Read this and get your gob smacked !26 Nov 2020 01:55
We’re all sick of the word “blockchain”. There’s been a whole lot of cash (and hot air) expended on something that hasn’t really moved the needle in financial services.
As the parlance goes, it’s the quiet ones you need to watch; Supply@ME Capital PLC (LSE: SYME) has done the unthinkable and produced a blockchain-powered offering that could truly upend capital financing. The platform matches companies in need of cash with investors looking for solid returns, and in the middle is a securitization scheme with distributed ledger technology at its core. The best bit is they have done it without much fanfare, creating an unmissable opportunity for investors.
The process works via a “true sale” of a client company’s stock inventory to special purpose vehicles (SPV) incorporated by SYME. The SPVs are created from the inventory and form part of a securitization transaction for the client companies hunting for cash. SYME takes a slice of around 7% on each transaction, while the client company buys its own inventory back over time. A diversification of assets and fresh yield is on the table for investors, while for client companies, it’s immediate liquidity that allows them to buy more stock, warehousing, land, whatever they need to grow. The inventory remains in the client’s warehouse the entire time. It is all logged on the ledger, which instantly notifies of any change and protects against loss.
M&A target.
Unlike others in the digital monetization space, SYME is a service provider, not a lender, and there is no risk to its own balance sheet. It is not bound by financial regulation like banks or loan companies. Businesses from all walks have been playing around with blockchain for several years, with little success. Digital currencies went out of fashion, then came around again in the form of tokens and central bank currencies. While all that was happening, SYME perfected its offering and came to market with a tamper-resistant, unchangeable ledger. The proposition is extremely simple, and is a genuine reason to get excited about blockchain. Security and reassurance for all parties in a digital monetization securitization chain are enormously valuable, SYME is an obvious M&A target for incumbent lenders in the coming years.
AIM performance.
Now we’ve bored you with the technological bits, let’s get to why SYME is such a captivating bet; the price. SYME set the AIM on fire in August, soaring past £1.25 during the height of the coronavirus lockdown and leaping 1100% in a single day. Things have flattened since then, but the potential for more rolling lockdowns across Europe over the busy Christmas period has manufacturers in a flap. Down at £0.35 it’s a no brainer. Watch SYME hit £10.05-£10.85 inside six months.
We’re all sick of the word “blockchain”. There’s been a whole lot of cash (and hot air) expended on something that hasn’t really moved the needle in financial services.
As the parlance goes, it’s the quiet ones you need to
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