other investments.
Do your own research before buying or selling any investment or seek professional financial advice.
3
users. Loop Up is also easy to use but it has a maximum of 20 guests who can share their video. It doesn’t
have as many tools such as voting management etc. but it is cheaper than zoom. Loopup also has a pay as
you go capability as opposed to Zoom’s subscription only model. It would seem that this market is rather
like the early days of the mobile phone market where early adopters may use a pay as you go model which
evolves over time into a full subscription model. Different providers initially owned different segments of
the market until, as the market matures, they consolidate into a small number of large players, as we see
now in the mobile network market.
A glance at the mobile phone industry in 2005 shows that the dominant providers of Nokia and Motorola
has between them five times the market share of the next incumbent, Samsung. If this mobile
conferencing market evolves in the same way it will be the pace of innovation that determines the ultimate
winner, rather than the early dominant player. There is therefore a good case for backing the smaller
company if it is more innovative. A glance at the tax credit in the report and accounts for LoopUp shows a
£789k tax refund largely on account of the R&D expenditure, which is c 2% of the company’s revenue. For
Zoom, the research and development deferred tax carry forwards is $5.7m, which amounts to less than 1%
of the revenue. It therefore appears that LoopUp is investing. LoopUp is growing its market sh

The Relative Value Trade
The announcement of the EU recovery fund was a significant event last week. 27 countries jointly agreed
to borrow €750bn to be dispersed through grants and loans on a scale not previously seen. The markets
reactions was positive. The Euro rose against the dollar. The NASDAQ 100 was up 3% and has now
increased 25% year to date. The market value of these stocks is now more than the entire Japanese stock
market. While the NASDAQ 100 was up 3% the equal weighted version of the index was only up 1.6%
indicating the polarity of the liquidity flows into the larger stocks. Value was ignored. And so, it seems this
new burst of liquidity will perpetuate the dominance of the large liquid FANMAG stocks, as Facebook,
Amazon, Netflix, Microsoft, Alphabet, Google have become known.
We shouldn’t under-estimate the effect that €750bn can have. To put this in an investing context, if we
were a high earner and so were capable of saving €100k per year it would still take us 7.5 million years to
save that amount of money. So, we have to assume these sums will never get repaid and will just serve to
devalue the buying power of the currency. What we call inflation.
This infusion of liquidity into the markets doesn’t look likely to drop down to the small cap stocks in a
hurry, rendering all but those stocks that can sell something to the FANMAG stocks pointless, which serves
as a reminder that expensive stocks can get more expensive. But for those of us that remember the post
dot com bubble years it may be worth remembering that it took 15 years for the NASDAQ composite to
recover to its 2001 level. There wasn’t much wrong with a lot of those dot com stocks, they were simply
over valued, yet it took 15 years of profit growth for the NASDAQ index to recover its previous high,
meaning an investor is wrong for 15 years. Today, the dot com bubble and its aftermath looks like a small
aberration in a long-term trend.
Source: SharePad
27 July 2020
This article is for educational purposes only. It is not a recommendation to buy or sell shares or other investments.
Do your own research before buying or selling any investment or seek professional financial advice.
2
Back in Blighty the FTSE 100 reached 7,000 back in the dotcom bubble while today it stands at 6,220. It can
take a very long time for today’s over valuation of the FANMAG stocks to correct. For those that can take a
20 year view it may well be OK to join the crowd who are investing today, but some of us may not want to
wait 20 years.
Relative Valuation
A far more comfortable way of investing is to find the smaller and cheaper version of the FANMAG stocks,
thus seeking some element of valuation protection while benefitting from the structural growth that is
driving the sector. The example of Zoom, the video communication provider that many of us have become
familiar with during lockdown trades on a PE of 202 while LoopUp, the smaller UK provider trades at 11.3X

Unfortunately I've still got them, 2,470,000. Sold a few for some cash to top up somewhere else.
Thought we'd be well on our way by now, but in the other direction, up!

There’s our seller, Legal & General gone from 9.84% to under 5%, not bad still being at the 29p mark with all those shares off loaded Over the last few weeks I guess.
Might give us a more easier rise, with hopefully some not too bad results and a good recent trading update.

Some good questions thanks all. But weak answers as I expected, and to be expected for a security company I suppose. Share price is giving the feedback to the webinar, or is it a away to let all our new institutional investors in. All their effort is being rewarded with a spread of 8.5p - 9p

Well worth waiting for, to beat expectations for the year.
Can see us over the £2 mark on an RNS like that.

Hi Thordon, nothing in tomorrow’s IC regarding Loop. I thought that’s how it worked regarding Simon Thompson , but apparently not. I have the IC online but don’t pay the extra for Alpha. I’ll have to wait to read it, but at least we’re in.

Cheers. I checked my emails, haven’t had it come through yet.
Happy days. Had been hoping that Techinvest news letter would mention Loop.

are very healthy. Mentioned somewhere?
Trades came fast from 10.34am onwards

we will publish the Group's half-year financial report early in September 2020 rather than the originally scheduled date of 29 July

53.6p - 54.1p

Had 5 million shares, sold 4m from 0.0034 - 0.0029 range.
First purchase 50,000 @ 15.5p I think.
Took the rights issue up at 3p ish, costing £10,000.
I’ve lost about £26,000 on RLD
Kept 1m just for sake of seeing how this pans out. I’m not a baddy roaming the BB’s.
Just thinking out loud and sharing my thoughts.
As far as Mr Greenwood is concerned, someone buying 29.9% of a company doesn’t mean its a good investment, it just means someone has bought 29.9% of the company. The big boys get it wrong as well.
As I say, just airing my thoughts and hopefully a good outcome achieved for us all.

I have held for years from when RLD was called Tanzanite One.
If there was any deal in the pipeline at all, why wait till the last day of trading to announce?
Once it’s suspended we are trapped, waiting in limbo for another six months hoping a deal materialises and if it doesn’t, all our hard earned money, gone forever.
Now before I become this weekends hated poster, I’m only throwing it out there.
Why would they wait till the last trading days?
If Something hasn’t been sorted in six months, why do we think something will be sorted in the next sixty hour’s or so.

I would think positive and enough to make a difference to the results. Would’ve thought if it was negative they it would be left to fall into the next trading period and then they have time to make up any negative results.
I’m quite suspicious reading that back. Been burnt too many times I guess.

Picked up some this morning, found it difficult to buy from 8.45am to 9.20am ish. But can buy and sell at 48p now.

Agree about the website hearandnow, very pleased. Certainly starting to feel as if the stars are finally aligning for WSG, unfortunately on the back of a pandemic, but on the plus side our product’s help people.
Still holding loads too.

Kwaku Agyemanh 50, has contracted COVID 19, the president’s office said in a statement.
The west African country also reported a 4.7% jump in new cases, to 11,964, with three deaths that brings the national toll to 54. The increase in infections was slightly less than the 7.3% pace reported Saturday.

Don’t mention the boat :-)
“Due to COVID 19 we have given the Greek purchasers a payment holiday until further notice at nil cost to the purchaser”
I wouldn’t be surprised.