Dietl Posted December 12, 2020 Share Posted December 12, 2020 This is a going to be my next SPACs, a place to highlight a SPAC investment of anyone's likening. I bought this SPAC this week. I really like it and recommend it. Got highlighted on CNBC, as a "triple" when traded at $14.00 Entry point $13.25 Presentation below https://s25.q4cdn.com/579018173/files/doc_presentations/2020/Foley-Trasimene-Acquisition-Corp.-II-and-Paysafe-investor-presentation.pdf Link to comment Share on other sites More sharing options...
Dietl Posted March 26 Author Share Posted March 26 Foley Trasimene Acquisition Corp. II (NYSE: BFT, BFT WS) ("Foley Trasimene"), a special purpose acquisition company, announced that at the special meeting of Foley Trasimene stockholders (the "Special Meeting") held today, Foley Trasimene’s stockholders voted in favor of the proposed business combination (the "Business Combination") with Paysafe Group Holdings Limited ("Paysafe"). The completion of the Business Combination is expected to occur on Tuesday, March 30, 2021, subject to the satisfaction or waiver of customary closing conditions. Following the completion of the Business Combination, the newly combined company will operate as Paysafe and trade on the New York Stock Exchange (NYSE) under the symbol "PSFE" and is expected to start trading on Wednesday, March 31. Link to comment Share on other sites More sharing options...
Dietl Posted March 27 Author Share Posted March 27 Most recent presentation Analyst_Day_presentation_March_9__2021Paysafe.pdf Link to comment Share on other sites More sharing options...
Dietl Posted April 2 Author Share Posted April 2 In order to understand how analysts look at the task of assigning price targets, I took a look at the financial statements for Nuvei, Affirm, and PayPal just to get the feel on certain lines. There is nothing unique to Paysafe statements. Debt: PayPal $9B, Affirm $1.6B, Nuvei $200M. Paysafe $2B. Cash (as cash account, not customer deposits) PayPal $4.7B, Affirm $520M, Nuvei $180M, Post-merger Paysafe $160M. The cash was reduced as part of the transaction. Debt paid in process $1.16B Goodwill and intangible assets, PayPal around $10B, Nuvei $1B, Paysafe $5B. Did not get Affirm in a first look. For accountants is obvious, those assets get adjusted a lot via income statements. I consider this part of the balance sheet for any company as a risk, but most have them based on M&A activities, etc. Shareholders equity: PayPal $20B, Affirm a deficit of $350M, Nuvei $1.4B, Post-merger Paysafe $2.9B. 2020 revenue size: PayPal $21B, Affirm $740M, Nuvei $375M, Paysafe $1.4B. Only PayPal is profitable, having EPS. Book value PayPal is $17, Nuvei is $10, Paysafe is $4. Affirm has none due to deficit in shareholders equity. Current recommendations: PayPal $308.19, Affirm $125, Nuvei $61.97, Paysafe $19 Price/book ratio on book and price targets: Affirm N/A. PayPal 18. Nuvei 5.77, Paysafe 4.77. Link to comment Share on other sites More sharing options...
Dietl Posted April 4 Author Share Posted April 4 Total Paysafe share ownership post transaction Consolidated cashflow from operations is positive, so the company makes money, losses are from impairment of intangible assets and depreciation and amortization, which are not real cash transactions. Eliminating forex exchange gain, $281M of real money was made in 2020. Link to comment Share on other sites More sharing options...
Dietl Posted April 10 Author Share Posted April 10 The entire negative model causing moaning and noise is based on the stock being down 9% vs the 50-day SMA of $15.21 and the entire period from DA announcement till yesterday being something like $15.67 SMA average which would make the stock down 11% using Friday closing price. The second negative point is Blackstone and CVC are selling their stake, or perhaps everyone is as soon as the lockup agreements are up. The mentioned 11% drop reflects the mood of the market to this inevitability. In the meantime, Paysafe predicts $380M in Q1 revenues with EBITDA of $115M. For the year EBITDA at the low end is $480M even with 70% cash generation adding $336M in free cash flow. The 2021 revenue places Paysafe somewhere at the $16B to $35B and much more depending on what company is being used in a comparison. There is zero doubt, that the financial picture illustrates Paysafe as deeply undervalued from the current $10B market cap. The growth using 10% CAGR for revenue ends 2025 at $2.3B with about $900M EBITDA using a mix of CAGR at 16%. Using Wolfe’s model that offers about $30 per share. Wolfe’s model is very conservative because, at $19, the market cap of Paysafe is $13.7B, which makes it undervalued in comparison to every single fintech company generating revenue over $500M per year. So Blackstone will ignore the ability to make more money. They have $38B in private equity for deployment anywhere, but they will take their 123.7M and multiply it by $3 and sell instead of watching the company grow for three years and multiple it by $20 using conservative Wolfe’s profile? I guess we will find out. Observation: April 7, 2019, PYPL was $108.48, SQ was $75.28, two years of visibility the combined growth of share value today is 2.95. This will put PSFE at $41 by April 2023. Of course, these price increases happened based on financial statements. Link to comment Share on other sites More sharing options...
Dietl Posted April 30 Author Share Posted April 30 All yahoo MB members are welcome to join Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Paysafe Selects AWS for its Strategic Cloud Services to Drive Innovation in Digital Commerce Leading specialized payments platform announces strategic collaboration with AWS, moving online payments processing to the cloud to support growth and become a more-data driven organization April 29, 2021 04:00 AM Eastern Daylight Time LONDON--(BUSINESS WIRE)--Leading specialized payments platform, Paysafe (NYSE: PSFE), announces it has signed a global multi-year agreement with Amazon Web Services (AWS) as part of its strategy to become a fully cloud-based payments provider. Through this collaboration, Paysafe is migrating its broad portfolio of mission critical workloads, including eCash solutions, paysafecard and Paysafecash, and its digital wallets, Skrill and NETELLER, to AWS to develop new cloud-native merchant payment and consumer wallet products for its business and consumer customers. The first milestone of the collaboration has already been completed with the transition of Paysafe’s eCash solutions to the cloud. “Paysafe continues to bring innovative payment solutions to market that help merchants rapidly develop and implement new products and meet evolving customer needs, and we look forward to our continued collaboration with them across their digital initiatives.” Tweet this The move to AWS supports Paysafe to leverage data to drive customer acquisition and engagement, as well as to run and scale products and applications for its North American and European operations in a highly reliable manner. Collectively, Paysafe’s solutions are actively used by more than 15 million people across more than 120 countries and support thousands of businesses to offer popular alternative payment methods. Paysafe’s partners will also benefit from its cloud-first approach, making it easier for merchants and other third parties to connect to the Paysafe Network using an API-based integration. The real-time transactional processing powered by AWS will allow merchants to offer a frictionless customer experience at the point of sale. Roy Aston, Chief Information Officer at Paysafe, commented: “Deploying AWS as one of our major cloud providers will bring wide-ranging benefits to our business, both in terms of scale and innovation. Our focus is to deliver new, innovative products and features into the marketplace twice as fast as before and also to scale, and expand our geographical footprint. We’re excited by the year ahead as we leverage the power of technology across the business, through a combination of our own in-house product development as well as our work with strategic organizations, such as AWS. We are also focused on areas such as machine learning, risk management, and customer insights.” As part of the agreement with AWS, Paysafe is creating a centralized, curated, and secured repository for all of its consumer and merchant data using Amazon Simple Storage Service (Amazon S3), AWS analytics, and AWS security to build a data lake to store, protect and organize their data. This scalable data lake will use AWS’s analytics services to further enhance the consumer experience, as well as to help Paysafe quickly and cost-effectively identify, prioritize, and evaluate risks in near real-time. “We are delighted to support Paysafe as they leverage AWS to offer frictionless customer experiences and uncover real-time insights,” said Scott Mullins, Managing Director, Worldwide Financial Services Business Development at Amazon Web Services, Inc. “Paysafe continues to bring innovative payment solutions to market that help merchants rapidly develop and implement new products and meet evolving customer needs, and we look forward to our continued collaboration with them across their digital initiatives.” About Paysafe Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading specialized payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, and online cash solutions. With over 20 years of online payment experience, an annualized transactional volume of US $92 billion in 2020, and approximately 3,400 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Further information is available at www.paysafe.com. Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Date Firm Action From To Apr 2021 RBC Capital Initiates Coverage On Outperform Apr 2021 Wolfe Research Initiates Coverage On Outperform Mar 2021 Compass Point Initiates Coverage On Buy Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Compass Point analyst Michael Del Grosso initiated coverage of Paysafe with a Buy rating and $19 price target. The analyst sees the company as a "relatively scarce asset" within the payments industry given its "unique" business strategy, geographical footprint, and focus on the iGaming industry. Del Grosso adds that Paysafe deserves a premium valuation given its high-growth verticals, potential TAM expansion, and the stock's SMID-cap profile. Read more at: https://thefly.com/n.php?id=3275296 Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 RBC Capital analyst Daniel Perlin initiated coverage of Paysafe with an Outperform rating and $19 price target. The company offers a "unique combination" of digital wallet capabilities, accelerated cash conversion for consumers who would otherwise be out of the e-commerce loop, and integrated payments, the analyst tells investors in a research note, adding that its focus on specialized and complex end-markets creates a "competitive moat" and pricing power. Read more at: https://thefly.com/n.php?id=3288847 Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Wolfe Research analyst Darrin Peller initiated coverage of Paysafe with an Outperform rating and $19 price target. The company's position as a leading digital wallet provider and "niche" merchant acquirer will allow it to establish a dominant position in areas such as internet gaming, property management and cryptocurrency trading, Peller tells investors in a research note. He sees 34% potential upside in the shares. Read more at: https://thefly.com/n.php?id=3278365 Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Link to comment Share on other sites More sharing options...
Dietl Posted May 1 Author Share Posted May 1 Guidance for Q1, let's see how this compares in 10 days Link to comment Share on other sites More sharing options...
Dietl Posted May 2 Author Share Posted May 2 I will review results on 11th and offer an analysis of the financial condition on the company. As disclosed in recent 20F the material weakness is a temporary state between being a private entity logging revenues versus a public company treatment. As a matter of disclosure I expect a statement for it in the filing. I expect higher revenues increased guidance and overall higher forecast for 2021. Link to comment Share on other sites More sharing options...
Dietl Posted May 6 Author Share Posted May 6 The soft spot on this balance sheet are intangible assets and the goodwill worth about $5B. Both items get reduced via income statement, essentially causing a loss per share, but because they are accounting and not real money, the cash flow is not affected. Since the shareholders' equity is $2.9B one could argue as not asset based equity. I think this has a lot to do with the valuation of the company in comparison to peers. Discuss Link to comment Share on other sites More sharing options...
Dietl Posted May 7 Author Share Posted May 7 Reviewing PayPal balance sheet, $9B in goodwill and $948M in intangible assets. Upon deduction from $19B, PayPal would have around $9B in equity. The same exercise for Paysafe creates negative equity of $2.1B. For every dollar of revenue of $1.4B, the $5B in combined intangible and goodwill, there is $3.57 combination of those assets (year) for PayPal it is only $0.41, this is an immense difference to create EPS. Price to book (my version just shareholders' equity) for PayPal is 15.6 times, for Paysafe is 3.25 times. Paysafe seems massively undervalued but is this the quality of the assets supporting the equity which matters to wall street? Interestingly this is were there is a material weakness as per 20 F qutoe Paysafe has identified material weaknesses in its internal controls over financial reporting and if our remediation of such material weaknesses is not effective, or if we are unable to develop and maintain effective internal controls over financial reporting, we may not be able to produce timely and accurate financial statements or comply with applicable laws and regulations, which could have a material adverse effect on our business. Quote Management has identified the following material weaknesses, affecting each of the five components of the Internal Control—Integrated Framework (2013) by the Committee of Sponsoring Organization of the Treadway Commission (“COSO 2013”), which have caused management to conclude that as of December 31, 2020 we did not maintain an effective control framework: • Inadequate controls over key accounting judgment areas including capitalized development costs and purchase price allocations • Insufficient review of the completeness and accuracy of data inputs associated with certain key controls impacting multiple financial statement account balances and disclosures, including data inputs to the impairment model for acquired intangibles Accounting for intangible assets Link to comment Share on other sites More sharing options...
Dietl Posted May 9 Author Share Posted May 9 Assuming guidance of $1,550M in revenue, following opportunities are possible. This is before any increases in revenue, already reported by competitors. Link to comment Share on other sites More sharing options...
Dietl Posted May 19 Author Share Posted May 19 Breakdown of so called selling shareholders, from today's registration Link to comment Share on other sites More sharing options...
Dietl Posted May 19 Author Share Posted May 19 William Foley almost 50M shares, nice holding. Link to comment Share on other sites More sharing options...
Dietl Posted May 29 Author Share Posted May 29 Breakdown by Filing/Fintel 13F results, Only Fintel and Only filing shareholders If totaled 696M shares are spoken, leaving 27M for trading. Fintel only are likely traders. Combination of Filing/Fintel plus filing is 640.5M, leaving 82M of float, 32M short makes about 39% shorted float. Link to comment Share on other sites More sharing options...
Dietl Posted September 23 Author Share Posted September 23 I sold Paysafe, but decided to buy back. I am all in now at $7.84, I expect 2 year valuation at $32 per share or $24B. So by 2023/2024. Link to comment Share on other sites More sharing options...
Dietl Posted September 24 Author Share Posted September 24 Institutional ownership Q2 Q2 Paysafe IO.pdf Link to comment Share on other sites More sharing options...
Dietl Posted September 29 Author Share Posted September 29 Brought my average to 7.80. Link to comment Share on other sites More sharing options...
Dietl Posted October 1 Author Share Posted October 1 Update to IQ including last few days Paysafe IO Q2.pdf Link to comment Share on other sites More sharing options...
Dietl Posted October 1 Author Share Posted October 1 25 news releases in Q3, 60 business days, a news every 2.4 days. the stock price is down 36% since June 30th, we finish 3rd quarter as a public company at $7.75: Sep 30, 2021 Paysafe streamlines payments for interactive wagering with Fubo Gaming in US Sep 29, 2021 Paysafe and Shelby Financial partner to safeguard US airline payments Sep 28, 2021 Mexican actor Diego Boneta becomes face of Skrill Money Transfer in US Sep 21, 2021 paysafecard and NEO extend their successful partnership Sep 15, 2021 Paysafe appoints Zak Cutler to lead its North America iGaming business Sep 13, 2021 Paysafe waives processing fees for U.S. SMBs Sep 13, 2021 bunq partners with Paysafe to enable cash deposits for digital banking Sep 10, 2021 Paysafe supports Louisiana-based merchants with pair of cost-saving measures Sep 09, 2021 Paysafe and Konnektive to deliver industry leading CRM solutions through newly expanded relationship Sep 08, 2021 Paysafe expands Betfred USA Sports partnership through Income Access deal Sep 07, 2021 Paysafe launches Paysafe Publishers eCommerce affiliate marketplace Sep 01, 2021 Paysafe completes acquisition of PagoEfectivo Aug 24, 2021 Paysafe's Petroleum Card Services Renews Endorsement with California Fuels and Convenience Alliance Aug 22, 2021 Paysafe to Acquire viafintech Aug 16, 2021 Paysafe to Acquire SafetyPay Aug 10, 2021 Paysafe appoints Chirag Patel to lead its Digital Wallets division Aug 09, 2021 Ambassador Cruise Line appoints Paysafe as payments partner Aug 04, 2021 Paysafe and ARC partner to deliver innovative payments solution for airlines Aug 02, 2021 Paysafe To Acquire PagoEfectivo Jul 27, 2021 Paysafe connects Parx Interactive to full suite of payment methods in US Jul 21, 2021 Paysafe partners with Bankable to provide omnichannel banking services Jul 19, 2021 Paysafe partners with Smart Property Systems in North America Jul 14, 2021 Paysafe provides WynnBET with payments and marketing solutions in US Jul 13, 2021 Paysafe's Skrill expands its crypto service Jul 08, 2021 Paysafe's Income Access wins Affiliate Software Supplier 2021 EGR B2B award Jul 08, 2021 Paysafe launches safeguarding model for the travel industry globally Link to comment Share on other sites More sharing options...
Dietl Posted October 2 Author Share Posted October 2 The summary shows addition of 15M shares to a retail float. The price change was a negative drop around $1.39. Link to comment Share on other sites More sharing options...
Dietl Posted Tuesday at 03:57 AM Author Share Posted Tuesday at 03:57 AM I have managed my average to $7.54. I will be trading 25 to 50% of my position if possible. Link to comment Share on other sites More sharing options...
Dietl Posted yesterday at 12:26 AM Author Share Posted yesterday at 12:26 AM October 4th, update on selling shareholders 54M got sold since De-spacing in March Link to comment Share on other sites More sharing options...
Dietl Posted 13 hours ago Author Share Posted 13 hours ago I have crossed all October references, The picture which appears is essentially 88M shares being traded by retail and scalped Paysafe IO October 4.pdf Link to comment Share on other sites More sharing options...
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