Member Info for JPMustang

I'm not sure if this is good news, the purchase was paid by raising equity and a €280m loan (1). The drop in SP could trigger clauses that increase the premium YouGov pays for the loan. YOU has a good cashflow at the moment, but this could turn very sour in 6-18 months.

A new CEO, *very* fresh management team, relatively new board, and one founder selling 350k of shares earlier this year (and no insider buying shares). I'll look from a distance for now as there's a considerable chance the management team will try to "fix" this in ways that are not sustainable.

(1): https://www.reuters.com/markets/deals/yougov-acquires-gfks-consumer-panel-business-342-mln-2023-07-06/

Not commenting on the SP, but the value of RPi is not just the hardware, it's the software. Most of the raspberry pi competitors have poor and very short support.

To put in context, people who have an RPi 1 (like myself), can download the latest version of Raspbian and it will run. The RPi 1 was released 12 years ago! This benefits both educators/DiY hackers and companies as their investment in software and modules doesn't disappear into thin air after a year or two. This is more and more important as the devices need to keep receiving security patches.

I think open trading starts on the 14th.

You must have some high standards. Are you saying that a company that has

* £130m in cash with almost no debt

* A margin of ~25%

* Revenue of ~120m

* Growth of ~ 20-25%

* Been doing this for decades and understands the markets it operates

Is worth at most £228m (90p)? A £100m more than the book value? I mean everyone is free to have their opinion, but I would be keen to know which other investments you have in your portfolio that shadow CAB.

Got some CCL a bit more than a month ago and I'm quite pleased about how it's going. I think it will still go up a bit more (10-30%) and stabilise around £13-14.50 in the short term.

Given that demand is keeping high to pre-pandemic levels (when the SP was ~£30-£50), I can only think that this will keep going up in the long term.

Too late to be writing here :D - I meant they sold at ~80p and re-bought at ~160p. Still their initial investment equals their loses. When going short the maximum gain is 100% (price goes to 0), but the loses are unbounded.

They bought at ~80p, and sold at ~160p. Their initial investment is equal to their loses.

Just saw that Acadian closed 0.11% of their position on Friday at around 100% loss (or more).

I reckon most of the buyers were personal investors who didn't do much research and got excited by the encouraging news coming from Italy. From reading the material they have online and having worked in the financial industry for ~15 years, their product never existed. The idea of installing a product in a company and all regulatory issues would be solved is cute (as what I would expect a 5 year old to say). This was a scam and unfortunately AIM has no safeguards for investors.

I feel sorry for anyone who lost money investing in this company and wouldn't be suprised if the only two employees remaining are the CFO and COO, and will remain there until they run out of cash or find another boat to jump.

I think investors are being careful with CAB because of the lack of guidance and how low profile the management is (I'm trying to put this in a positive light!). I believe we'll get a positive update on July 25 and the price will move to 180-200.

This is absolutely fantastic news! Thanks for sharing it Jumbo.

CAB usually has really good exchange rates compared to other banks. With this, companies that used multiple banks to manage international transfers can reduce the number of partners banks they have to deal with. And the synergy (god I hate that word) with the Clearing House in the US is :chef's kiss:.

I posted a couple of weeks ago here that my main concern is the management. There are some C-level folks at CAB that don't have much of an idea of how to run a effective organisation and they are not good at hiring talented, experienced people either.

I just want to stress that even with that risk, I consider CAB to be cheap and an excellent investment. This issue is not new and CAB has been a money printing machine for decades. With high quality talent, the company could become the paypal/stripe/what not of international payments. It would dominate payments to developing and emerging economies and from there chip in the market share of institutions that do transfers between developed economies.

I don't think there will be a buy back any time soon and it's not a bad thing. One of the reasons CAB went public was to get money to invest in the company (those licenses are *not* cheap). I used to laugh when Asartara mentioned that any fintech could start doing the same as CAB. Banking and other type of financial licenses usually take 1-3+ years to be granted and are expensive. Usually a company needs to hire a small army of consultants / advisors, hire new experienced employees to oversee the new regulations, change internal systems and processes, set up reporting, controls, reconcilliation, etc.

CAB also will need to invest money into hiring new blood from the financial industry, for a long time it used golden cuffs to hold on employees (their HR is abysmal. Some of their employees are in control of part of the organisation that are way above their ability and without any kind of mentoring.

In short, I don't believe we'll see the SP go up through buy backs but from growth, and there's a lot of growth to do!

Just saw that Acadian closed 0.1% the short at a good loss. They sold at ~ 85p and buy at ~135p, a loss of £125k.

I hope this is a sign that he's going soon. He doesn't have a very good reputation in the technology world (helps to know people who worked for him in the past).

For me CAB is a easy buy, but there are many risks. I read the IPO documents a few months ago and I think they covered all of the risks there.

For me, the 2 biggest risks of CAB by far are that they operate in developing economies and the goverments usually take wild measures to "protect" their economies when then do something silly (like printing money like mad people and expect their currencies won't suffer). At the same time, this is what differentiates CAB from many other banks and financial institutions which don't have the expertise to deal in those regions.

Any wild big change in a currency could also be problematic to CAB in the short term, but might become a huge revenue machine in the medium and long term.

The second, and this is the scary one for me, is the management. Some of the choices of the board and how the management in general didn't do anything public after the big drop of October are questionable. Someone has posted before a list of the C-level executives and the companies where they've been and I can tell from personal experience, as I've met some of them a few years ago, that some of them have no clue of what they are doing. On the other side some of them have a very clear mind of how to run the company, how to make it grow and how to keep growing the brand in a very reputable way.

I'm quite glad that the CEO has been removed, he is known as a bluffer and he showed that in CAB. The board still needs to let of a few more C-level people and hire competent managers with tangible experience of the industry or area they manage.

Sharing as it was removed from spread betting a few week ago and only available for their share dealing accounts.

I just noticed that one of the shorts reduced their position on the 11th. The ~2.2m shares needed to fully close their position will be expensive.

I'm fascinated by the small float of CAB. A 12% SP jump when ~800k shares have been traded (around £1m)!

Unfortunately that's the CEO that is going out... the board gave him ~£20 million in shares at the IPO level... The board really failed there.

I have trust the new CEO will do a much better job.