The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
It does show why we need to get out of London ASAP.
In America the biggest crime is being poor. If I made the same statement on an American board there would be fellow investors lining up behind me welcoming my ambition for the stock. But us Brits are different. For us the biggest crime is being wrong and looking stupid. So we p.iss on each other's chips, cover everything in so-called intelligent scepticism and bottle out after doubling up. Hence why our stock market is a mortuary.
I don't understand why bitcoin bears would invest in a bitcoin miner. Makes no sense to me.
Yes, no reason why Argo cannot 100 bag from here. We currently have a PE of under 4 with BTC 9.5k. Broadly speaking BTC could get to $100k this cycle which would give us 10x. If we listed in the US this would help us expand that PE out to 20. That would be 50x.
Now, if the BOD outline a long term strategy to invest the precious bitty in blockchain technology, whilst maintaining the competitive edge of their mining operation then we could expect the PE to expand even further.
Then consider future halving cycles and 2030 predictions of $1m bitcoin and we could easily have 100x. If you don't believe any of that could happen then you are in the wrong stock, IMHO. It's all perfectly plausible. Is it certain to happen? No. But if they play it right and we get the 3rd (and 4th) bitcoin halving bulls then there's no reason why it shouldn't.
Strong Buy: BTC $100k Dec 2021, Argo 1.25 USD
Billfunk 26th June: I would prefer something like, "We are the world's most efficient publicly listed crypto miner with a long term vision to become ....... in crypto fintech by 2030". That's a growth thesis and in America that's worth a PE of 20 - 100.
Marco D'Attanasio 21st July 2020 "I am delighted to be joining the board of Argo which has positioned itself as one of most efficient publicly-listed cryptominers in the world. I look forward to working with the board and the executive team to build on the company's strong foundations."
Really? You think average Americans look at the LSE leader board for UK investments? My guess is that US PIs don't bother with the UK at all. I doubt most of them even know about the existence of the LSE boards. It's not like they are short of great growth-momentum stocks over there is it? They will all be trawling through Seeking Alpha, Stocktwits and IBD to bother with LSE.
Almost exactly the words I used a few weeks back to replace his "good proxy for bitcoin" nonsense. Though I doubt that those words alone are responsible for today's rise. It's got to be something about the new appointee, surely?
1. Dr. Marco D'Attanasio has been appointed to the board. Apparently with a wealth of experience in international capital markets, fund management and tech entrepeneurship.
2. Argo price up almost 20% intra-day.
Co-incidence?
TomBillion - Said tongue-in-cheek I'm sure. I would very much like to hear Fidelity's logic as to why they chose HUT8 over all the other publicly listed miners. I'm guessing it's because of their digital hodlings because their mining set up is very inefficient. Still strikes me as odd because unless there is a quick turnaround their cash burn will eat through their digital assets by the end of the year.
But why HUT8? They have $28m in cash and digital assets and have burnt through about half that every quarter for the last two years. Even with the new machines their efficiency is barely breakeven. The market doesn't like them either and nor should it. What are Fidelity doing investing in HUT8 specifically?
Yes he comes across as a very decent chap. Let him know that I would totally forgive him if he turned into Max Kaiser Mark II and was wrong. I would much rather that than this. And he might not even be wrong. The bull case might actually be right!
I just wish he would give this impression to the market. The last few times I have seen him on Proactive investors he got some basic halving stats wrong (he stumbled over 12.5 and 6.25 IIRC) and then sold the company as a good proxy. If he is several steps ahead of us he should be more bullish when communicating with the market. I understand he may want to undersell and overdeliver but the market is currently interpreting this as weakness and it could be directly contributing to underdelivery. Sell it hard and make it deliver.
I'm glad this is something they are looking at.
I agree with you about BITF, HIVE and HUT8 - all completely uninvestable.
Dividends are a crazy idea, IMHO. Maybe, if BTC is well above $100k and the BOD can't find any good blockchain investments. Maybe then.
I've not seen costs that high. On the few sites I skimmed it appeared more like $50k a year for a micro company. Would you happen to have a link for the $1m listing fee?
A week or so ago i suggested that one of the BOD take a look at listing fees with a view to presenting us with various options. I'm unsure where they are at with this. $1m would be too much at this stage and I agree that i would rather spend that amount on machines. I would appreciate it if you could ask the BOD to formally present this information to us as it is one of the two obstacles in our path IMHO.
Yes Brtrader, that's why I'm still here. But based on the present price action what I fear is that I come back in a few years when BTC has 10 bagged, Riot has 15 bagged, yet Argo has only 7 bagged.
They need to address this now so that in a few years I am getting the correct return. I don't think that will happen in a market where most investors think bitcoin are tulips and any mined should be immediately turned back into fiat via dividends. Could you imagine the outrage if Riot said they were converting BTC back into fiat so as to pay dividends and undermine growth? Yet it's something I have seen suggested a few times on this very board and a sad reflection of the London market and representative of why we are going nowhere here.