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LoopUp PLC (LOOP) - Loopy or Lupine?
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- Lemon Slice
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LoopUp PLC (LOOP) - Loopy or Lupine?
I bought a few shares in this company last week as I think it's an interesting proposition with growth potential.
https://loopup.com/en/
As I understand it, what differentiates their technology from Zoom and the like is the quality and security offered and as such their remote meeting offering is particularly popular with professional services companies such as lawyers.
At the current price the market cap is around £45m after a profit warning sent the shares tumbling from much higher.
https://www.investegate.co.uk/loopup-gr ... 00026950G/
The last year, unsurprisingly, has been excellent for them and they expect to show revenue of £50.2m and EBITDA of £15.3m along with significant cashflow. A word of caution on this, in the first half they made EBITDA of £12.2m and this dropped off a cliff in the second half to just over £3m
However, even if they merely tick along at this reduced rate of earnings then I feel that the business is worth the current market cap.
However, the first half demonstrates to me the sort of financial performance that is achievable with a relatively modest growth in turnover.
The big danger as I see it is that when the pandemic abates the demand for remote meetings becomes subdued but I am hoping that they can continue to grow the business in their chosen professional services segment and that the new business they have won proves to be sticky.
All in all it seems to me it is a business with some value whatever happens and the shares could potentially be worth much more if they can continue growing from this new rebased level.
Lester
https://loopup.com/en/
As I understand it, what differentiates their technology from Zoom and the like is the quality and security offered and as such their remote meeting offering is particularly popular with professional services companies such as lawyers.
At the current price the market cap is around £45m after a profit warning sent the shares tumbling from much higher.
https://www.investegate.co.uk/loopup-gr ... 00026950G/
The last year, unsurprisingly, has been excellent for them and they expect to show revenue of £50.2m and EBITDA of £15.3m along with significant cashflow. A word of caution on this, in the first half they made EBITDA of £12.2m and this dropped off a cliff in the second half to just over £3m
However, even if they merely tick along at this reduced rate of earnings then I feel that the business is worth the current market cap.
However, the first half demonstrates to me the sort of financial performance that is achievable with a relatively modest growth in turnover.
The big danger as I see it is that when the pandemic abates the demand for remote meetings becomes subdued but I am hoping that they can continue to grow the business in their chosen professional services segment and that the new business they have won proves to be sticky.
All in all it seems to me it is a business with some value whatever happens and the shares could potentially be worth much more if they can continue growing from this new rebased level.
Lester
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- Lemon Quarter
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
The Stockopedia share club duped a presentation on this last October.
As you say, it’s interesting. At today’s price!
As you say, it’s interesting. At today’s price!
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
Quite a drop in price today, down more than 8% to around 71.4. Has there been some bad news or could this be a buying opportunity?
Thanks in advance for any replies.
Thanks in advance for any replies.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
I assume it's this news that has spooked the market.
https://www.investegate.co.uk/loopup-gr ... 00051119T/
My guess is the auditor is not happy that this is being amortised fast enough or that there is too much goodwill on the balance sheet (they appear to have paid over the odds for MeetingZone to me).
https://www.investegate.co.uk/loopup-gr ... 00051119T/
My guess is the auditor is not happy that this is being amortised fast enough or that there is too much goodwill on the balance sheet (they appear to have paid over the odds for MeetingZone to me).
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
Hi Lester,
Are you still holding these? The SP has dropped down to 68.5 but very little seems to have changed since the start of April when they hit over 90p intraday. I am tempted to buy a few more at this seemingly rebased price.
cheers
Paul.
Are you still holding these? The SP has dropped down to 68.5 but very little seems to have changed since the start of April when they hit over 90p intraday. I am tempted to buy a few more at this seemingly rebased price.
cheers
Paul.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
Hi Paul
Yes I am still holding these and am sitting on quite a percentage loss although it's not a large investment so not too painful. I'm not planning on buying any more though.
Yes I am still holding these and am sitting on quite a percentage loss although it's not a large investment so not too painful. I'm not planning on buying any more though.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
There was a report this week in Citywire saying that Henderson opportunities trust had sold out of Loopup on the grounds that they are facing "stiff competition" and it was their "largest detracror from performance" in the six months to end April, I suggest that sale probably accounts for the current weakness & the report has surely harmed sentiment.
I hope this might be of some help.
I hope this might be of some help.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
There's a trading statement out today and amongst all the waffle is yet another profit warning which has sent the shares tumbling.
https://www.investegate.co.uk/loopup-gr ... 00060523G/
Specifically, the Group expects H1 2021 revenue to be no less than £11.5 million, approximately 13% below management expectations.
This has certainly not been one of my better investments to date but the company seems optimistic it can return to growth so i'll give them a bit more time yet.
https://www.investegate.co.uk/loopup-gr ... 00060523G/
Specifically, the Group expects H1 2021 revenue to be no less than £11.5 million, approximately 13% below management expectations.
This has certainly not been one of my better investments to date but the company seems optimistic it can return to growth so i'll give them a bit more time yet.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
I just don’t get why companies would choose Loop’s product rather than rivals like MS Teams, WebEx, Zoom, Skype…
They seemed to ride on the ‘working from home’ rally in the early days of the lockdown, in the same way that dot com stocks rose in the late nineties, but where will the growth come from?
They seemed to ride on the ‘working from home’ rally in the early days of the lockdown, in the same way that dot com stocks rose in the late nineties, but where will the growth come from?
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
Hypster wrote:I just don’t get why companies would choose Loop’s product rather than rivals like MS Teams, WebEx, Zoom, Skype…
They seemed to ride on the ‘working from home’ rally in the early days of the lockdown, in the same way that dot com stocks rose in the late nineties, but where will the growth come from?
My understanding is their product works with MS teams rather than being a rival to it. However, it disturbs me greatly that when conditions couldn't have been more favourable for them they fell short by 13% in terms of "management expectations". I wish the company and its shareholders well but I sold my modest investment in them today. It was made easier by the fact that a company I really do believe in has had a torrid time share price-wise in recent weeks so I've reinvested the cash in them. That company is Angle PLC, who are involved in rare (cancer) cell diagnostics.
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- Lemon Slice
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Re: LoopUp PLC (LOOP) - Loopy or Lupine?
I also decided to sell my shares. As CautiousPaul states if they can't grow the business in conditions such as these you have to wonder whether their product is actually any good. Not one of my better picks, just over a 50% loss, fortunately not one of my larger investments either.
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