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The nature of the business is to generate income, but every £1 reinvested in growth will need to be weighed up against £1 paid out. If £1 reinvested creates a better return, they would opt for that, in shareholders interests, instead of dividends. Since (as I understand) the service fee is taken up-front, and would therefore compensate (I assume) some type of commission structure to support business development, I suspect a dividend at an appropriate time, even a modest one, might be a good idea as a signal to the market of the financial strength and confidence of the company to return cash to shareholders. Whether that is in 12 months or longer depends on the reinvestment opportunity at that time
Yes, that's monetising £5bn of inventory at that point at a 1% margin with 50% payout to investors by dividends
Yep its the £700 mark per 1m shares based on those assumptions
You have to wonder what the strategy is for the founders. Are they looking to build the business over many years organically to make a (very comfortable) living from the dividends. Or are they looking to prove the concept and growth potential and tout for offers much sooner than that, to sell to a major financial institution (or an established tech company such as a Google or Apple that want in to financial services). I believe the latter would be the plan, and with so much of the company held by insiders SYME would be in the driving seat in making this happen, and in a strong position to reject any hostile approach. All good for smaller shareholders like us on this board
My take would be the 1.63bn weren't free float as they are 4% of the company held by one individual/entity. And these were transacted privately (i.e. off-market)
All. I wrote to investor relations today as follows:
Dear sirs, I am an investor in SYME with a holding of just over XX shares. Regarding the recent transfer to Orchestra group of 1.63bn shares at 0.6756 pence per SYME share from Ceresio SIM S.p.A..Announced by RNS on 18th August. Can you advise whether the CEO Alessandro Zamboni held any beneficial ownership interest of these shares prior to this event, when they were held by Ceresio SIM S.p.A.? Or does this transfer truly represent an increase in the CEO's stake in the company? Kind regards,
I received the response:
We confirm that the transfer truly represents an increase in the CEO's stake in the company. Kind regards
RNS says 'Direct transfer to custody account' Best way to find out is to ask him whether he was connected in any way to the underlying transferor. I am going to drop a line to investor relaitons, and will update you of the answrer
Their website says. We are a Swiss banking group specializing in the management of large assets, custody for private and institutional clients and corporate advisory. We are active in Lugano, Milan and London through the Banca del Ceresio, Ceresio SIM, Global Selection SGR, Eurofinleading Fiduciaria and Belgrave Capital Management.
Anyone know whether Ceresio SIM SpA were holding on their own account (they are an asset manager) or if it is a a nominee account for someone else and if so who?
This is how I look at it.......3-5 years out
Inventory market estimated £2trn
Consider a conservative 1% market penetration - £20bn. Financial institutions' capacity to absorb this new asset class? Yes
Consider a 1.25% fee (net of costs)
Earnings £250m
P/E 20
Market cap £5bn or 15.2p per share.
Good for you mate. Wish I'd had a bit left in the tank to have done that.
Correct. Their partners are genuine players. e.g. Stormharbour LLC are certainly genuine, formed just after the 2008 crisis from the Credit Suisse securities trading team, when banks stepped back from this business. They and AgFe (same story ex Morgan Stanley) they have access to the same roladex of institutions to place these securitised investments. They are not fly by nights.
Careful, investorwallet is a pure charting/quant tool that follows price trends. Don't get me wrong, would be lovely, but I'd completely ignore it. You need to consider fundamentals (earnings potential, price earning multiples, growth factors, competitive landscape/first mover advantage) to make any sensible projection of where this will end up
Havent posted for a long while (and had to re-register and add the 64 to Tallchad), but recognise MinorMinor and Iky from way back when the South African 'opportunity' took the share to around 11p, then it came crashing down, but I've held onto my million shares because I like the fact this guy keeps trying and he also holds a big stake in this company so I figure this is his golden nestegg in the making. Lets hope he is onto something now, in which case this could be a very nice earner