Cloudcall Share Discussion Threads

[dusseldorf] 17/8/2016 09:20

I'm sticking around as an observer. The company is making good progress, just that they've pushed growth ahead of profitability. Disappointing for holders short term, but ultimately better for the business.

I'm going to start buying a few in 3 - 6 months time (slowly) in SIPP - I'm not talking mega bucks, but if I pick some up continually over 2 - 3 years the average price will be fair. I suspect momentum in price will grow slowly and ultimately it appears to be on the right track.

FYI I don't see this falling below 40p, so somewhere between 40 - 55p is a good entry price for me.

[the millipede] 16/8/2016 21:45

Well, if it that easy why not short some stock Duncan?

FWIW I agree this is not going to be good for the share price and I assume, given the now almost complete lack of interest in getting to break even (except to comment that it is no longer an immediate aspiration), that most small investors have bailed/ are bailing.

Who would stick around? Not sure I will....

[dusseldorf] 16/8/2016 15:38

I assume those involved in VCT scheme are starting to sell down some positions to balance the books

[jimbojet17] 16/8/2016 15:12

Any clues why the higher than normal volume today?

[johnwall] 16/8/2016 15:02

Just catching up after a period away......

timbo003 - yes, if you have time to post it I'd also be very interested to see analysis of your EIS investments.

[supernumerary] 10/8/2016 10:08

timbo - yes, I'd certainly be very interested to see.

[jimbojet17] 10/8/2016 06:20

Timbo - that would be really interesting actually if you could please. Thanks

[timbo003] 10/8/2016 06:11

>>super

Yes, some of my EIS punts could have set backs and some could exceed expectations, I currently have 3 which are showing >100% gains and about 4 which are showing >50% losses and as I'm sure you know the advantages of the tax breaks really become apparent when there is a wide variation in the performance in the individual components within a portfolio, i.e. loss relief on losers, tax free capital gains on the winners (you don't get that in a portfolio built without EIS tax reliefs)

This is one reason why I have been taking a portfolio approach rather than going for death or glory in just one or two EIS punts

I intend to update my spreadsheet that details the progress of all the EIS investments I have made over the last 2 years and I'll post it here for scrutiny and entertainment within the next few days.

[supernumerary] 09/8/2016 22:43

timbo - but then Motif hits a setback, and instead of just selling at a very decent profit, paying the tax, then standing aside to see what transpires, which seems to me to be the appropriate action, you're tempted to hang on for the full 3 years with all the risks that entails.

EIS is a nice little bonus, but it's hard to avoid the tail wagging the dog.

[duncandisorderly] 05/8/2016 17:49

Well that's more jam and another years wages for the directors sorted out.

[esuei] 05/8/2016 16:50

>>> Timbo003

aha. I'm with Cornhill but missed this one as the email from Cornhill didn't state it was EIS qualifying. I note the RNS from Cloudcall states that the placing is "VCT/EIS Placing". So it's just a case of Cornhill omitting this EIS/VCT info in some cases?

Seems like I need to get more proactive as AIM EIS qualify deal flow is a little on the light side at the moment. I'm in danger of tying up my funds on private fundraising on Sydicateroom!

Cheers.

[timbo003] 05/8/2016 16:16

>>>Johnwall

I usually speak with Lewis.

I get their daily emails regarding placings and open offers and immediately discard anything large cap or anything to do with oil or miners which leaves the rest. If something looks like it might be EIS qualifying I phone up and get taken inside.

[johnwall] 05/8/2016 14:44

timbo003 - good to see you here (I'm a holder from a couple of years ago - much too early, as usual! - but have bought some more today). I'm a Cornhill client but wasn't told about this placing - who do you deal with there?

[timbo003] 05/8/2016 13:59

>>>>jimbojet

I generally use Cornhill Capital.

>>>>Super

Yes Its a bit of a gamble unless you already know the company. I've had some real old dogs: Strat Aero and Valirx come immediately to mind

But I've had quite a few good ones too, most notably Motif Bio.

Its swings and roundabouts

[the millipede] 05/8/2016 13:10

"What stops them..."

Nothing IMO. Especially as all talk of break even now is around the limitations this aspiration has placed on the company's growth strategy.

[supernumerary] 05/8/2016 12:30

The balance sheet still doesn't look that strong given that they've now used the whole of their £900K loan facility. What stops them coming back for more in 12 months or so?

timbo - the risk with these things is that you end up buying into companies you otherwise wouldn't touch with a bargepole simply because the tax benefits look so tempting. What proportion of your tiddlers would you say have made you money?

[the millipede] 05/8/2016 12:12

Dusseldorf,

I have to say I think your perspective has a lot of merit. The company was very clear six months ago that no funds would be required and now they are raising an amount that is not even a "cheeky top up" but substantial.

That said, I would not - as an investor - sit on these and whine about the management. I think these guys are feeling their way through a new business and it is definitely better to change tack if something is not working out than sit there doing the same old thing as things get worse and worse.

They announced a while ago that, in pursuit of larger clients, growth in ARR would likely be patchy. Well the last six months certainly backs that up! I guess the issue for investors is knowing whether it is patchy or a sign that there is not really any more growth left. Ultimately the former seems more plausible to me but I would not want to try to persuade anyone out of a different view.

Higher volumes with a price increase is certainly welcome. :-) Cheers, TM

[jimbojet17] 05/8/2016 10:48

Btw, are there any you would recommend?

[jimbojet17] 05/8/2016 10:48

Timbo that's great advice, thanks. I'll check it out

[dusseldorf] 05/8/2016 09:02

jimbojet17 - not saying cash injection is not good for the business, it is very good news medium term for the business, but you just got diluted by 50% (assuming you have no uptake in placing) when the company said it didn't need more funds - I have an issue with this as a potential holder. I'll continue to watch, but the growth in ARR, which was £1m costs now 'stable' as opposed to declining costs £10-15k per month indicates break even is still some way off....'investment' to me smacks of people, which in turn means accelerated overhead costs vs. income stream, and people with VCT will be sat on profits for some time while business is loss making.

To be clear I am looking to buy at some point, just that I don't think there is any rush and may be a short term blip down as VCT holders use some form of arbitrage to consolidate position. Could be wrong, which would be good for you and bad for me if price rises as I'll be paying more.

[jimbojet17] 05/8/2016 08:46

There are many ways to view today's news, but ultimately the share price is up 13.5% at time of writing. Perhaps ones opinion will come down to their goals from this investment....personally I was annoyed when the company decided to sacrifice the impressive growth to reach break even sooner, I want the company to grow fast and grab as much of the TAM as possible. This is the way of high growth SaaS. Look at ServiceNow as an example - investors aren't in that name for a dividend... An oversubscribed placing is a million miles from the last placing which resulted in a sickening 20-30% drop in share price This placing should be viewed very differently, it's a good thing, at the right time, for the right reasons. Only disappointment is that I couldn't get in on the placing, how did you do it Timbo?? GLAH

[dusseldorf] 05/8/2016 08:22

From March fully year results, clearly more broken promises
"clearly shows us having enough cash to deliver this company to break-even without the need to raise further funds. "

"combined with confirmed expense reductions, existing cash at bank, and other expected cash inflows, is enough to deliver the Company to cash break-even without the need to raise further funds. "

timbo003 - great news for you, but really £1.7m more shares where peoples 'effective' break even is 40p for a company that effectively promised it didn't need more cash - I think I'll sit this one out.