Member Info for WolfofWarks

Auto correct - should be cahoodle obviously

(1) in your example, the profit margins will take a hit on paper only but in reality the profit margins to core product end sales will remain the same (or increase with the capital injection into the company). This is a new wheel and needs to be reported as such to stakeholders. Debt free finance versus ‘on paper’ increased turnover – As a business owner, I’d take the former any day. It is also interesting to note that syme are looking to work direct with suppliers.. watch this space!

Caboodle - this isn’t how accounting works. The income is either a ‘true sale’ and is treated as such or it is a liability, it cannot be some quasi form of both.

So if the finance received from the funder is treated as a sale then it will reduce the gross margin and the 8% fee should sit in cost of sales (it cannot be posted to interest charges in operating expenses if this isn’t a loan).

As a caveat financial accounts are produced and written in a manner that assumes the reader understands what they are looking at. So I would assume there would need to be a note somewhere in the accounts explaining the arrangement and the reader can see the reasoning for the reduction in margin. Whether it’s palatable to the wider financial community is another matter.

I’ll say it again, I still think this will end up being adapted for the UK and USA and one of the big 4 being brought in is a positive development.

I suppose the point of fast fashion is it’s got to be fast and Leicester is agile.

No point trying to make the latest lines in China if it’s going to take a month to get the goods and that’s before you factor brexit delays at ports in.

Could be in for a great week then. Those shares will be in sticky hands as well.

All this science is above my head. I’m talking in as much as a I can though.

Parm - Well I’m not a believer in the conspiracy. Yes topped up thought the news is coming (still time) and we are up an upward trajectory.

The thread was not about tax changes it was about preference in insolvency. This is the problem no one understood what I was posting and treated it like a mass deramp (which it wasn’t). Extrader was mentioned because he started a thread in it a while back but I didn’t really give it any credence until I experienced the repercussions of it this week.

FB - in the last interview AZ talks about the regulatory process and how they are trying to get sign off in Italy. He specifically mentioned Italy which he felt would be the most legally challenging but would allowed a softer rollout in other jurisdictions.

Peak .... a poster was asking for recommendations. That was probably the best thread in that particular day as everyone was arguing with that blue fella and no one was actually talking about SYME.

The reason the regulations are talked about so much is because it’s such a massive part if this, whether you guys realise this or not. AZ referred to them twice in the recent interview and we haven’t had confirmation of this being approved anywhere yet via an RNS.

A fully researched investor should want to try and understand this.

Hi FB I haven’t got 9% of my wealth, only 9% of my share portfolio.

What are Jew angles? Something to do with Hanukkah :)

‘Extrader's ex wife has weekend custody of Beanz plus she has him for the xmas holidays.’

Poor - this did make me chuckle.

I’ve never shied away from the fact that I see this as a high risk high reward punt and only have a relatively small amount of my portfolio here, around 9%.

I still think this will end up adapted in someway to make it compliant for the UK/USA.

I’m flabbergasted by this line of reasoning from you FB. We are not talking some dodgy builder sticking a bit of cash in hand in his pack pocket. We’re talking professionally run public companies here.

Accounting standards are there to stop this very thing happening - profit manipulation, dodgy provisions, aggressive accounting. Ultimately the shareholder gets wiped out the end. Worldcom, Enron, Wirecard, etc, etc.

So do we think the funds have still got to buy a lot more? I was under the impression they have been buying all week from a couple of articles I’ve read.

Regarding the fundamentals I think we’ve definitely got to grow into our valuation.

FB - what you suggested in the OP wasn’t anything to do with HMRC, it was massaging the Profit and Loss. As investors we should be dead against that kind of activity otherwise we don’t know what is going on in the companies we put our money in.

This is the worrying thing for me now. The more you peel the onion on the accounting side the more worrisome it becomes.

Financial accounts should have integrity. FB what you’re suggesting is basically windows dressing. We’re having a bad year let’s book loads of sales to SYME. Auditors test transactions either side of the year end to check they have commercial substance.

With the run we have had this year is anyone else thinking of taking some profits? It’s been an unbelievable year and I think we might start to stabilise now in the S&P. I initially bought in April as a long term investment and didn’t expect to six bag in such a short space of time.

The USD rate deters me slightly as I bought in at 1.25 ish but my gains make this almost immaterial.

Wolf,
So this bb is a numpty fest is it? You are never away from here! All hours of the day & night posting! So that makes u a pretty substantial numpty in my book.

Incorrect - don’t post hardly in the day - am at work

95% of this bb don’t understand SYME? And how would you know?? I suppose you are the omnipotent one of SYME comin a close second to AZ. You’ll claim to “engage in intelligent debate” but in truth you just surreptitiously & very subtly plant doubt & sow fear.

You only have to read the board when something comes up which isn’t a ramp to see the manner of responses and the lack of understanding.

I don’t claim to be the most business-minded person on this board. But I am intelligent, studious, tenacious & thorough.

Fair enough - although I’ve never really engaged you in decent debate and has you filtered at one point

You seem to have a really inflated opinion of yourself. It shows.

I’ll give you that ;)

Unpleasant, dishonest & uninvested.

Incorrect - on all three counts

FB - I’ve been treated far worse in here than I have ever treated anyone else. You know this.

By the way you’re in the intelligent 5%.

So when SYME buys the stock from the client how is the price calculated?

Because I think if this is to be a true sale then this would have to be a bona fide arms length commercial transaction and presumably at market value (cost plus margin).

Then you have the problem of the turnover in the accounts being sales of the same stock double counted. That is sold once to Syme and then again to the end client. Investors in public companies - would they be happy with that?

I still think this will end up being adapted and the true sale will end up on the balance sheet. I just don’t see how it can fit.

He Alfred yes

Yep I’m just keen to have some skin in the game. It’s frustrating because I’ve got a load of cash sat in my isa for opportunities.

I was really excited last weekend and events if this week have run away with me and I’ve not had masses of time to work it all out.