Argo Blockchain Share Discussion Threads

[aidenabettin] 12/9/2019 13:58

hTTps://medium.com/@apollocurrency/chinese-investors-seek-refuge-in-cryptos-7dcc12a0b510.Im might be a bit slow here while i analyse the posters. Not sure i like what i see already

[hamidahamida] 12/9/2019 13:56

As time goes on and the company delivers on our forecasts we see the 31.33p per share earnings multiple plus liquid assets based valuation as being more appropriate – of course assuming that Bitcoin prices follow our model. Blue-sky upside potential comes should Argo's valuation rise in line with its efficiency ratio, with our calculation of 73.71p being some 10 times high than the current price. Should the market not realise these values in the short-medium term we see the potential for Argo to be an acquisition target for a listed peer, especially given the higher efficiency of its operations.

[hamidahamida] 12/9/2019 13:55

By all metrics Argo shares look incredibly cheap in our view. In fact, we struggle to think of any other company presently or in recent memory that offers what looks to be an ex liquid assets negative PE for 2020 should our assumptions prove to be correct. A key point is that profits will be building up on the balance sheet in the form of cash and cryptocurrencies. We expect Argo to have £9.03 million of cash and cryptocurrency by the end of 2019, rising to £23.31 million at the end of 2020. Stripping these values out of the market cap results in a 2019 ex-liquid assets PE multiple of 2.4 times, with the value turning negative for 2020 as the forecast cash plus crypto value exceeds the current market cap. Similarly the EV/EBITDA multiple for 2019 is a lowly 1.35 times, turning negative in 2020 for the same reason as above. Based on our year end forecasts, Argo shares also currently trade at a 23.67% discount to net assets for 2019, rising to 45.54% for 2020.Fair valueWe take three approaches to setting a fair value price target for Argo Blockchain.Earnings multiple plus liquid assetsTaking into account the risks involved, Argo's growth profile and efficient operations, we believe that a multiple of 8 times earnings would be a reasonable value to place on the shares. On our 2020 forecasts for 2.92p of earnings, that equates to a value of 23.39p per share. Adding in the value of forecast cash and cryptocurrency on the balance sheet adds another 7.94p per share for a total value of 31.33p per share.

[hamidahamida] 12/9/2019 13:51

Arog's virgin bitcoins mined in the west fetch higher prices

[stoneme] 12/9/2019 13:36

I've asked this question before, although I hold a substantial amount of stock. The company has not replied to me email. Although to be fair they are in close. I'll attend the AGM and ask the direct question if no clarity in next update and / or no reply soon after. My investment in ARB is NOT about trusting their ability to trade BTC, it's about their ability to mine efficiently.

[topazfrenzy] 12/9/2019 13:36

Have Hadron stopped selling, does anyone know?

[liveit2] 12/9/2019 13:17

supercity - if unsure u should not invest in arb at all

I hope they will not sell any but use proceeds to purchase more miners

[horneblower] 12/9/2019 13:13

The market in BTC/USD is very large with big volumes going through daily.
ARB is not so large a miner that it would have any problem at all converting its bitcoin to dollars.

[supercity] 12/9/2019 13:11

This is the only bit I am unsure about, I have no doubt they are generating bitcoins and doing well at it according to the updates but I need an rns that says "after generating xxx bitcoins we sold xxx of them at a price of xxx " before I would be confident.After all that is the point of generating them.On the sidelines waiting to invest once the above happens and once it looks like the sellers are done.

[liveit2] 12/9/2019 13:08

roger - btc is better than cash - if u disagree then you should not be invested in arb

[horneblower] 12/9/2019 13:07

Roger,
You re at it again.
What makes you suspicious that either they are lying about their production figures or that they are unable to turn their mined bitcoin into $US?
Seriously. I'm interested.

[fuji99] 12/9/2019 12:36

To see the cash we have to look at their pockets or steal their bank account statement.

[roger207] 12/9/2019 12:25

Have you seen the actual cash from selling BTC?

[liveit2] 12/9/2019 12:18

they would not release news on friday 13th - or would they?

[hamidahamida] 12/9/2019 11:43

By the end of December 11938 machines will in operation mining over 500 Bitcoins per month worth over $5.4 million at a price of $10000 per bitcoin Argo at mcap of GB27million is Grossly Underpriced Target 30pUnbelievable cheap valuation

[hamidahamida] 12/9/2019 11:31

Assuming current Bitcoin difficulty levels and a price of $11,000, our model suggests c.0.54 BTC can be earned per annum per unit. At a value of $5,936 that equates to a payback period of 160 days, or just over 5 months, based on the implied new machine cost of $2,618 each. With low power costs of $0.03/kWh secured by Argo (see below) we estimate annual electricity costs of $550.30 per unit, equating to a mining margin (without hosting costs) of almost 90% at BTC $10,000.

[ragnarr] 11/9/2019 13:13

Time for a top up if I can get more blow 9p

[topazfrenzy] 11/9/2019 11:50

Big move up imminent for Bitcoin imo

[crapcrap] 11/9/2019 10:26

rod, i bought an 8 kwh PV array in 2011 the feed in tariff is indexed linked for 25 years. I'm now getting 54.44p pkh. best investment i ever made

[global nomad] 11/9/2019 09:37

BR00, bought at 9.69p

[roddyb] 11/9/2019 09:33

Soupdragon - it isn't "rubbish", I live part time in QC and I am telling you the government subsidizes the domestic electricity price to the users, it just does. Every election, the parties remind us voters they are subsidizing the price we pay. The rest of Canada offers subsidies and equalisation payments to fund new hydro projects - if needed. In the UK the opposite is true, Govt asks you and I to pay extra for our energy in order to fund green projects such as wind farms etc. The subisidies come from us - the consumer in the UK.

[blackrolie00] 11/9/2019 09:22

What price I'm not getting filled?

[global nomad] 11/9/2019 09:19

added to my holding

[topazfrenzy] 11/9/2019 09:06

22 September is a big day, expect some massive fireworks from just before

Those in the know are accumulating as much as they can

Alts too like ADA, EOS, ETC (these will x10 in 2020 imo)