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Well, the way I see it, if they had enough confidence in their business to make an acquisition of this size in the midst of a pandemic which was cutting off access to their customers, then they should have enough confidence to be stepping in and buying shares at these levels. A 5500 sh purchase by the CEO isn't going to cut it.
The $11.7M cash balance does not reflect the C$4.75M (5M AUD) cash pymt owed Kanepi, correct? That would mean they're sub $7M cash balance when that deal closes.
Please let me know if I've made a wrong assumption about the Kanepi pymt.
I don't think cancelling is an option at this point, unless you want a lawsuit on top of everything else. Although, the deal definitely is hard to understand now that we've seen the impact Covid has had on their business and cash flow. Was it really the right time to make an acquisition given the environment they find themselves in?
I don't know. I'm gonna have to watch that web presentation again where they discussed the deal.
We need insiders to start stepping in here with some significant buying.
We would need to see a lot more insider buying than a 5500 sh purchase to convince me the bottom is in.
Let's hope this was just a start ...
Filing
Aug 19/20 McMeekin, Russel Direct Ownership Common Shares 10 - Acquisition in the public market 5,500 $2.07
US
https://www.canadianinsider.com/node/7?menu_tickersearch=MCLD+%7C+mCloud+Technologies
Asset Care Initialization vs Asset Care over time.
Is this breakdown as simple as AC revenue from installations in current Qtr vs AC revenue from installations in prior Qtrs, or is it more nuanced than that?
Also, what is the justification for adding Salaries, Benefits back into the EBITDA number? These are recurring expenses.
2,675 assets connected in the Qtr (51,347 total). That's a bit more than I guessed, but it's clear Covid has been a big hindrance to their implementation schedule. Russ seems to still be clinging to the 70K year-end number, although I'm not exactly sure what "good line of sight" really means,
"Though we remain dependent on local, state, and national back-to-work guidance enabling our access to customers, we maintain a good line of sight to achieving our goal of connecting 70,000 assets around the world by end of year."
https://investor.mcloudcorp.com/press-releases/press-releases-details/2020/mCloud-Technologies-Brings-AssetCare-to-Over-1000-Oil-and-Gas-Assets-in-First-Year/default.aspx
Barry said "a little over" 50K and the graphic display read 50K. So it's reasonable to assume that the amount over 50K is immaterial. The point of my reply was that they only have 2 Qtrs, not 3 to add the additional 20K to meet their target.
What are these predictions made that "don't seem remotely close to being realized". They projected 40K connected assets at end of 2019 and delivered > 41K. They projected 70K by end of 2020 and were on pace after Q1 despite the Covid disruption. It does now look that they've fallen behind due to Covid shutdowms in Q2, but don't seem to have backed off the 70K number yet.
So what specifically are you referring to here?
I hope you are correct, but the truth is that Covid-19 is getting worse in parts of US not better. I think a lot of this will come down to where the backlog is located geographically.
"70k assets, so 20k connected in three quarters (Q2 - Q4), not far off from the 30k annual pace he said the sales team has capacity for."
Unfortunately, that's not correct. The 50K total is as of July 14th presentation, so they only have two quarters to connect 20K and meet their goal.
GPFO Virtual Forum Presentation on 7/14. During the 10 min presentation, they updated the connected asset base to be "a little over 50K assets". I think this really demonstrates the destructive impact that Covid-19 has had on their business. If you recall, they connected an additional 7,584 assets in Q1 ending the Qtr with 48,672 total. This means they were only able to connect approx 1300 assets in Q2.
I understand all of the concern about the company's growth strategy etc, but right now the biggest concern and threat to the share price, in my opinion, is the ability to get this backlog of biz installed and reach that 70K asset goal for 2020. Covid-19 is the problem here.
Question about the PR from last night. Is this the closing of the same C$4 Million offering originally announced on 5/26/20 with the "prominent investor in Europe". It's a bit unclear to me because it also states "The Units were offered by way of a shelf prospectus supplement dated July 13, 2020", which of course is after the original date. I guess because it was a PP then the prospectus could be issued retroactively?
There were modest insider purchases reported the last week in May and first week of June. It's possible they are in a dark period currently until earnings are released.
On the recent webinar that Russ and Tino did with RCA, they discussed the revs resulting from the Nybl patnership. If I recall correctly, it was 2 assets per well at approx $300 per month each. So around $1.2M in monthly recurring rev once they are fully installed at all 2000 wells.
As for catalysts, the Naz uplisting was something that looked like a potential near-term catalyst, but the recent plummet in the stock price could change the timing there. According to the same webcast, they need to get the price back over $3 to be in compliance. There's a lot of effort and expense that goes into the uplisting process, so you have to figure getting back above $3 has to be a primary focus.
Investor webinar w/ CEO Tuesday, April 7th 2:30pm est
I'm having trouble understanding the timing of this latest offering. What was the urgency for raising another $1M right now?
Some quick math ...
$10.2M Cash (as of 12/31/19)
(-)$3.3M (avg qtrly operating cash burn 2018-2019)
(+)$1.45M (Q1 exercise of warrants)
(=) $8.35M
So it looks like at the end of this Qtr (3/31/20) they would have enough cash at least through the next 2 Qtrs (without the latest offering).
I don't know. I could be missing something, but with no real urgency here, why not wait a few months and see if you could get the stock up over the $1.56 level where there are still approx 4M outstanding warrants?
My guess is that they wanted to lock in the additional $1M to allow them to report that they are now funded through the end of the year.
Any thoughts?
The latest ... you can see why I was skeptical.
https://fintel.io/doc/sec-424b5-2020-march-31-18352-681
OK, there are a couple significant "If's" in there. It's not quite the same as them being "funded into phase 3".
I don't get too excited about large % moves (in either direction) on extremely light volume. It's typically just a matter of illiquidity rather than any real buying or selling pressure. Meaningful moves are typically associated with significant volume.
mCloud in some good company on that list. I'd like to see the market caps alongside the company names.
I found the PR today to be somewhat encouraging. Not a whole lot of activity in the stock today though. In my opinion, this comment below seems to make the BuildingIQ news from yesterday even more significant, considering a larger % of growth may be driven by connected buildings with slowdown in oil/gas. Thoughts?
McMeekin added. "While we expect to see lower demand for our technical project services in segments such as oil and gas, we believe these should be offset through the activity we are seeing in connecting buildings, remote wind farms, and the rapid uptick in demand we are seeing for remote connected workers."
https://finance.yahoo.com/news/mcloud-connects-41-000-assets-110000390.html
Definitely not the kind of news we need right now. Better that they caught it now than later though. Hopefully they can still figure out a way to make this deal work.
https://finance.yahoo.com/news/mcloud-evaluates-alternatives-buildingiq-resulting-030300343.html
Curious as to how you've determined that Trov is funded into
Phase 3. Thanks.
Was this an e-mail reply to a question, or was this statement made publicly? Thanks.
No problem.
A thought I had regarding this new CO2 tech, was the potential to deploy in hotel chains. As far as I know that's not a current customer segment for mCloud, but one that you would think might like to promote their "air quality". Who wouldn't these days?
FYI this is the response I got from the company when I asked this question via e-mail ...
"The 3,000 buildings referenced in the news release are net new to mCloud & the CO2 tracking technology is new to mCloud's product line."
To be honest, I'm not exactly sure how "new" this information is after reading through it multiple times. It's unclear to me whether they are actually announcing a new technology that they will be updating to their AssetCare platform, or are just reiterating a technology that has already been deployed.
Perhaps someone could shed some light on that for me?
This part really stuck out to me.
"Our 2020 plan originally saw us connecting at least 28,000 new assets in thousands of buildings across six countries through energy savings alone, and the addition of digital air quality capabilities will enable us to drive that growth even further."
This could almost be interpreted as an increase to their previous guidance. No?
Today's PR is very much consistent with your view that the current Covid-19 crises could actually present an opportunity for mCloud to expand their business. The idea of making buildings not only more energy efficient, but also safer for occupants could be a significant development.
Very timely PR to say the least.
https://finance.yahoo.com/news/mcloud-advances-ai-beyond-energy-110000619.html
Trust me, I hope you are correct on that and that by end of summer or sooner things are back to normal. Will be a very interesting CC to say the least. Do we have any idea yet on the scheduling?
Hello, first post on board.
I'm curious as to your reasoning for why you think mCloud is "well-positioned" for this kind of environment. I understand that their revenue model of 3-yr subs should help mitigate the immediate impact to their top line, but I do have some concerns about their business model in this environment. Most notably their business ties to the oil/gas and retail sectors, both of which could suffer real long-term damage here. Not to mention the debt that the co. is currently carrying on its B/S, which hopefully does not become a problem if growth were to slow significantly.
Don't get me wrong here, I really like this company and am still long the stock. I am just a bit worried about some of the long-term effects to their core target customers here. Things were looking so bright just a few weeks ago with the pending uplisting and projected profitability in Q4 (according to CEO), both of which could potentially be delayed.