593 – Amit Ben-Haim CEO of Cloudtag, Nicola Duke on the charts and Chris Bailey on EZJ and RRS
Friday 23rd September 2016, CEO Amit Ben-Haim joins Justin Waite on the Vox Markets Podcast.
Here are some of the key points I picked up on;
Amit is in Minneapolis with 6 of his team members after spending a few hours in meetings in New York. The team arrived the day before and are currently working with CITIES crossing t’s and dotting i’s for the next 48 hours, finalising the branding, marketing, market sector positioning, merchandising and logistics to take them into the market soon.
Justin reminds Amit that the most popular RNS on VOX in last 7 days was the appointment of Cheif Business Development Officer, Yuval Lange – RNS
Explaining what CloudTag is, Amit responds that they are a digital health platform IOT company who come up with sensors and are measuring certain body outputs. They are currently focused on measuring heart rate with electrodes and have decided that the future for them is to lock on to a sector rather than one device for everybody. Currently mastering the huge weight loss industry as it’s the largest in the sector and most talked about as governments and private insurance companies are sweating by paying out because of people who are overweight, leading to chronic diseases, such as type 2, cardio vascular and not to mention amputation.
Amit goes on to say that the company have been involved in a great deal that has been achieved over the last month since the last podcast on all fronts with the inclusion of Bhav Dattani, Sales Director from Jawbone from August 2008 – August 2016. He is fresh from the wearables market with contacts and knowledge of all of the players in the UK & Europe. Yuval (Chief Business Development Officer) was flown out to Minneapolis from London on his first day and as mentioned previously, Amit is on a recruiting spree and will continue to recruit new and varied skill sets to assist the acceleration of market entry and mapping out new opportunities.
The special thing about Yuval is that he is very analytical beyond the computer science engineering BSc and beyond that he has an MBA he completed with INSEAD in Singapore, which allowed him to see more of the world. (Amit is very impressed by this and you can see why at the end of this post) his market approach working previously with blue chip companies where he one of the first guys who launched the BT sports programme into the UK with his business to business experience and was responsible for growing the opportunity.
He then moved to one of the largest network internet providers, working with Google, Microsoft and yahoo all of which were his clients. He was responsible for very large projects analysing costs, returns and deploying quite a lot of capital including the identification, management, and development of the products that euNetworks developed & sold to which customers in which segments through what channels. Expansion of the company’s optical network across Europe, e.g. Scandinavia, South Europe. P&L responsibility for a portfolio of 7 products with a top line of over 100m Euros and >30% EBITDA margin. Team management of 10 Product Directors and Project Managers across Europe. It was Yuval who approached CloudTag and Amit didn’t hesitate to offer him a job. He goes on to Confirm that he will be a great guy in the business and one of his chief responsibilities is working within the B2B Medical healthcare insurance companies hence bringing him to Minneapolis on his first day at work. Below is the top 20 in the area!
Justin goes on to say that Amit seems to be building a team of experts with experienced guys which is good and he must be pleased with reaction of share price?
Amit replies that he never reacts to the share price because it is the market who decides – Though of course it always nice to see the stock in the blue. Justin reiterates as he did in his last podcast that Amit has a phenomenal amount of loyal supporters with a huge following of investors across social media.
Justin – “Can you see CloudTag collaborating with any big names in tech world after all of these years of research and having the most accurate tech, people must now be approaching you?”
Amit tries to answer sensitive question without giving market sensitive information away and goes on to say that he can see CloudTag working with Intel, Qualcomm and IBM and others towards data gathering and data analytics, whilst the current trend is digital health care where CloudTag are and on the whole if you look at the market and shape of it, those companies would rather have people come up with the data, sensors and acquisition at source. They can add cloud data analytics and deliver it to stake holders in the market place. If raw data isn’t accurate it will only expand errors, CloudTag is the most accurate medical grade device and he is of the opinion that CloudTag can serve their needs going forward by focusing on the weight loss sector, which is high on the agenda for the government and private healthcare and companies will consolidate within their operation with the down stream providers (CloudTag) to gain market share as data really is the value.
Summarising CloudTag’s base, it is a digital health IoT (Internet of Things) platform company, adding more sensors is the way that he sees the companies progression, as they are the powers going forward with data analytics and data sharing.
Justin asks if it’s the biggest selling point as the accuracy has been claimed to be the most accurate on the market, has this been proven and verified?
Amit says that they are building case on accuracy which is biggest differentiation as raw inaccurate data is not relevant or meaningful. Tests have been carried out with Essex university (found here) and later on with Loughborough university which is the home of team GB and soon to be tested in the USA. All tests will be published on the companies website and Amit insists again that CloudTag are the most accurate device available.
Justin – Fitbit spent $21m dollars in 2014 on marketing budget, where can CloudTag find that kind of money to compete and persuade product is different?
CloudTag are not competing with Fitbit, they have created their own sector in the weight loss as there is no one in the weight loss industry with a device and a service, there is no one holding the hand of the user on their journey. They are going into this market with a device and service which is one of the reasons Bestbuy, Target and M&S to mention a few could grasp the point from day 1 from talking to CloudTtag hence they are not cannibalising on current sales but adding to sales and floor space giving the retailers a product to meet the end users needs and demands.
This is again another direction enshrining throughout this company and all of Amit’s companies as they respond to the needs of the consumer and don’t try to create a need, which is a very sustainable business model here. Amit believes that in 2010 – 2011 Fitbit sales were around the $2m mark and he believes they didn’t have the firepower mentioned in the question back then. However the second element is that CloudTag have the needed cash to support the market entry and the will be more to come, allowing to launch the product on both sides of the pond at the same time. (it was previously announced that UK & Europe will have the first launch with USA to follow, so does this mean that we could have validation from a major USA health care company to support the retail marketing and launch? It wouldn’t surprise me)
Justin – This is the million dollar question, Do you have a definitive date for the units, if so is marketing in place to meet the festive period season sales?
Chuckling away Amit says that Justin knows he can’t answer that question due to market sensitivity but suffice to say that with the addition of Peter Griffith CCO and the new team which is mainly came from Microsoft Nokia they are in great shape and ready to having all brand marketing and clear path to market in our grasp.
Neil from Cheltenham wanted Amit’s address as he wanted to send champagne
As a round off and a summary Justin asks Amit to provide 3 reasons as to why people should follow CloudTag on vox markets to ensure they receive the latest information and RNS’s
Amit cheekily respons with “Actually, as we are always different I will give you 4 reasons “
- Firstly we are the only digital health wearable platform on AIM
- Fast growing Iot company – share price developed since Amit came over 400%
- There is a clear strategy for growth in B2C and B2B with a clear market entry
- Most importantly and above on the whole, having recruited and built a great team of people, this is without doubt the engine for the future.
About Yuval Lange
Yuval’s primary focus is to expand the Company’s strategic B2B opportunities particularly in the UK and EU in addition to growing the Company’s B2B operations in the USA with further recruitments. He brings the required skill set and expertise which will enable the Company to capitalise on the unique market proposition based on our proprietary technology.
Yuval has over 15 years of experience in the Technology, Media and Telecoms (TMT) sectors, leading complex projects and developing commercial engagements in various companies. In his recent role, he managed the product development teams for a pan-European network operator, overseeing a significant geographical expansion of a fibreoptic network. Previously, Yuval was part of the core team that launched BT Sport TV in the UK, responsible for the B2B sector, and he was the commercial lead for BT’s consumer devices business unit. Yuval holds an MBA from INSEAD and a BSc in Computer Science from the Technion in Israel.
As one of the world’s leading and largest graduate business schools, INSEAD offers participants a truly global educational experience. With campuses in Europe (France), Asia (Singapore) and Middle East (Abu Dhabi), and alliances with top institutions, INSEAD’s business education and research spans around the globe. Our 148 renowned faculty members from 40 countries inspire more than 1,300 students in our degree and PhD programmes. In addition, more than 9,500 executives participate in INSEAD’s executive education programmes each year.
In 2016, all three of INSEAD’s MBA programmes are ranked #1 by the Financial Times in their categories: MBA, Executive MBA and Single School Executive MBA
Click here for 39 reasons I’ve invested Why CloudTag?
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Investments can go up as well as down and you could lose your capital.