Lightwaverf Share Discussion Threads

[clocktower] 20/4/2017 19:17

Thee MM once again pushed up the share price early this morning even though they had absorbed a substantial quantity at around 13p in the weeks prior to today's AGM. Now they drop the share price to below where we ended yesterday as clearly the company have not delivered anything that investors in general consider earth shattering.

Fortunately, as sinkyj says there are products in the pipeline that should have a marked effect on the companies fortunes and hopefully those of stakeholders that are not drawing high salaries, and I guess expenses at their cost of the sizeable investments made by some.

Showing more poor judgement is pointing out the company once again needs re-focusing and clearly they appointed a CEO that had not presented a new strategy when they gave him the job, as he is now only actively developing his. Shows how clueless this bunch of buffoons clearly are imo.

If it turns out that he recognised what a bunch of Muppet's he was getting into, he might talk the major shareholders into booting out the duds, sooner rather than later. Which in turn may give the clowns a shock.

I however expect to see the start of a string of RNS about product launches, deals struck etc etc that will propel the share price a lot higher in the coming months, as AP try`s to show his worth.

So today`s ending offer of 13.5p may in a couple of months look like an opportunity missed for those that did not invest in the rights issue or took up the stock that was available at a fraction less for a short while.

Watch the tipsters get to work as Yellow Jersey do their job.

[gozo] 20/4/2017 18:24

Oh, and there's no cake....it's been jam tomorrow for a long time!

[gozo] 20/4/2017 18:22

Thanks for the info sinkyj....to put it politely, it's very disappointing and disrespectful to shareholders that the resolutions were not communicated in good time prior to the agm.If I'd of attended today's agm, I would have had all of 1 to 2 seconds to make my mind up on which way to vote after hearing each of the resolutions read out.The number of votes cast (for or against) are no longer communicated either.

[sinkyj] 20/4/2017 17:57

Communication...... Interesting bit from the corporate governance section in the Aim Rule 26 section of the website. The Agm link mentioned is of course broken. I was actually searching for the resolutions passed today.


3. Articulating strategy through corporate communication and investor relations
.
.removed
.

Compliance
The Board attaches great importance to providing shareholders with clear and transparent information on the Group’s activities, strategy and financial position. Details of all shareholder communications are provided on the Group’s website .
The Board holds regular meetings with larger shareholders and regards the annual general meeting as a good opportunity to communicate directly with shareholders via an open question and answer session.
The Company lists contact details on its website and on all announcements released via RNS, should shareholders wish to communicate with the Board.

The resolutions put to a vote at the next and past AGMs can be found in the agm information section of the company’s website.

[michaelmouse] 20/4/2017 16:52

sinkyj- Yes the interims will hopefully give us a clearer picture. ATB.

[sinkyj] 20/4/2017 16:33

MM,

The products are as old as the company, 7 years old? maybe more . Two or more generations in technology terms, so the fact they are starting to sell "again" is actually a really good testament to their original design, .Hopefully, the next ones will have a similar elongated lifespan.

The sales fell because of organisational issues, distribution, stocking etc. They've been given a shot in the arm by the reflected marketing spend of Amazon and "Alexa".

As hinted by the news release, why hint?? - Similar launches by Google, Microsoft and Apple of more user friendly, if not even cool, methods of using smart homes will hopefully do a similar trick. If these coincide with the launch of a full new range of products, I think we have happy days.

Communication does appear to be an issue still, questions unanswered. Maybe it's being over cautious with the listed thing. As said in my previous message there is a second chance very soon to correct this.

[sinkyj] 20/4/2017 16:21

I'm hoping.....

"The Company will provide a further update when it issues its interim results for the six months ended 31 March 2017, which it expects to release on Friday 19 May 2017"

Will provide some good communication of the changes that are necessary are in progress and a better chance for the new CEO to provide his "vision"

[michaelmouse] 20/4/2017 16:20

sinkyj - Yes you're correct, I don't follow the company closely.

I'm not so sure about your argument with due respect.

I don't understand why revenues started falling in the first place? In 2014 they recorded revenues of over £3m. From today's statement they'll be hard pressed to match that this year. IoT is supposed to be a massive growth area?

How often will they need new products and the associated costs just to stand still? It appears that their old products dated very rapidly indeed? Are their competitors suffering in the same way?

Last reported gross margins weren't hugely impressive. Is that still the case?

Losses are the same even with a ramp up in revenues of 60%. Why haven't they mentioned cashflow?

Too many unanswered questions for me at this stage.

Thanks for your usual civil reply and considered response though.

[sinkyj] 20/4/2017 15:58

MM, Everything you say is factually correct as usual but as you don't follow the share closely, maybe you don't have the context.

This is a technology company and these are very old products now, in fact there is a whole new range of products waiting to appear, waiting and waiting. Thats why the money was raised , and invested by myself along with other existing shareholders.

The fact the old products have shown very good growth this year is, in fact, very pleasing but not the key issue. That is the timing and success of the new product launch. That done well, could really provide the extra boost to get where CT thinks we're going, done badly we will end up as you suppose.

The only worrying thing is at the head of the dept responsible for this is still from the bad old days. I sooner the new CEO was appointing some top qualified people to key positions than putting a few quid of his money into the company. He has enough share options to incentivise a successful and positive attitude to his work!

I hope we get some signal of a change of attitude, experience and quality of the company and it's key personnel , sooner rather than later.

[michaelmouse] 20/4/2017 14:32

It doesn't always work like that clocktower. That's why I'm sceptical about the emphasis on revenue whilst in the same breath they mention continued losses and additional capex.

From the statement it strongly suggests that increased revenues are coming at an equivalent ramp up in costs. Hence cash burn will remain high.

Certainly no evidence of operational gearing coming into play yet.

[clocktower] 20/4/2017 14:25

The order book towards the end of Jan 2017 was £1.1m it is now £1.6m - if this rate of increase continues it is likely the company will be self financing well before dipping into investors pockets again, in fact they may be left with well over a million at the end of the year and looking at substantial profits the following year.

[gozo] 20/4/2017 14:24

No need for that whoppy....if you've got that many shares the management are always available on the phone as and when.

[whoppy] 20/4/2017 14:19

Surley the major shareholder rep went to the meeting and asked pertinent questions?

[michaelmouse] 20/4/2017 14:10

"After the planned increases in development and marketing spend, the loss for the first half is expected to be about the same as the equivalent period last year. We are also continuing the capital investment in our cloud platform."

So despite a 60% increase in revenue they are basically standing still because of the increased expenditure.

Capital investment is obviously going to continue into the second half.

It's what's not said in these updates that should be given careful thought.

Given a recent fundraising they should really let investors know what the cash burn is like. They haven't mentioned it, so I suspect it's still quite high.

They recently raised £2.1m, and if cash burn is similar to last year (or higher?) then by year end they may be left with less than £1m again which would raise the spectre of a further cash raise.

I might be wrong but healthy scepticism is needed when a company updates on improved revenues but reports similar losses to the previous year.

[gozo] 20/4/2017 14:04

He's already been granted options at the time of appointment.

[clocktower] 20/4/2017 13:46

If anyone did attend, I expect they pulled the old fast one about having a more personal discussion/chat after the formal business, to avoid any harsh criticisms or issues of dissent that have then to be included in the minutes. I have seen companies trying that old pull the wool over the eyes trick, of those that attend AGM`s many times. It allows them to suggest all sorts of exciting progress after the formal meeting, over a coffee and cake, and then when it does not come to fruition, suggest you misunderstood what they said and absolutely deny they ever said what they did.

Maybe like all the other "Coming Soon" products/business.

The only thing this time is that the order book has increase by a large percentage since they last flagged the figures.

As you say sinkyj, they need to communicate with all stakeholders and use current facilities like webcasting in addition to the AGM. The costs are low but the impact is much more effective.

Still no sign of AP digging into his pocket to buy stock in the market. I guess he will be waiting for share options. Will that be the next RNS?

[gozo] 20/4/2017 12:19

I expect Mike Coe is just finishing his starter...nice work of you can get it!

[sinkyj] 20/4/2017 12:00

Doesn't look like it at 20 mins. No time for a presentation. Hopefully they will post any materials on the site.

They need to start thinking how to communicate with the shareholders better than in the past, this is a tech company and it is 2017. Trekking to an AGM to get information is a bit old fashioned.

[clocktower] 20/4/2017 11:25

Well that AGM was short and sweet it seems as the last RNS suggests, all wrapped up in 20 mins or less.All resolutions were duly passed. Was anyone there other than the board? No discussions?

[clocktower] 20/4/2017 10:21

I guess Yellow Jersey will have to show they can be effective with this positive news, and over the next week to ten days I expect their target will be to get the share price above 20p. so as you say jurgenklopp, there should be a few tipsters jumping on the fact that the order book has rocketed by comparison to last year.

So, I expect the weekend press will also pick up on the likely growth in voice controlled smart home market.

The big growth in the order book might also catch the eye of one of the major players.