Silver Spike Investment (SSIC), mcap=$51m, price $8.17 vs $8.85

Pitch:
– Buying $1 for $0.65.
– Recently IPOed externally managed BDC with a focus on the cannabis industry.
– Trades at a 35% discount to NAV, comprised almost 100% of the cash.
– Perfect timing – raised fresh funds for investment when the cannabis industry MSOS is down 70%.
– External manager owns 72% of the shares (the largest investor in IPO).
– In better times 1.25x P/NAV can be expected.

Valuation:
– Trades at a 35% discount to NAV, all of which is comprised of cash.
– Expected to revert to 1x or 1.25x NAV in due course.

Exp. gain: +50% to $13.7/share NAV in one year.

Full SSIC write-up (free guest account required): https://valueinvestorsclub.com/idea/SILVER_SPIKE_INVESTMENT_CORP/2448987029

Published on: June 23, 2022  •  Published by:
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1 COMMENT

  1. devanrobinson

    Has anyone found a fundamental reason for SSIC’s continued sell-off? Or is it simply trading in tandem with MSOS & the broad market? This one is pretty compelling to me but I’m worried about falling knives.

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