RE: Reason to buy SYME at .80p and .50p11 Sep 2020 14:01
Great info by Weathergeek - never forget this.
Thsi is broker business on an established platform/ model/ application. No cost - just sales/ marketing,
Name me one brokerage who does not make profits - year in yearou. Name me just one.
Syme is ony broker in this space - and looking for partners. And one or two will join them and then the numvers below will become apparent. Have not bought over 100k for nothing - and still added.
For every £1,000,000,000 (1 Billion) in inventory.
6-8% of which is the cost to the client.
Of that 6-8%
4-6% is the for the annual return on the security coupon or bond.
2% Is revenue to SYME
1% IS NET PROFIT TO SYME
So very every £1billion in inventory (I will use 8% not the lower 6%)
The cost to the client is 80m = 8%
The revenue to SYME is 20m = 2%
The Net Profit to SYME is 10m = 1%
SYME has 32,755m shares in issue.
£0.0003 earnings per share per £1 billion in inventory signed.
So £10Billion in inventory is £0.003 earnings per share
Put that on a PE of
10 = £0.03 = 3p share price
20 = £0.06 = 6p share price
40 = £0.12 = 12p share price
80 = £0.24p= 24p share price