Wise Share Discussion Threads

[1pencil] 10/1/2022 19:13

I doubt if there as any real liquidity here on the buy side given lack of active funds.

Institutions are unlikely to invest where they don't have a say in what happens should things not be going as expected, one area might be the number of share options being issued.

Wise do have a small presence in the US via the ADR program, if funds wanted to buy in the US they could easily do so, THG has a number of US based funds.

As a Wise customer my experience is very positive pf all aspects, but this is as a customer not a shareholder.

Barriers to entry seem fairly low, the main one being existing players don't want to go into discounting as current status quo very happy with, that however could change imo.

[stutes] 10/1/2022 18:45

I think one thing is for sure IBs won't be able to bring many investments withou a 40 to 70% discount.

As for bank shares being marked up - they are still facing fintech competition, heavily regulated, facing write downs from covid19, reopening of the economy, energy prices, insolvencies. The macro is about to hurt the real economy and the banks will take hits or be forced by scared politicians/regulators to change their mind over consumers or businesses.i think the market is getting ahead of itself in banks and not focusing on the solud growth stocks.

[conwyrebel] 10/1/2022 18:30

The answer is no it wouldn’t be cheaper. Speed to market the key. I hold and buy more. I use wise weekly it’s epic.

[dabekt] 10/1/2022 18:04

So which bank do you think is responsible?Wise is still expensive on future earning assumptions. Would it not be cheaper for a large bank to invest and create own functionality integrated in own systems rather than try and integrate an additional system?I saw somewhere that last year that an investment bank valued Wise at 421p/share. Today Citi said that Wise would need to grow by 20% annually for the rest of the decade to warrant such valuation.I must admit, investment banks involved in the listing did a great job for the (listing /selling) owners extracting good premium from fresh buyers.

[conwyrebel] 10/1/2022 15:43

Feels like an attack to drive the price down ahead of an acquisition by a major bank.

[stutes] 10/1/2022 15:28

How much of the forecast growth of W is generated from taking revenue from costly banks?

Are some of the big banks , unable to compete on rice service opting to attack a potential7 big competitor using the stock market in lieu of price and service?

[stutes] 10/1/2022 15:15

If THG are reporting Numis to FCA over its alleged role in driving the rice down , how many more listing or ipis should be investigated?

[conwyrebel] 10/1/2022 14:42

Someone will buy this company at a premium as the tech is so damn good.!

[1pencil] 10/1/2022 14:36

Its only now quarter on quarter you can see the actual growth rate establishing itself, once the tide goes out it becomes apparent how overvalued it may or may not be.

Margins are shrinking in order to support existing growth forecasts, other than an excellent product and service there is very little in terms of a moat imo.

[stutes] 10/1/2022 14:32

I find it surprising Citi rating cause of a 9% hit and yet Citi backed Wise' lidting at ,£8/ share?

[stutes] 10/1/2022 14:06

Internet reports say Cii have suggested investors should dump Wise.

[stutes] 10/1/2022 13:11

The fall in price seems to be timed around quarterly reporting- the drop in price in % terms is over 37% in 3 months - how can a growing business, listed for less than 9 months, fall 37%+ unless it was over valued, trading below guidance, subject to hedge fund attack or ?

If you look at London its tech sector is small and one reason for London having a shrinking equity market

[1pencil] 10/1/2022 12:31

Not all FX type companies are doing bad post Covid, have a look at EQUALS (EQLS).

Its competes on some levels but generally speaking has a similar approach/business model but much smaller.

[1pencil] 10/1/2022 12:26

Brokers and bookrunners would have scoped out the best listing market, I doubt whether a US option would have been possible given the corporate structure hence a UK listing.

Its also worth pointing out that it listed, did not IPO in the traditional sense.

[stutes] 10/1/2022 09:40

Today shows why Wise should have opted for a friendlier tech market listing. It is, i suggest, too easy for London tech stocks to be shorted or discounted.

[stutes] 10/1/2022 08:31

IBs could see a 19% discount on their price on all future ipos?

[stutes] 10/1/2022 08:14

The IBs who helped Wise come to the market might suffer a fallout when it comes to backing more ipos?

[umitw] 07/1/2022 04:24

I hope you all wised up here!I remember some clever person here told me to take and invest my money elsewhere if I thought the valuation was not sustainable!

[1pencil] 06/1/2022 16:27

The growth (and profits) are just not there to support this valuation, either side of the pond.

On top of tis they are churning out huge numbers of options to keep staff incentivised.

[stutes] 06/1/2022 15:57

As the City panics , is it timely for W to take the next big step?

[1pencil] 06/1/2022 15:18

Discretionary spend, higher rates, fuel costs, inflation (see next TU today) less travel spend.

Wise is a great company but on a mind blowing valuation, any bumps in the road are likely to knock sentiment imo.

[stutes] 06/1/2022 15:13

How can a company fall 7% to 10% based on yield hike, surely logic means more firms and people will use Wise than pay high commission to banks? Tough times mean consumers look harder to cut cost.

[stutes] 05/1/2022 12:20

hxxps://www.fnlondon.com/articles/hedge-fund-titan-paul-marshall-warns-financially-illiterate-brits-may-spell-londons-decline-20220104

Low UK daily volumes - UK Equity market is just too small compared to USA.

[henryatkin] 05/1/2022 11:53

market share is less than 1% of the £5trn a day global foreign exchange market. This means it has barely scratched the surface of this vast global marketplace.

Unlike many other technology companies, Wise actually reduced the price its customers paid in the third quarter. The cost of each transaction declined from 0.69% to 0.62%.

By comparison, other companies charge as much as 3% of each transaction to convert currencies. This is the main reason why I think Wise shares will continue to head higher in 2022. The business is providing a service that clearly appeals to customers at a low price. Compared to competitors, the firm’s prices stand out.

To the novice investor valuation looks hideously high on PER basis but on PFCF of 3.5x its one of the lowest valuations for any growth stock on the LSE - cash is king!

[eaglebeagle] 05/1/2022 07:10

Or come up with a sustainable business model that isn't going to be bypassed. Doesn't matter where you list if you don't do that.