Member Info for jointhedots

Stranger things have happened.

Would be nice, but I'm not holding my breathe.

News, News or perhaps News is what will drive the SP ultimately to to record highs or into the dirt, as Asklongy says "would need a RNS with some good news to see over £1 this week.". It is a possibility.

However, a steady stream of great news will see us to record highs, sudden large movements in SP are all well and good. but I prefer to see a reason else more often than not the jitters set in and the price retraces.

A simple 2% compound rise per day for three months will see the SP well past £4 /share - I'm hopeful of a good strong run but it won't happen for no reason - we a really waiting for a catalyst to change sentiment.

I like the website too, more importantly though it shows they are addressing sales channels to focus on the new strategy.

Looks like the trading this morning is all buying, not the usual barrage of sells to set the negative trend. It is quiet though as would be expected after the Bank Hol, there are also a bundle of small meaningless trades, 111 shares over 7 trades - what is the point. Believe me it's not a signal, as some suggest, maybe MM correcting books/

Ocelot77 - I'm not suggesting we need to grow like or take on Zoom or MS, I highlighted the growth of both to highlight the scale of the opportunity available. The pie is very large and growing, we only need a small slice.

Loopup are a competitor to both in a narrow band of capability but provide added value services rather than the basic application - both Zoom and MS can continue to have great success and Loopup be a beneficiary - but some players will inevitably fade out if they adopt the wrong strategy.

I read about a takeover of one of one company the other day by a Dutch company that is buying outfits up at great speed to try to cover all cloud comms options and regions (grown rapidly to a $3billion+ company) That's what got me to focus on the link to MS strategy Loopup adopted, they are not trying to cover all bases and have aligned with one product - if that were not an MS Teams offering I would be very worried; as it is the approach looks excellent. 145 million users and growing fast

Small company meeting company 24Sessions (I know their offering was not an exact match for ours, size/market) was taken out and I tried to find out for how much as a potential guide to a Lookup takeout value. That led me to Messagebird a $3bn company who seem to be trying to buy a broad range of capabilities - some of which Loopup could also develop offerings for - I'm just trying to understand of course.

Personally, I think they've got the wrong strategy (time will tell though) but how the hell do they get so big so quick a market Cap so high with a similar number of employees (700) to Loopup when Loopup has flatlined. When we think of a potential buyer for Looppup, shareholders tend to think of the likes of MS, but Messagebird are buying all sorts of capabilities, just bought an email provider SparkPost in a $600 million deal. I'm sure there are many other buyers on the prowl. IMO Loopup probably need to generate some impressive growth to protect themselves, they can't just soldier on like they did in the past.

https://techcrunch.com/2021/03/30/messagebird-acquisitions/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuMjRzZXNzaW9ucy5jb20vYWJvdXQtdXM&guce_referrer_sig=AQAAAKewbjtDZIj8KnJP50Kb7Ofl6yd979gk-zJ82jqgAA-VRWmFdZ2yCcALQJQiu32dsZqkvk3eoEnFu7htOS1HS5IDZ581TheaZBJL8OtQD2W-VgHEeRdmjCh3KbmNJdzywDbzLGEJPqRFVm_U93VjAiQXXa1R-_ijT2WVFchNWkCh

https://www.cnbc.com/2021/04/28/messagebird-acquires-us-email-startup-sparkpost-to-take-on-twilio.html

On the subject of user numbers and the huge growth in Zoom usage. Though indicative of the huge opportunity for Loopup, of course their success does not help Loopup win customers.

However, an article from the same website as I posted yesterday highlights the growth of MS Teams usage and an interesting divergence with competition.

Over the C19 move to homeworking MS teams saw even greater up take than Zoom and apparently reached 145m users by the end of 2020, growing massively - "According to Aternity, between March and June 2020 the communications platform noticed an 894 percent increase in usage, higher than Zoom. "

Interestingly all market participants didn't enjoy the same success (including Loopup as the SP tells us) , the article also includes this statement:

"Microsoft Teams meteoric rise over the past year has been in stark contrast to competitor Slack, with both platforms sharing similar usage figures pre-pandemic. Slack said it had 12.5 million active users in its last update. "

So it looks pretty obvious to me that the market for Lookup is expanding rapidly and clearly MS will not have signed up all those users and as a secondary seller of enhanced services it makes sense that any beneficial effect for Loopup will have a time lag as companies get to grips with what they need long term.

It also looks obvious that Loopup have made a shrewd strategic move in aligning services to MS.

I suspect some of the small suppliers will be under great pressure to compete with the big players over the next few years, whereas Loopup are piggy-backing the success of MS.

If we get a fraction of the growth numbers enjoyed by MS and Zoom, then IMO Loopup will be a multi-bagger as soon as the growth becomes clear.

https://www.businessofapps.com/news/microsoft-teams-hits-145-million-daily-active-users/

Just read an interesting article about the growth and value of Zoom. What a great success

Clearly they have been wildly successful, but they do demonstrate the size of the prize Loopup are competing for.

Only launched in 2013 it grew dramatically to 300 million users during the C19 lockdown, but lets not forget many of them were using the service free.

What is exciting and actually shows that Loopup has been a laggard (a failure) in the stock market, Zoom's valuation went from $1bn in Jan 2017 to exceed $100 billion during the pandemic on revenue of $2.6bn and 470000 business customers.

Clearly we are not in the same league as Zoom, but the growth has been dramatically quick - and should be encouraging to shareholders. It is only when comparing key parameters that the true level of Loopup's undervaluation ( or Zooms overvaluation) becomes evident

They have about 100 times more business customer (I'm assuming they are the only revenue generators for comparison) but a valuation of comparisons on revenue/ customer shows Zoom with $5532/customer and Loopup $14140/customer. Significantly bigger customers for Loop - isn't that better and in line with Loopup's strategy?

Comparing Market Cap/Revenue ratio Zoom is 38.46 (100/2.6), whilst for Loopup it's a measly 0.86 (43/50.2), now I'm no mathematical (can't guarantee my maths) or investment genius but you don't need to be to see that even accounting for Zoom's massive success and momentum - if Loopup enjoys any success at all one or both of those valuation is grossly out of sync. Loopup turnover is essentially valued at 50 times less than Zoom - forget the hype or number of users, companies thrive on revenues.

Another interesting comparison is that Zoom grew user numbers over 5 fold in 2020 and as Loopup was more or less static, that may explain some market disappointment and SP weakness - but that perhaps also hides that Zoom were providing a freebie and many of those users may well eventually switch rather than pay; in contrast Loopup lost customers to Zoom and others that did not want to pay for a premium service and IMO have now rightly consolidated on the PS side of the business

Superficially the article could be depressing as our SP is so low, but when you look at the valuations possible, growth and customer balance comparison - I think Loopup looks a pretty good bet and it has given me optimism on a boring day.

Worth a read to see the size of the opportunity.

https://www.businessofapps.com/data/zoom-statistics/

(S)he should've gone to specsavers.

Richard - I can make one up for you if you wish.

The nature of most rumours is they are meaningless, if it was a rumour it is a naff one, I'd be disappointed in such a small rise.

Bigsmoke - zoom have their freebie offering that has become so popular and a pay version which presumably has security systems in place - I would expect lawyers to fork out for the pay version - but wbo knows.

When I posted earlier about government entities, I left off the likes of the MoD, MI5, Cabinet office not by accident but because I assumed that Loopup could not possibly offer the security necessary to win the work. But I'm actually watching the Domenic Cummings testimony on TV and a few minutes ago he said meetings discussing (from the cabinet room with the PM/Health Secretary where joined by various people via Zoom.

Unbelievable, that matters of national importance where discussed via had hoc systems - I would have thought they would have mandated systems.

Loopup ought to write to the the appropriate IT leads in government and highlight their service and the risks they are taking. Unbelievable how incompetent they were in dealing with CV

bigsmoke - I worked for a company that provided consultancy services to government departments, people just don't realise to size of government, many NHS trusts alone have budgets of over billion pounds . and the proposed merger of Guy's and St Thomas' Trust et al will create a super trust with 21000 staff and £2 billion turnover. For example, Police, DWP, Ofsted, Fire Service, Local Government etc etc, the list goes on and on into hundreds of organisations - the opportunity is huge.

The company have updated the corporate website, mainly just restructured same information but includes this:

"Powering the global journey to cloud telephony with Microsoft Teams
One service provider. One management system. One deployment.
Full cloud PSTN replacement in 67 countries."

New home page includes the above statement obviously emphasising the number countries the company is compliant in, now 67. That's well ahead of expectations and they have created a new section on "Coverage" where they say that they are now:

"One provider for all your global cloud communications needs
With fully compliant PSTN replacement in 67 countries (including China and India) and flexible solutions elsewhere, we offer cloud-based Microsoft Teams Calling in more places than any other provider"

Clearly they see their broad international presence as a principal selling point "we offer cloud-based Microsoft Teams Calling in more places than any other provider", they do look like they are transforming into a true global provider - IMO that does put further distance between them and new market entrants in their PS market sector and at a minimum puts them on par with the competition.

India and China are huge markets, with India alone apparently 200m people in the middle class - mind you I expect India would be a very hard nut to crack with it's large capability in IT/ comms and cheap labour- I recall even Vodafone struggled there.

I'm sure the global reach will form part of the next operational update.

My one criticism - I found the link to Invertor information but it is hidden at the bottom of the page (OK it's predominantly a customer website - but they don't appear to have updated any of it and no IR effort that I can find. Shareholder engagement is definitely seen as low priority.

Whilst many companies apparently were taking the P*ss with greatly inflated costs for essential supplies and services during the deep depths of the Coronavirus crisis - Loopup provided Free meetings to a NHS Trust "St George’s NHS Foundation Trust", Good on them along with Astra Zeneca and shame on PPE leeches.

It was also very good business as cracking the huge opportunity the public sector offers , sector employs over 20 millions, offers would clearly be a major boost.

https://loopup.com/en/resource-center/customer-stories/st-georges-nhs-foundation-trust-using-loopup-to-connect-frontline-healthcare-workers/

stew200 - my apologies, I struggle with cryptic posts. lol Reminds me of an experience I had many years ago

I once sat next to some Woman on a plane on long haul flight, she introduced herself and suggested we do the times crossword together using the cryptic clues to pass the time. I know in hindsight I should have been sharp enough to bow out gracefully, but I'm polite. My god the times crossword seems to take forever, I had to go through what seemed like an eternity where she absolutely made me look like the complete fool I was as she filled the damned thing in and even after explaining the clues to me and giving me the answers I couldn't understand - I felt so thick, my brain simply said I'm having non of this and switched off. In the end she gave up and let me go to sleep, ending the hellish experience.

So I'm now allergic to anything cryptic - perhaps a surge in SP will cure me.

mornington - exactly, though those that paid £4 a share when prospects were not as bright would probably think anything under £4 is cheap.

My personal feeling is that £2ish is doable - though I have no specific reason to pick that number except it's a nice round one and provides a nice profit for me.

stew200 I assume you are referring to me (FYI) - sarcastic posts now, really I thought you were better than that?

If you have something to say, say it.

Look at the small number of trades today - IMO more normal, over the last couple of weeks trades have been boosted towards some entities goal. And they've achieved it IMO, managed to knock the stuffing out of shareholder confidence.

I noticed the company now has got over a dozen job vacancies listed on Linkedin and presumably more via other channels, some are for software development personnel so hopefully they are using the money the advised they would be spending on development of new or enhanced software.

This development is an essential ingredient in the future of the business and I hope the throw as many resources at it as they can - if our sales force don't have competitive products to sell there is a no future.

Maybe we'll get an RNS advising of some new product(s), then again maybe not (I suppose they won't let the competition know until completed).

"2 year contract": That was one of the strange omissions from the RNS - they say the average length of the contract they are chasing is in reality 3 years (even that's not actual potential life of contracted service as there is no doubt if the service is good some clients will extend) yet they base projections of potential on 2 years. When you look at the rate of loss of existing business it is about 16%/annum - doesn't that give roughly 6 years of life?

IMO, the annual report massively undervalues the contracts in the pipeline. I assumed the won contracts are also 3 years which makes the annual value 1/3 of total not worth a fortune this year. Clarity is missing as I've been highlighting in so many areas, it is easily addressed. I think the opportunity is huge and much bigger than our BoD have hinted at, if anything they are playing it down. But they need to gain traction and quick before someone else comes along and steals the prize away. That's risk enough isn't it? - Zoom or some other competitor beating Loop to the market they now are able to tap. It looks to me to be all about gaining traction then hopefully business will snowball. It really isn't an IT/Comms issue but one of general management and a savvy approach.

Bigsmoke, yes "high risk" almost ALL aim shares have an added risk /reward characteristics, it's the nature of small growth companies when they are carving out new territory, the lack of clarity increases to risk and deters share purchases, while some lack the confidence, others suspect a problem or take a view of why not wait for clarity.

Apparently only 6 people can attend and must apply, apparently on a first come first served application basis - so no chance I guess as institutions will want to be there.

More importantly activist PI's will not have a chance to engage with Directors, it's wonderful they are going to arrange a session with shareholders as fast as possible though, oh sorry got a little ahead of myself there, I meant later in the year after the H1 update.

"To ensure that shareholders still have the opportunity to engage directly with the Directors, the Group will hold a special
virtual shareholder event later in the year, following the planned update of the Company’s trading for the first half of the year through to 30 June 2021. Further details of this virtual shareholder event will be announced by RNS in due course."

Brilliant, we can all look forward to an eventual IR blitz now . Just kidding, engagement IMO should be around AGM time, not deferred, unless they are going to provide some sort of Chairman's/CEO statement for the meeting then they are going to avoid disclosing/discussing anything of interest.

Apart from the standard approval of Accounts and re-election of directors Nico Goulet and Steve Flavell the resolution cover the issue of shares and an Employee Stock Purchase Plan (‘ESPP’).

For those that thought the last issue of options covered 3 years, that is not the case, each scheme overlap and seems to last 3 years, I recall being on one and to qualify for tax benefits employees must sacrifice salary over the period. Ties them in and is in some simplistic way meant to create loyalty ( didn't stop me leaving for greener pastures, a bigger salary is a great motivation).

Anyway it looks like, if passed, the BoD will be able to allot same up to around 5% (2,772,059 shares) of the issued share capital at a discount of up to 15% of the SP on the day - tell me again why they have any reason to address the SP concerns now and why shareholder engagement needs to wait until after H2 outcome is published?

5%/ year potentially releases a continuous stream of cheap shares into the market as the SP rises and put as break on a rise (so far employees have not been able to cash in for a big win but that will all change as the company reports more success)
I don't mind if employees share success with shareholders, I'm just not convinced it aligns everyone.

They'll also gain approval to issue up to 1/3 more shares and buy back up to 10% of issued shares.

Most of the meeting agenda is fine IMO, I just don't see why we must wait so long for an engagement session with directors when the AGM should be the forum (don't companies usually have some sort of session soon after the AGM?).

Yes, it's a bit premature to put up the bunting and order the Champagne now I've not lost quite as much. lol

I'll consider buying a decent takeaway on my paper profits when it reaches 100p, but it will have to go much higher before I sell any - I'm not in something as risky as this for pocket change.

RNS - all fine, but nothing new to make shareholders smile except confirmation of a good dividend. Not even many posts, probably because there is nothing to say

Hence, the lacklustre response to the news, from a personal perspective no need to do anything except wait.

Armenians are still grumbling and making threatening gestures over the border location, I suppose politicians need to wave the nationalist flag to get public support - it delays the access to Zod but I suppose it is only to be expected.

There where articles about Geopromining employees going on strike for increased pay rates (deal now done) - interestingly a blockage was organised to site drivers that had lost wages as a result of shorter haulage routes as the bulk of the mine has been lost. Presumable they were paid pre mile driven. I believe Geopromining also bought a new mining operation - so have either financial support or accepted they need to replace Zod revenues.

Not much news though.

I must say I'm not impressed with the appointment - I had hoped they would bring in an outsider to mix things up and bring in new ideas - may be a good guy (no disrespect to him) but he brings nothing new to the table and as he was part of the pro-IPO team and begs the question "why was he not retained as chairman then?" The chairman should be someone of stature and independence as we have two powerful CEO's who rule the roost - perhaps someone that could stand their ground and reign them in if necessary

Appointment as Chairman - also an excuse to grant a load of Options perhaps in this years allocation? We'll see soon.