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Ah Parm just answered my question.
I was about to ask if this is the US Tony Brown.
@Chalker Not at all, I disagree. There will be plenty of funders and SYME will learn from the Greensill mistakes.
Sill can't believe extrader posted a positive story on SYME. Shock horror!!
So the trolls who were discrediting Tony Brown when the USA RNS came out are now quoting him?
Lol you couldn't make it up.
Chalker the Stalker is back....lock up ya bin lids!
Tik Tok Moderators kick you off for loitering too long again?
Go away Creepy. You are not invested in this share.
@Chalker
Actually the opposite, the gap in the market 'just got bigger'. Funders will see an even bigger potential for SYME's offering.
Thanks for above article hadnt seen it yet.
Important to differentiate between supply chain finance and inventory monetization IMO. Alot are lumping the 2 of these together when they are definately not the same thing.
Symes offering is unique and clever.
Companies get access to working capital which is not shown as debt on there balance sheets.
Companies inventory is digitalized and tokenized which allows for the traceability aspect of the underlying.
(This would offer a solution to the mess you have seen at greensill if anything)
The funders get a return on there money and the guarantee of knowing the inventory has been tokenized / accounted for. Plus technically own the underlying if $#1T was to hit the fan.
Syme gets a return on thier platform fee.
Everyone benefits. It's a brilliant idea.
The key will be selecting inventory that has a resale value and doesnt depreciate.
It's just down to whether or not they can pull it all together. Extrader thinks they can't / wont. Alot of us investors think they can / will.
Over to AZ and the team to find out.
@londoninvestor, trouble is it will scare off any funders and insurers as well. Not so good.
Great article, gives me more confidence in SYME!
Tony Brown has been very positive of SYME recently, and if what has happened to Greensill scares off the competition then fantastic!
This is great news for SYME!
Agreed. This one article covers both : https://www.theguardian.com/australia-news/2021/mar/05/tens-of-thousands-of-jobs-at-risk-as-greensill-capital-moves-closer-to-collapse.
Re the 'rogue' employee, Greensill was told that policy paperwork was incomplete last August and (per the article, granted) didn't correct.
It tried to force an extension to cover on Monday and withdrew the case yesterday.
Greensill previously tried to force reuters to withdraw an article critical of some of its dealings...and withdrew from that too.
I 'get' that insurance companies will often try to avoid what the insured think of as their obligations, but it's pretty clear that Greensill knew that there was 'an issue' 7 months ago....and doesn't seem to have done much about dealing with it.
Why not though, the work completed in the back ground seems sound... my criticism would be about the companies comms and setting of realistic time frames not the fundamentals of the business itself
@extrader
The press is the press, you can read two different publications and wonder if it's about the same story.
Don't know about the 'alleged' activities, the mainstream press has any number of articles clearly stating that there were excessive , long-term, previously discussed/criticised exposures to steelman Gupta and incestuous dealings with shareholder SoftBank and some of its other subsidiary/investee companies.
A rouge underwriter equals red faces all round. This is poor control, a single rogue underwriter should not be able to destroy any business.
.."why wouldn't you want that to work?.."
I do want it to work. I don't think SYME is necessarily the right company to make the breakthrough.
..."Greensill's woes stem from a lack of Due Diligence and allegedly a 'rouge' employee who was underwriting stuff that he had no authority to underwrite..."
Don't know about the 'alleged' activities, the mainstream press has any number of articles clearly stating that there were excessive , long-term, previously discussed/criticised exposures to steelman Gupta and incestuous dealings with shareholder SoftBank and some of its other subsidiary/investee companies.
You just referenced Tony Brown who actually referenced SYME in a positive light recently!!
While I'm ****ed off with the suspension as at its worst its incompetence and at best a delay tactic... neither as an investor I approve of i do think SYME is a fantastic business that could genuinely do well for investors while helping business... why wouldn't you want that to work?
Great summary, it is worrying when posters, take a bit from here, then another bit from there; it allows them to paint the picture they want.
https://www.theguardian.com/australia-news/2021/mar/05/tens-of-thousands-of-jobs-at-risk-as-greensill-capital-moves-closer-to-collapse
@extrader
Greensill's woes stem from a lack of Due Diligence and allegedly a 'rouge' employee who was underwriting stuff that he had no authority to underwrite.
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/greensill-case-could-trigger-loss-of-confidence-in-supply-chain-finance-market-62983186
..""Greensill really did put this technique on the map. They deserve kudos for that," said Tony Brown, CEO of The Trade Advisory, a trade finance consultancy, in an interview.
But with Greensill now in financial trouble, Brown said it could prompt investors to question supply chain finance as an instrument.
"When something like this happens, it deflates the enthusiasm that ordinarily should exist for this technique. I worry that it will scare off some investors who otherwise should be attracted to the space," he said..."
In a subsequent linked in exchange, Brown goes on to say :
.."The REALLY exciting piece of the puzzle is the financing of inventory BEFORE it becomes a payable or receivable. This is the real pain point for both buyers (who prefer to release scarce capital from idle inventory ownership) and their suppliers (who want to recognize an early sale for cash). As you might know, solutions like Supply@ME Capital plc, Arviem AG, and others offer such off-balance sheet solutions.."
Arviem is interesting hxxps://arviem.com/
if Arviem AG hooked up with a bank/alt finance co - and tweaked a variant of SYME's system - it looks as though they could provide a working capital solution to at least part of SYME's 'addressable market' : not necessarily the SME sector that SYME initially targeted (because of its fragmented and fluctuating supply chain) and has since dropped, but certainly mid-market industries and regular suppliers.
Or it could just end up being bought by AMAZON ;-< and 'promoted' by them.