Thinksmart Share Discussion Threads

[farnesbarnes] 22/6/2020 14:43

Not that I'm unhappy with the rise, but if it is known that Lombard are selling in bulk, why is the price going up? Could it be that there is a buyer in bulk, but the RNS is being delayed?

[29palms] 22/6/2020 12:43

Patiently waiting for the share price "Melt Up" as 2% of the shares have been bought today alone.
MM's holding this down IMO

As always,
DYOR

[sphere25] 22/6/2020 11:28

Buys flying in from the bell. Stock still stuck but Lombard now down to 10.88% which is 11.59 million shares.

Judging by the volume so far, Lombard must be under 10 million now.

[sphere25] 19/6/2020 11:54

Another RNS.

Lombard still lobbing, now down to 11.89% which is 12.67 million shares. That is still an enormous overhang. Stock can't rally and get through significant resistance at the 22-23p level. A big buyer or two needs to be found to place some of this stock in size or it's looking like a protracted scenario.

[farnesbarnes] 17/6/2020 13:26

Hopefully Slater wants a bit more long term action.

[sphere25] 17/6/2020 10:08

As suspected, Lombard lobbing in size and acting as an enormous block to a potential rally.

[someuwin] 16/6/2020 09:07

That's a very good article by Simon Thompson

[farnesbarnes] 16/6/2020 08:49

Afterpay ATH 16.6.20

AU$56.52 +5.36 +10.48%

[boystown] 15/6/2020 21:30

I've just read it - and on the surface of things, it would seem to be remarkably good value???

Here it is until it gets taken down:

Exploit ThinkSmart’s valuation anomaly

Shares in Afterpay Touch (APT:ASX), a A$14bn (£7.7bn) market capitalisation Australian Stock Exchange-listed technology group have now doubled in value since I published my April 2020 Alpha Report on Aim-traded finance company ThinkSmart (TSL:19.5p).

That’s important because Afterpay is part owner with ThinkSmart of ‘ClearPay̵7;, a UK payment platform that enables consumers to split the cost of their retail purchases into more manageable interest-free payments. The Australian group has already successfully developed and rolled out an interest-free point-of-sale retail consumer brand ‘Pay Later’ in Australia, New Zealand and latterly, North America.

Indeed, a bullish trading update from Afterpay on its US operations has been the latest catalyst for the recent surge in the stock price. It’s not the only one as Afterpay was included in the MSCI Australia index at the end of May, so tracker funds have been investing. Another reason for the re-rating is that technology giant Tencent (700:HK) has built up a 5 per cent stake in Afterpay. Tencent is a HK$4.1 trillion (£435bn) market capitalisation company listed on the Hong Kong Stock Exchange and one that processes 1bn payment transactions every day.

The point is that the re-rating of Afterpay has very positive implications on the conservative valuation of ThinkSmart’s 10 per cent stake in Clearpay. That’s because Afterpay has a call option (exercisable from 23 August 2023) to buy ThinkSmart’s 10 per cent holding. ThinkSmart has a put option (exercisable from 23 February 2024) to sell its stake to Afterpay, too. The price is calculated on agreed valuation principles that were used in determining the carrying value of the stake in ThinkSmart’s accounts.

One of the principles is the market capitalisation of Afterpay, and that is now 100 per cent higher than when I suggested buying shares in ThinkSmart seven weeks ago. However, the Aim-traded company’s share price has risen ‘only’ 35 per cent in the same period to give it a market capitalisation of £20.7m, of which £7.6m (7.1p) is backed by net cash.

Strip out £5m (4.7p) of other net assets embedded in ThinkSmart’s last reported net asset value of £29m (27.3p), and the Clearpay stake is in the price for £8.1m, or half its £16.4m (15.5p) carrying value. Moreover, that valuation was based on the Afterpay stock price of A$29.75 at 31 December 2019, rather than the A$51.16 current price. In other words, when ThinkSmart’s stake in Clearpay is revalued at the June 2020 year-end, it should be worth than the company’s own market value of £20.7m, thus leaving £12.6m (11.8p a share) of cash and other assets in the price for free.

Furthermore, it’s not inconceivable that the Australian group may attempt to buy out ThinkSmart’s residual holding in Clearpay well before the call option becomes exercisable in August 2023. My sum-of-the-parts valuation of 35p a share doesn’t factor in this possibility. Offering 80 per cent potential upside, the shares rate a strong buy.

[sphere25] 15/6/2020 13:03

Interesting write up by Simon Thompson, citing a valuation anomaly here and potential upside of 80%. He clearly has a large following and the buying is flying in, but it looks like Lombard (recent sellers in size having reduced from 18.7% to 15.6%) are being party poopers and selling into the demand.

Still, it should be interesting to see if the market agrees with Simon Thompson and the buying picks up in a more significant way that allows the stock to break recent highs.

[farnesbarnes] 11/6/2020 20:49

Other than market makers trying to make a market, no clue. Tempted to top up.

To be fair, the majority of it has only happened in the last hour, perhaps it'll be back up 10% by 10am?

Perhaps 10% lower.

[1jbrisky] 11/6/2020 17:59

Anyone have any idea why we've been walked down 15% today? Clearly £10k of nett share sales isn't the answer.

[farnesbarnes] 03/6/2020 19:53

Afterpay ATH 3.6.20

AU$52.26 +2.74 +5.53%

[farnesbarnes] 25/5/2020 18:04

Afterpay ATH 25.5.20

AU$48.50 +3.99 +8.96%

[farnesbarnes] 13/5/2020 12:14

Afterpay ATH 13.5.20

AU$43.46 +1.78 +4.27%

[29palms] 12/5/2020 12:57

IC's Simon Thompson suggests today that share price has a valuation now of 35p a share.

[someuwin] 29/11/2019 09:26

...Or maybe not.

[someuwin] 20/11/2019 13:52

Looks like I sold out too soon here.

[plasybryn] 30/9/2019 15:53

What's occurring?

[eezymunny] 26/9/2019 08:38

So c. 10p/share in cash, TBV c. 13p/share (which should be reasonably solid). Core business with Dixons rubbish. Some promising tech? Probably too cheap I'd say. Wonder if they'll signup some decent new customers....

[babbler] 23/9/2019 14:14

yes... results.

[topranking] 01/8/2019 07:40

Surely due some news now.

[bumpa33] 19/7/2019 10:15

ha! And we have a little “interest̶1; it seems...

[bumpa33] 19/7/2019 09:49

all gone very quiet, no stock on offer though, one mm still with a large buyer. Just needs some interest...