The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
If there are no restrictions on it, then I think they pitched at a stupid level.
I think 30p+ turns a lot more heads.
I don't get why they didn't buy fewer shares for a higher price, say 30p?
I think at 30p this would have been much better received.
Does anyone know if there is an upper price cap limit on this?
I think the proposal is a good one. I just hope it entices enough short-term investors because there are so many underwater who will be more interested in higher prices. It's good because the cash taken off the books will reduce the value of the company, but now with less shares. This means if the capital is returned and good news arrives to prove the value of the organic business, there will be rocket fuel under the share price.
This section of the update made me frown. It's misleading to say the decline in the Loop unified communications solution was due to the pandemic.
Back in 2018, Microsoft signaled the end of the Skype for Business solution and the start of rapid acceleration into cloud UC with Teams.
This was a major warning to on-premise managed service providers such as Loop that they needed to pivot away from their existing solutions towards teams and Teams add-ons. As I've said before, this transition led to a decline in the profit margins of UC providers because Cloud UC is so much easier to set up and cheaper to run.
The suggestion that Loop's plight is down to the failure of the Loop Board of Directors or is unique to Loop is incorrect.
This is one of those companies that operated in a time-limited niche market and was left behind in technological progression.
Then people say they should have been more agile in their operations and adapted. That maybe true. In my opinion Loop held onto their legacy platform and customers for too long, seemingly ignoring the elephant in the room because they offered better margins than any Cloud UC customer would bring. Was this wrong though? Maybe not because you may as well keep a 30% margin for a bit longer if a 5-10% margin was the alternative.
The truth is Cloud UC and Collaborations in general is a massive growing market, but it's not very profitable. It's a large-scale, tiny margin market and it's very difficult to make money.
That's the story of why Loop has ultimately de-listed.
I'm sorry to hear of any losses here and hope that investors can recover them elsewhere.
All the very best with your future investments.
The more the share price falls the more appealing 24p becomes :D
This company just went the same way as many other UC companies in the transition to cloud.
There was no great scandal or failure, the profit margin fell from 30%+ to 10% at a push with cloud technology because it's very easy to do, relative to on-premise. I'm sorry to hear people have lost money.
However the organic business is currently valued at £0 so there's scope for that not to happen
Oh well in that case Kooba, I'll be buying more :D
I don't get why people are setting today when they could get 24p very soon!
Impatience!
If this goes through, remaining shareholders will be beneficiaries. It depends whether there are enough qualifying holders happy to take a profit from recent investments. Obviously long-term holders are in a greater loss and won't be tempted by 24p. If this goes through it's great news. That's a big IF though.
Yes but the shares have been valued at 24p so I'm confident the market will reflect that.
I'm buying up shares for the boost to 24p. That's a good enough return for me! :D
Which will boost the share price*
I think this was a wise proposal personally.
They're trying to reduce shares in circulation, which will the share price without an ex-divi crash.
I agree with others' sentiments though.
I don't think the tender will work because with less shares in issue, the share price of 24p will massively devalue the company.
The next share purchase is obviously going to cause the price to rise to 50p
I would ramp on other boards but selfishly I'm happy to buy these at 10p over my next top-ups.
There must be 1 or 2 shares left at that price now, there were 5 two weeks ago :D
In my ideal universe (where the world is also flat and the moon is made of cheese), the coverage and interest in this share will arrive just before some substantial news about heart valve funding. This should send the share price to 50p+.
The markets baffle me. When the share price rose a while back, there was considerable doubt about funding.
Now with strong hints of a partnership and funding sorted, the share price fails to recover.
Maybe I'll buy investing for dummies and see if that can shed any light.
I hope they call the whole thing off and retain the capital to invest in R&D
Raising £4.5m to get the funding issue out of the way was very sensible. My only bugbear was the price at 12p, but we are where we are now and 60m shares is still very low. I had expected the share price to touch 12p and bounce back up, but I was wrong!