Lightwaverf Share Discussion Threads

[whoppy] 09/1/2019 09:26

Change in sentiment. New customers trying out the Gen2 products and liking them. The way people buy will be to try out a power socket or a light switch or buy one of the starter packs and if they like the product they will go on to buy more sockets and switches for the rest of the house. This is how you get sales traction. What starts off as a £200 purchase follows into £500 and more. Go and count up how many plug sockets and light switches you have in your house and then do the maths.

[clocktower] 09/1/2019 09:19

Market cap heading upwards and so little volume needed to send the share price up at present.

[clocktower] 08/1/2019 09:50

72% great reviews whoppy that`s a good number.
I see the crew are chipping in again, I guess trying to make sure they continue to get their salaries and help get the share price for the likely funding in due course.

Going well whoppy, keep up the good work. :-)

[whoppy] 07/1/2019 15:13

Some smart reviews.

[clocktower] 07/1/2019 14:24

LOL gozo - I am delighted for whoppy to see the share price on the up, and I hope whoppy gets out with a decent profit or is being well paid by the company.

[whoppy] 07/1/2019 13:40

I hope you're all enjoying the buys and bought at 6p when the directors were buying. :o)

[gozo] 07/1/2019 13:30

Hope there's not too much steam coming out of your ears today clock!

[clocktower] 07/1/2019 13:27

Good to see new posters on the thread - They seem to be walking it up nicely as expected. Taken them a while to get going but can they get it towards 16p the last funding level.

[athnotts] 07/1/2019 12:10

(newbie alert: been a lurker here for a while + not much of a forum poster but have more time as am between jobs this lively thread seems a good place for me to start :-)

hard to tell if recent sales growth can be sustained - be good if they broke out connect/gen 1 vs smart/gen 2 sales, that would reveal more

agree they are stuck re the need for funds to spend to grow and the dilution it will cause, hard one to figure out. that's what the bod should get judged on (not only pay and share buying, which seems not untypical for an aim company, tho stands out here as it's a small cap) and I hope the answer is not a few million and try and keep going. maybe a strategic investor/partner (company in the space, or near like a utility co) could be sought, maybe using a mix of equity and debt. won't be apple tho for reasons slinkyj says

(don't like the smart family same as many of you but also i hate the meercats from comparethemarket and that's successful so marketing is in the eye of the beholder. yt views only one measure, just 1 channel - fb, insta etc also being tried i assume)

[mg78] 04/1/2019 22:09

I'd love to stick that 'Smarts' video in front of Lord Sugar.

[gozo] 04/1/2019 20:41

If that were to happen we'd probably see ML appearing in episode of the Smarts!.....I must get round to watching it....

[clocktower] 04/1/2019 18:24

If the BoD resign bar the new CEO and CFO and appoint you sinkyj, I`d be willing to back the company with you running the show, and would be willing to take up a chunk of any funding at around 3/4p.

Why they are not talking to you is beyond belief, as from what you state they clearly know you well.

[sinkyj] 04/1/2019 18:08

That's probably as likely as the next raising being at a premium! It would be nice but Apple don't do deals like that or buy small UK companies with no Global brand. Apple could just do do their own Wifi or Bluetooth sockets anyway, but won't. They have their own problems at the moment.

The US market is different,, Belkin already have smart sockets and dimmers. Also, there is no real current market for decorative switches and sockets. I was in a billionaire's house recently and he had cheap white plastic switches and sockets. The US early adopter market would be huge for Lightwave but not ,I feel, large enough for Apple. There are ways LW could possibly get to a large number of US households but not with their current Hub and App strategy. They know my number if they ever want to do that.

[whoppy] 04/1/2019 16:28

A royalty deal whereby Apple manufacture the products for sale in the US would be good, Can be done at no cost to LWRF.

[sinkyj] 04/1/2019 16:07

Solid update. As suggested, the percentage increases are chosen carefully and not that relevant. The simple facts are : 4 years ago we had 3m revenue, 0.3m loss. Last year 3m revenue, 2.5m loss. Now 4.5m(annualised), probably still 2m loss.


What matters is, with the current burn, we need to get to revenues 10m or more. Time is running out. But how do we get there? On the plus side, with a few new European products (the sockets) then we have a much bigger potential customer base. The bad news is that the UK strategy of a direct sales team isn't cheaply scaleable across Europe. The access is through Apple anyway. Apple are falling ever further behind Google and Amazon in the home hub market. We might get lucky and Apple might get desperate at some point and throw a bit of money into serious promotion and drag LW along with them.


The question is, how do we reach those European customers, otherwise ? What's in the budget, available for the marketing? The answer isn't the smart family, few thousand views at most. My niece posts cat videos that get 10 times that.


My fear is that the existing shareholder will just put a few million in, enough to kick the can down the road for another year, not enough to get us really anywhere. At this valuation, it's almost all they can do. There was an opportunity to go for broke on the back of the Apple news, but that's been lost.

I don't know the answers, but I can tell you the people who've made it big in this market have had to spend big.

[whoppy] 04/1/2019 13:35

Nice to see they are confident and performing well. Onwards and upwards, as they say.

[ukdannyboy] 04/1/2019 12:50

MG hit the nail on the head here. Up against a very poor year in the most important quarter of the year. Better to be up than not though.

[brownie69] 04/1/2019 12:32

Its a good update, the Q1 growth is strong but more importantly the new CEO seems to be making his mark. I dont mind if funds are raised if its to fund a growth model that works and in the long run leads to EPS growth.

[mg78] 04/1/2019 09:03

The increase in revenue is what one should expect, not seen as anything spectacular.

The new figures are working off a very poor / low base and they are comparing this very bad period with one after a decent online shop has been set up. Also note it is the busiest most important quarter of the year too....

I think a fundraising will follow very soon (my view only) and that today's RNS serves to support the stock ahead of that.

We'll see.

ADYOR. AIMO.

[clocktower] 04/1/2019 08:05

MM running ahead with the share price as expected on the pump news - wait for the sucker punch before long imo but hey ho I hope I am wrong and whoppy`s wishes come true.

Good figures for Q1.

[jmf69] 04/1/2019 07:53

Q1 revenue of £1.15m

[mg78] 03/1/2019 22:03

Agreed sinkyj.......but fear not.....whoppy is pleased with the new 'Smarts' film and simply "can't wait" for more.

There are an awful lot of issues at LWRF in my view.......and you are right to raise the issue of 'ownership'. For me it's the elephant in the room.

It was not only a confused and failing strategy which put me off this company but also the increasing percentage ownership going to one party.....a group I predicted the company would be increasingly reliant upon to the extent that they may wield a whip hand. My thoughts only.

I still think the valuation here is remarkable given the last results and the fact that they will need to raise more money.

The reported bounce in sales provides little comfort for we have seen that from LWRF in the past - on several occasions.

The director purchase is for a pretty much meaningless amount of money and past share purchases from the same director have been shown to reveal little insight.

AND you have ML still being paid for his secretarial services.

Given the performance under him, that's simply not good enough in my view.

[sinkyj] 03/1/2019 20:56

On another note. There's quite a lot of chatter amongst customers and potential customers, about being unable to buy new product stock and whether the company will still be around next year to support it , if they can get hold of it.The former could be due to bumper festive sales. However, not being able to meet demand isn't great. The latter isn't a good impression to be leaving your customers with.

[sinkyj] 03/1/2019 20:42

They could indeed, Whoppy, have Gross Profit of 2.5m ish at a best case scenario.Unfortunately, that just highlights how far they still need to go. Admin expenseses would be just north of 4 million, with 700k of that, or more fully costed, between 6 directors, 3 full time. "The Executive Director roles of Messrs Edwards, Elliott and Shermer are full time. The Non-executive Chairman devotes a minimum average time commitment of one day per week, but at times considerably more. The other Non-executives devote up to two days per month"The director buys, set aside their salary, are at a trivial level. So we'd still need 1.5m in additional funding for the year, less a bit for the R&D tax credit they are already borrowing against. Say 2m for 18 months runway after costs. That's still a major dilution at even these levels. If it's coming from the existing major shareholder, as hinted, then they have levels of ownership, both individually, and collectively with a small group that could mean some issues.

[clocktower] 03/1/2019 17:11

Whoppy, do you really think this outfit is good value at Seven Million Pounds?

How much money have they spent and used paying themselves, getting to this valuation?

I wish you well whoppy but the writing has been on the wall for a long time - bar a bid from Apple or the likes I see little future - which is rather sad but it is only the greedy BoD that are to blame imo.

If it is such a snip why have the other board members bought huge volumes of the stock at this price?