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618,750 Block Shares (@$97) = $60,018,750
$60,018,750 = £44,094,515
Net Cash Position = £6.5m (ST's article on IC: https://www.investorschronicle.co.uk/ideas/2022/01/06/unravelling-thinksmart-s-share-price-decline/)
£44,094,515 + £6,500,000 = £50,594,515
£50,594,515 / 106,587,814 shares = £0.47/£0.48.
And yet now only trading at £0.275 a share. Block's earnings are out on Thursday night after-hours, hopefully some positive earnings. So we can see this wide discount to NAV close down.
Another thumping loss for Bock tonight....just 87 dollars. So down to about 42p NAV. I guess we will see 25p soon here and we could see below 20p if the results are poor on Thursday.
The problem here is TSL expenses are very high compared to what they are doing....which is nothing much. That will be eating away at the cash pile. Either way the stock is a falling knife and investors may get a lot less than they anticipated.
I presume when Thinksmart's BOD decide to sell Block shares down the line, they'd have to wind down the company because there is literally no other purpose for the company to exist as far as I aware except from what was mentioned in the 'Business Update' RNS on 3rd February stating "The Group will continue to service the leases, ensuring the fair treatment of customers, during the orderly wind down and collect out of the portfolio of leases. The lease portfolio purchased has a minimum term gross receivable balance of £1.25m and an average term outstanding of 10 months. ThinkSmart will continue to be entitled to all rental income and revenue from sales of leased equipment following the end of the initial term of the leases, and is managing its cost base accordingly so that its operating business continues to deliver net positive cashflows."
And now with Putin invading Ukraine, Block shares are certainly going to fall. I just hope My Dorsey has some good news for us tonight.
Yes down at the start to 82/3 so NAV is now closer to 39p. So TSL at 26p bid is around right until we know where next. I think if they do sell Block investors will get about 15p with the rest being held back for a while to pay off liabilities and tax etc.
Some will punt on results tonight and TSL is a fair way of doing so. Risky of course!
*Mr Dorsey
There just isnt any rational for investing here. Especially given the discounts elsewhere. Even if block surprise us, who is going to pile in here, when there are companies out there that can be bought for low earnings multiples, that probably have better NAV included.