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CALL Cloudcall Group Plc

79.50
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Cloudcall Investors - CALL

Cloudcall Investors - CALL

Share Name Share Symbol Market Stock Type
Cloudcall Group Plc CALL London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 79.50 01:00:00
Open Price Low Price High Price Close Price Previous Close
79.50
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Top Investor Posts

Top Posts
Posted at 11/12/2021 20:33 by the millipede
Private equity houses are not stupid.

I think they see what most British investors do not - that CloudCall is on the cusp of profitability and, if it were still listed, massive valuation rerate.

The problem is the listed model is not working as buyers wait for new shares. People won’t invest here in the market as they know further funds are needed. Most can probably buy new shares with tax relief under the VCT scheme. Thus the only people trading are sellers.

So the share price trickles downwards, making further fund raising impossible. It is now a vicious cycle that can’t be broken, except by taking the company private.

I think we are being robbed but most won’t agree and - there are too many institutions - we can’t stop the takeover happening whatever we think.
Posted at 04/10/2021 18:02 by pugugly
Tipped in Daily Mail -
SMALL CAP IDEA Cloudcall Group looks a bargain as CRM market booms
By Ian Lyall At Proactive Investors For Thisismoney.co.uk
: 12:56 BST, 4 October 2021 | Updated: 12:56 BST, 4 October 2021

Canaccord Genuity put it quite bluntly. It reckons at just 1.8-times sales and with increasing visibility over an accelerating growth trajectory, the shares are too cheap. It calculates the stock is worth 115p, or roughly double the current price.
Canaccord is broker to CloudCall, so the cynics will probably respond thus: 'Well they would say that wouldn't they?'
Here's a quote from an uninterested party, SureSwift Capital, an American company that helps sell software-as-a-service companies.
'For smaller, bootstrapped SaaS businesses (that are profitable and growing), valuation multiples tend to range between three and five times [sales],' it says.


however to put it bluntly NO IMPACT ON SHARE PRICE AND ONLY SOME 6,768 SHARES TRADED and market cap only £28M t 58p mid
Posted at 20/7/2021 13:36 by davemac3
seems like a decent update, surprised so little action here today. Should be more info on the Investor call later.
Posted at 29/3/2021 18:01 by boonkoh
Interesting, two new institutional investors on board with the fundraising. Amati and Octopus.But does that mean existing investors declined to take up their fair share to keep from being diluted....!
Posted at 26/3/2021 20:53 by the millipede
The EIS concept is interesting and, although it is billed as a good way of attracting new money into small businesses, actually might end up undermining the share price of low liquidity stocks.

Here is how it works. Suppose I bought 100,000 shares in the recent placing. EIS shares qualify for 30% tax relief which is paid as a reduction to the investors' tax bill.

So to buy these 100,000 shares I paid £81,500. But I then get a reduction of £24,450 on my income tax bill for the 20/21 tax year, assuming I otherwise pay that amount or more in income tax.

This makes the effective cost of the 100,000 shares £57,050 (81,500 - 24,450). Or 57.05p per share.

I can then sell them in the market at (today) 75p realising an instant effective profit of 18p per share, or £18,000. This represents approximately a 30% effective return.

And because the acquisition cost is 81.5p I pay no capital gains tax.... in fact, I can offset the capital loss (bought at 81.5p, sold at 75p) against future gains.

Please let me know if I have got anything wrong there, but it seems to me a really wonderful way to buy shares and I would like to start doing it.
Posted at 30/10/2020 08:33 by zipstuck
Interesting new investor today from over the pond.
Posted at 08/4/2020 13:07 by jimbojet17
I agree. I work in SaaS and in downturns it's fairly common that customers continue to renew valuable software as it's a budgeted item. So I think at worst we see a slight decline in growth rate but not a contraction Nice to see they're being more open about investor comms to PIs too
Posted at 05/2/2020 16:03 by longtermgains
The current price of CALL and the valuations are both very far from being hyped and are also wrong. The US public markets and global private equity have a very vigorous and well-tested approach to valuing SaaS companies like CALL. Look at the BVP-Nasdaq Emerging Cloud Index ( hxxps://www.bvp.com/bvp-nasdaq-emerging-cloud-index ) and the extensive discussion on the BVP site(Bessemer Venture Partners - one of the leading venture investors in SaaS cos.) The UK stockmarket has yet to adopt them but it will. The US approach is all about optimising the growth rate and valuing the resultant future cash flows that are generated by the recurring revenues from the installed base. The current UK approach is best described as pragmatic, lacking in intellectual rigour and fails to reflect the nature of SaaS cos. This difference in approaches to valuation is a huge opportunity. And that is why US institutions are now beginning to arrive on the shareholder registers of UK quoted SaaS companies particularly CALL and why private equity will continue to approach UK SaaS companies. If CALL executes and delivers then, by 2025, the cash flows should be worth c850-900p. There is a huge amount to go for over the next five years and the current price is both very far from being hyped and way too low.
Posted at 04/2/2020 20:36 by the millipede
I think one of the interesting thing about CALL, which is probably common to many or even most start ups, is that putting a fair value on the equity can be quite tricky. Often speculation and hype can drive prices but, if I am honest, I don't see that here. Two posts here in a week, with consistently low trading volumes does not suggest a hyped share. Sirius Minerals, yes, especially before last summer; here not so much IMVHO. In fact, I think you might struggle to find a stock more under the radar than this one.

What we can say with confidence is that several institutions have been happy to buy shares at £1.00, including some American investment houses which is intriguing. I think the Americans have a different way of thinking about start ups from the average Aim Investor. My view is the institutions see good value here at £1.00 or they would not have handed over £12m in the recent fund raising.

Meanwhile the day-to-day stock price is controlled by the small number of trading private investors, several of whom (if you read back through this thread) don't fully buy into the strategy of raising equity to fund rapid growth. They would rather the company had raised less equity capital, prioritised profitability, and had grown more slowly. Because of that, on reflection, I am not surprised by the pull back in the share price.

A new company using cash funds to grow is going to post losses and CALL is no exception. And, because of the growth rate, by the time results are posted they are already irrelevant. The key metrics for now are not profits at all but annualised recurring revenue, churn, and cash burn, which is high now due to an expanding sales effort but will reduce. That sales effort should, in turn, lead to still faster growth in ARR. For those reasons I am not convinced Arden's forecasts have any meaning - they seem as confused as many other British investors about start up investment - and I would say if institutions are happy funding this at £1.00, as they seem to be, then that price represents good value.

I might be wrong. I certainly invested too early here, back when CALL was just a cash shell with an idea attached, and I do understand why people are looking at Arden's figures and moving on. Unprofitable start ups are not for everyone! But I also think this was the last equity raise - £12m - was large enough to ensure no more funds will be needed, as well as being supported by an especially interesting mix of institutions. What is more, CALL was close enough to "break even" last year that the business model is proven. The product is good and gaining traction. The revenues are growing fast with a £50m ARR target by 2025. The company has excellent management and a strong barrier to entry in the form of the personal relationships with the likes of Bullhorn that are needed for customers to get access to the product or anything similar. So I think fair value is probably some way north of here, and am happy to hold for the long term.
Posted at 21/11/2019 10:08 by pj 1
Unfortunately the Presentations by the Company to Private Investors over the years, since 2013 have always hidden what the true Business Plan is. At the first Mello event in Derby they spent days promoting cash break even by the then year end. It was all a Bluff which has continued as they realised Investors repetitively believe the hype.

Now they have ''significant additional costs''?

I wish you all good luck but I wouldn't be expecting Profits in 2021

or 2022

or 2023...

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