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boom 1/2 the asset connections gone...
oh but they see cash flow break even in 2023. 100% they will reach that target.
where are the 90k assets? I thought they had a plan? Russ is basically removing all information and analytics on the performance because it is horrible. You will just have to trust his "numbers".
but even if that happens. Have we actually seen any real cash flow?
It makes me think more and more that they can't sell the prefs and that's the delay.
It's beyond comprehendible. It's like he assumed that he could have kept raising money forever. They should have raised 100M years ago. But Russ would have spent it.
I guess none of this really matters if they can't get to positive cash flow. Might as well issue 1B shares at 0.10.
So the share structure will potentially be:
35M converts
16M Existing Common
10M offering
61M shares + Warrants correct?
Great. They lowered the conversion price to $1. Great.
Perfect yet another F-1A. I can't seem to read it... Ok avail on the mCloud website
That’s why we need a board shake up. Someone who represents the smaller investors. The largest shareholders are going to be the saudis through this new offering and the prefs
I sent you a DM on Twitter. If you want to make a difference, from my experience we need to be more organized.
Ya but i'm talking about having consistent metrics. they just dissapeared, but were important to see inside to a certain extent. The SAAS metrics help show lost assets or customers through the net retention etc. They can have different metrics, but they need to be consistent. they just dissapeared.
Yes but maybe we can smooth the language out lol. I want to ask about the:
SAAS metrics they used before, but stopped. We need clear consistent growth targets that tie into the SAAS metrics:
-New connections vs connection targets (20k by year end)
-New connection MRR vs old
-Free Cash Flow targets. I mean real free cash flow, not BS cashflow. Including normalizing expenses like "professional fees". Reduction in professional fees. We spend 1.7M in 2021 on auditing, which is fine, but we are spending 3M a quarter on professional fees now. You can reduce all the headcount you want. But we spend the same on professional fees.
I want Russ to explain what value has the board brought in the last 2-3 years. I want a board shakeup with skin in the game. I have more shares than a couple of these board members.
we obviously all should ask that next Q. I’m going to send in a bunch of questions.
I was thinking that before. I know that most investors want protection and upside, so converts is the way to go to get a coupon while you wait. But this should have always been funded with common. But it was just painful because they didn't grow the business....
I feel like google cloud is just another promise of growth... Like they need to get to the 90k target. We are about to see another adjusted revenue deck next presentation.
It's like they keep getting more debt and less revenue!
I am expecting another large "one time cost" severance of laying off 25% of the staff... That's 50 people in an organization with 200. I don't expect they only gave them 2 weeks pay in severance.... the legal standard is around a month per year... so i expect 2-3M in lay off costs.
They also need to "lay off" the "non-recurring" costs like professional services....
It would have been fine if mCloud was a cash flow positive business. Then I'll take debt on for a 4-5 year pay back. But they can't find a way to be cash flow positive... screw all this strategy. Just connect assets and charge the $150/month guys...
Im not saying that it could be a lot of assets, but I think they are only disconnecting the "disparate small-box retail facilities". I had to look up the word disparate because I'm a dumb person. It means unique. So I don't think they are disconnecting all the legacy. Probably just the small accounts because it's inefficient to manage. Easier to manage Bank of America with 2000 assets etc... But usually I am wrong.
So people will essentially buy assetcare through Google now, not directly through mCloud...
"The nature of our strategic partnership and integration with Google Cloud includes mechanisms for contracting via Google Cloud as the contracting entity to end customers. As a result, the details of customer contracts must remain confidential in accordance with Google Cloud policies. As announced earlier this week, we are moving very quickly to join forces with Google Cloud in co-selling AssetCare worldwide to drive ARR growth. mCloud and Google Cloud together is truly a sum greater than its parts."
I don't understand the carbon royalty thing:
"mCloud and Carbon Royalty Corp are working toward a mutually beneficial arrangement where mCloud returns the deployed capital used in customer deployment, permitting, and solution development, evolving the relationship to one focused around leveraging Carbon Royalty Corp's expertise to manage and develop carbon credits and carbon offsets across all joint mCloud and Google Cloud activities, tracked through AssetCare for a fixed royalty rate."
Royalty for who? Is this so we don't have the debt on our balance sheet and we charge a royalty fee?
Professional services gone. Big surprise there. Some dude on the yahoo board already said that was happening...
So they are ditching early assets. So the 90k target is gone. I don't really care about asset numbers, but we need to get this thing cash flow positive. We're digging a hole here.
I think a lot of volume and any movement is day trading and pump/dump by people who don't know the company.
Ya I'm more confused than before....
But DVP, it's strategic! I sick of strategy and want more implementation... Implementation pays the bills. How much are we making from the cyber deal?
Hopefully this means they are getting the prefs done. But next month I wouldn’t be surprised for another loan and more confusion. I don’t expect them to provide any other info until the Q3. Wouldn’t be surprised if Q3 is delayed.
russ funding another month of burn
I don't understand why he lowered the price target. I though Russ had a billion dollar business here...
Brian Kinstlinger Still says it’s a buy. Wonder if he spoke to Russ. Not that you would hear anything but empty promises.
Alliance Global Adjusts Price Target on mCloud Technologies to $2.50 From $4, Reiterates Buy Rating
I've been trying to contract a lot of people, but don't get replies from analysts. But I have a back track record of people getting back to me in general... I haven't really bothered contacting people from inside the company... I guess I could message everyone that works there on linkedin, but I don't want to be that guy...
have you tried contacting fiera?
So there is an order debts obviously in bankruptcies. I'm no lawyer, but my understanding is that secured debt is treated differently than non-secured debt. They placed CR 1st, secured against the EV dealerships. So I don't know, but if that asset goes to 0, I'm not actually sure you have a right to part of the company, proportional to the debt. At the very least you wouldn't get full control. Especially if all the rest of the debt was called, which they all could because we are way beyond the covanents.
I think generally secured debt is like a mortage, that is only secured against a particular asset. Like you can call the debt on the asset and take control of the asset, not the company... but you would have to read the details of the deals...
But here is the likely Scenario:
Carbon gets full control, then fiera becomes #1 debt holder... calls their debt from CR... and so on. So what ends up happening is a restructuring of all the debt... it becomes a mess. There are people who invest in Bankruptcies and buy undervalued rights, but it is a very specialized art. Howard Marks does this stuff. So if all the debt is called, then it would be sorted out in court. But in the mean time, the company would lose all its staff, because the ops isn't cash flow positive. It would really screw the bond holders too.
Plus a lot of bond funds don't actually want or have the mandate to hold common rights, so they would just sell the entire company. I believe the fiera debt is in a bond fund (fiera private debt fund VI). So you would have to read their mandates...
Yes, but if you don't have equipment the dealerships won't be paying a $7000/month fee. So carbon would have to pony up the money all over again and fight to tie it into Asset Care. Like im sure there are legal details in the Bond, written by smarter people than me, but... what a mess if that happened...
Like there are so many things they can do before actually going BR. They could sell the company, raise higher yield debt, etc.... I think selling the company is the biggest risk where they do some back door deal to give the insiders more and the rest of us get screwed...
If your securitization right is limited to the EV equipment, if there is no equipment to secure against, what is the point of securitization? Wouldn't you just become another unsecured bond holder? Maybe you have first rights of recoupment otherwise...
And I haven't seen insiders dump their shares yet....
The only thing we have going for us is that if the bond honders call the debts, they get a cash flow negative company, mind you with no debt, but then they have to raise more debt anyway.
Like let's be honest, they are in deep cash trouble. If they got assets connected 6 months ago, maybe they wouldn't be in this mess. But 100% they had to use that cash.
However, we did have some permitting problems in the state of New York. I think
this is part of getting a new segment started with the utilities and with the municipal governments in the state of New York. So we expect all those kinks to be worked out by September. We have a dedicated, very smart team on that, and we expect those kinks to be worked out by September.
So you can't start the work until you get a permit. So I don't even know how they would have spent money on anything for the dealerships without permits....