Loopup Share Discussion Threads

[prof_peaky] 16/3/2021 22:18

Hi Kirkson. View on amgo?

[kirk 6] 16/3/2021 17:52

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[sev22] 15/3/2021 20:22

The Group will announce its preliminary FY2020 results on Tuesday 23 March 2021.

[arcadian] 15/3/2021 20:19

Are results due soon?

[kirk 6] 15/3/2021 14:43

Yes agreed you would've thought the share price will be much higher off all those boys but as soon as it goes up a load of sells keep getting pushed through. Which is perfectly normal in most instances however we haven't had any news on major hold as yet?

[robertpeacock] 15/3/2021 13:57

Does someone put a thumbs down to everything on this channel!!!??

[robertpeacock] 15/3/2021 13:56

Don't know. On those buys I would expect it more up.... I feel something is bubbling though.

[kirk 6] 15/3/2021 12:21

In the absence of any holdings news where is it coming from do you think?

[robertpeacock] 15/3/2021 12:09

Lots of buys but little price movement. Means market maker has a ready supply at that price....

[kirk 6] 15/3/2021 12:03

Wow, Something seems to be happening today that's for sure!

[kirk 6] 15/3/2021 11:42

The exact same thing was said with UPGS and LUCE A few years ago it took awhile for the share price start rising back higher. But eventually people buying in at this price will make an absolute killing. DYOR etc

[kirk 6] 15/3/2021 11:24

But then again it can take months for long-standing sellers to fully exit their position based on non-achieved expectations. Once this is complete the share price rockets back to where it should be (£1.80-£2) based on current known. Then if we see growth in 2021 and 2022 we should be between £5 and £10 a share

[the monkster] 14/3/2021 10:56

4 months ago FFS. If investors' reaction was so misplaced then don't you think there would have been some sort of "adjustment" (up the way) since then ?? Strikes me as more a case of, it fell to a level that the market felt appropriate and that that has been the case for four months now.

[cooltools] 13/3/2021 14:33

30th November 2020 - so the "market reaction was savage" refers to the fall (about 50%) on 26th Nov.

Clearly the market didn't like the idea of focusing on its core market (professional services) and admitting there's no profit in the non-core competition against Zoom, MS Teams, Google Hangouts/Meet and other cheap/free video teleconferencing products, which was worth 14% to LOOP.

IMO they found their niche (high quality telephony for professional services) and with their tie-up with MS-Teams, are perfectly placed for a significant recovery.

[orange1] 13/3/2021 14:25

Depends on whether or not you describe 30 November 2020 as recent.

[the monkster] 13/3/2021 12:09

is this recent ?

[ianb5004] 13/3/2021 11:19

Pipeline of live cloud telephony opportunities has potential contract value of £84m.

LoopUp (LOOP:84p), a London-based premium remote conference meetings company, downgraded revenue expectations on Friday while I was on leave. The market reaction was savage with the shares halving in value and slicing through my 138p entry point (‘Tap into the remote working boom with LoopUp’, 2 July 2020). Having seen the share price rally 80 per cent to 250p by late summer, passing through my initial 225p target price in the process, the holding is now 40 per cent underwater. Although any downgrade is disappointing, in this case I feel investors have massively overreacted.

Firstly, business remains strong in LoopUp’s key professional service verticals where data privacy and security is paramount (law, accountancy, investment banking, corporate finance, private equity, asset management, insurance, PR and marketing). Minute volumes are 43 per cent higher on average (during September and October) than pre-pandemic levels. This growth driver is still in place.

Secondly, the issue is in non-professional (and non-core) segments which account for 14 per cent of platform revenue. Minute volumes have fallen 10 per cent (compared to pre-pandemic levels), and churn has spiked to 30 per cent, a reflection that non-professional segments face greater competition from rivals Zoom and Microsoft Teams, and clients suffer greater financial distress and have higher levels of employee furloughing. Although this pressure is unlikely to ease anytime soon, these are non-core segments and account for a diminishing amount of LoopUp’s overall revenue.

Thirdly, there has been a shift in the call mix towards lower-rated domestic and dial-out minutes away from higher rated international and dial-in minutes, a reflection of the depressed number of international deals being done. This in turn has impacted the average revenue per minute. However, as cross-border activity bounces back from depressed levels during the global economic recovery, then international usage should bounce back, too.

Fourthly, although analysts at Panmure Gordon have downgraded their 2020 revenue estimates from £55.6m to £50m, cash profit will still be more than double from £6.4m in 2019 to £15m to deliver annual pre-tax profit of £8.3m and earnings per share (EPS) of around 14.5p. Moreover, analysts’ new 2021 revenue estimate of £35.5m is based on LoopUp’s current revenue run-rate of £34m and factors in no contribution from the recently launched cloud telephony [integrated with Microsoft Teams] business. This product offering enables clients to make and receive external calls via a third-party network direct routing to companies using Microsoft Teams, alongside its own premium remote meetings capability.

Bearing this in mind, the directors note that the pipeline of live opportunities here has a potential contract value of £84m, up from £68m just in late September. They also revealed that the company has been selected by a private banking group to provide their global cloud telephony, subject to a successful three-month proof of concept trial which starts in December. In other words, the pipeline is being converted.

Fifthly, the company has paid down substantial amounts of debt this year. In fact, analysts at Progressive Equity Research expect net borrowings of £1.9m at the end of December 2020, a sum that is £9.6m lower than 12 months earlier. This means that although their 2021 cash profit estimate of £6.1m is less than half previous estimates of £13.3m (due to the lower revenue run-rate), LoopUp’s enterprise value of £48m now equates to only 8 times downgraded cash profit forecasts, a massive 41 per cent discount to the UK Small-Cap Technology sector average multiple of 13.5 times 2021 enterprise value to cash profit.

The point is that as LoopUp converts its pipeline of potential contracts in the cloud telephony [integrated with Microsoft Teams] business, and cross-border activity bounces back to more normal levels (thus driving up higher margin international call volumes), there is scope for the current revenue run-rate of £34m to ratchet up and drive profits higher. Recovery buy.

Simon Thompson investors Chronicle

[pictureframe] 12/3/2021 11:20

Moved down on small sell. Need stock imo

[eye2] 12/3/2021 09:12

will it have yet another go. full ask for 3 grands worth

[kirk 6] 11/3/2021 12:24

Just imagine, if they came out with a new contract to win in results on the 25th of March the share price would literally go into orbit

[pictureframe] 11/3/2021 12:15

1.50 target here if update ok

[eye2] 11/3/2021 12:13

this moves fast would not surprise me to see a pound by Tuesday

[sambessey] 11/3/2021 11:54

We will get there. I think it's going to take an update from the co. to give us any real movement here. I can see us hanging around 80 for a little bit yet, but I am using the opp to top up here and there when I can.

[eye2] 11/3/2021 10:18

Nt Nt whats going on ?no stock it seems at late 83s