Thinksmart Share Discussion Threads

[dave4545] 10/5/2022 14:37

I'm watching it right now super volatile.

Spiked from 86 to 91.5+ and then in minutes back to 86 again. It's a jittery market
but then their market has just opened.

[mjneish] 09/5/2022 19:03

Block is being mauled disproportionately today on a day when tech stocks seem to be sharply down.

EDIT: I meant Square.

[g1g4lo] 08/4/2022 13:53

Want to Get Richer? 2 Top Growth Stocks to Buy Now and Hold Until You Retire

Trevor Jennewine, The Motley Fool
Fri, April 8, 2022, 1:21 PM

KEY POINTS

A long-term mindset is key to making money in the stock market.
Airbnb is disrupting the multitrillion-dollar travel and tourism industry.
Block is disrupting the merchant services and consumer finance industries.

Motley Fool Issues Rare “All In” Buy Alert

These disruptive businesses could help you build a nest egg for retirement.

People save money for many reasons, but planning for retirement is among the most common. We all want to be financially independent, and investing in the stock market is a great way to achieve that goal. Over the last 30 years, the S&P 500 has produced an 8.6% annualized return. At that pace, if you invest $150 weekly in an S&P 500 ETF, you would have over $1 million in three decades. And with a diversified portfolio of individual stocks, you could do even better.

With that in mind, Airbnb ( ABNB 0.76% ) and Block ( SQ -2.21% ) look like smart stocks to buy and hold until you retire. Here's why.

Block makes financial services more accessible for both businesses and consumers. Its Square ecosystem is a cohesive set of products, comprising all of the hardware, software, and services a merchant needs to run a business across digital and physical channels. That includes solutions for payment processing and financing, customer loyalty and marketing, and employee payroll. Similarly, Cash App allows consumers to send, spend, and invest money, and even prepare taxes from a single platform.

Better yet, businesses and consumers are spending more money over time as they adopt new products. For instance, 38% of Square's gross profit came from sellers using at least four products in 2021, up from 10% in 2016. Similarly, 31% of the 44 million monthly active Cash App users also use the Cash Card (a linked debit card), up from 22% of the 24 million monthly active users in 2019. That's important, because Cash Card users generate nearly five times more gross profit than non-users.

That momentum has translated into strong financial results. In 2021, gross profit rose 62% to $4.4 billion, and the company generated $714 million in free cash flow, up twentyfold from $35 million in 2020. More importantly, Block is well positioned for future growth.

Management valued its total addressable market (TAM) at $160 billion in 2020. But its product offering has expanded over the last two years, meaning its TAM is probably bigger today. Block now provides banking services (deposit accounts) to Square sellers, and it acquired buy now, pay later specialist Afterpay earlier this year. That move could supercharge both halves of its business by driving sales for Square merchants and facilitating deal discovery for Cash App consumers. Block is set to host its next Investor Day on May 18, and management will likely provide an updated TAM figure.

Regardless, with its broad product portfolio and digital-first business model, Block is disrupting the merchant services and consumer finance industries, putting it in front of a big market opportunity. That's why this growth stock looks like a smart long-term investment.

[g1g4lo] 04/4/2022 12:06

Why Block Stock Could Be Your Next Cash Cow
By Jose Najarro - Apr 4, 2022 at 11.15am


Many healthy uptrends are happening for the company.

Despite a sizable drop in their stock price over the past several months, Block's ( SQ -1.46% ) long-term outlook is more favorable. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on March 22, Fool contributor Jose Najarro discusses some positive signs that will drive significant growth.



Jose Najarro: I'm going to take a quick look at Square today in the fintech market. Let me just share my screen with you. Just start off with just a quick price. I always forget it's Block now no longer Square. Block is down about 49% from its all-time highs. One thing I do want to show first is fundamentally this is also a company that's a great place. We can see plenty of cash and short-term investments. They do have a nice amount of debt but they are positive in cash flow from operations.

They just recently acquired a company called Afterpay. Both fortunate and unfortunate, fortunate for the balance sheet to some extent it was an all-cash deal. Unfortunate to some investors where you see an increase of shares due to the acquisition. Why I believe Block has huge potential is first, I'm a huge believer of their Square gross profit, their seller ecosystem and this is probably my favorite thing about Square.

Obviously, there has been some major risks coming in with Square recently or Block is their gross profit. We can see quarter two, quarter three, quarter four not much growth they're starting to look pretty flat there. Right now we can see between their two main ecosystems, the Cash App. Cash App is the one that's really taking a slowdown and pulling back.

But we can see Square's gross profit, which is their seller ecosystem, continues to go at a nice steady uptrend and this is the one where I believe there's huge potential. Obviously, they both integrate and work well with each other they have a great synergy. But the Square gross profit, we can see from their most recent earnings, they're seeing their Square gross payment volume by seller size increase dramatically from all sellers, not just big sellers, but even those small sellers are still increasing dramatically.

The other thing is Square, is becoming this toolbox or it already is this toolbox, but it's becoming the toolbox that every other quarter they add more tools. Here they're showing that the sellers that are on Square are increasing the amount of products that are being used. I think one thing I mentioned earlier is it's a lot easier to throw away a tool than it is to throw away a whole toolbox and the more users and sellers that continue to grab more products, the harder is going to be for them to escape Square and we can see four-plus products continued to grow every year.

The other thing I mentioned is, right now, Square is still expanding globally. Earlier this year they finished their full launch in Spain and we can see the gross profit in markets outside of the United States only represents the most recent quarter 9% of their total gross profit. I do want to say for Square, I do believe this international expansion is going to be a huge driving force for their growth.

Like we saw previously, yes in the short-term, maybe the next few quarters this is no longer the growth story when you take a look at gross profit. But I do believe the Square gross profit is going to continue to see a nice, healthy uptrend. With a very strong balance sheet, this is one that's in my portfolio, one that I enjoy. From time to time, I don't mind dollar-cost averaging with this company.

[g1g4lo] 04/4/2022 07:23

2 Tech Growth Stocks to Buy Now and Hold Forever
By Prosper Junior Bakiny - Apr 3, 2022 at 8:30AM

The market may be volatile right now, but these companies remain excellent long-term bets.

While the market started off the year by punishing many growth stocks, things seem to now be moving in a more positive direction. Volatility is the price of admission in the stock market, though that doesn't make a selloff any easier to stomach in the moment.

Still, investors can take downturns as an opportunity to purchase shares of companies that are likely to perform well in the long run. Here are two top tech stocks that fit the bill: Meta Platforms ( FB 1.12% ) and Block ( SQ -1.46% ).

[g1g4lo] 23/3/2022 07:56

No large sells yesterday so I can only assume Kinderhook are finished.

So I’m just wait for first quarter results for Block Inc due on May 5th but expect a good increase in the second half. Also looks like teens are using Cash App released in November which could boost Block results.

Fingers crossed the 42% discount to the current 618750 shares in Block should considerably reduce over time

[g1g4lo] 21/3/2022 10:40

With these large trades I am sure Kinderhook will be finished today

[g1g4lo] 19/3/2022 07:56

618,750 shares in Block Inc are worth $86.625,000 @ $140 and with an exchange rate of 1.32 $/£ is £65,625,000.

With Thinksmart share price @ 35.5p gives an MCap at just £38m against just the value of Block at a discount of 42.1%. So just waiting for the rerate here and expect a discount of around 20% to the Block price which would leave TSL share price currently at 49p, an increase to the current share price of 38% but expect Block to continue to rise so see at least a doubling of TSL share price from here.

[g1g4lo] 18/3/2022 23:22

Another 225k of sales gone through so Kinderhook have 1.05m shares left to sell in my view. Think next week Kinderhook will be out and a good rise once they have finished

[g1g4lo] 18/3/2022 20:56

Can see Block being 1.61p which is the 38.2% Fib on the next rise but can also see the 50% Fib at 1.85p but could reach 2.09p the 61.2% Fib within a few months.

If Block hits 2.09p then TSL could hit 1.01p - worth holding for a few months but will see what happens on the next quarterly results due on or around May 5th so less than 7 weeks away

[g1g4lo] 18/3/2022 16:46

Block was 135.69p at 16.30 today and TSL was 35.5p which was a similar price to what Block was on 14th January.

TSL closed at 47p on 14th January so my view is we are 32% below what we should be. The large sale from Kinderhook will finish over next few weeks but with the rise in Block’s share price will make it easier to clear their investment in TSL much quicker.

Just a case of time where the discount to Block will be considerably reduced from over 30% to less than 20% - just a case of time.

Another 200k of sales gone through so Kinderhook have 1.25m shares left to sell in my view

[x54v] 18/3/2022 14:34

Simon Thompson view on TSL

'The disconnect between ThinkSmart’s share price and its sum-of-the-parts valuation is not only anomalous, but you could more than treble your money if Block’s stock price rises by 82 per cent to that $182 target. Buy.'

[g1g4lo] 16/3/2022 16:41

mjneish - yes I agree I thought it would take a few months.

But while Block is increasing it gives them more opportunity than when they were selling on a falling share price.

Since the last update my view is they have already sold 1.6m out of 3,143,500 in less than a week. So only 1.5m to go. Think this will be cleared next week so I will be looking for the 43,500 shares to clear out and then the share price will reduce the discount to Block Inc.

[mjneish] 15/3/2022 15:13

Here are details of the winding down of Kinderhook's holding.

11 March, 2022 3.8% to 2.95%
4 February, 2022 4.8% to 3.8%
21 January, 2022 5.97% to 4.8%
10 January, 2022 6.85% to 5.97%
24 November, 2021 7.39% to 6.81%
12 November 2021 8.05% to 7.39%

So if they're selling their entire holding, it could still be another few months at the rate that they're going at the moment.

[g1g4lo] 12/3/2022 19:04

Kinderhook Partners invested 8.05% on 17th May 2021 but since 11th November 2021 has been reducing their investment and now down to 2.95% so clearly think they have got this one wrong. That is why the huge discount to the Block Inc share price which is currently worth around £50m to TSL. The MCap of TSL is £36 which is too far a discount but with Kinderhook selling all makes sense.

When Kinderhook have finished selling so I would expect a 15-20% discount to Block which will catch up when finished. So even today would expect a price of around 40p.

So just have to wait until they are finished

[mjneish] 10/3/2022 21:43

Maybe to some extent TSL cannot track the Block share price so faithfully because of the terrible volatility in the latter's share price lately. I think the price of Block shares may have to recover to higher levels and then hold on to its gains for investors to feel more confident about investing in TSL.

[dave4545] 09/3/2022 21:42

Always will be disconnect though.

When Block hit 132 all TSL hit was around 35p bid

Block has had a great evening up 11% to around 112

[value hound] 09/3/2022 18:18

Update from Simon T this evening "Targeting a glaring valuation disconnect" who concludes:

"Analysts have an average target price of $182 on Block’s stock, albeit that’s well shy of the $270 level the stock was trading at last autumn. However, if the price recovers to that level it would value ThinkSmart’s stake at £86m (80.75p a share). Furthermore, with the UK company winding down its legacy leasing business, then shareholders can realistically expect some of the value in the Block holding to be returned to them as soon as the US group’s stock price more accurately reflects the intrinsic value of its fast-growing businesses.

The disconnect between ThinkSmart’s share price (27p) and its sum-of-the-parts valuation (50p) is not only anomalous, but you could more than treble your money if Block’s stock price rises by 82 per cent to that $182 target. Buy."

[dave4545] 09/3/2022 10:51

Do sellers even bother to check the Block price, now back up to 106 and people sold this morning under 27p

[dave4545] 08/3/2022 21:31

Another volatile session for Block, got down to close to 90 rallied to 104 and is 100 now.

TSL should not be 26p bid that is for sure

[dave4545] 08/3/2022 07:48

Block back at 97.

So hit 132 and back at 97 so 30% off the high, TSL hit 35p bid and is back at 28p so they are 20% down so at least they are not falling as much because of the discount but this is the wild west atm of swings in the US price.

[smraynot] 07/3/2022 15:57

Results on Wednesday, then we should fly.🚀

[m_kerr] 04/3/2022 14:15

Thinksmart is trading at a very sharp discount to the block stake worth about £53m at the moment. it's a very liquid stake at just 0.1% of the block market cap. liquidation of the stake would result in an instant return of 60% on the current share price.

[dave4545] 03/3/2022 21:20

Bad day for Block down 10 back to 114

Do not think it matters anymore what they do, TSL barely reacts and even with this drop it still trades well below their valuation of their stake in it.