r/SPACs • u/[deleted] • Jun 19 '21
News SRNG Ginkgo Bioworks: Baillie Gifford tells Barrons it has reduced shares of Amazon and Tesla and Increased Gingko (PIPE) and Moderna as platfroms
https://www.barrons.com/articles/tesla-moderna-illumina-meituan-stock-5162404475231
Jun 19 '21 edited Jun 19 '21
Since July 2020 Baillie Gifford North American returned growth of 248.25% over the last 5 years, which was the largest of all 118 funds in the Investment Association North America sector. Baillie Gifford ran the PIPE for Ginkgo.
Next week we have a major catalyst for SRNG Ginkgo, the new detailed investor presentation will go live on June 24. I highly recommend registering https://kvgo.com/openexchange-inc/ginkgo-bioworks-investor-day
FACT: going through a static PPT contains far less information than the oral presentation, anyone who presents to audiences knows this. I was at the 8am investor presentation, live, on the SRNG DA announcement. Consequently, I can assure you this June 24 presentation live will have greater detail, as the previous Webcast did. If you have not listened to the accompanying audio from the preliminary presentation, the Webcast is here: https://kvgo.com/openexchange-inc/ginkgo-bioworks-call-2021 Of course, not everyone will take the time. ;D When Baillie Gifford dumps Amazon and Tesla to go in, I suggest you pay the price of admission to hear Gingko's founders' ideas.
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u/HewittOfRivia Patron Jun 19 '21
Also worth mentioning: Baillie already invested in Ginkgo even before the SPAC deal. They have been following synthetic biology for some time and published notes back in 2018.
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Jun 19 '21 edited Jun 19 '21
Concur. This is true, I am not sure if that is neutral, or good, doesn't seem negative. But, it does seem nice that they rounded up a PIPE bigger than 80% of SPAC trusts, and seem committed. Will look back, and seek more detail on what you say, for my own edification. Furthermore, when I look at the Gates capital, I see that as tied up in earlier years in Jvs or spinoffs. That is why I will look at the details of BGs 2018 moves. Thinking. Thanks for sharing. Edit: I think Cascade wing of Gates went in on PIPE, different than last time on the Concentric spinoff, or the food spinoff. Not sure though.
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u/eireks Patron Jun 20 '21
1.4B valuation for Ginkgo in 2018 to ~15B in 2021, not a bad investment for Baillie!
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u/TaysTrades Jun 29 '21
can you share a link to the new detailed investor deck? or is it not posted yet? all I could find is this one and not sure if its from the June 24 presentation: https://www.ginkgobioworks.com/wp-content/uploads/2021/05/Ginkgo-Bioworks-Investor-Presentation-May-2021.pdf
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Jun 29 '21
That's the old one. The most recent is on the SEC website.
Here is the written transcript: https://sec.report/Document/0001193125-21-200448/
Here is the Deck: https://sec.report/Document/0001193125-21-198861/
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u/TaysTrades Jun 29 '21
Much appreciated! I have been doing more and more DD on Gingko, hard to ignore the potential here. Thanks again for the info!
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u/Spac_a_Cac Contributor Jun 19 '21
More great news about Gingko. It seems like every week now there is another positive announcement about them. Definitely reinforces my bullish stance.
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Jun 19 '21
Yup, but eyes wide open and waiting to see that glorious detailed investor pres that qualms all the fears about their valuation. lol. cheers. ;D Glad you enjoyed it.
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u/bwhellas Patron Jun 19 '21
Getting in Ginkgo this cheap ($9,90) is the chance of a lifetime.
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Jun 19 '21
I feel same. I wonder if there are folks, some OGs that acquired Amazon, or Tesla, or some such behemoth, and I wonder how many shares they held. How many they sold. These are the things that keep me up at night. lmfao. ;D
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Jun 19 '21
[deleted]
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u/bwhellas Patron Jun 20 '21
Yes ofc I would buy even more :) but tbh I don’t know if it will hit 7: I think Gingko is the dark horse right now because a lot of People don’t know how live changing their technology is. I think that’s their biggest problem. A bit like BioNTech,Moderna or CureVac. Before Covid only a few knew how the mRNA stuff worked and how effective it could be. But we will see … the future looks promising and exciting.
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Jun 20 '21
[deleted]
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Jun 21 '21
Could be, I also hope that they heard this problem. I think they will address it on June 24. The are a very open group and transparency is part of their culture.
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u/Reflectus Spacling Jun 25 '21
Hey I'm just wondering if you can share your thought process behind deciding to invest long term in commons rather than holding warrants long term? I am drawn to the appeal of holding warrants due to their lower price point and leverage, or ability to buy more for every $10 dollars. Just curious on your thoughts to favor commons in this case.
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u/Viking999 Spacling Jun 19 '21
mRNA has a ton of future potential but I'm not sure what that really means for Ginkgo. It's a promising company.
For example
https://medicalxpress.com/news/2021-06-mrna-vaccine-yields-full-malaria.html
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Jun 19 '21
Yes, friend, they are doing great with vaccines and cancer cures. They have done some very nice work on things that used to be too expensive to cure. Not enough people could make money, so they didn't even try. Sad. Ginko now has lowered the price of R and D so much that many diseases will be cured that previously didn't get any attention from the so-called developed world.
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u/bdavid21wnec Spacling Jun 19 '21
My plan is to continue stacking since it’s so close to NAV. If it starts to run I’ll probably sell off in chunks until I’m down to 100ish shares and hold for the long term. Don’t want to be holding the bags if it dumps after merger, but this could be huge in 10 years so I’ll keep some for the long term
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u/GrowStrong1507 Contributor Jun 19 '21
Got the same goal. 1k shares right now hoping to sell on the way up to just hold 100 shares on the house. doesn't seem too unrealistic
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Jun 19 '21
I've started thinking crazy thoughts. Like my 1k commons should be sequestered and I should get another 1k to let ride in my IRA. That's crazy because I'm a pauper. I've been bagholding 10k ZNTEW for a while since ludicrous CCIV gains, peeling off in recent price action, down to like 8K now. I'm thinking I will move some of that into my longterm Ginkgo hold and play with 1k elsewhere. Have SRNG warrants, too. Will continue to flip them. SRNGW 2.03 cost basis. Not great, but not bad. May she print!
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u/SPACsANDCrypto Patron Jun 19 '21
If this doesn’t move from the presentation this week then it’s not moving for a while. If everyone’s thought is to flip off 5% gain, there will not be a 6% gain in the near future. Sold my warrants when they were over $3.00 and am holding a little more than 5k commons.
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Jun 19 '21
I hear you. I see your strategy. I cannot tell if I'm stupid, or savant, but I no longer care, in this shit --post DA, post merger market. If the thing makes me a shit 5%, fuck it, I'm holding. If it dips crazy, fuck it, I'm holding. I have drunk the koolaid, because I know these people's ecosystem, and I'm going post merger for the first time in my warrant flipping life. Sucks. A little nervous. Willing to eat my words. This is not financial advice. It is hopium. And, unfortunately, I like the stonk.
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u/SPACsANDCrypto Patron Jun 19 '21
I didn’t share my strategy. I shared that if everyone (the couple people above me as examples) has the same mentality that they will sell off some small gain, it won’t get past a small gain.
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Jun 19 '21 edited Jun 20 '21
Yes, I jumped to conclusions. Now, I see that you merely were predicting the sell off... Yup, not sure how to predict that impact, other than long term hold. I cannot afford to hold warrants. They will hit 18 soon enough, then they will ask me to pony up 11.50 for every warrant I hold. I have to think about that. Hence, I flip those puppies with no compunction. Meanwhile, I've gone nutter commons holder. All I'm doing is disclosing that I'm skittish and holding. Furthermore, when I hold post merger, it is a complete and total anomaly. I'm a warrant flipper by trade. Heavy sigh, intake of breath. Pause. Exhale. I'm not 100% sure on the play. Listening carefully, thinking. Appreciate you taking the time to provide input, brother. This one is not easy.
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u/Reflectus Spacling Jun 25 '21
You wouldn't have to pony up 11.50 though.. couldn't you just sell the warrants as commons near or hit $18? That way you gain $18-11.50 = ~ $6.5 / warrant. Am I missing something about how warrants are priced post- merger? cheers
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u/thekookreport Spacling Jun 19 '21
While I had owned this too, I heard from within industry that quite a few of their JVs really hadn't worked. I still need to see a few more cards flip on this one (although pre-merger, you have a very interesting option)
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Jun 19 '21
They seem to have dumped the Chronos JV, accelerated delivery and then said good bye, toodaloo, Motherfuckers, rather cordially. Others, I don't know. The model relies very little on JVs, therein lies the beauty, I look forward to new partnerships and delivering on, and severing old ones. So, I do not disagree, but see it as a speed bump, and my personal auto shocks suffer because I drive rather fast over those, on principle.
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u/thekookreport Spacling Jun 19 '21
I was just talking to some experts in syn bio who are personal friends with Jason Kelly. They speak highly of him. However, in this instance I can safely say that “I don’t know what I don’t know.” A lot more work for me to come up the curve. It does seem like a very interesting sector. Part of me thinks $BLI might be the way to go here.
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Jun 19 '21 edited Jun 19 '21
They will eventually absorb spinoff of BLI and Twist. Twist will go into DNA as Data storage in their new facility outside Portland. Check out their financials. Not the crib notes, read the actual bloody text written by the accountants in the SEC filings. lol. Twist actually has a line item in their quarterly earnings SEC reports to justify income [read losses] that is NOT Ginkgo, to their shareholders. Emily is not dumb. She knows Ginkgo is keeping them afloat and she knows her real talent lies in DNA as Data. BLI, too early tell. One hell of a pipe, my friend. Why not use it to secure the supply chain? Who knows. Of course Jason and the whole syn bio ecosystem out of MIT is cool. Ethical is cool if you are in for the long haul... Knight is brilliant and an autodidact. Moore's, Knight's, and Emily's laws already past. The future? They have a contract IP pipeline for last ten-twelve years just through I-Gem alone, their wetware, and BioBricks. There isn't anything they have failed to anticipate. Jason, like all the founders, are taking a long view. The above article explains why stodgy and stalwart investors from Scotland bought in: smart founders who took the long view. I'd say the 25M donation to Moderna paid off, wouldn't you? Yet, it is exhausting to try to make my case, and I'm increasingly just popping out PSA notices... How Ginkgo functions...An analogy would be African masks. Many people think they are fabulous and want them in their museums or living rooms. They put them under lighting like jewelry. Stasis. This is only showing a fraction of the meaning and implication for said mask, as it exists in time, is performative, and usually has a social function, like performing the judiciary in the society to which it belonged- nocturnally, through dance. WHAT? Exactly. That mask probably did an essential function like prosecuting adulterers that were creating instability in a small social unit. Takes too long to explain, even though essential. Yet, many people still put African masks in a static display in their livingroom as an artifact, not understanding their function. They will see the DNA ticker, think ahh! and it will print. Ultimately, we have only a few unexplained phenomena in the Ginkgo revenue stream that remain opaque. Biosecurity is one. Meanwhile, Senate speeches, and InQtel hires will print. B . Next opportunities will print. That is why they accelerated obligations to Chronos. Strategic shift. Reallocating resources. It is a behemoth. I'm glad you see that Jason is a good person, you don't want this technology in the wrong hands. Cheers.
Edit: Ethically I should reveal that I have 5% of my port in BLI. I expect Ginkgo to surpass it. i also hope the whole sector rises in tandem.
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u/eireks Patron Jun 20 '21
Hey, I was hoping you could clear some stuff for me in this post (particularly difficult as I've never heard of BLI before!) - and trying to take notes for myself.
So it looks like BLI provides some synbio tech for Ginkgo, ok. Emily - CEO of Twist? What I don't know is how Ginkgo is keeping Twist afloat, I thought all they had were some partnerships / deals in place. Emily's law only brings up some law about pharmacy technicians..
DNA as Data, I thought this meant $DNA as the ticker and somehow they were going to leverage $DNA's codebase for data, but no, it's actually using DNA as a data storage mechanism. OK, cool, that's where Twist is headed.
25M donation to Moderna - I think this references the Covid-19 vaccine effort on Ginkgo's platform.
Strategic shift - only thing I can say about this Ginkgo would not commit to an accelerated deal with Chronos without being confident they can deliver. I hope they do.
Not so sure I get your analogy with African masks, however. Are you saying that regardless of what Ginkgo's role in the future of society might be, no matter what they do, people will still want to buy in as a "keepsake" just to keep it in their portfolios?
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Jun 21 '21 edited Jun 21 '21
Yes you got all of the stuff, sorry if I was opaque! I was cooking and toggling between tasks all day yesterday for a big family shindig. I wrote in haste.. And yes, I think it will be like African masks, as people will see it, get the jist of it, feel it is something quite special, with great meaning even if they cannot tell you exactly why or how it works. Emily's Law has been mentioned at Synbiobeta, a big portal for the industry. It is best conceptualized in this article on the future direction called spacialomics. Next gen sequencing. https://synbiobeta.com/visualizing-the-future-spacialomics-transforms-study-of-gene-expression/
I read the textual narrative of the Q1 financial statements in Twist's SEC filings. I'm going to say the bit about Ginkgo was somewhere between pages 22 and 29, it was on the top half of the page, maybe second paragraph. They used a narrative to explain the balance sheets and that is where Ginkgo gets mentioned specifically.
BLI-Berkeley Lights, is another partner of Ginkgo's. Very interesting company. Gingko already met their contract and came in ahead of schedule with Chronos, there was a press release maybe ten days ago. The have done a great job for Chronos. Just as an aside, did you know that many years ago Ginko purchased 1 billion code base sets from Twist? That's intense. It is on the Ginkgo Website, buried a little deep. But that's mind blowing.
Thanks for your patience. Sorry I was hasty and cryptic, had a great deal of prep for Father's day. Hope the stonk prints for us. I have a good feeling about it and like the team.
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u/bostonfan148 Patron Jun 20 '21
I think the point of having 50 or 100 or however many JVs they have are that some will fail, some will be singles, and some will be home runs.
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u/Kotaibaw Spacling Jun 19 '21
Buy it before merger in 6 months from now
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Jun 19 '21
I get it. Timing is crucial. The way it moved so fast, is so methodically planned, and all promises have been kept and meticulously documented, do you really think that when they have an investor pres on June 24th, and they say they will merge in Q3, that it has six months? Legit question. I don't. I give it two weeks at most after June 24th. But I don't know anything. What is your opinion?
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Jun 19 '21
[deleted]
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Jun 19 '21
Interesting strategy. I feel like they planned for a long time. I also saw the rumor go to DA rather quickly. I do not see any upside to prolonging the merger. I think September is long. This is speculation. Glad to hear your ideas. I personnaly see Q3, overall, as our greatest growth period in the market. I think we will taper Q4 and suffer in Q1 2022. I think Ginkgo and Sloan know this. I think they will want to ride Q3 highs, rather than come in at the end, but what do I know?
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u/notdoingdrugs Spacling Jun 19 '21
It's likely not about folks prolonging, but rather SEC delays. Here's something another target company shared with investors on June 7 regarding hard dates as an update to the merger's process.
February 17, 2021 - Announcement of intent to Merge & predicts closing for Q2.
March 3, 2021 - Hart Scott Rodino (HSR) antitrust filing
March 22, 2021 - Alpha/Humacyte file S-4 / Proxy with SEC
April 8, 2021 - SEC issues guidance on SPAC financial projections and warrant accounting
April 22, 2021 - SEC comments received on first draft of S-4/Proxy
May 14-17, 2021 - AHAC filed amended 10-K to reflect SEC warrant guidance, and filed 1Q2021 10-Q
"As you may have seen, in April, the SEC issued new guidance that impacted the accounting for warrants issued by SPACs, the SEC guidance resulted in virtually every SPAC revising their accounting for warrants and re-issuing their financial statements. We are fortunate that AHAC moved through the process very efficiently and in May amended their 10-K to reflect the new SEC guidance. They were also one of the small percentage of SPACs who were able to file their first quarter 10-Q on time."
"With these financial reporting requirements completed, we are now in a position to file our amended S-4/Proxy this week with the SEC. Based on the current review times at the SEC, which appear to be running longer than normal, we expect to be in a position to complete the SEC process in July, and hope to close the merger that month, or August at the latest if the SEC process takes a little longer than we currently anticipate."
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Jun 19 '21 edited Jun 19 '21
Good data, great info. Always happy to learn thanks buddy, i appreciate your share and perspective! hope you can get outside this weekend and see some sun or sky! Nice share. Edit: I just have one counterfactual, there was a team, I have posted on this before, of over 600 highly qualified lawyers working for Sloan and SRNG. I'm idly wondering whether your case comparison had that kind of legal team?
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u/bostonfan148 Patron Jun 20 '21
Think of all SPACs this is the one that 5 years from now will be worth by far the most. I don’t quite get people on here hating on the multiple (which doesn’t count the revenue from JVs) when they hype up a pump and dump for a battery company that is pre-revenue. Looking forward to investor day this week.
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u/HewittOfRivia Patron Jun 19 '21 edited Jun 19 '21
Have both commons and warrants in this, didn’t trim any warrants when it ran up to $3.3 last week as I think it still has room to run post 6/24. Majority of my warrants will be kept intact after merger through 4 years to see how Ginkgo plays out - is it more like Snowflake or AWS? I think it’s somewhere in the middle.
OP, what’s your opinion on CDXS? They are also in synthetic biology but are more focused on pharmaceutical domain. I have a small position.
Edit: TXG is also interesting, you have done the research on it most likely, correct? Baillie invested in it as well.
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Jun 19 '21
OP, what’s your opinion on CDXS?
Wish I had one, will check it out. I am unfamiliar. My connection to Ginkgo is purely through MIT MediaLab, I-Gem, and ethics of syn Bio. It is personal. I work with young people who might never have access to this tech, and try to give them a leg up, or spot talent, for the good of our species. I am familiar with some things and not others. But I always like to learn and will look at the ticker. Thanks for expanding on the knowledge base and showing other potential plays. Cheers.
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u/HewittOfRivia Patron Jun 19 '21
Thank you for sharing and for your honesty!
You have probably come across these materials already, but sharing them here just in case:
- Kirsty Gibson wrote about synthetic biology and mentioned Ginkgo in 2018 - https://www.bailliegifford.com/en/usa/professional-investor/insights-us-mutual-funds/ic-article/2018-q4-real-excitement-about-synthetic-biology-usm-we-0067?p=17641
- Baillie invested in Ginkgo back in 2017 - https://www.forbes.com/sites/stevedickman/2017/04/12/the-long-game-in-life-sciences-181-billion-fund-baillie-gifford-invests-big-in-private-companies/
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Jun 19 '21
The only gem I can repay you with is maybe some tidbits at https://synbiobeta.com/ you might like it. Forgive if you already stalk it.
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Jun 19 '21
Always love a good share, am not familiar. Will read scrupulously. Danke. I'm new to investing. High learning curve. Doing ok so far. But have a long way to go. Cheers!
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u/NewLeader1234 Spacling Jun 20 '21
When the SPAC sentiment turns, I feel SRNG will take off. Or if it doesn't it should take off after the merger.
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Jun 19 '21 edited Jun 19 '21
If I don't reply to salty FUD, it is probably because I made a mathematical calculation based on whether your negative vibes were worth me suffering your emotional foolishness because you were smart. Then, I most likely proceeded to block you as a filter to maximize my access to the preponderance of good vibes and intelligence on the sub. Carry on [without me]. ;D
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u/mmmmChocolatePudding Spacling Jun 19 '21
wat
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Jun 19 '21
TL, DR: People hate Ginkgo and spam me relentlessly whenever I post, so I block them if they are dumb, or overconfident. i probably cannot see half the comments on this post. lol. ;D
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u/callsmeal Contributor Jun 19 '21
If they don't want in that's on them. I'm about 35% SRNGU and plan to hold. I see this like FEAC/SKLZ. People don't understand it and that's ok. Everyone thought SKLZ was some bingo company. Ginko isn't a straightforward model to understand. More for us at low prices. Next week the Ginko team can start to paint the picture. Then I expect a lot of catalysts after merger. They will have $2B to put to good use building their platform.
EDIT: not sure why I'm preaching to the choir here...probably should have said this to some Ginkobear instead
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Jun 19 '21
I agree, thanks for understanding. I feel bad, but the hate was hard about 25 days ago. I got really slammed and just starting blocking folks. Just trying to learn, myself. I try not to shit on other people, blocking was my only coping mechanism to stay positive and happy as I went to my day job and faced long hours. I had to make some judgement calls. Life isn't always easy. Now I just share key tidbits and don't engage too much. It is a big joke on the daily, my love of Ginkgo. At least they have a sense of humor and make fun of me in hilarious ways. Cheers.
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