Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Block share price continued to underperform on a risk-adjusted basis, even it delivered double digit returns.</li>
<li>Topline growth is slowing down as macroeconomic environment is no longer supportive and competition intensifies.</li>
<li>Block's business model seems ill-positioned to deliver, according to the company.</li>
</ul>


Block share price continued to underperform on a risk-adjusted basis, even it delivered double digit returns.
Topline growth is slowing down as macroeconomic environment is no longer supportive and competition intensifies.
Block's business model seems ill-positioned to deliver, according to the company.


Block: The Highly Uncertain Pivot Of The Business

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The <a href="https://www.afr.com/street-talk/tyro-payments-suitor-potentia-capital-ups-bid-to-1-60-a-share-20221211-p5c5ek" target="_blank" rel="noopener">AFR reports</a> that Potentia has increased its offer for <a href="https://www.smartkarma.com/entities/tyro-payments-ltd" target="_blank" data-smartkarma-citation="entities:28393:1" rel="noopener">Tyro Payments (TYR AU)</a> by 26.0% from A$1.27 to A$1.60 per share, a 62.4% premium to the undisturbed price.</li>
<li>The revised offer remains light and likely to be rejected again by the Board. Grok’s get-out clause with Potentia now sets the floor price of a competing bid at A$1.85.</li>
<li>Potentia’s revised bid is the catalyst for the other rumoured suitors (<a href="https://www.smartkarma.com/entities/westpac-banking-corp" target="_blank" data-smartkarma-citation="entities:444:1" rel="noopener">Westpac Banking (WBC AU)</a> and Moneris) to get their act together. A competing offer of around A$2.00 is possible. </li>
</ul>


The AFR reports that Potentia has increased its offer for Tyro Payments (TYR AU) by 26.0% from A$1.27 to A$1.60 per share, a 62.4% premium to the undisturbed price.
The revised offer remains light and likely to be rejected again by the Board. Grok’s get-out clause with Potentia now sets the floor price of a competing bid at A$1.85.
Potentia’s revised bid is the catalyst for the other rumoured suitors (Westpac Banking (WBC AU) and Moneris) to get their act together. A competing offer of around A$2.00 is possible. 


Tyro Payments (TYR AU): Potentia Returns with a A$1.60 Offer

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/net-protections-holdings-inc" target="_blank" data-smartkarma-citation="entities:35162:1" rel="noopener">Net Protections (7383 JP)</a>, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.</li>
</ul>



Net Protections (7383 JP), a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.


Net Protections Holding IPO Lock-Up - PE Owner Is Free to Shed Its Remaining Stake

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Block delivered a decent set of results with an all-around beat and good profitability during the last quarter.</li><li>Its BNPL platform produced $150 million in gross profit in the third quarter, distributed between Square and Cash App.</li><li>Inflows per active user have been improving in the third quarter compared to the first and second quarters and stable year over year.</li></ul>

Block delivered a decent set of results with an all-around beat and good profitability during the last quarter.Its BNPL platform produced $150 million in gross profit in the third quarter, distributed between Square and Cash App.Inflows per active user have been improving in the third quarter compared to the first and second quarters and stable year over year.

Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tyro-payments-ltd" target="_blank" data-smartkarma-citation="entities:28393:1" rel="noopener">Tyro Payments (TYR AU)</a> confirmed that it has “<em>received approaches from several parties expressing interest in a potential change of control transaction, including <a href="https://www.smartkarma.com/entities/westpac-banking-corp" target="_blank" data-smartkarma-citation="entities:444:1" rel="noopener">Westpac Banking (WBC AU)</a>.</em>”</li>
<li>Tyro previously rejected a A$1.27 offer from the Potentia consortium. Grok's get-out clause with Potentia sets the floor price of a competing bid at A$1.52 per share.</li>
<li>The last close of A$1.59 is higher than the floor price. Triangulating the value of a rival bid across several data points suggests a competing offer of around A$2.</li>
</ul>



Tyro Payments (TYR AU) confirmed that it has “received approaches from several parties expressing interest in a potential change of control transaction, including Westpac Banking (WBC AU).”
Tyro previously rejected a A$1.27 offer from the Potentia consortium. Grok's get-out clause with Potentia sets the floor price of a competing bid at A$1.52 per share.
The last close of A$1.59 is higher than the floor price. Triangulating the value of a rival bid across several data points suggests a competing offer of around A$2.


Tyro Confirms Westpac as One of the Interested Suitors

United States

Block, Inc. operates as a financial services and digital payments company. The Company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Block also provides financial and marketing services.

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Block (SQ US)

Block: The Highly Uncertain Pivot Of The Business

Topline growth is slowing down as macroeconomic environment is no longer supportive and competition intensifies. Block's business model seems ill...

Vladimir Dimitrov, CFA

Tyro Payments (TYR AU): Potentia Returns with a A$1.60 Offer

Potentia's revised offer continues to remain light. Potentia’s latest move is the catalyst for other suitors such as Westpac and Moneris (rumoured)...

Arun George

Net Protections Holding IPO Lock-Up - PE Owner Is Free to Shed Its Remaining Stake

Net Protections, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in...

Sumeet Singh

Block Inc (formerly Square Inc): Continuing Bullish Approach Towards Crypto

Block delivered a decent set of results with an all-around beat and good profitability during the last quarter. Its BNPL platform produced $150...

Baptista Research

Tyro Confirms Westpac as One of the Interested Suitors

The floor price of a competing bid at A$1.52 per share. Triangulating the value of a rival bid across several data points suggests a competing...

Arun George

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