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Bitcoin, Ethereum Technical Analysis: Ethereum Back Above $1,300 to Start the Week

Blockchain
Bitcoin, Ethereum Technical Analysis: Ethereum Back Above $1,300 to Start the WeekendEthereum remained close to a three week high on Monday, as prices rallied following a turbulent weekend. Bullish sentiment appears to have somewhat returned to crypto markets to start the week, with the market cap trading 1.56% high as of writing. Bitcoin was also in the green in today’s session. Bitcoin Bitcoin (BTC) was trading […]

Transportation Management Platforms: A Foundation for Data-Driven Decision Making

Supply Chain & Logistics
Editor’s Note: The following is an excerpt of a research report published this week, “From Gut Feelings to Data-Driven Decision Making: How to Unlock...

Who Were The Leading Australian Patent Prosecution Firms in 2021?

Patents
With significant increases in both standard and (especially) innovation patent applications, 2021 should have been a bumper year for patent attorneys operating in Australia. ...

Bitcoin, Ethereum Technical Analysis: ETH Reaches 1-Month High Above $3,000, as BTC Hits $43,000

Blockchain

bitcoin,-ethereum-technical-analysis:-eth-reaches-1-month-high-above-$3,000,-as-btc-hits-$43,000

Ethereum rose to a one-month high above $3,000 on Tuesday, as the global cryptocurrency market place rose by nearly 4%. Bitcoin was also higher during today’s session, moving to its highest point in over three weeks. Bitcoin Bitcoin rose to its highest level in three weeks on Tuesday, as the world’s largest cryptocurrency climbed beyond…

The post Bitcoin, Ethereum Technical Analysis: ETH Reaches 1-Month High Above $3,000, as BTC Hits $43,000 appeared first on Bitcoin News Miner.

Bitcoin, Ethereum Technical Analysis: ETH Stays Above $2,900 as Traders Eye $3,000 Ceiling 

Blockchain

bitcoin,-ethereum-technical-analysis:-eth-stays-above-$2,900-as-traders-eye-$3,000-ceiling 

Ethereum remained above $2,900 to start the week, as the world’s second largest cryptocurrency consolidated its recent gains. Bitcoin was also consolidating, as it continued to trade above $41,000 during Monday’s session. Bitcoin Despite a selloff to end last week, prices of BTC continued to hover above $41,000 on Monday, as market bulls appear to…

The post Bitcoin, Ethereum Technical Analysis: ETH Stays Above $2,900 as Traders Eye $3,000 Ceiling  appeared first on Bitcoin News Miner.

Move over SundaeSwap, Minswap takes top spot as Cardano TVL jumps to $272 million

Blockchain

The Cardano DeFi ecosystem grew 113% over the last month and now has a Total Value Locked (TVL) of $272 million.

The post Move over SundaeSwap, Minswap takes top spot as Cardano TVL jumps to $272 million appeared first on CryptoSlate.

Caution Traders! Bitcoin (BTC) Price To Suffer Another Pullback Prior To $43k This Weekend!

Blockchain
Bitcoin

The post Caution Traders! Bitcoin (BTC) Price To Suffer Another Pullback Prior To $43k This Weekend! appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The cryptosphere’s yearn for a bull run, now finds possibilities, as the industry tends to recover from its setbacks. Wherefore, investors now eye on the star crypto Bitcoin, in hope of it retracing its path to the bulls. Successively, folks from the crypto town are analyzing the foot movements of Bitcoin and its price projections …

Does a salary floor help MLB’s parity issue?

Gaming
A salary floor is a concept which has long been suggested for Major League Baseball. The NBA operates with a floor and a cap,...

Markets Positioned for a Hawkish FOMC Tomorrow

Forex
The markets remain extremely volatile with too many uncertainties to adequately price. However, one near sure bet is for the FOMC to hike rates 25 bps tomorrow. The BoE is also expected to bring a quarter point increase on Thursday. Bonds are marginally firmer, recovering from recent losses, though yields have pared their overnight rally. Worries […]

Short-Term Supply Dwindles

Blockchain
Bitcoin accumulation trends have softened in the short term, despite extremely constructive long-term demand trends. The potential energy for a capitulation event is in place, but is yet to manifest as it has in previous market cycles.

Are Asian Economies Heading for a Bumpy Ride in 2022

Supply Chain & Logistics

The Asia-Pacific region, which has emerged to be the economic hotspot in the last few decades, displayed a huge slump during the first wave of the COVID-19 pandemic. However markets recovered themselves in 2021 to greater extent and the economists are forecasting an expansion of that steady growth in the year 2022 as well. This growth is accredited to the economic expansion and policy changes in countries like India. However, despite becoming the latest epicenter for sourcing and manufacturing activities, economic growth in certain countries is expected to slow down this year due to various reasons. This article is an […]

The post Are Asian Economies Heading for a Bumpy Ride in 2022 appeared first on 20Cube Logistics.

The GO2 People

SPACS
GO2 is a WA-based labour hire company raising between 10 to 12 million, with a post listing indicative market capitalisation of 23 to 25 million. The offer closes this Friday.
The first thought I had when looking at the G02 IPO is that investors should be getting a great deal. GO2 owes 3.8 million owed to the ATO, has working capital issues with increasing receivables, and is set to make a loss for FY17. If the IPO doesn’t go ahead there seems to be a real possibility the company could be out of business in a few months. With that in mind, you would think the IPO would be priced low enough to ensure that the offer doesn’t fall through. Unfortunately for investors, this doesn't seem to be the case.

Company outlook

G02’s revenue has been on a bit of a roller coaster over the last few years. After only 20 million of revenue for the 2015 financial year, the company revenue shot up to 26.5 million for the first half of FY16 before falling off a cliff. Getting your head around the company’s revenue numbers is harder than it should be thanks to sloppily labelled profit and loss table in the prospectus. In the below table, the December 15 and 16 columns are half year figures, despite the profit (loss) label being “for the year.” Given this is probably the most important table in the prospectus, you would think someone would double check these things.



To get a clearer picture than this table provides, I graphed the revenue below in six-month blocks for the last two years. Numbers for july 2017 have been extrapolated from the provided 30 April figures. 



GO2 blame the downturn both on depressed market conditions and a preoccupation with getting ready for the IPO. It doesn’t seem like a great reflection of management that they could become distracted enough to lose half their revenue, but then again what do I know?

Valuation

I struggled for a long time to get an understanding of what I thought of the IPO price. GO2 is going to get a significant cash injection of 10 to 12 million if the IPO goes ahead, increasing the company’s net equity from just over half a million to around 10 million. This will have a significant effect on the company’s operations, which means it seems unfair to use their pre-IPO revenue to value the company.

One way to look at it, is to look at the value that has been assigned to the company before the cash injection of the IPO. As the company is being valued at 25.6 million with a 12 million dollar IPO, this means the pre-IPO company is being assigned a value of 25.6-12 = 13.6 million. For a company that made a profit after tax of 1.229 million after tax last financial year but a loss of $421,696 in the most recent reportable 12 month period, this doesn’t seem like a great deal. Even if we ignore the recent downturn and use the FY16 numbers, we get a P/E ratio of 13.6/1.229 = 11.065. By way of comparison, NAB shares are currently only trading marginally higher at a P/E ratio of 13.85, and a 41% dip in revenue for NAB would be almost unthinkable. You could argue that the potential upside for a company like GO2 is much higher, but I still think given the marked drop in performance, the valuation placed on GO2’s current operation is a little high.

While 95% of revenue so far has come from the recruitment business, 72% of money raised from the IPO after costs and ATO debt reduction are subtracted will be invested in thebuilding side of the business. GO2’s founder Billy Ferreira has a background in construction, and the prospectus argues that given they already have access to a workforce through their labour hire business, they are well placed to succeed in this area. It is this element of the prospectus that makes me second guess my opinion that the IPO price is too high. The company has a signed Memorandum’s of Understanding with property investors, and could potentially grow this side of the business very quickly.

Escrow

One of the good things about this IPO, is that basically all shares other than those bought in the IPO will be held in escrow. This means there is no short-term risk of pre-IPO investors offloading their shares and hurting the share price. If you are a short-term investor, this may be significant for you, but as the goal of this blog is always to identify long term opportunities I do not put too much weight on this point.

Summary

This is probably the IPO I have been most indecisive on. GO2 have managed to grow very quickly, and it looks like one of their main barriers to growth has been managing their working capital, a concern that should be eased thanks to IPO funding. On the other hand, I can’t help thinking that the seemingly distressed nature of the company means that investors should be given a slightly better price to invest. Somewhat reluctantly then, I will be giving this IPO a miss.


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