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Nasdaq is falling away as bonds surge with interest rates on the up. Would I buy square at this time? No. I will hold TSl until the end game
I totally get both of your posts, as PE of 120 does sound crazy. We need to wait for the Q4 results in early Feb, to hear about the guidance for next year, this might help improve the PE. We currently have the majority of analyst's predicting a share price increase, so again it will be interesting to see if these get revised soon, if as you say Block starts to appear over priced.
I think that the current PE is based on the April 2021 results, so these are quite out of date now. Looking on Yahoo, at some ballpark estimates, the consensus is for 30% growth in EPS next year, this must partly explain the current high valuation.
I guess the question with Block, is not so much what it is worth today, but whether you think it will be worth more in the future.
From a technical point of view, the Nasdaq, is at 200MA support, so lets see which way it goes.
Look at Ira Epsteins daily take on US charts. He sites that the last few times the S&P dopped, it rebounded strongly.
(Skip to 3 minutes in).
https://www.youtube.com/watch?v=MHbCCYstA60&ab_channel=IraEpstein
Looking at 'trading view' for Block, there are a few people suggesting long positions now.
Block may touch $100 before it rebounds - strongly to new ATH's.
I have a few grand here, with an average in the mid 50's so not overly worried either way, but do think that this investment shows promise (barring a market crash), not forgetting we are still in profit today above the current share price if TSL was would up next week. I also think that TSL would have considered this deal carefully and if they thought Block was over priced, why would they take the deal, with payment in SQ. shares.
Im going to sit tight until at least March, for all the above to play out.
The problem is that Thinksmart moved too quick in tieing up a deal for shares , so value was based on block at the time.
If we had waited then we could of been offered more shares as part of the agreement.
This could of been a factor of 1.4 x more , now we are exchanging for lesser value then was the true value as Block share priced dived.
Hence why the value has dropped , we are in the hands of a bigger company and where as we had a good slice is now less than 0.2% as a whole. In other words we are no-bodies and a holding company now.
Its why no-one is buying is a unknown trade in assets , im i ****ed off yes.
52 Week Low 44.10
52 Week Low Date 21-Jan-2022
Will 40p be the low. Doubt it! Nas down daily.
Not really sure what your point is BP?
Ceres power new low today,
ITM new low today
VLX new low today
Blah blah blah.
Yes the price is going down, so is everything else in this space, so is it really worth coming here to give it a kicking?
I did sell a little bit today, just couldn't pass up buying some other bargain, sure lots of others are doing the same. When Block starts to go up, the crowd will arrive, IMO. However until then, this is has the least potential. Not helped by the seller either, who probably has different criteria to average PI.
Off topic, is anyone else having trouble with the site? Keeps logging me out.
BP, you said you have some left in this to run, albeit de-risked from memory. So what's your take, you still happy to hold?
I have read your posts on many other shares, and found you to be spot on (even when others didn't want to hear it), so value your opinion. Like I said, not make or break to me, and if I need the money else where I will take it, but I do think this will recover to at least 60p if Block gets back to $155+
Thank you. There are a ton of stocks I see today that have halved since I sold or said it was too high....not because I am so smart but because selling is so tough for so many investors who read the rampers and cannot bear to sell. Long experience of the mkt.
Yes I have a freeroll on these. I think the management made a bad mistake here. There was no rush. Much of the profit made has been lost and those who bought at 80p after the rns of 7 december are looking at at big loss with the price now at 40p. Square looks way overvalued to me and The Nasdaq is falling away daily. Look at De La Rue results today.....the problems with staff and product must be replicated everywhere so expect many shocks.
I made my money on TSL by selling a good amount at just over 100p so I am not going to sell what I have left. Maybe something will happen here and to be fair the special divis have been very good. The TSL listing could be kept as a shell after most of the cash has been paid out and that could be worth something in time. "Free" stock is no risk is it? I do see TSL breaking below 30p in time so I am in no rush to buy more even as a trade ...... even at 40p.Each to their own and some have averaged down all the way down ....and now have a huge red position and I just do not see how they will ever get their money back.
Trimmed more today. I expect a blood bath later today, due to BTC. I agree with what you have said, and given it has revealed itself to be such a poor decision from TSL, doesn't bode well going forward. I was hopeful Block could find it's floor quickly, but even at distressed prices, a great amount of commentary points out what a poor buy it still is. Oh well. At least everything else has drooped so not quite such a loss. If I sit on the cash for a day or two, ill probably be quid's in.
Value destruction at the worst , did not need to sell
Pro formula of value was in place , just needed time till options had taken place.
Now we are free fall and can see block as a hidder now as litagration may take place on loses for investor in there main group.
Priced halved and all the good work gone in a bad deal - one word - SMEG ( Smalterie Metallurgiche Emiliane Guastalla )
52 Week Low 37.50
52 Week Low Date 26-Jan-2022
CNBC just reported that Apple are planning to offer merchant payment services from a standard iphone - whereas Block needs a Square payment gadget to process theirs. Block is trading down $6 on the news.
This seems to be a good balanced article, from a website devoted to payment technology. They point out that this is nothing new, as mastercard and visa already offer this. Seems a good site:
https://www.pymnts.com/apple/2022/apples-latest-payments-move-may-be-too-little-too-late/