Decreased comfort level

[TurboTime]

I have to admit that my comfort level with Pareteum is decreasing a bit due to a couple of critical articles and comments. I feel that I can't entirely ignore these criticisms and we think investors in general should not ignore other opinions of their stock, even if they're completely the opposite of one's own opinion.

Here is some of the stuff I'm uncomfortable with as I don't have ready answers and can't argue these away:

1. While most of the customers who signed up are not known by name, there seem to be some questionable companies in those that are known. As a result, we can't exclude the possibility that the backlog number ($933M per this morning) could be overly aggressive and there seems to be at least some recognition from management as they guide 2019 at 75%-80% conversion, not their historic 100%.
   
2. The previous history of their CFO appears to have some problems.
   
3. The fact that competitor Twilio needs a much higher level of OpEx, providing the CPaaS services seems to require more manpower at Twilio than at Pareteum. Despite doubling revenue, operating cost haven't increased all that much at Pareteum last year. While I previously considered that a sign of potential great operating leverage, it's odd that this isn't visible in a much larger competitor.
   

Keep in mind that the fact that we can't answer these doesn't necessarily mean that they don't have satisfying answers.

In case you think I'm changing my mind 180 degrees and turned into a short, no. There are a number of positives that stand quite solidly and are difficult to deny, like:

1. The whole CPaaS sector is growing fast.
   
2. Organic revenue growth of 101% in 2018.
   
3. Management guided 2018 revenue very conservatively (50%+ growth), curious for a management that is accused of being very aggressive.
   
4. Having Vodafone as its biggest customer, good for 40% of revenue.
   
5. The recent deal with Citrix, indicating iPass (which was ailing prior to the acquisition) business can be revived.
   
6. The 12M shares in bought by Hoving Partners, Swiss wealth management managed by a former non executive Artilium director.
   

Longs can take comfort in these six facts. 
Whatever exactly the reality is, sentiment seems to have turned as the stock seems to be unable to rally further on good news. I realize people might even get angry at me for writing this, but I feel one should be as open as possible to conflicting information and alternative readings of the facts and I feel I have a duty my followers to also point out potential pitfalls. We should at least discuss these things open, here.

Admin,
I hear your concerns and positives, let me do my best to respond to a couple of yours and mine concerns.  BTW, I am a long time, way over due bag holder of ETAK/TEUM, avg down after RS to $1.86 with approx 100K shares.

Concern 1: I am happy to see and know from my own calculations that Hal and TEUM has, I would say conservatively, baked in the backlog conversion of 75-80% for 2019 rev targets $105m-$115M. As well all know, 100% is impossible to achieve but with this float, they can manage the over and under revenue actuals buy customer.  
Concern 2: Major concern of mine. I knew of TEd from a previous disaster of a stock call AUGT/HIPP which went belly up a couple years back and I dont trust Ted as far as I can throw him.  I believe in second chances but it seems trouble follows Ted around.. Google him..
Concern 3: comparing TWLO to TEAm is like comparing Apples to Oranges from a technical standpoint.  yes they are in the same Industry, but their back-end platforms are very different.  (TWLO is "heavy" to run, analogy I like to use is like running SAP - ERP and TEAM is very light to run, like SFDC) So with this the supporting infrastructure and resource load can be significantly reduced under the TEUM model.. 

Bottom line is the "proof is in the pudding" as the next couple Quarters rev results and backlog conversion is critical to mkt trust.

All the best,
KI