Location Sciences Share Discussion Threads

[plunge] 17/12/2020 11:33

A timeline of recent events and my assessment thereof:

13/11/2020 - LSAI receives a defamation 'letter before action' alleging it has made false statements about Blis which have the potential to cause reputational harm and financial loss.

30/11/2020 - The trading update announces cash resources are sufficient until early 2022. Presumably this determination has factored in provision for impending legal fees, thereby implying 2021 revenue flows should be sufficient to meet working capital requirements next year.

14/12/2020 - The Company informs shareholders that Blis has retrospectively informed LSAI customers there are “material flaws” in the Verify platform. As a consequence, the directors have taken steps to protect Verify.

In my opinion, this last point is interesting. Does this mean LSAI has an opportunity to issue a counter claim against Blis for defamation, reputational harm and financial loss?

All things considered, it would appear Blis is not in a good position.

[pakenham] 16/12/2020 18:52

Looks like Verrify did its job - great publicity for LSAI - Slade would know the action and its reaction with Blis - chance to prove the product. £10m mcap is 2p - 200dma is 1.3p - 1.2m cash - 2 mcap... can see this hitting a penny before xmas.

[plunge] 16/12/2020 11:41

Thanks to Suratosa on the other side

David and Goliath

[plunge] 15/12/2020 12:42

I see that Unilever Ventures, the venture capital and private equity arm of Unilever, is an investor in Blis and has it in its current investment portfolio.

Now it appears Blis hasn't exactly crowned itself in glory with one of its backers, and by association, the latter's parent company. Talk about shooting itself in the foot.

Interesting times ahead.

[plunge] 14/12/2020 16:16

It is all about brand safety and transparency.

Many players in the industry now could be facing the prospect of unwelcome scrutiny, that is once clients wake up and realise they have been screwed over for far too long.

[waxlyricals] 14/12/2020 14:35

Location Sciences have no choice but to be open and transparent with their findings. Im 100% certain that they wouldn't go public with something like this unless they were absolutely certain because if they weren't then it means no more Location Services.
They MUST be 100% sure that they are correct but it isnt something that they can fix, it has to be a Customer led fight. The question is who will they believe, especially if they have then gone out on a limb themselves and vouched for Blis off the back of this Independent validation.
Its all a bit of a mess and whilat I'm sure it'll all get resolved, i'm guessing that this is the end of the deal with Blis and who else will want to use LSAI if they now know that they too will not be able to 'fix' the accuracy results too?
Its always been the major issue that any Agency wanting validation would find themselves exposed to the chance that they werent as transparent or accurate as they thought or as they sold themselves on. Case in point potentially proven

[plunge] 14/12/2020 12:49

Personally I don't think the likes of GroupM, Mindshare or Universal McCann would risk damaging their reputations if it is proved they have been recipients of duff location information and not dealt with it appropriately.

Jason Smith (CBO) is ex-Mindshare, as is Andy Roberts (strategic advisor). So I am sure they would have been consulted before releasing this RNS, as would the media agencies.

[plunge] 14/12/2020 12:49

Double post.

[waxlyricals] 14/12/2020 11:23

We currently have an MCAP of £2million and the last thing we need is to be caught up in costly litigation battles with our own clients who dwarf us in terms of financial clout.
Yes it may work in our favour in the long term, especially if after Location Sciences presented their findings and observations to the media agencies involved in the test campaigns for Unilever and Aldi, namely GroupM, Mindshare and Universal McCann.
Who or what will happen will depend on those media agencies and who they choose to believe, as in most things where money is concerned, the truth can sometimes be whatever the person paying the bills and awarding the contracts wants it to be.
You'd just hope that the Companies spending the money at the outset will take a moment to become involved and look beyond their longstanding relationships with Blis, or we could very easily find ourselves isolated despite being 100% valid in the claims

[plunge] 14/12/2020 11:06

Regarding today's RNS and judging by the Company's very robust response, Blis has far more to fear. Let the battle begin. However, I suspect this will be settled out of court.

Perhaps this sort of publicity could work to LSAI's advantage. It is very apparent that many media agencies and data suppliers have been feeding their clients dubious data for far too long. Now this case may just concentrate minds and the industry will start to clean up its act.

[waxlyricals] 14/12/2020 09:11

Friday "we cant be sure what drove the share price down"

Monday -"we're getting sued for potential defamation for data anomalies we've tracked since September"

Then in response to the potential lawsuit they suggest that Blis are not being open and transparent 🤔

[plunge] 12/12/2020 16:17

Their twitter responses to @wyld3c4rd

Thanks for your concern, the share price drop Friday PM is disappointing considering our recent contract win and trading update.
8:55 AM · Dec 12, 2020

We can't be sure what drove the sells late Friday, however, please be assured that shareholders would be informed via RNS of any information considered material to the performance of the company.
8:56 AM · Dec 12, 2020

[nickwerks] 12/12/2020 11:41

Agreed, even if it does have an impact, it's not a major chunk of the revenue. I'm still bullish, but not enough to add right now.

[lazygun] 12/12/2020 04:18

Check lsai’s twitter feed though. Their tweet implies the x-mode situation is not expected to have a material impact on their business....

L

[nickwerks] 11/12/2020 20:16

https://www.google.com/amp/s/9to5mac.com/2020/12/09/app-store-x-mode-tracking-apple/amp/

[waxlyricals] 11/12/2020 19:34

What happened? 🤔

[ries] 01/12/2020 11:58

Report on proactive investors site.

[smackeraim] 30/11/2020 10:38

the Company has sufficient cash reserves until early 2022. As at 30 November 2020, the Company had cash of approximately GBP1.2 million

[colin12345678] 30/11/2020 09:01

Cash Resources Sufficient until 2022

[dplewis1] 09/11/2020 14:08

You'd have thought LSAI would be a major beneficiary of this big rally with lockdowns ending etc..

[dplewis1] 09/11/2020 14:08

They got diluted they didn't sell any.

[tt2oo5] 05/11/2020 18:09

RNS: Barclays Plc holding 9.82% here, having just let go of 1%. If they're in for a slice of exposure here...so am I. Dyor

[cyberbub] 05/11/2020 00:06

Thanks. You say Christmas, but presumably the new lockdowns around the world (but not the USA so much) will deliver another blow to turnover?

The company looks interesting, and at under £3m cap *if* it can grow revenues rapidly then there is potentially a major rerating possible.

The chart looks good too.

However at the moment revenues are tiny, and there is a high risk of needing more cash in around 4-5 months.

I'm putting it on the watch list though.

GLA

[waxlyricals] 03/10/2020 18:03

Our hopes rest on the sales team pitching this correctly in the run up to Christmas. Do that and we have a viable business. Fail and come the New Year the begging bowl is out again and Mark Slade shall be banished, his name forever tainted. Time to put up or shut up. Are you in or are you out? Personally i'm balls deep since the days of Proxama being Google verified and its about time us LTH saw a return

[dplewis1] 30/9/2020 22:44

They seem to be pinning their hopes on Verify, which does look to be a good product. This is quite an impressive presentation -https://vimeo.com/429661590I suppose the gamble is, can they build enough revenue momentum before their cash runs out in 9 months time..?