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Revisit the cap table. The BoD are definitely aligned to investors and I am sure they aren’t over the moon with the current share price or the unexplained volatility over the last 4/5 months. Just leave them to do their job rather than dishing out their email address, definitely bordering on breaching their privacy.
Even with leaseholds the net debt can be zero if there’s enough cash in the bank. I see what you are saying in regards to the directors holdings and it certainly would be a less controversial way for them to extract value from the company seeing as people (naively) get spooked when there are even the smallest of insider sales. I personally just don’t see dividends being paid for a long time. Any prudent management team need a consistent, reasonable period of revenue, profit AND share price growth to consider paying out dividends. If the directors see the finish line as being bought out then they will also be keen to keep the balance sheet looking positive.
I’m topping up my holding here tomorrow as it’s ridiculously priced - IMHO.
Remember we are looking at net debt. This is the metric used:
https://www.investopedia.com/terms/n/netdebt.asp
I’ll be interested to see if they are at £0 debt, I would imagine there will still be residual. Especially if they have been on a hiring spree in anticipation of increased activity.
I have to agree with Soder. What good would a dividend do? Would just make the next update on their cash position look bad... Personally I hope they never pay dividends. An increase in the SP is why I invested, and why I will hold for at least the next year or two - beyond if they can continue to build their pipeline at a similar rate and convert a reasonable amount.
I can only speak for my comment which had a ‘haha’ in it so yes Sherlock I was joking...
I am interested to know how you know anonymous people on a forums ‘depth’ and when they will be out of it.
Thordon, just imagine how nice it would feel to squeeze Citi and Merian out of their short positions here haha!
Might even expose the market makers who appear to be playing around in some way.
If are invested or are considering investing this is a must listen. Put to bed any of my minuscule doubts about their product, the size of the market, where they fit in and just generally really informative. Thank you for digging out and positing Ian.b - wish this type of publicity was more widely marketed.
Couldn’t agree more. I was speaking to a friend about it the other day and trying to reconcile. There’s just no way that amount of shares changed hands between retail clients - too orchestrated and organised. As it’s clearly not insiders or large IIs due to the lack of TR1s the only conclusion I could come to is that Loop may well have been a holding in a large DFM/stockbrokers small cap UK recommended list for their clients. IF they had a large enough book they could have moved the volume with no TR1s necessary. I know that Octopus AIM and AIM 2 VCTs sold some of their holding in Loop in 2020 but I think the SP was over £2 at that point, again I don’t think there was a TR1 for this but happy to be proven wrong. That means there could have been other smaller IIs/VCs selling, but even this couldn’t account for the volume as there would have had to have been TR1s if they were holding enough.
WillInvest - yes there’s typically a reasonable spread c.3%. On very few occasions have I seen it tighten up. Some of the others on here may have more of an idea whether there is an optimum day/time to transact at a lower spread.
How is it an industry problem?
When did competition mean that smaller companies are completely written off and can’t survive/thrive?
Big companies are competing against each other too. There still other players Cisco etc. that might not make the headlines operating in this market but most definitely still have a good client base and revenue.
As far as I’m concerned Loop operates in a market that has just been rocketed forward a few years and grown to multiples of what it was before. Sure they will take some time to iron out the kinks to make sure they operating in the correct niche with the correct product offering, but I’m okay with that as I am investor and not a trader looking for a quick buck.
I couldn’t care less if it takes another few months for an announcement on contract wins or a better worded, comprehensive guidance statement.
As for prior mentions on this board about the insider sale from the COO in October 20 - read the RNS - he still has a load of vested shares which he could have sold and just under 499,999 options. People have to live their lives, so he sold 100,000 shares of a company which not only pays his bills every month but also accounts for (I imagine) a reasonable portion of his overall future wealth. It’s a smart move and possibly from his personal perspective a necessary one.
I get calling people out on here when they BS or just make positive things but there’s no point in being such a pessimist - if you think the company is not going to do well... just sell your shares.
One word... patience.
You are absolutely right, apologies! The 6-8 month conversion timescale could apply to any prospective clients from mid way through 2020. They had a reasonable pipeline then albeit nothing compared to their latest pipeline update so could have some meaningful figures to report Q1 2021.
I try to be pragmatic when it comes to this company. Rationalising the share price moves here is impossible as it’s speculation on fundamentals to the north or the south and using technical analysis is truly laughable.
You aren’t going to get real news before year end. The trading update was in November and companies don’t just release official updates off the cuff to try and boost their share price or appease investors.
The 27th November trading update said the trial with the Private Bank starts ‘next month’ so I think it’s safe to assume it will have kicked off by now.
They mentioned a 6-8 month timescale for new business to convert so I would prepare yourself for a long wait before the share price does anything meaningful.
When full year results are released if and only if they include an outlook (and it’s positive) we might see this go higher. If they don’t and it’s a reiteration of missing full year expectation (even if only marginally) then I’d probably expect more harm than good to the share price.
I might be wrong but full year could roughly time in with the 3 month trial ending - let’s hope they can announce that contract win simultaneously.
I do struggle to put a target on the SP with the mixed revenue streams, reducing non PS, switch from per minute to fixed price and not so useful ARR metric given for 2021...
I believe it hinges on some opportunities being converted - I’m personally not interested in further buy ins by management or IIs picking this up as any movement from those events will likely be short lived. Until there is news on revenue I see the SP being pretty static.
I agree that it is too cheap.
I have a sizeable position already at an average of 1.27. I don’t think it is unreasonable for the SP to have taken a hit off the back of the Nov 27th Trading Update. The magnitude of the hit was IMO very unreasonable - I have used the last couple of weeks to take advantage and top up to lower my average.
I do hope that the company follows through on strategy and converts a reasonable % of their PS and MS Teams pipeline opportunities by Feb 21.
Those that can’t hold their nerve are welcome to exit driving the price lower, I and I am sure plenty of others don’t mind mopping up their holdings!
Genuine question If it’s been a pump/ramp I’m not sure who’s really benefited?
I’ve been watching this board for over a year and buying shares since April 2020. There were some informative posts shared from posters that (although they had vested interest) were measured. It’s only since the 27th November Trading Update that floods of speculation and potential misinformation arrived here. I am still holding this for the same reasons I bought originally, as for the managements’ ability to follow through, we will just have to wait and see. Given the cap table I’d assume they are pretty upset with themselves/who ever put together the wording of the update.
Happy to sit and wait for some of the pipeline to be converted - their product is solid and there’s enough market share to go around.
The below is taken from the 27th November Trading Update:
‘encouragingly we have already been selected by a leading private banking group to provide their global cloud telephony, subject to a successful 3-month proof of concept which starts next month’
This says nothing about it being a UK private banking group so earlier posts on this thread are pure speculation.
Maybe read your link...
2. St. James’s Place: $122 billion
While HSBC is focused on banking assets abroad, St. James’s Place owes the vast majority of the assets under its management to the UK domestic market. The wealth manager operates a pure-play wealth management model, which allows it to tap the fortunes of the lesser wealthy HNWIs.
Though this has proved fruitful for the firm, there are others piling into its market. The recently announced Schroders/Lloyds venture is likely to tread on the toes of St. James’s Place and potentially take market share as well as assets.
Wealth Management is quite different from private banking... and their use of LoopUp would be entirely different.
St.James’s Place aren’t a private banking group.