We have strong reason to believe that TrustBuddy could roll-out is extremely successful SME P2P lending business in the Nordics earlier than previously expected. The company’s founder Jens Glasö recently participated at a P2P conference hosted by Savy and stated in a panel discussion that: “we are launching the SME platform (in Sweden) on April 8th”. (around minute 10:25 in the clip below)
Apparently, TrustBuddy will launch its new SME lending product under the label “Crowdfunding Society“. The company tweeted this morning:
This is great news indeed, as TrustBuddy’s existing SME lending business (Geldvoorelkaar (GVK)) is doing very well. Following several successful campaigns last week, GVK has by now passed more than EUR 54.5m in capital funded, and that is in the Netherlands alone.
As we have previously argued, TrustBuddy’s current SME lending business by itself easily justifies a value of 2-3x today’s share price. Add to that the new product for the Nordic region and the fundamental upside to today’s share price levels is enormous. Obviously, it is all about execution in the end, but TrustBuddy seems to have all the tools in place to succeed in the SME lending business.
The share has been very weak so far in 2015 and especially in the last 2-3 weeks. We are looking forward an updated shareholder list in order to see who was/is behind the massive oversupply on the sell-side. There has not been any insider activity reported in recent months, so we know that they are at least not selling. However, we think it is very important for the TrustBuddy share to see actual insider purchases at these levels. Especially since there are several members of the Board and management who have none or only a few shares today. We welcome the use of subscription rights as a way to remunerate key staff on top of their fixed salaries. Nevertheless, in order to show confidence in their own strategy and execution, they have to put money out of their own pockets at work as well.