Member Info for GingerHippo

Napalm,
If the SME is selling it at cost, but it's actually worth far more than that, of course the SME would want to buy it back and fill a customer order ASAP. So why should the funder worry? The only risk to the funder really is if the SME can't sell it on at all. Yes that's a risk, but no more so than any bank lending any business money.

We're not talking about stock sitting in the warehouse unsold for months or years. SYME won't monetise that.

Napalm,

Thanks for clarifying that. Yes, that seems to be the essence of the disagreement above. I'll have to have a think about it.

Meantime, a few questions I think are relevant here come to mind:
1) When the SME sells stock to the funder, do they do so at cost or at market value?
2) When they buy it back, do they do so at cost or at market value? The difference being if the value of the items has changed since the initial true sale, who stands to benefit or lose?
3) If as theanalyzer says, the SME has no obligation to buy it back, surely then it is absolutely a true sale to the funder since the entire risk is transferred to them? Say the market value of the item goes to zero, that's the funder's problem not the SME's.

I don't think you're right there, Napalm.
The SME isn't buying it back at a later date.
The funder is buying it from the SME. The final customer is buying it from the funder.

EG If the price of the product/commodity goes up after the true sale, that is the funder's gain. If the price goes down, it's the SME's gain. Risk and reward is transferred to the funder.

"If a seller does not lose control of it's asset through a sale, it is a balance sheet transaction"

But that's the point, the seller DOES lose control of the asset by transferring the risk and reward to the funder.

And Napalm, if you're going to ask me technical questions, please allow me to do the same.

Please explain why you think IFRS would not allow true sale.

For starters:

https://www.sullivanlaw.com/assets/htmldocuments/Trade%20Finance%20-%20The%20implications%20of%20IFRS%209%20-%20GW%20d%20DY%20-%20July%202019.pdf

Napalm, it goes on to say:

"The FRC review was based on the annual report
and consolidated financial statements of the
Group for the year ended 31 December 2020 and
does not benefit from detailed knowledge of the
business or an understanding of the underlying
transactions entered into."

In other words, someone (can't imagine who..... lol) raised it with the FRC who said "it's not worth our time looking into it now, let's come back to it when it's relevant"

"With all due respect, I can tell you don't understand IFRS"
That one made me laugh. Thanks.

Napalm, I don't think you can read too deeply into a message on the bb from someone saying over what they were told. Frankly, it was probably a typo.

True sale definitely works under IFRS. That is easily confirmed. The whole point of IM is that the risk and rewards are transferred from the SME to the funder.

Rather than showing the stock in the balance sheet of the SME at cost, they show the sale as revenue in the income statement, less a few % to cover SYME's cut and the funder's return (which adequately compensates them for their risk). Thus it increases the SME's working capital requirements and enhances the strength of its financial statements at the same time. It's very elegant.

I'm extremely optimistic about this company, but I don't think we will hear anything concrete about Maria for a couple of months at least, and Jamaica for even longer.

Maria CPR is due to be completed in 2 months. How long it will take for that to be distilled into RNS form I don't know. Commercial options being considered in Q4.

We have another 1.5 years for Jamaica, so no rush. Take the time and do it right.

Meanwhile the development wells and ESPs should serve to increase our production and at $106 per barrel, we're making very decent FCF.

"So no takers on the 8 days..."
"and lied and you swallow every one"

Well, this is a contradiction. Are we being too cautious in our optimism or do we swallow everything said without thought? It can't be both.

Personally, I believe we will complete the inaugural IM within 11 days per the RNS. That belief is in part owing to the Vechain Foundation's name being attached.

If it's late the market will go crazy again. But I won't. I will continue to wait because I'm thinking about where the company will be next decade, not next month.

So I can’t use the word believe to refer to what I think rather than a fact?! That’s a good one.

Put it this way. I believe we will see great things from company over the coming 8 years. I’m not staking anything over the next 8 days.

I’m not a trader, I’m a business owner. 8 years is not that long to own a business.

If thinking in terms of years instead of days or even months isn’t for you, that’s ok. Just understand that in terms of investing, you and I occupy very different places.

@18:11
I’ve been away from my computer so didn’t see this outrageous deramping comment on what I said.

Where on earth did you get the idea of one contract for £366M?!

That’s not even remotely like what I said.

You just made that up so you can say how ridiculous it is, as if that’s what shareholders believe is about to happen. Outrageous.

I believe in time we will achieve a market cap of £366M and then some. Obviously not by the end of the month or even the year, and certainly not through one contract you silly sausage.
But over time once inaugural IM is achieved and we grow more and more each year.

42 Bn shares
5.5 Bn warrants this year
13.5 Bn in 2020 and 2021
That's 61 Bn total
So £366M market cap would do it.
More than attainable IMO.

30p in ten years IMO

https://twitter.com/gingerhippo2/status/1548618862832357376?s=21&t=cr6DKHdtZ7uv_PxTFnao2Q

#ORCP presentations shows LOI expected this year ??

This will unlock the multi billion pound project, in which #ORCP has a 12% stake.

Less than 6 months to go.

I fully believe this will reach a market cap of over £1Bn (from £10M today) within 10 years.

Lololol. Just had a look.
That is priceless!
I can see why you'd think it was me.
And why it's pointless for me to try and convince you otherwise lol.
So I think i'll just stop caring instead and take it as a compliment.

Sandy, which post are you referring to? You've got me curious now.

Seriously?
This is literally the first I'm hearing of this.
Did I even post last week?

Oh I see that last post was removed, so my post no longer makes sense.
Thanks for that.

Infamy! infamy!
They've all got it in for me