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@Aim2
Thanks just for the £8bn.
No timeline, just a quick, whats that worth?
My understanding is annual fee, 3 year term.
Todays announcement said any funding via the £8bn provided by the bank acquisition would have a 50% higher net margin.
Also, there will be other funding models. This is on top of the Storm Harbour, EPIC and MOU in the Middle East where i think, they will find more funding. I think that answers another question @Elon tried answered for someone also.
Sorry, working still, Quick break only. Will catch up again before bed.
One last thing for now.
"To at least €8bn at the end of the business plan period 2024".
At least. If they think they can do €4bn in 2021, then I don't see why they can't increase in the corresponding years.
I expect this €8bn to rise to €10bn-€12bn.
Syme revenue per contract was 2%. It's profit margin was roughly 50%.
Which means if a contract is £1bn, the revenue is £20m and profit £10m. Divided in to three installments.
This RNS stipulates the revenue per contract for these deals will be 3%. It is not clear what the profit margin will be. The profit margin could still be 50%. Which means 1.5% of €8bn is SYME's profit which is in total, €120m.
Alternatively SYME's costs stay the same. So 3% revenue. But 2% profit of €8bn. Which is €160m profit.
It is also not clear if future deals will also have a higher fee for SYME. 2% up to 3%. If they do then hellllllllo moneyyyyy.
Yep..as market digresses there enormity of what’s going on here we will in the next couple of days move into a new trading range.
I can't win. All my calculations for P/E ratio until last week were based on earnings... revenue.
People kick up a fuss and wanted it based on profits. Do it with profits and people still kick up a fuss.
P/E ratio can be done with either. Just state if you are doing off of profit or revenue. Many companies barely make any profit yet their P/E is huge and calculated off of revenue.
SYME will have a very high P/E ratio based off it's revenue. Just like AfterPay.
My criticism of using P/E ratio on profits for SYME is they are far too.low. Is won't be 10-20 it will be 100-200. P/E ratio of 50-100 for revenue.
$600m
Again stop using profit as the figure for PE calculation. Its revenue, REVENUE people. How is Snowflake $70bn marketcap when losing $380m a year? Because of $600? Revenue!! Over 100x PE.
WG I appreciate the work. But your calculations are wrong. The RNS gives us clear numbers to use regarding projections and calculations. As you know the inventory is monetised over 3 years with payments taken by SYME at the beginning of each year of the contract.
The RNS states cumulative inventory
€4bn 2021
€5.5bn 2022
€7bn 2023
€8bn 2024
As an example, the inventory from 2021 will be paid in 3 instalments. €20m 2021, €20m 2022 and €20m 2023.
End of 2021 profit €20m
End of 2022 profit €27.5m
End of 2023 profit €35m
End of 2024 profit €20m
End of 2025 profit €12.5m
End of 2026 profit €5m
Best year 2023. €35m profit.
£0.001 earnings per share
PE of 10 = 1p share price
PE of 20 = 2p share price
PE of 40 = 4p share price
PE of 80 = 8p share price
@A1b24
That would be 3% revenue. 1.5% profit. There will be costs involved in running the service.
@Weathergeek,
The RNS states “enhancement of the servicing fee net margin (the difference between client company fee received by SYME' Stock Company and the operating and finance costs of the securitisation notes) from approximately 2% to 3% of the total value of inventory monetised. This implies a potential profit margin improvement of approximately 50%”
This means the profit is now 3% of total transaction
3% of €8,000,000,000 = €240,000,000
€240,000,000 IN PROFIT FROM THIS DEAL!
*also note this is euros not pounds
Yes Tom, That is just our own bank workings.. Never thought I'd be saying that! haha. All else on top...
Weathergeek, I assume your figures are solely for this one rns? Not to dissimilar to Scenario 2
So these forecasts could blossom by end of September?
Thanks for all your hard work and support on this share!
Nice post WG, I now think after todays news that my 30p first slice target will come within 18 months here, I agree that it is surprising that the sp isn't 1p + yet but sometimes huge news still takes a while to filter through, lots more news to come within the next 7 trading days here so I personally can't understand why anyone would sell here but I guess if you're a trader than you arnt going to be bothered what a particular company goes on to achieve as all you're interested in is that one trading day, I think eventually trading in and out of different stocks for small profits will be far less profitable that holding on here for the next 1-2 years, therefore I will hold here as I believe that the journey has only just began!!
Weathergeek, I assume your figures are solely for this one rns. So these forecasts could blossom by end of September?
Thanks for all your hard work and support on this share!
Smart and sticky money coming in here shortly..
Weathergeek.. look what happens when PEG is applied .. OMFG
Lol ..
Take care
Who caught this part?
So that's 50% more than planned for profit margin.
We were counting 1% as profit.
Now its 1.5%
What is 1.5% of £8bn?
£120m profit.
£0.0036 earnings per share.
PE of 10 = 3.6p share price
PE of 20 = 7.2p share price
PE of 40 = 14.4p share price
PE of 80 = 28.8p share price
How about dividends?
50% of earnings per share = £0.0018
Thats a 30% yield at £0.006 share price.
How this has not hit a penny yet is beyond me.
There is also other funding partners.... Long term, there isn't much better out there than these returns.