Lightwaverf Share Discussion Threads

[clocktower] 17/10/2017 09:21

Gozo, My apologises about any factual information, purely by error as the twitter link clearly did not refresh itself at the time.

Other than that, I have made it clear in posts that they were my guesses or things I expect to occur - crystal ball glazing that`s all.

What has occurred though is a further considerable fall in the share price on reasonable volume.

I am glad that you posted the Deta RNS and as sinkyj has pointed out, is that it maybe well worth your while to keep an eye on the number of downloads of the Deta branded App.

I am sure the RNS was issued in good faith but history shows that things have gone wrong in the past for LWRF, so one must factor in all current research info available that one can obtain from various sources and make your choices.

My view (at present) is that it is better to be short than long in this stock but each to their own. Maybe AP might put his hand in his pocket and buy a decent amount in the market if they are such a snip at present.

Do you really think they are not burning through the small amount of cash I assume is left and will not need to raise more funds gozo? Maybe cash from other sources like Deta might be enough to see them through?

[gozo] 16/10/2017 18:41

Clocktower - your posts contain factually incorrect information - you will have no doubt seen my earlier post correcting your twitter dates.For your latest post I will copy and paste the Deta RNS to keep the thread accurate.LightwaveRF plc ("LightwaveRF" or the "Company"), the leading smart home solutions provider, announces an expanded UK distribution agreement with Deta Electrical Co Limited ("Deta"), a leading manufacturer and distributor of wiring and electrical accessories. The agreement will target the wholesale and electrical contractor markets in the UK.Deta has placed an initial GBP350,000 order with the Company and it has committed to placing a minimum of GBP2,000,000 worth of orders during the first year of the agreement. Deta will offer a full range of smart home products to its customers, branded Deta Connect and Lightwave.Commenting, Andrew Pearson, CEO of LightwaveRF, said: "We have been working with Deta for two years, focusing on the new build sector and we are looking forward to expanding the relationship. Deta is an established, leading supplier to the UK electrical wholesale market and is ideally placed to launch, promote and sell this range of smart home devices, based on Lightwave's technology. Deta's sales team will allow us to significantly scale up our coverage across the electrical wholesale sector."Gerry Barnett, Managing Director of Deta, added: "We are looking forward to expanding our partnership with LightwaveRF through this new agreement. The combination of Lightwave smart home technology and our expanding range of high-quality wiring and electrical accessories will enable Deta to deliver comprehensive and modern smart home solutions across this important market sector."

[sinkyj] 16/10/2017 16:39

That's a big statement. All I can say is at the moment the branded Deta apps aren't downloaded by many people.Its possible they might want to wait for Gen 2 now, in the catalogue Deta have a version of Gen 1 with white not black inserts. However, Deta has been a long time coming and presumably they "Deta" were fully aware of the rollout plans.

[clocktower] 16/10/2017 14:53

Sinkyj, CRU never made money out of those crystal cases but here our crystal balls have. However, my guess is that at some point in the not to distant future there will be a warning about the "Deta" deal that might go something like this:

"Following the initial deliveries to Deta, we have become aware of a number of improvements and features that would enhance the products that would be of benefit in the long term to all our valued partners, we have therefor agreed a revised schedule with Deta that extends the envisaged period in which the total order will be fulfilled, we look forward to continuing to build our successful relationship with Delta and look forward to the long term future with confidence."

If that happens will the share price have support around 10p bearing in mind what effects it may have.

[sinkyj] 16/10/2017 14:24

Probably just keeping his head down for a few days to let customer service do their stuff. Appears to be a few "difficult" customers and those who are realising the current limitated range means they can't upgrade yet.

[gozo] 16/10/2017 13:09

Last post on Andrew's twitter was on the 12th - last Thursday

[sinkyj] 16/10/2017 12:43

Previous Tweets seemed to suggest Apple "shortly", weeks, and a full price / road map November. Answers to other questions we all would like to know. "Not on Oct 3, you can get from us and via Amazon on launch day - Apple will have online and out on shelves at some point in the weeks ahead. https://t.co/hHxAt1HgfuNo projects on hold here :-) Targeting short number of months but we have some work to do to be sure, aiming to publish a schedule in Nov.@Shadydealer we're actively working on ways to make @LightwaveRF go faster, we'll publish a roadmap during November, thanks for your support https://t.co/100a1TRiMa@LightwaveRF @LightwaveRF_CEO Disappointing launch of Gen 2, no stock, poor distribution, faulty products, buggy app, abysmal support. Shame"Seem to be a few unhappy and confused customers. Only to be expected launching incompatible ranges and not having products in Gen 2 that Gen 1 has. It's probably the correct way to do the launch for lower risk but it doesn't make for happy customers. Hopefully will soon be resolved with a full range, well see in the Nov roadmap. There appear to be a few holes in the plan yet.

[clocktower] 16/10/2017 11:10

tbroka, I notice that even his Twitter account has gone dead since 5th Oct. Maybe a holiday, or running out of positive things to say.

Whenever things are not going well, do you really think most companies directors are going to be fully transparent? When things are on the up they are usually the first to be pumping pout positive RNS to get the share price up, or when they need cash they work with their brokers to advance the share price one way or another so they can pay their advisers for a job well done, and reward many of their big time investors one way or another.

The Apple maybe sitting on his head but the arrow might strike him in the eye before long rather than split the Apple when released.

[tbroka] 16/10/2017 10:53

Open letter to Andrew Pearson - please update the market on: 1) cash at hand, 2) launch of LWRF products in Apple stores (doesn't seem to have happened), 3) Launch of remainder of GEN2 range to at least mirror that which was available as GEN1, 4) Whether a capital raise is currently being considered or not. As a long-term supporter, I would like to see the concerns stemming from silence on these fronts quashed...

[sinkyj] 11/10/2017 12:49

Wow, they still going? We used to buy Crystal CD cases from them by the container load for computer games. I'll have a look.

[clocktower] 11/10/2017 12:16

sinkyj, See today's return from CRU - it might interest you.

[jmf69] 10/10/2017 20:57

hTtps://www.finextra.com/blogposting/14610/the-marvel-of-google-home-and-its-debut-in-france

[clocktower] 10/10/2017 09:36

So sinkyj, your down to just 25% of your peak holding, so part of your profits only. Very well done.

However, I am glad you pointed out the fully costed take of the CEO & CTO to name just two over paid cash burning directors, (not that I am sure that this is the true fully costed figure, if one take perks into account).

I think everyone will become battle weary with this one and wish they had booked with you at hotels.com just to get away from here.:-)

[sinkyj] 06/10/2017 16:10

Its true I'd probably be hotels.com platinum. I would choose a better room mate than CT though, he'd depress me or bore me about toy trains.Hopefully Apple is a matter of weeks so we don't miss Christmas. Even AP thinks this will be a slow burn, though. I have to agree Apple and screwdrivers don't seem the best of bed fellows.Lwrf is an excellent company with good prospects and an excellent CEO who seems to really understand this space. However there are two caveats.One is burn. Last year CEO and CTO took over 250k fully costed. Repeated this year would be 25% of the money raised. That's not sustainable for a company with a few million turnover.2nd, Lighting isn't the best area of Smart Home to be in. Witness the recent offerings of Nest and Ring. Security is currently king. I'm at 25% holding currently waiting for a few things to fall into place. What I'm suggesting is lwrf isn't yet at the light the blue touch paper stage. It's not far away but that's been the case many times. Gen 2 is currently 3 products in one finish, pricing seems to high. Apparently in November we will get some sort of road map of the rest of the range. If I were a customer I'd be a little wary currently. I'm sure too there is sufficient credit for AP and committed capital to currently choose their point to accelerate, but that window is closing.

[brownie69] 06/10/2017 15:07

I'm expecting a fund raise to accelerate growth at some point. Going into Apple shops any day now and if that gets sales traction we are off to the races I reckon.
I dont mind dilution if I can see an increase in EPS to more than compensate.

However due to the debt that is available I'd expect the fund raising to be at a time of the companies choosing.

[clocktower] 06/10/2017 13:39

LOL gozo,but I guess that sinkyj is well travelled already but if your looking for a bargain you may need to look west.

[gozo] 06/10/2017 13:24

I can post a link to hotels.com if you two want to get a room.

[clocktower] 06/10/2017 12:21

sinkyj, I am delighted that you availed yourself to some profits once again on the way up towards 29p.

I was under the impression that the company trading model did not require them fund customer credit, although I raised this point when the issued the RNS about the goods being stocked in some Apple shops, as I could not see Apple stumping up cash for what to them must be a trial, to see if it might be worth while buying LWRF.

If I were the CEO of this company, I would be taking a very low salary, as would the rest of the board if they worked for me, and all being paid in stock (and not at a level that would result in damage to PI`s), as I expect the companies admin expenses would drop to a level that would result in the company already being almost profitable. One positive is that whomever is responsible for sales, is doing a good job, taking it on face value (if the terms are right to LWRF stakeholders).

As you know and I made clear I moved most funds from here to HRN but to date has not performed as expected, however climbing back and almost back square. However, they have just made a good move imo. so time will tell.

If the share price drops to a level that looks attractive here, I may once again take greater interest in this if the crystal ball is reliable but I do once again like the look of CRU at around the 13/14p mark. :-)

[sinkyj] 05/10/2017 10:03

CT, You should be a CEO! If that is what the board was privately thinking then, with hindsight, possibly. At the time, I think he was countering the general observations that cash would be required very soon. It wasn't and it did get us to 29p and some nice profits.

I think it's more the lack of any reference to funds in this announcement that has spooked people. It's very easy to work out what 1.1 million(ish) less 6-7 months burn is. There is the other bank credit. However that, hopefully, will be and has been been used to fund customer credit on sales expansion, not to cover expenses.

It doesn't necessarily mean a raising, other forms of cash will be available. Or is a large raising a bad thing, the market cap has been substantially improved. But, as everyone knows markets don't like uncertainty and not mentioning the cash position has left that gap to be filled by the worst assumptions.

[clocktower] 05/10/2017 08:33

sinkyj,

When AP gave that interview and he was asked about cash, would he have not been wiser to have said, or something like the following: When the time comes, to speed growth and reach the profit objectives we have targeted, we may once again invite stakeholders along with us, to participate with us, speeding the companies progress, thus ensuring we reward our supportive range of investors and stakeholders for their hard work, loyalty and trusting support, while building our brand leadership with world class firms such as Apple and so on.

Instead he has left stakeholders with question marks about the companies cash position as has already been raised, and is now being reflected in the share price He needs to rectify the omission ASAP imo.

[sinkyj] 04/10/2017 17:04

https://www.shareprophets.com/views/31942/lightwaverf-trading-statement-emphasises-top-line-growth-but-why-no-update-on-cash

[clocktower] 04/10/2017 11:25

Total Cash on 31.03.17 was £816k, bank loans available of £1.1m - cash burn was lower in H1 that it is in H2 as the losses are greater in H2 than H1. On that basis at best I guess there can be no more than around £300k in the kitty left. As you say sinkyj, nowhere near break-even.

If the bank loans are used going forward, costs also increase, so sales and margins have increased since 2016 but clearly not at a rate that is reducing losses, which is concerning.

When AP gave that interview saying the were not currently looking at further funding or words to that effect, at which time he answered with a rye smile as noted previously, all I now suggest is that maybe he should have done so earlier, and a large funding at that, even if it is at a huge discount, so not to having to keep coming back to market with a stream of smaller funding's,which i expect will be the case sooner or later.

[sinkyj] 04/10/2017 09:42

A statement on funds would have been welcome. The release is at best neutral. We are nowhere near breakeven, it's not likely on current funds, so how/where are they to be augmented. The "new products" havn't been released, only 3, Generation 2 products, for direct sale only. Many more are needed to just have the same range as before, even more to extend into areas hinted at previously, so I can't see expenses coming down in the short term.

[clocktower] 04/10/2017 09:20

Another case of the glass half full or half empty in that case JMF69 but I know it is clear that the cash funds raised last time around are being depleted and unless there is a remarkable turnaround in a matter of months the cash will have gone imo.

Where are the new security products for example. Where are the contracts for commercial buildings follow the hype about the Warwick trials?

[jmf69] 04/10/2017 08:43

For me the trading update is a positive one with revenue doubling and the expenses were expected to be up due to the development of gen 2 products which have been released now and should provide another push for revenues.