PAUL SCOTT comments - Stockopedia - SYME31 Aug 2021 10:36
Supply@me Capital (LON:SYME)
0.32p (down 16%, at 08:32) - mkt cap £109m
I last looked at this peculiar share here in Feb 2021, including a review of its Admission Document, and came to the conclusion that there was nothing there of any significance - it was little more than a shell, valued at £167m at the time.
Mind you, in this current bull market, you only have to call yourself a platform, tell people you’re doing something disruptive & new, and they punt on the shares to sometimes unbelievably high valuations. This is commonplace at the moment, mainly in the US. Very obvious bubble conditions, and as we know, sooner or later, bubbles tend to burst in a big way. It’s only a matter of time in my view. Although a similar tech boom in 1998-2000 lasted longer than people thought possible at the time, so I have no idea how long this current boom is likely to continue, your guess is probably better than mine.
Today we are updated -
Strong increase of inventory monetisation revenues expected through an evolving multi-business line FinTech strategy
Since I last looked at SYME, it’s made an acquisition, and seems to be focused on managing investment funds targeting working capital financing, i.e. higher risk commercial lending, taking a small % fee.
Revenue figures provided today for the 6m to 30 June 2021 are trivial, but to be fair the main acquisition wasn’t completed until after that period end.
Outlook - full year guidance is provided, and the revenue figures here are also quite small -
As result of internal analysis, the Board of Directors expects to generate consolidated revenues for the year ending 31 December 2021 in the range of £3.8m - £4.9m...
We’re not given any indication of what costs are likely to be, nor profits (more likely losses). Hence this share remains impossible to value.
My opinion - why anyone would buy this share is beyond me. Calling yourself a fintech platform doesn’t mean that it’s a guaranteed way to attract a multi-billion valuation. Although having said that, some people have successfully pulled off that trick (for now anyway).
As far as I can see, SYME is a tiny business, managing investment funds. The announcements seem to be jam tomorrow in nature. The valuation looks entirely based on hype at this stage. I’ll happily review the future accounts, to see if anything interesting is emerging, but at this stage, it looks like hot air to me.
Stockopedia agrees, with a StockRank of just 1
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