Next Microsoft Buyout?? UK Based Company

3rd Sep '16 by Unknowntrader

19 comments 9702 reads

I've been looking into this company and recently bought in, might be worth a look if anyone is interested

https://cloudtagblog.wordpress.com/2016/09/03/the-microsoft-connection/

CloudTag INC is supported by a uniquely formidable team of business veterans and I want to take you on a journey from the very beginning when MyCloudTag started out as an idea on the back of a napkin in 2009 and turned into something much more promising a year later at the South Pole. The product is as exciting as its location of concept and development.
After seven years in development the launch of CloudTag’s first product the CloudTag Track is due to be released for sale in the USA, UK & GERMANY imminently (See page 6 here) Discussions of exclusive launch dates are on going with the biggest retailers & e-tailers in these territories – announced by CEO Amit Ben-Haim in an Exclusive interview with VOX Markets on Wednesday 25th August 2016.
To give you an idea of scale for the product, CloudTag is the first wearable device to focus its offering clearly on the weight-loss market, which is arguably the largest niche market within wearable.
The wearable arena is forecast to be worth $34 billion by 2020 and will experience a compound annual growth rate of 20.3%, culminating in 213.6 million units shipped in 2020
By looking at the innovators and founding share holders I bring insight into the experience and careers of the illustrious Board of Directors so you can understand how rare & exciting this investment opportunity truly is:

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shipoffrogs

3rd Sep '16

So, how do I lose weight with this tag UT? I'm fed up with this dieting and exercising malarkey.

Unknowntrader

http://www.cloudtag.com/

Check it out :-)

Jessie Pavelka is there Ambassador

That's just a Fitbit HR - I've put on 2 stone since getting mine! Oh well, hey ho.

Outch!! You defo need a CloudTag, meant to be out soon. . Jessie Pavelka does that show Big Loser!

oscar247

4th Sep '16

This company has never generated any revenue since its Aim admission March 2013.

Its apps 'mycloudtag' launched March/May 2014 for Android and Apple devices have proved to be non starters - no subscriptions for the advanced personal training plans offered, hence no sales!.

The company has consistently fund raised through placings and share issues. Biggest shareholder Spreadex has sold down from @ 20% to less than 3% - why, if given the company is on the cusp of major sales?

Since launching its wearable tag January 2016 and appointment of distributors not one single sales order has been announced - the companies RNS boasting of a $5.2 million guaranteed sales order has since had to be amended.to "sales targets agreed with Second Chance will be achieved but there can be no certainty of this".

At best a purely speculative punt in my opinion.

Disco Ball

Zak Mir is targeting 18p from a technical-only viewpoint:

https://masterinvestor.co.uk/trading/chart-day-cloudtag/

oscar247, look at the guy who's running the show.

Amit Ben-Haim has a proven track record as a successful entrepreneur establishing, leading and expanding companies through to trade sale exits as co-founder, executive and non-executive director. In 1993, he co-founded Biosense Inc., a medical devices company which was sold to Dow Jones-listed Johnson & Johnson in 1997 for $485 million. In 1996, he co-established Impulse Dynamics Inc., another medical devices company, which ultimately licensed its cardiac contractility technology to NYSE-listed Guidant Corporation (a group company of Boston Scientific) and in 1998 he was one of several founders of Odigo Inc., a communications company specialising in instant messaging platforms (for example Blackberry’s BBM) which was sold in 2002 to NASDAQ-listed Comverse Inc. Amit’s experience extends across various industries including aviation (private and commercial), infrastructure, corporate finance and wealth management. He has expertise in risk and regulatory compliance for listed companies and is a director of SB Corporate Finance Partners Limited which is authorised by the Financial Conduct Authority to advise on and/or arrange certain investments in the UK.

Also timing on this couldn't be any better

http://www.windowscentral.com/fitbit-shutting-down-microsoft-healthvault-integration-september-12

Ramridge

Unknowntrader -

I spotted this company in March this year. Bought various tranches between 2.25p and 3p.
Sold the lot mid August @6.1p . Around 200% profit is good enough for me.

Perhaps I can add some meat to your note.

Good points
- CTAG claims to be the only wearable that will be medical-grade in monitoring heart conditions. It means that it will be almost as accurate as the equipment used by hospitals. That is their main USP

- Amit Ben-Haim , their CEO, has a strong reputation, and has form. He has previously launched medical products; grew the company and sold it to private equity

- he has secured two major distribution agreements in the US which are impressive

Now for the not so good points
- the product has not been launched yet. It is in trial mode. Launch has been postponed a few times. I believe the latest timeline is 4Q 2016.

- this is a very crowded market place. If you are serious I recommend you go to Amazon first and search 'wrist wearables'. The types of wrist wearables and the range of prices is very large with lots of companies making strong pitches.

- CTAG is in recruitment mode, recruiting staff to ramp up marketing, sales and support. So costs are rising with no revenue yet.

Why did I sell out? Because looking ahead, the risks are high.
- Will they stand out from the competition, and for how long?
- there will inevitably be glitches following launch (maybe not as severe as recent news of Samsung batteries blowing up!)
- the product is manufactured in China on contract. The risk is that it is copied very quickly and it becomes a me-too product. I have not heard of any patent protection.
- marketing & admin costs will balloon ahead of revenues

Or I could be completely wrong and it may beat the daylight out of Apple Watch, Samsung and other strong competitors. Well I am out, and will re-assess the position after they have really launched the wearable and seen how the market reacts.

All IMO and please DYOR

UT - Tom Winnifrith doesn't seem to think much of their timing. He seems to have a point.

Ramridge, thanks for your response.

Point1,
In the following interview on the 25th August 2016, Amit advised Justin Waite that the launch is now imminent (As you said Amit is key here and would not ruin his credibility with false hope )

Point 2,

The market IS crowded, the great thing about Cloudtag #ctag is that NONE of the current wearable products on the market have ECG compatibility which is equivalent to a 12 lead in a hospital, this is not a claim this is a documented proven fact, 98-99% accuracy. There is also no other wearable on the market that charges itself. 1 hour on the beatSMART clip (patent pending) is 5 days on the wrist. None of the other wearables on the market have the same algorithms built in that provide a "hyper personal" Workout and nutrition programm for the end user to choose a desired weight loss target date which will create the unique programm for the individual user to achieve their desired weight loss. The sensors will also learn the end users individual activity patterns. This will very soon be the most ACCURATE product on the market by far , and specifically designed for those choosing, desiring or wishing to loose weight. Other fitness trackers are designed for those engaging in fitness already.l where any feedback was a good thing. If you want inaccurate data, of course choose fit bit, but the investment opportunity here is for more than what Amazon have for sale online ... this is for the health, insurance, corporate wellness program, commercial deals with weight loss organizations, professional sports teams. and more and that's just the start of the product line as the world moves to wearable data retrieval products. Bare in mind also the recruited team on board who are designing future products are under the watchful eye of Peter Griffith head of Microsoft Nokia product design which has sold over a billion units world wide.

Point 3
James Park co-founded Fitbit with Eric Friedman in April 2007 after according to a Forbes profile "realizing the potential of sensors such as accelerators paired with smaller and smaller devices".[4] The co-founders started with an initial investment of $400,000 contributed by themselves and others but realized one year after starting that more funds would be needed for a product launch.[4] They were able to get additional funding from SoftTech and True Ventures.[4] Park found the initial stages of developing the product to be tough especially in finding a hardware manufacturer. He recalled the search for the right supplier and organizing the production line in Asia left the company "pretty close to being dead.

What I'm saying is recruitment is required and as we currently have CITIES (US) & Second Chance (UK & Europe) so costs are expected but Amit has one hell of a track record (You said it yourself)

CITIES (partners; Best Buy, Walmart, Target and Amazon both in store and online. These retailers are believed to comprise 4 of the top 5 retailers in the US consumer electronics industry accounting for circa. 70 per cent of the total market by sales)

Second Chance (is one of Europe's leading sporting goods distributors with over 25 years' experience, specialising in the distribution of sports related technology and accessories to the Europe, the Middle East and Africa (EMEA) in addition to providing sales acceleration, brand management, marketing and PR to support new products and drive product awareness.)

Point 4,
stand out from the competition?? (Don't really need to answer that, its Medical grade & self charging) you need to remember this is not just for fitness. If you have ever been invested in this you should know. if not get reading my friend.

production has been moved from being manufactured in a low volume production partner in Taiwan, which was suitable for production of rapid, low-cost test batches; to new production partners also based in the Far East with mass production capabilities and which hold the following ISOs: 13485, 14000 and 9000. Key word *mass production capabilities* Why i wonder??

As of Microsoft, read this and see if you change your mind. Might be nothing but none of it is untrue and couldn't be verified by yourself

https://cloudtagblog.wordpress.com/2016/09/03/the-microsoft-connection/

Also shipoffrogs,
Tom Winnifrith has as much credibility as I do to you as UnknownTrader. Research is Key and i would expect anyone investing in anything from property to the stock market to not go in blind.

PS, sorry this was rushed as going out o please excuse any errors :-) GLA

OK, unknowntrader, I am not into point scoring.
"You pays your money, you takes your choice" as the saying goes.
Good luck :-)

UT - well TW's appears to be saying that a big sale order was announced just ahead of fund raises and it appears that order subsequently fell through. He has quite a credible record on identifying bad AIM propositions.
I have posted on the other Cloudtag thread questioning the alarming volume of fund raises this company has entered into this year - I can't recall seeing so many. You've obviously done your research - why do they keep going back to shareholders asking for more money? It says very little about their ability to forecast their short term financial requirements - if they can't get that right what confidence can we place in their market forecasts? Or am I missing something?

5th Sep '16

shipoffrogs ,

All you need to know about TW

https://sharetipstersuncovered.wordpress.com/2015/01/02/is-tom-winnifrith-the-biggest-loser-ever

If you look at any fund raise, a premium has always been paid. those guys are laughing now as the price has nearly 3 bagged since.

I trust Amit, cannot find a single negative thing about him. but TW. I don't know what his beef is but its going to get him into trouble.

As of the big sale order was announced just ahead of fund raises and it appears that order subsequently fell through. not seen that RNS

BlueFrew

"The wearable arena is forecast to be worth $34 billion by 2020 and will experience a compound annual growth rate of 20.3%, culminating in 213.6 million units shipped in 2020"

An average unit price of nearly $160. Really? If you are expecting a prolonged period of hyperinflation, I suppose it's possible.

The only question people should be asking is whether it is possible to short this dog with fleas. Some people are going to lose money when this craters. Fitbug Mk II.

Connor Davidson

31st Dec '16

So CloudTag spends a few million on R&D and licenses some tech, fails to sell a single unit one year after the heavily ramped launch (complete with guaranteed orders that never happened), loses around £2M/year and then suddenly Microsoft decides to pay over £40M for this? If you believe this you'll believe anything. If you ignore the cash and listing and imagine CloudTag on Dragon's Den asking for £100K for 10% I would happily lay a 10/1 bet on an investment.

The brutal fact is that CloudTag does not have the money to even dream of launching a consumer electronics product profitably. The last refinance was done using a death spiral. Consumer electronics margins are tiny and FitBit has almost $1B of tangible capital. To get a 20x PE you need over 50% ROE in an industry where ROE is ~10% on a good day for a well entrenched incumbent. 10% ROE and zero cash burn puts the company on 100x earnings. The company is irrelevant to Microsoft and is very likely to go bust on its own.

matylda

Guys to be honest this rubbish should be removed from Stockopedia for fear of turning into another lse or iii - Please do remove this junk post.

shauniekent

1st Jan '17

CloudTag has been called out as a Fraud.
The evidence strongly supports this.
It will likely go to zero.

Fools and dreamers will be led by pied pipers running the company who will have made away with plenty during the last year or more.

Next Microsoft Buyout?? UK Based Company

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Unknowntrader

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