Tmt Investments Share Discussion Threads

[widescreen07] 27/3/2024 11:57

OneNotary Series A and partnership with DocuSign, world's number one electronic signing service ... possible acquisition on the way?

hxxps://www.finsmes.com/2024/03/onenotary-raises-5-m-in-series-a-funding.html


hxxps://www.linkedin.com/feed/update/urn:li:activity:7178709187961487361

hxxps://x.com/TMT_PLC/status/1772951648152732030?s=20

[widescreen07] 25/3/2024 15:46

Nice to see :)

Bolt Business records a 70% year-on-year rise in new signups


hxxps://bolt.eu/en/blog/bolt-business-growth-in-2023/

[widescreen07] 20/3/2024 18:52

Here's the piece from IC:

A smart way to own US tech stocks
A cash-rich venture capital company is priced 45 per cent below book value even though its largest investee company is planning an IPO

March 20, 2024
by Simon Thompson

• Net asset value up from $201.7mn to $208.1mn (662¢)
• Net cash of $11mn in mid-March 2024
• Bolt holding conservatively valued at $72mn
• Backblaze stock price soars 34 per cent post year-end

TMT Investments (TMT: 378¢), a venture capital company with a portfolio of more than 50 high-growth, internet-based companies, reported an annual pre-tax profit of $6.4mn after booking $7.4mn net gains on its investment portfolio last year.
Notable uplifts include a $5.4mn gain on its listed holding in Nasdaq-quoted cloud storage group BackBlaze (US: BLZE) and $14.6mn of cumulative gains on 11 unlisted holdings to reflect higher valuations following equity funding rounds. TMT’s investments in Collectly, a US patient billing platform for medical organisations, and Educate Online, a distance education platform for children and young adults both trebled in value to $6.4mn and $2.85mn, respectively. TMT’s stake in UK-based challenger bank 3S Money Club increased $3mn in value to $17.1mn, too.

Of course there were also negative valuation movements, one of which reduced the carry value of TMT's holding in Pandadoc, a proposal automation and contract management software provider, by $2.8mn to $8mn. It was based on an independent secondary share sale offer received by TMT. However, this should not negate the fact that the portfolio still delivered growth.
Since the period end, BackBlaze’s stock price has risen sharply following earnings upgrades, which has lifted TMT’s proforma NAV per share to 690¢. Management has taken the opportunity to sell down a further $4.2mn of its stake, which boosts the debt free group's cash pile to $11mn to fund follow-on or new investments, and still retains a holding in BackBlaze worth more than $30mn (95¢).

Bolt IPO to release hidden balance sheet value

It’s worth noting that TMT’s 1.26 per cent stake in international taxi and food delivery group Bolt is held in the accounts at $72.2mn (230¢) even though it had a read through valuation of $103.3mn following Bolt’s €628mn fundraising round in January 2022, led by Fidelity and Sequoia, that valued the fast-growing company at €7.4bn ($6.8bn). Since then Bolt has delivered double-digit annualised revenue growth, is forecast to move into profit this year and is planning to IPO in 2025.
Bearing this in mind, the stock price of closest comparable, Uber Technologies (US: UBER), a $160bn market capitalisation group, has surged 82 per cent since Bolt’s fundraising two years ago. In the real world, it’s highly unlikely TMT’s stake in Bolt is worth anything less than the $103mn implied valuation at the January 2022 fundraise, implying potential for a $31mn (99¢) revaluation in TMT’s accounts when Bolt launches its IPO. That’s simply not in the price.

Since I included TMT’s shares in my 2023 Bargain Share Portfolio they have risen 28 per cent in value, but they still trade on an unwarranted 45 per cent discount to proforma NAV of 690¢ and that excludes the hidden value in the Bolt stake. Buy.

[value hound] 20/3/2024 17:03

A few highlights from the article FWIW...

A smart way to own US tech stocks

A cash-rich venture capital company is priced 45 per cent below book value even though its largest investee company is planning an IPO

- Net asset value up from $201.7mn to $208.1mn (662¢)
- Net cash of $11mn in mid-March 2024
- Bolt holding conservatively valued at $72mn
- Backblaze stock price soars 34 per cent post year-end

... they still trade on an unwarranted 45 per cent discount to proforma NAV of 690¢ and that excludes the hidden value in the Bolt stake. Buy.

[widescreen07] 20/3/2024 15:14

Investors Chronicle has given TMT thumbs up again post Results. Strong cash pile of $11m, debt free, conservative valuation of Bolt and savyy management.

Nice to see recent investments in US companies that have all raised chunky Series A rounds including Rain hxxps://www.businesswire.com/news/home/20230321005258/en/Rain-Instant-Pay-Closes-Historic-Funding

and Forta in Jan 24 hxxps://techcrunch.com/2024/01/23/forta-55m-series-a/

[rimau1] 19/3/2024 10:38

Actually Bolt was not revalued it was FX movement. So they wrote down Bolt in 2022 due to markets and peers but have not revalued Bolt in 2023. That is a significant hidden value not reflected in NAV.

[rimau1] 19/3/2024 07:54

Indeed, we can add another $6m on or adjusted nav of $6.83, i wonder why they didn't give a ytd nav and i would like to know the assumptions behind Bolt. At least we have prudent management underselling the portfolio. If they had revalued bolt by 2500bps we would be around $7.50!

[andyandyoj] 19/3/2024 07:43

And the upward revaluation of Backblaze is largely post period. Not shabby

[rimau1] 19/3/2024 07:32

Great work by proactive management, partially disposing of backblaze to take advantage of the price rise now leaves tmt with sufficient liquidity for new and follow on investments. Pandadoc took a hammering but interestingly Bolt was only revalued upwards by 500bps despite the meteoric rise in Lyft and Uber in 2023. NAv $6.62 v $3.82 with hidden value in Bolt

[rimau1] 20/2/2024 08:13

Pity, i was hoping you were right VH! Lets see what today brings

[value hound] 19/2/2024 23:51

I'm sure you're right rimau1; mine was a v.quick calculation based on Friday's closing price on the mkt cap reported by Morningstar (of $463m at $11.83).

[rimau1] 19/2/2024 16:41

ST agreed with my $44m, where did you get $48m from VH?

[value hound] 19/2/2024 16:32

More from ST today...

---

...the stock price of Nasdaq-quoted cloud storage group Backblaze (US: BLZE) soared 45 per cent on 16 February 2024 following a forecast-busting set of results that led to analyst upgrades. It was the day my 2023 Bargain Shares Review was published. One of the constituents is TMT Investments (TMT: 342¢), a venture capital company with a portfolio of 55 high-growth, internet-based companies, one of which is Backblaze.

TMT’s 10.4 per cent stake in the US company is now worth $44.3mn (139¢), or 172 per cent more than the $16.2mn (51¢) carrying valuation on 30 June 2023. Last Friday’s 45 per cent price surge accounts for half the increase. It means that TMT’s spot NAV of $227mn (721¢) is 110 per cent higher than its market capitalisation of $108mn even though the company’s 1.3 per cent stake in taxi and food delivery group Bolt is conservatively valued at $71.3mn (226¢). The stock price of the closest comparable, Uber Technologies (US:UBER), has surged 82 per cent since TMT’s last valued its stake in Bolt. The pricing anomaly in TMT’s shares is worth exploiting. Buy.

[rimau1] 19/2/2024 08:19

BBLZE plus cash is now worth 50% of the marketcap, TMT really should have rerated to $4 just on BBLZE news. I suppose we need to wait for march results for revaluation news and the wider portfolio. 75% held by 12 holders means the spread probably puts folks off.

[value hound] 17/2/2024 11:28

Backblaze stake now looks to be worth $1.53 per share ($48.1m) up by almost $14m or 0.445c per share since the ST article acc to my calcs.

[rimau1] 16/2/2024 22:28

BLZE closed +47% at $12, stake is now worth approx $44m

[skyship] 16/2/2024 17:00

Up 40% @ $11.40!

[rimau1] 16/2/2024 16:04

Good spot, up 30% now and a $400m marketcap looks like it has legs as they are projecting significant revenue and profitability growth in 2024.

[andyandyoj] 16/2/2024 14:54

Great response to Backblaze results last night.

[sev22] 15/2/2024 11:09

Simon Thompson's 2023 Bargain Shares Review, 14th February 2024.

Aim: Share price: 311¢

Bid-offer spread: 310-312¢

Market value: $97.8mn

*55 per cent share price discount to spot NAV estimate

*Combined value of stakes in Bolt and Backlaze worth more than TMT’s own market capitalisation

TMT Investments (TMT) is a venture capital company with a portfolio of 55 high-growth, internet-based companies in high-growth market segments: software as a service (SaaS), marketplaces, big data/cloud, EdTech, FinTech, ecommerce and foodtech solutions. The below-the-radar company continues to offer material share price upside, as well as hidden value in its portfolio.

For instance, when TMT reported a modest $2mn fall in NAV to $199mn (632¢) in the first half of 2023, the carrying valuation of its 1.3 per cent stake in international taxi and food delivery group Bolt was conservatively raised by $1.5mn to $71.3mn (226¢), implying a $5.7bn valuation for the whole company. Since then, the stock price of its closest and comparable rival, Uber Technologies (US:UBER), a $145bn market capitalisation company, has rallied 63 per cent. Bolt continues to record double-digit annualised revenue growth, and is targeting a move into profitability this year and a potential IPO in 2025.

In addition, TMT’s 10.4 per cent stake in Nasdaq-quoted cloud storage group Backblaze (US:BLZE) has risen 110 per cent in value from $16.2mn (51¢) to $34.1mn (107¢) since TMT’s half-year end. The holding now backs up more than a third of TMT’s market capitalisation of $97.8mn. Furthermore, TMT should still retain cash of around $6mn (19¢) after factoring in $0.9mn of new investments and $0.7mn of estimated second-half administration costs.

TMT’s undervaluation is even more anomalous when you consider that it has delivered an internal rate of return (IRR) of 16.3 per cent since IPO in December 2010, having invested in 95 companies, and realised 19 profitable full and partial exits. TMT was one of the earliest investors in four technology sector unicorns: Wrike (exited in 2018), Pipedrive (exited 2020), Bolt and Pandadoc, a proposal automation and contract management software provider.

True, TMT’s shares are tightly held, with 12 shareholders holding three-quarters of the shares in issue. However, the below-average liquidity certainly doesn’t warrant a read-through 55 per cent share price discount to spot NAV, and one that could be substantially wider if the Bolt stake is (as seems highly likely) revalued upwards in the 2023 annual accounts to reflect the higher ratings of listed peers. In any case, an IPO of Bolt will highlight the hidden value on offer in TMT’s shares and should drive a material rerating. BUY.

[value hound] 15/2/2024 10:21

Tbe IC's Simon Thompson has covered these in his review of 2023 Bargain Shares, fwiw, concluding:

"True, TMT’s shares are tightly held, with 12 shareholders holding three-quarters of the shares in issue. However, the below-average liquidity certainly doesn’t warrant a read-through 55 per cent share price discount to spot NAV, and one that could be substantially wider if the Bolt stake is (as seems highly likely) revalued upwards in the 2023 annual accounts to reflect the higher ratings of listed peers. In any case, an IPO of Bolt will highlight the hidden value on offer in TMT’s shares and should drive a material rerating. Buy."

[popit] 14/2/2024 20:08

That is ok then!

I was expecting the share price of TMT to collapse! lol

[rimau1] 14/2/2024 07:44

Wrong Bolt Popit lol

[popit] 14/2/2024 05:55

Can anyone explain this?

Bolt slashes price 97%

hxxps://www.theinformation.com/articles/bolt-once-worth-11-billion-slashes-price-97-in-buyback

[rimau1] 13/2/2024 09:11

Last post from me until we get results in March, i would now venture that our market cap at a stock price of $3 being $98m is less than the value of our Bolt holding, Uber at all time highs and Bolt messaging that it is almost IPO ready. Crazy.