Loopup Share Discussion Threads

[ramridge] 28/9/2020 11:23

Let's see :-)

[cottoner] 28/9/2020 11:19

CEOs said

"We have a balance sheet that enables us to invest for growth and we're excited and focussed."


Doesn't sound like a fund raise to me. :-)

[investographer] 28/9/2020 11:19

Why do they need more cash.Have only just got cash positive

[ramridge] 28/9/2020 11:07

I had a quick look at the recent HY accounts and it may well be that they need to raise cash.
As at 23/9/20
cash in bank £8.3m
admin expenses 10.3m over past 6 mths, plus dev costs £3.2m
net working capital £10m

That smells to be line like a fund raise is on its way.

[johndoe23] 28/9/2020 10:39

One of the few beneficiaries of covid and this is dropping again. Crazy. Can't even blame a high rating!

[big7ime] 27/9/2020 12:27

Exactly Maddox, succinctly put.

[thordon] 26/9/2020 18:30

Maddox ; That spot on

Note below are the company's using Loopup products added the last two even through are part of Loopup

Cisco
Skype
Microsoft Teams
Meeting Zones
Loopup own platform

[maddox] 26/9/2020 17:56

Hi Pratt,

I'll certainly have a go....

On the face of it web conferencing solutions all look pretty similar. However the other providers' IP communication is delivered over the top (OTT) of third party broadband where service quality cannot be managed. LOOP carries its audio channel over higher quality assured PTSN or its own quality managed virtual private network. So LOOP has a very different underlying architecture in order to deliver the higher quality experience.

ZOOM, Webex, GotoMeeting, etc are all software products whereas LOOP is more service-oriented. Also, their products are all feature-rich whereas LOOP is deliberately simple and easy to use.

Theoretically it's possible that any business could look to replicate LOOP's business model. However, it would require investment to build a World-wide Virtual Private Network and the functionality to compete in this niche.

Microsoft's strategy appears to be the Unified Communications Platform provider of choice - rather than a provider of telecoms services. By opening up their Teams User Base to allow other providers to offer telecom services they are thus clearly indicating no intention to compete aggressively in this space.

ZOOM is experiencing explosive growth so I would doubt would see a benefit in reorienting it's whole business model to compete in a smaller niche. It would also be to acknowledge that their current service doesn't assure a quality experience. They are probably focusing on resolving their software security issues.

None of the web conferencing providers, I am aware of, have the infrastructure to compete in the Direct Routing market - and I doubt Microsoft would allow them to integrate with Teams.

Anyone else have other thoughts on this?

[adamb1978] 26/9/2020 09:55

They wouldnt bother Pratt. Far quicker to just acquire Loop. In a fast growing market, the 'buy vs build' argument leads you to the first of those solutions

[pratt2] 26/9/2020 09:53

Can anyone please articulate the barrier to entry here please? Maddox perhaps?Just wondering if Microsoft or any of the other big fish can easily create something that makes LoopUp's niche capabilities irrelevant...?

[valuehunter1] 25/9/2020 21:09

hxxps://www.businessofapps.com/data/microsoft-teams-statistics/

Some interesting stats on Teams - explosive growth and LOOP in the thick of it all. Looking forward to this one bagging over the coming months.

[74tom] 25/9/2020 10:52

Yep, once £2.50 goes the re-rate is back on! It's surely a matter of time & patience...

[johndoe23] 25/9/2020 10:46

Agreed. Crack 248p and there could be a good run up to 300p. Some investors are probably waiting for the breakout opportunity...

[x54v] 25/9/2020 10:41

Simon Thompson highlights the potential breakout in his article as well:

"A move through the summer’s closing high of 248p would be another bullish signal. On a bid offer spread of 242p to 245p, the shares continue to rate a buy."

[pratt2] 25/9/2020 10:39

I agree. And from a technical standpoint, once we break through 247 (previous highs) then this will gather a lot of interest.

[maddox] 24/9/2020 12:58

Hi trier1,

The Analysts are being incredibly cautious in their forecasts. You can read for yourself what Gareth Evan's at Progressive has to say here:



LOOP delivered 13.9p eps in the H1 and yet Progressive f'cast 17.2p for the full year? Then eps of 9.3p for 2021? Seems to pricing in Covid-19 WFH as temporary phenomenon and Direct Routing as a complete failure.

One factor leading to the reduction is that large clients are looking to sign lower priced longer-term contracts rather than use pay-as-you-go. This does of course suggest that their clients at least believe that LOOP is something that they will be using on a longer-term basis. And that pipeline, built in just two months - surely those deals wont just evaporate?

It'll be interesting to see how this plays out and how long it takes for opinions to be revised here.

Regards, Maddox

[maddox] 24/9/2020 12:51

Curious that some of you want LOOP taken over before it's had a chance to deliver real value. It's easy to justify a doubling or trebling of the current price (GAMA on a p/e 29.5 versus LOOP prospective p/e 10 on my estimates). Are you really so short-term that you are happy to give up what could be a multi-bagger?

[trier1] 24/9/2020 11:59

Sharepad has the forecasts for the year reduced as of today to 16.1p from 16.4p.

I can see lower margins from new business especially from what they say in the 2nd half and forwards but the reduction in forecasts was strange and I wondered if anyone knew why.

If not that's fine feel free to ignore the question.

[mfhmfh] 24/9/2020 11:17

nasdaq/tech sell off in the US is reflecting on tech shares here in the UK. not unexpected as September is volatile.

when this general tech sell off is over this should fly.

IMHO.

thoughts of Jim Cramer regarding this:

[mrnumpty] 24/9/2020 11:10

Napoleon . “ ... so nice to the Chinese “ !!! As an assiduous follower of the media , is there any guilt whatsoever which could be directed at China ? One really wouldn’t think so by following our blinkered media . Anyway , as investors we have to take this mad world as it is and invest accordingly . Whatever we think is of zero interest to the politicos , and Loop Up looks certain to be a beneficiary of this lunacy ( in my humble and imperfect opinion - do your own research , etc ) . Good luck all .

[mfhmfh] 24/9/2020 10:17

I agree. I think LOOP would be the perfect fit for GAMA.

[valuehunter1] 24/9/2020 09:45

trier1 - r u on the wrong board? EPS up by 1,164% to 13.9p from 1.1p at same stage last year. Not seeing another print like this anywhere. And this is based on first half and I think second half the momentum will be even greater.

[trier1] 24/9/2020 09:28

Proft estimate for the year revised downwards. Does anyone have an idea as to why?