The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
When you say high P/E WG. You onboard with 50-100 range?
I use ii. I'm in the UK. I transferred to an ISA this weekend. Process can take weeks. They don't simply transfer. They are sold and then bought again. But it's not an open trade. The market conditions do not apply. I transfer X shares from a trading account and the ISA account gets X shares. Even if the SP has gone up or down.
You're the one being silly. Who is stating CAT is on the cards? It's an example of scope and scale in the US. Who is stating all Inventory of manufacturers to be monetized too as your post implies? No one is saying SYME will capture 100% of markets. Targets are for a modest 0 5% of inventory to be monetized. In the US that equates to 15bn.
On the subject of medicine Elon, UK has been warned about access to medication and that it should stockpile due to a no deal Brexit looming.
It doesn't. It's a publicly traded company. Revenue decline is a significant factor. If you're inventory is continuing to increase then you have to cut production. Which means layoffs and the cost per unit also increases.
Shareholders would like to know, why if they have X bn of inventory sat gathering dust for 6 months, 1 year, etc, didn't they utilise SYME for example. Why didn't the company ensure that revenue for 2020 was similar to 2019, instead of 20% down, impacting their shares negatively and in other cases, dividends.
An investor doesn't care what the company might do in 5+ years. They might no longer be a shareholder. They want to know why the company didn't ensure revenue didn't slump, when they could have, in the present.
It's an example of just one US manufacturer that has inventory worth billions waiting to be sold/bought and who's business has been dramatically effected in Q1 alone. That shortfall in revenue and cashflow can be secured through SYME's services.
WG and Elon, the US is the real wild card. I think we might be blown away by what is achieved there. Caterpillar for example in 2019 had an annual revenue of $55bn+. First quarter this year is down 21% year on year.
Elon don't get me wrong, I'm conservative in terms of my actual expectations. I just like to talk up the potential. WG laid down some very good numbers. I'd agree with your figures more, except for the UK. I think £5bn before 2021 is more realistic and I'd also say equal to the 2022 target you have for the US too.
WG I know lol. We both know you aren't being conservative, you are underplaying it, as you say.
The UK imports and exports £700bn with the EU every year. Businesses are stockpiling. In all honesty as the path forward is unclear. SYME should be capturing a double digit percentage of that if the UK has any sense. Will it? We'll have to wait and see. It's SYME'S biggest and best opportunity presently. Just 2% of that is £14bn Inventory monetized.
We'll have to wait and see. But I'd be scratching my head if SYME can't monetize £10bn in the UK before 2021.
Good work GW. You are low balling the UK considerably in my view, especially when we take into account Brexit and London being the financial capital of the world.
On the subject of BREXIT, the EU market is $2trn. We have had very little acknowledgement of this fact in regards to the two Italian banks and 272 contracts. There are other nations and banks inside the EU lol.
1p share price per 1bn inventory is conservative. 1bn inventory means £200m revenue. P/E ratio of approx' 16 gives us a market cap of £3.2bn and 1p share price.
At this stage I think it would be unwise to not also note the potential for more hubs and territories. There's just no way more are not on the way in the next 12 months.
Another trading day, more big buys and delayed trades. Another TR1 notification coming again potentially? Either way it's a good indicator. We thought this finished on Friday last week. Clearly not.
Using figures of 2000 clients, £20bn of inventory and £200m profit which would be £400m revenue.
P/E 10 = £4bn market cap
P/E 20 = £8bn market cap
P/E 50 = £20bn market cap
This is just the beginning. 2 banks In Italy alone bringing 272 contracts with them. Just Italy!!!!
I'd like to see some substance behind posts like this. There is enough public information available to come up with price targets. Show people some??
I'm hoping for 16p mid 2021. But P/E ratios can get crazy and I think it will with SYME. If a ridiculous P/E occurs. 5-10 years out, SYME will experience a significantly lower increase, 2-4X, after this first 2 years.
My logic is trials finished and hubs established in EU, UK, US, ME, 1-3 in FE. Multiple banks onboard in every hub, potentially including some of the largest banks in the world. 1000+ contracts.
All of that is justification for the P/E to explode. Despite more to be proven. Many businesses with excessively high P/E don't have that kind of record.
Agree to disagree WG. Just look at the P/E ratio of FinTech Afterpay. Almost 200.
I think the P/E ratio will explode and think we can see the beginning of that with P/E of 50, by this time next year.
I expect the P/E to spike to between 50-100, possibly in the next year, then to decline over the following 4 years and settle around the 20 mark . The price target of almost 60p is easily achieved within this freshold. P/E of 100 requires just £200m revenue.
Seems like they're aiming for 45%-50% combined.
Brexit is another to add to that too. £700bn imported and exported combined. You import or export with the EU, why take the risk regarding JIT and any possible delays for the foreseeable future.
I'm not crazy to think that a few percent of that should/could be monetized by SYME, before the end of the year, when the current trading relationship lapses.
The UK government continue to step up preparations. It should be including SYME in those preparations. Connecting importers and exporters with SYME.
That's crazy low. Hands up if you are long and have at least a million shares. Actual free float in the hundreds of millions.