The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
A new company Blog entry was added yesterday, a technical presentation about how to implement to what seems to be a group of potential clients for the Cloud telephony service.
As a shareholder the first part is not that interesting except it shows they know what they are doing, why companies like Loopup have a place in the market and that they are engaging potential customers.
However the short questions and answers session (from around 22m30s) I found very interesting as the questions are clearly from knowledgeable potential customers who are asking about the nitty gritty of real implementation concerns. The first question is from an international Law firm who are considering switching from Cisco and are concerned about capability, there's a question on available phones and another about being tied to Microsoft and outages. There where many unanswered questions as they ran out of time and the takeaway for me was that these companies are genuinelyengaging and considering moving to teams and using Loopup. Clearly this engagement is progressing in the background - and reassuring IMO.
WRT to the phone, this appears to be an important factor, with Zoom reporting their own partnership for phones and 1 1/2 million users signed up.
https://loopup.com/en/resource-center/blog/ilta-masterclass-how-to-successfully-implement-microsoft-teams-calling/
bigsmoke, s(he) may have missed out on 20p, but I wouldn't write chr155 off, smart cookie probably got in big time this morning at a good price, after all there where buys of 40 and 4 shares at double the target price.
Lots of buys - but who is feeding the shares in?
Do the MMs hold the stock at a level to maintain a buffer and have been (are) controlling the market, surely not. So who is providing the stock?
It has felt for weeks we are being stitched up with a ludicrous share price.
Yet we get excited about a few pennies.
I will take the peanuts for now, gratefully, but we need a massive surge here before we can excited.
I suspect there have been a few FOMO buys this today, there is a real risk of missing out - operational news moves the SP dramatically.
I believe Steve McGary's recent blog and perhaps a job advertisement for a Unified Communications Consultant in Madrid, combine to help explain where they are going quite clearly (better than most AIM companies).
First the job is in Madrid which indicates the international aspect, as it is the support the marketing effort in Spain and I assume regional countries. They say:
"The UC Consultant at LoopUp PLC (a leading Microsoft UC Managed Service Provider), this role requires the successful candidate to take a leading role in informing & supporting our clients on their journey and adoption of Microsoft UC“ specifically Microsoft Teams. LoopUp's specialism and experience is specifically in the voice delivery of Microsoft UC, through SFB on-premise, V-Dedicated Private Cloud SfB, and Teams Managed Services, therefore the successful candidate will need to have a very strong Microsoft voice pedigree.
We are a global service provider, headquartered in the UK but engaging multi-national clients specifically in relation to voice, meetings, and contact centre. It is important that the successful candidate is interested in the Microsoft O365 stack (Teams) and is willing and able to take on new challenges to develop the conversation from solely a voice focus, to include other workloads within Modern Workplace, competencies and dependencies, for example, security & compliance. For clarity, this knowledge is not essential right now but is the direction of travel for our business."
So a clear indication of the direction of travel, they are looking to grow other offerings within the Microsoft environment, interesting they mention "security & compliance." as IMO that is definitely going to be a major factor in who is chosen to supply PS companies where legislation is likely to play an increasingly significant part in distinguishing the best from the rest and restricting who can even bid for work. Some companies provide apps to do it (e.g. IBM)
Ian.B - I was wondering if you had sold, it is so obvious your posting emphasis has changed - you may think subtly but I sense you are now suffering seller remorse.
Gently querying Loopup strategy, which I believe you fully understand for a reason to buy back.
I suggest you don't buy back before news is released as posters on the BB cannot provide you with the growth and prospects information with any reliability - that's if you can stand the FOMO without resorting to trashing the company as so many do when they have sold.
The answer to your question is what we are all waiting for. My best answer in simple terms is the strategy is to sell their services globally to the biggest and broadest range of customers with a PS focus For conceptual purposes the growth is essential UNCAPPED, only restricted by management capabilities (the market is their and ready to be tapped) and practicalities of growing the facilities deployment (logistics)
That's the spirit. lol
Maybe a tad over-optimistic - but who am I the question anyone's logic.
Another hectic day of trading unfolding here.
A sceptical person might think this quiet period where the SP is stubbornly rooted to syay under 40P, could be a sign of accommodating some entity/entities.
Trade of 40p just gone through, progress indeed.
reapwhatusow - where do you get 1/week in H2.
The company has not disclosed anything and IMO it is possible to exceed 1/wk if sign up momentum continues.
Also it all depend on size, 1 big client sign-up could be worth 10 average ones and a major endorsement - I think Steve McGeary's recent blog suggests it is a clear possibility.
I'm very hopeful, as the little noise actually coming from the company suggests the have something worth pursuing - all effort directed at the Global scale clients rather than SME's (though I'm sure they'll pick those up). Steve McGeary made a vert telling comment at the end of his blog entry, he said " We truly deliver a global solution".
WOW : the company needs to emphasise that (or something similar) in every communication and and the home page of the website.
"LOOPUP - Truly GLOBAL SOLUTIONS" would compel all potential clients to take a look at them out of curiosity if nothing else, rather than just seeing them in a long list of potential suppliers.
They need something to stand out, they should adopt something as a mantra - I think they call it Marketing.
bigsmoke - of course Loopup have a business that has been generating revenue, the situation is nowhere near as bad as some suggest, it is a viable business, but as the theme of this discussion is growth and so I also sort of concur with Paddyboy1's point.
As I said Sunday "steady state doesn't cut it" and neither does slowly, slowly - the prize needs to be claimed quickly (in the next year or two we need major progress) - but in the meantime investors are looking for proof of concept which IMO they could/should provide this year.
Profit is secondary to growth companies, many go for years of losses with high valuation multiples to reach a goal that investors believe in.
Expectations for this year are already ranging low to poor but we do need to believe that 2022 and beyond will be fantastic (see evidence of) - or why hold the shares!
Dunn & Bradstreet's list also says Loopup has 20 of the World's top 100 law firms. I suspect they may add to that number and could even provide Cloud telephony to some, because those clients demands effectively means many competitors in other markets will not get a look in.
In that vein, I read an articles yesterday about comments from the governor of the Bank of England commenting that firms in the financial sector and including sectors like Legal that the companies they use for their cloud supplier and data storage need to be transparent enough to ensure they continue to meet their requirement in terms of data management/storage and security - and hinted they are looking at doing something about it.
IMO all great for Loopup going forward as they have the reputation and experience in sectors where the bar to entry is likely to be set higher as requirements even legislation comes into force in many countries. Interestingly the articles cite the Likes of Google and Microsoft as examples of risk and Opaque care of data - so third parties like Loopup may benefit if it becomes a serious issue of concern to companies. All blue sky, but interesting IMO as big professional outfits will certainly be aware.
https://www.reuters.com/business/retail-consumer/bank-england-crack-down-secretive-cloud-computing-services-2021-07-13/
You didn't produce the list did you? lol
Not a household name, but a big outfit in it's sector, I think with long history and a good reputation.
At least Loopup are supposed to be, and that's probably part of the reason Loopup have been hit so hard by reporting a bump in the road that has derailed growth in the short term and severely dented confidence. Investors are not simple expecting "steady state" or poor performance even if the company is profitable - it doesn't cut it.
The up side of this is that a return to growth should see a return of investors, things can change very quickly, IMO it's all down to our BoD implementing it's very ambitious and potentially lucrative strategy successfully - a steady performance will not cut it, it has to be serious growth in 2022 and a hint of it before the end of this year.
Loopup were on the verge of making the grade in 2020 and it has slipped away (IMO through poor management). Dunn & Bradstreet are a US company that does Financial Analytics, they produced a top 50 growth company list for 2021 based on the previous 3 years performance and Loopup appears on it at No 40. They say: "Accelerate50 2021, recognising the UK’s Top 50 fast-growth technology companies.".
What a pity Loopup have lets the performance slip. So not likely to feature in 2022 list but amybe in 2023.
https://www.dnb.co.uk/content/dam/english/dnb-data-insight/DNB_Accelerate_50_Magazine_2021.pdf
Some entity is playing games, looks like trying to create a trading anomaly on the cheap.
Yesterday, sales cancelled out by buys (reversals) at the end of the day, price well outside the the quote range. and today the first dozen trades are for a combined total of less than £400 worth.
I suppose the lack of trading activity encourages some to give it a go and Friday is almost always a good day. Friday price dips are usually corrected before the end of the day.
I think money is sitting on the side lines and any dips will be bought.
They have $5bn available - I wouldn't mind a share of share of that in a premium priced buyout from them. £2/share and they wouldn't even notice the money missing.
It's well trodden ground, companies keep expanding with ever greater promises to hide intrinsic flaws in the business model - observers marvel at the success which in truth is often simple being bought by the company's shareholders, Loopup have form ( MeetingZone was a farce IMO and Loopup should keep clear of buying business based on future promise).
Cisco used to expand through integrating other companies at high prices and at one stage (on paper) became the biggest company in the world as as result of the hype.
I'm a great believer in the logic Warren Buffett applies in buying undervalued assets - but IT companies tend to buy at serious premiums and usually it's a disaster. But kicks the can nicely down the road for a management team short on ideas.
When a company gets on the expansion treadmill the big problem is they can't get off because the whole farce falls in a heap - for the above reasoning I really hope Loopup have learned their lesson and don't buy anything other than at a pinch a bargain/fire sale business to turnaround.
I posted about this weeks ago, that Zoom issued a warning that they expected growth to slow, it was inevitable. Simple logic really that indefinite growth is impossible; there used to be an exercise used in management training the caravan game where competing teams tested their business skills by expanding and selling caravans, anyway as I recall it was based on the Aussie experience where eventually everybody that wanted one had one part way through the game and earlier expansion decisions became a noose.
I mention it because the problems hit by so many businesses including Zoom and Loopup are predictable and have been played out thousands of times (clearly none of them played the game). Poor management, sums it up, blinded by prize.
I believe (hope) Loopup have learned their lesson and the Zoom's problems might validate their elitist strategy and even if we're lucky some of Zooms client might start returning to original vendors that are now aligned with Microsoft.
Zoom can paddle their own boat now it's started sinking, I suppose it will be a drag on the sector though, even if already expected.
If Zoom can't expand naturally, then maybe they'll start looking around for competitors to buy up at an extortionate price.
Whilst we're on the subject of expansion, I took a look at Liberty Latin America yesterday, I believe it was spun out of Virgin Media, Liberty and of interest to me because the swallowed up C&W whose it turn have a subsidiary marketing (partnering) Loopup offerings in the Caribbean. Apparently they have adopted the take it over strategy (I suggest Zoom may adopt) to secure growth. They are swallowing up competitors and though there is no evidence of it perhaps they will expand their relationship with Loopup beyond the C&W operations that they say they've now made efficient - then again they may end it I suppose, worth keeping an eye on as it could be a great route into the region and perhaps even South America.
It's hard to keep up with the pace of things here, a rollercoaster of a day - I'm breathless with it - just reading all the posts.
Oh look, the SP never moved.
Ben Lee's webcast (discussions session) for August is now available on Youtube but not yet on the company website. If anyone has a spare half hour, the guy he talked to was from the US, Ben did his best and was OK but I think they all need practice at talking to an audience in a natural flowing way. Techy discussions I suppose are great for potential IT leads but I found myself wondering off, not as exciting as today's hectic trading.
Much has been made of the home-working impact on Loopup growth and the concern that a return to the office will be detrimental.
Why should it when Loopup had their customers prior to C19 and have not gained anything additional to lose as home/office work is rebalanced!
I'm not convinced it is a risk for Loopup, in fact evidence suggests it will make little if no difference and could be the change to drive new PS business as companies regain stability.
First on the core Meetings side, we actually achieved no persistent growth during the lockdowns (shrunk after) and what it really did was cause companies to consider their provision and needs - that in turn caused some, particularly less discerning customers, to switch DOWN to largely cheaper services and we have been suffering as a result. Lookup appear to have decided those cost driven customers who have already walked are not worth fighting over as there are bigger fish to fry, who presumably value the cost and Quality of Service. That transition is still going on and Loopup has stated that many companies had delayed corporate change during the height of the pandemic so we have to assume there is going to be further activity hopefully including more contract wins based on latent demand. However, I do think the problems experienced in the last year or so are down to the screwed up integration of MeetingZone which should now be settled - this has not been factored in by almost all observers (even though the company advised they would likely lose customers because of it) - it is not as simple as Zoom and others undercutting us.
Most importantly, WRT to our new Cloud strategy, there is no evidence or reason to believe a return to office will impact growth, on the contrary, evidence and Loopup statements suggests companies that where delaying decisions in the uncertainty will now go-ahead (our growing Pipeline and conversion rate backs this up).
Like all shareholders I'm very interested in future potential so do whatever I can to validate my viewpoint, so I had a look at the Microsoft CEO comments from earlier in the year wrt the growth of Teams, apparently he said that:
"“In markets where employees have returned to the workplace, including Australia, China, New Zealand, South Korea, and Taiwan, we have seen usage continue to grow,” he said."
That is great news for Loopup as we pick it looks like our success will be linked to Microsoft's.
For comparison the Zoom website has their coverage as 45 countries and as you would expect their coverage map is very similar to Loopups but most interestingly they don't seem to be covering Africa apart from South Africa and also given the swerve to Russia China and India and most of Asia (except the obvious like Hong Kong and Japan.
They appear to be going for the easy pickings - whereas Loopup are trying to cover all bases, some of which are difficult jurisdictions but potentially huge markets.
https://explore.zoom.us/docs/en-us/zoomphone/global-coverage.html?_ga=2.225263513.245064816.1630316074-1250391083.1630316074