Why I bought LSPD (yesterday)

Please forgive this rough-cut take; I’m just starting out learning about $LSPD. Except where noted, these are all my words (not quotes from anyone at $LSPD).

I bought into LSPD because I think they are executing on an audacious vision, which seems to be to provide value to, and derive profit from every single step in every process involving Retail products getting manufactured, placed into stores and sold.

To do this, they have deployed a system that uses proprietary APIs and in-store “payments” functionality as a gateway into an ecosystem. The ecosystem is architected from the ground-up to collect and normalize data, and then reflect it back to all actors in every link in the ecosystem’s chain, in a way that can be monetized. They aim to have “the largest set of data you can find in retail or restaurant.” (President/CEO’s words). With this data, and the capability to analyze and present it in real time, they are building a Network Effect because they can triangulate and match the needs of “Brands”, Stores and Consumers.

Here are some examples of what they are doing:
→ Informing Manufacturers (“Brands”) which specific stores they SHOULD have product placed in, and which specific products WILL SELL in specific regions/stores.

→ Informing “Brands” of Consumer trends in real-time; in Apparel for example: which fabrics are selling, which styles, which patterns, in which regions/stores.

→ Informing Stores: which products they SHOULD be stocking. They can even inform Stores when they can INCREASE PRICES e.g. if their macro-analysis shows that there is high demand for particular items.

So in other words they can tell Sellers what to order, how much to order, what to charge and who will buy it! And they can tell Manufacturers what they should Manufacture, and in what quantities!

They even have the catalogs of the Manufacturers they work with, available right from the POS interface the Stores use, to make it easy for the Stores to (re-)order merchandise directly from the Manufacturers (saves lots of time/hassle vs. going to Manufacturers’ site to order)! And they are getting into financing the Stores’ purchase of the merchandise, especially in cases where $LSPD knows the loan is low-risk because they already know the product will sell!

They have a vision of adding value to the Customer experience by ensuring that when a Customer walks into a Mall, or a Store, that they will be presented with a CURATED experience that presents them with products that $LSPD knows they want to buy, at prices that $LSPD knows they will pay.

My take is that they seem to feel strongly that they have endless miles of clear runway ahead to “go wild” (the President/CEO used those words) and get in the middle of all transactions spanning everything that happens from initial manufacturing to the final Consumer purchase.

Personally I think their aspiration looks to be to become an analogue of Amazon in the brick/mortar space.

It seems to me that in theory you could partner with $LSPD and they’d be able to tell you what store to open, and where, and what to sell in it, and they’d even help finance your purchase of the merchandise!

I hope to post later regarding some things they are doing in Consumer Verticals (like bicycles) and also some potential new revenue models they have in mind for the future.

I haven’t even looked at what they are doing with Restaurants; just seeing how they are executing in Retail is enough to warrant an investment in them IMO.

I bought yesterday; the market jitters from this past Tuesday, coupled with the short report shaking some shares loose, gave what I thought was a nice entry point.

Long $LSPD 7%