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Are their games as pulsating as what's happening on their share register.
IPO'd at 225p(?) and now down to 60p as a result of original investors cashing out. Results have vastly improved. Company has expanded, which was part of the rationale for the IPO. Income streams have been massively diversified. Cash in the bank. Needs to now consolidate IMO. Tech companies coming back into favor along with this artificial drop makes this a very attractive price point.
Made an attempt to break out past 60p but not happening just yet as the big transaction volume keeps flowing. TR1's will be very interesting when they land.
Each pair of trades is a buy & sell, they aren’t both sells…
Luke Burtis held 14.2M shares
Alex Nichiporchik held 77.0M shares
One or both could be sellers in this volume.
Netease 12.9M - Don't appear to have enough shares.
Tr-1 will reveal all.
There was around 1m shares missing from being able to reconcile the matching pairs of buys and sells with the total NetEase held, another 500k has just dropped now & there was 291k around an hour ago. Potentially one more set of 500k's and that should be that...
Seems to be institutions swapping shares off market
Great digging ShearClass
Someone is out and someone else is buying. I'm in for the ride. Fingers crossed.
Very useful digging. Thank you for sharing that.
Worth noting from their half year they "expanded the size of the revolving credit facility with Bank of America from $25m to $35m and extended the maturity date to three years" provides some reassurance re: fundraise (esp. in context of being over $25m in cash)
P104 of the IPO admission doc is interesting
https://www.tinybuildinvestors.com/_files/ugd/df3962_92c3ea1727734ca0a8bf35f3d2f59b42.pdf
Netease invested £14.8m in TBLD in 2019 in exchange for 198,560 shares @ ~£60 each ($74.54).
Pre IPO there was a share split of 129.8-1, which meant Netease then had 25,778,352 shares at an effective cost price of 46p per share.
They sold half of these in the IPO at £1.69 each, crystalizing a huge return. I'm 99.9% sure they've sold the other half in the last couple of days to exit their investment in full. If they've received an average of 54p in total then there overall profit from the 2019 investment will be just shy of £17m, or an ROI of around 140%
Swedbank are the only other holder of more than 12m shares & they bought almost all of them in the IPO at 169p, so I highly doubt they would be dumping down here. Could well be that they have taken the shares from NetEase to reduce their cost basis, it would certainly make sense.
TR1's should arrive soon to confirm either way.
You burn cash when you are not generating any profits ... Like Cineworld, Aston Martin and some miners who are still exploring but not producing, etc.
TBLD is investing the cash they have to acquire other companies, to develop new games and to promote the games so that they can KEEP ON INCREASING revenue.
I don't think the recent sells are about the company financials, but a big institution selling shares as they need cash. Of course, this is only speculation.
Have tallied up the trades between yesterday & today and we have ~11.8m sells and 11m matched buys, the biggest trades being the 7.815m this morning which matches off against the 4.6m and 1m reported at the same time + the 2.372m reported after close last night (with a difference of 156k). There is another 750k trade that hasn't been reported yet, and I suspect a few more will arrive after close.
Hong Kong NetEase held 12.9m so I'd suspect they are the seller, the positive news is someone has bought the whole lot at 50-55p.
They are generating significant positive operating cashflow, the problem is that is calculated before taking into account capitalized software spend. But yes, a decent amount of burn has been on acquisitions.
Either way, now we have major volume with ~16m shares traded at 55p in the last 10 mins... so we have a big seller & a big buyer. May well get a technical bounce when this clears.
Looking at 2021 they were cash flow positive. 2022 figures have improved. Not sure where you are getting your cash burn figures from?
If they only have enough cash to September (as ShearClass says below) then buying in now, as a long-term holder, means you'll likely have to dip into your pocket again in a fund raise in advance of September...and then maybe again later until they are cashflow positive. So to be cashflow positive they need to generate $2.83m per month additional cashflow relative to today. Assuming 100% gross margin means they need to increase sales by $34 (or ~60%) to become cashflow positive. They claim ~50% revenue growth so it might take say 18 months to increase the sales by ~60% = $50m additional cash needed on a current market cap of $114m.
Am I wrong? maybe.
True, but you have to take into account the majority of the cash has been used to purchase other businesses. A quick glance over the RNS's and I note 6 acquisitions. Looks to me like TBLD need to consolidate a little here. Stop the acquisitions and get the company into positive cash flow.
I don't have a position in this stock.
Yes I meant revenue, not profit.
Good luck. I was tempted to get in yesterday but looking at the historic charts there’s usually 2 or 3 very bad days before a very strong rebound.
If it’s Alex Nichiporchik or the Chinese selling then where are the TR1s. Obviously don’t care about the London market rules to maintain an orderly market post IPO.
They aren't anywhere near cash flow positive, cash burn over the last 2 years has been $68m! IMO someone is getting out of here before they need to raise more capital - at the 2 year burn rate of $2.83m per month they have enough cash to get to September...
Buy price, 55.8p, I will be waiting.
Spoke too soon?
That’s a big drop on those sells. There’s no clue as to whether the next few will be £200k. This is all very uncertain. Who is selling and why? Half a billion valuation now going under £100m. Profits are seemingly increasing but the cost to get them are also rising significantly.
The MM’s are holding the line, nothing to see here, 59p does surprise me.
Another I Mil cash sale showed up on the tape after hours, sold this morning at 50p. The others looking like they were bought, it looks like the MM’s maybe carrying a bit of stock. I would be surprised if this comes out the buffers above 55p.
Very strange, at 10:17, 620k cash was dumped and then another 108k cash at 10:27. Aleksanrs, CEO owns 38% of the company and Luke, COO, owns 7% followed by another 4 investment funds owning 35%. Until the TR1 comes out, could be 3 days but more likely tomorrow or Friday we will not know. If there is nothing untoward and the dump was done for instant cash, there is a killing to be made, however, the City would have been all over this today and information may have come to light towards the end of the trading day about a serious situation. We will know tomorrow morning, more importantly who bought them. Very mysterious and unusual, looks like this could be a Revb situation in the making which was a great earner for me. Don’t you just love volatility?