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found it, given the share price is on the way down on the chart, might not be a good deal from a timing point of view
Hi Draft , posted some stuff below....and some folk buy when prices are rising, some buy when at lows, we all have different takes, however, the figures suggest a value gap currently.....interesting markets and decisions
https://mtcapital.substack.com/p/square-sq-x-afterpay-asxapt
9.0 Conclusion
In summary, Square is a behemoth of a business that has only been made stronger with the addition of Afterpay into its ecosystem. With a Seller-focused segment that has yet to experience serious competition, Cash App bolstering strong customer adoption and sticky associated use-cases (P2P money transfer, investing and spending) and Afterpay cementing Square as a bank of the future with its exposure to a fast-moving payment method that is taking the world by storm, it is quite easy to be a Square shareholder.
I’ve been thinking about taking a punt here. It basically seems that Investing in TSL = investing in Block = investing in Bitcoin.
Not sure what I think about that. Block and Bitcoin seem to be on downwards trends at the moment, but investing would certainly add a bit of diversification to a portfolio. (I don’t have any exposure to Bitcoin at present and I suspect most here don’t either?)
The one thing that troubles me is that Bitcoin has gained massively over the last 18 months and a continued pullback wouldn’t be unsurprising (especially as Bitcoin is built on foundations of, well, nothing).
Hi Archy, a bit more insight into Square (a bank to be among other aspect )
https://mtcapital.substack.com/p/square-inc-sq
''....Cash App Pay will allow consumers to pay with their Cash App accounts at participating Square Sellers. Though reliant on the extent to which consumers are willing to forego their credit cards, debit cards etc. to use the cash app ecosystem instead, this poses a very interesting opportunity for Square. When combined with the Afterpay efforts, this proposition is only further strengthened...
...Square’s undeniable value to sellers, the series of efforts they have embarked on in order to continuously spur growth in both of their main business segments and the attempts they are making to benefit from closed-loop payments. It is an exciting time to be part of everything Square is doing.
Square is at the top of the Fintech industry for a reason. With two strong business segments growing larger by the minute, there is a lot to like. In addition, with the Afterpay acquisition in mind, my opinion and conviction is only strengthened. ''
https://money.cnn.com/quote/forecast/forecast.html?symb=SQ
The 32 analysts offering 12-month price forecasts for Block Inc have a median target of 300.00, with a high estimate of 360.00 and a low estimate of 172.00. The median estimate represents a +108.93% increase from the last price of 143.59.
Thanks for the info on what Block do guys. The next, more important, question is are they priced reasonably...
This link from II shows they're trading at a P/E of 130 ... if correct that's (more than) a little steep??
https://www.ii.co.uk/shares/block-inc-class-a/NYSE:SQ
these guys see value ahead..for both TSLas it stands today and the Block investment looking ahead
''..with the investment in future being liquid Block shares rather than the illiquid Clearpay minority holding. Montarello is bullish on Block long-term but we suspect he will be pragmatic in realising value ...''
''Value per share (107m shares in issue) = 72.6p
Current Think Smart price = 54p
...the discount to fair value has widened, with Think Smart now trading at ca 25% discount to its asset value (which we can now measure accurately). This looks attractive - assuming your view on Block is reasonably positive.''
www.growthcompany.co.uk
The 32 analysts offering 12-month price forecasts for Block Inc have a median target of 300.00, with a high estimate of 360.00 and a low estimate of 172.00. The median estimate represents a +108.93% increase from the last price of 143.59
https://money.cnn.com/quote/forecast/forecast.html?symb=SQ
Thanks Surprised
The problem with analysts is they're all completely hopeless, and usually re-active to movements in the market rather than any good at predicting it.
Have we any basis for thinking the P/E of 130 is wrong? If not, Block still looks way too expensive for my tastes.
Hi Archy, TSL's transistion to Square is not one for you, time will tell and this is exactly what makes a market..good luck ..it's what makes markets fascinating, we all have opinons :-)
and re P/E they can be misleading as you know from BOO...looks low and a buy for some, however it keeps geting lower, so they too are mis leading.....markets are not easy ...
Interesting that today has so much focus on Block and Crypto. TSL do not own any shares in Block yet, or Afterpay, and will be voting on accepting the deal later in the month. Think this could be quite a wild ride IMO, with many twists and turns. Ned has a huge interest in this being a good deal. Is it possible, the deal could get rejected, and a better offer received? There must come a point when this needs to be reconsidered. I recall many posts saying that the longer the deal took to conclude the better it was for TSL. Worth a punt at 49p for something that only 6 months ago was worth near £1.60 per share.
Boo shows time and again how the market over-reacts to both good and bad news. In that way, their penchant for volatility is understandable.
As a recent article in IC states, bubbles are created by investors propensity to deduce long -term trends from short term factors. And this works both ways. Hence BOO's current short term problems are being perceived as a long term issue and they are (wrongly IMO) getting crucified by the market.
Anyway, back to Block. It seems there is no rationale to support a P/E as astronomic as 130, other than the generally held view that Nasdaq stocks have built up too much of a head of steam. Only difference in Block's case is they are trading at a multiple about 2x that of, say, Amazon (Yikes!) and 4x that of Apple (Double Yikes!)
When the mkt turns nasty, it can really turn nasty. Investors look at stocks hitting lows and think they cannot go lower....but they do. Boo has collapsed in price and those that thought £2 was a steal are nearly 50 % down. BOTB was called a superstar stock .....it has gone from well over £30 to just £6 in just months. ARB was the most traded stock of last year according to many brokers with huge daily volume but now looks ouch as losses pile up for many. Meanwhile TSL hits new 52 week lows...
Block is green. Repeat Block is green. LOL
'Cant stop till you reach the top!'
https://www.google.com/finance/quote/SQ:NYSE