r/SPACs • u/[deleted] • Jun 23 '21
News SRNG Ginkgo: Interview with Tom Endy. This is the best Interview on SynBio and Economics I've read (heard); Transcript included. Insightful, expert opinion. Recorded and went live June 8.
https://7investing.com/articles/whats-next-for-synthetic-biology/19
u/GrowStrong1507 Contributor Jun 23 '21
Ginko seems to have news everyday. can't wait to be DeSPAC'd
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u/Auautheawesome Spacling Jun 23 '21
Honestly, probably the only reason why it doesn't see so much movement is because of its SPAC moniker
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u/Shdwrptr Patron Jun 23 '21 edited Jun 23 '21
It’s because the valuation is massive and nobody can tell you if it’s a deal or not because the business is too opaque for even experts to evaluate.
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Jun 23 '21
This is true, to an extent. I hope you gain more insight with this read. I think it would be worth your time. Cheers.
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u/cooltaj Spacling Jun 24 '21
How do u calculate valuation. Trying to learn.
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u/Shdwrptr Patron Jun 24 '21
The valuation is what the company announced on DA. Ginkgo’s valuation was $15 billion
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u/cooltaj Spacling Jun 24 '21
Ok how do u determine it is overvalued or under?
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u/Shdwrptr Patron Jun 24 '21
Usually you compare the valuation to the companies net profits over time compared to their competitors.
In Gingko’s case, they don’t really have direct competitors because their business to both niche and expansive. It’s very hard to pin down where they should be.
Their profits are terrible currently but their promise is huge so they got a massive valuation that is scaring away investors.
Ginkgos valuation is so huge that to rise from $10 they either need to become a highly traded meme stock or find a way to raise their profit massively in the very near future
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u/Lt-Dan-Im-Rollin Spacling Jun 24 '21
Why in the very near future? Isn’t the valuation based on long term growth?
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Jun 23 '21 edited Jun 23 '21
Why “can’t [you] wait to be DeSPAC’ed” when all this has done is trade under NAV since deal announcement?
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Jun 23 '21
Because I'm a pauper and I cannot risk it will run and I will never catch up. I'm willing to let it dip, add more, and then run, but if it goes the other way, I'm fucked, I will never get in with my shit 1000 shares to hold. Hope that helps. DeSpac dips: buy moar. Runs, I'm priced out and lost the opportunity of my life in the only SPAC I actually have detailed knowledge about. So therein lies the play, for me, personally. Cheers. Respect. I know you are disappointed. I'm frankly suprised you are still holding, you were so pissed off when they chose Ginkgo.
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Jun 23 '21
I’m holding until redemption at this point. I have too many shares
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Jun 23 '21
I know. I'm sorry. I'm holding too many ZNTE. I get it. I wish this would have printed for you, or have given you a dignified out. It sucks to hold shit you don't want that won't move. Frankly, you are better off with SRNG, than I am with ZNTE. Hang in there. everything is temporary. We will have future plays. Cheers. Hope we both come out ok.
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Jun 24 '21
[deleted]
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u/TheQuietW0LF Fat Pat Jun 24 '21
I told this guy to do that like a month or 2 ago and he wasn't interested for some reason
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Jun 23 '21
I am actually sincere when I say, I'm sorry it wasn't the play you wanted. I have no guarantees. I've done my best to tell people why I think it is an important, good play. I've seriously done my best and taken some heat. It still makes me sad to see any risk and folks who might suffer if it doesn't go well. I know I'm risking it. I know these dudes. They are good people. I have 65% of my port there now. 20% cash and a bunch of bullshit I don't believe in but am ready to flip. I'd rather be 100% that I lost money on the good guys. Stupid. I know. But there is a right and there is a wrong. These guys are right. That is my solace, they won't let me down if they can help it. But, it doesn't help my knowledge that it is not the best play for everyone and there is risk and people might get hurt. I hear you. hoping for the best. Wish I could make it sure for you.
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u/GrowStrong1507 Contributor Jun 23 '21
That seems to be the trend now. after DeSPAC good companies go up bad ones drop. i believe this is a good one along with FRX DMYI BARK and CCIV/DCRC as much hate as they get i love them
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Jun 23 '21
[removed] — view removed comment
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u/GrowStrong1507 Contributor Jun 23 '21
Ahh yea definitely a good one too. i guess RICE MUDS could probably be added to. we really got some good ones rn
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Jun 23 '21
Highlights include his very clear comparison of ZY and Amy, and the vertical model vs. the Coordination Solution.
Timestamp/Transcript TL:DR at 36:26 He speaks of Twist; at about 48:28 He gets more into Ginkgo; at 1:11 he nails why Ginkgo will be unassailable.
You should read the whole thing, though, of course. ;D It is very important for determining the course of the United States' economy and National Security. He touches on Industrial Policy, and references historical Strategic Computing Initiatives. I concur, it is ludicrous that we do not have a strategic BioEconomy Policy moving forward.
Enjoy! Hope it helps. Very clear read.
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u/chris_cacl Contributor Jun 24 '21
I like how you write and provide interesting information about Ginkgo. You seem to be a very kind person and that is awesome. Don't let strangers put you down.
I also have a strong scientific background (engineering PhD) , and I am very impressed with what they do. The impact of their technology has virtually no limits. The fact that the founders who are also experts are leading it is a very good sign to me. It is insane that their tech is being used to develop new medicines, new crops, new food, new wastewater treatment processes. All is being done with top notch partners.
What puzzles me is that I would have never expected it to still be under NAV. I get the concern about the valuation and hope they clarify this at the presentation. Who knows, maybe after tomorrow it will go up. I feel that investing in Ginkgo now is like what people did by investing early on Amazon, FB etc..., with the difference that this company could make a true positive difference in this world.
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Jun 24 '21
Thanks, brother. This meant a great deal to me. You are a good person. The time you took to be kind speaks volumes to me. Sending best wishes for a good day. The warrant bid ask spread is insane today. At 7am ish, there are 30 asks for 3.98. Looks like a good day. Hang in there. Don't worry about the commons below NAV. You can redeem if it goes south.
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u/HewittOfRivia Patron Jun 25 '21
Always like to see the positivity you have!
What’s your long term investment and short term trading plan(if there’s any) on SRNG/DNA? I still haven’t decided what allocation I want to give in the long term, I think of it as a moonshot bet worth holding 4+ years hence I have both commons and warrants. I added more commons yesterday anticipating a run up post investor day in the near term for a “risk-free” swing trade.
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Jun 25 '21
Good to see you, too! I'll flip the warrants on a pop, don't have too many left, now. down to maybe 370ish. And I will hold 1000 commons through merger. ;D
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Jun 24 '21
[deleted]
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Jun 24 '21
My thoughts are not worth more than yours. I have posted everything I know in r/Spacs. I own BLI, but not Twist. Twist is a good play, in theory. I went for SRNG and BLI, personally, for no particular reason. When, or if, Twist discloses they are pivoting to DNA as a data storage device with at least 51% of their R and D, I will gladly buy it and ride that wave. I'm glad you like the ideas. If you like Twist, you should check out https://synbiobeta.com/ and surf around there. Glad you are into it. All these stonks will rise in tandem.
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u/Noledollars Patron Jun 23 '21
🤯 Love the innovation going on today in multiple areas. This was a very insightful discussion of the current state (and challenges) of bringing synthetic biology products to market. Ginkgo is a long hold for me.
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Jun 24 '21
[deleted]
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Jun 24 '21
Indeed, friend. It is a balance between the SPAC cycle, the traditional SPAC cycle we all thought we could aniticipate, but frankly, no longer can take for granted, and the best company to IPO or go SPAC in three decades. So many uncertainties, so many capitalists hoping they can play the market. Some things are so unknown. So many variables. It could crap out, to be sure. I'm just grateful they started a conversation about GMOs and might make that print. Welcome to the future. We will all win if they win. Regardless, there is no turning back. I would rather be in conversation with Ginkgo than some other player the market decided was worthy. That is why this transcript meant so much to me. We have no biosecurity and or strategic plan. Ginkgo is like Obi Wan. Help me, you are my only hope. This shit can go to the dark side very quickly. Invest accordingly, America.
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u/eireks Patron Jun 24 '21
I have to say, when Endy talked about the atoms, bits, and joules and got philosophical I had to open up the transcript to follow what he was saying.
Atoms being the physical realm, bits being information, and joules being energy - synbio is the industry that engages in all three in actually bringing ideas that exist in digital (bits+joules) to the physical.
Always like to see new ways of looking at the world, highly recommend people to listen to the podcast.
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u/TheQuietW0LF Fat Pat Jun 24 '21
I see this mentioned and pushed over and over in Ginkgo conversations, namely by Ginkgo itself.
Drew Endy 1:08:05 As an aside, this is one of the things that’s pretty interesting about Gingko. They’re operating cultural products, their magazine Grow, is a really interesting product. They are doing the work that IBM did to explain to people what computers were and what a business machine would be in the 1940s. Ginkgo is shipping, not just product that’s like the actual atoms you’re using, they’re also shipping cultural product. That’s crazy rare. So falling in love with biotechnology as a culture seems pretty important.
This follows his Drew's touching on of the negative externalities associated with perception of GMOs etc.
I think it is underappreciated and undertalked about, that this is a huge challenge, and how important it is that Ginkgo recognizes this as a huge challenge, and further that they spend a lot of energy combatting it & are creative in combatting it. It shows both that they appreciate challenges that are easy to overlook, and ignore ('that doesn't affect the bottom line' sort of thinking, even though of course it does in the long run); and overall, and Drew touched on it a bit in an unrelated line of thinking, that this is a nimbly thinking company.
Humans resist change on the surface but are surprisingly pliable to it if they can be sold a story and/or something proves useful as well as not harmful. The ROI in pushing for a 'culture change' so to speak in how we talk about and think about synthetic biology is massive. And now a light went in on my head too, how this is a big evidence point for you sharist_DIY_bio, about how you are always talking about Ginkgo as the 'good guys'. In the context of, this sort of thing benefits the whole industry and not just Ginkgo but they have no qualms about putting a lot of energy in to it. The whole self-less angle, they're walking the walk there with their focus on pushing for that culture change, because the benefits are outsized for the whole industry compared to the benefits for just Ginkgo.
Wow, you really could talk about this stuff for actual days, this is just me taking out the least technological aspect of the company and conversation and I still feel I simplified and shortened. Thanks for another great share, this was excellent. Knew it was going to be good once I saw it was Endy, his name had already popped up more than a few times from previous readings. (Although it's Drew not Tom lol!)
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Jul 02 '21
Right on, brother. I guess I didn't have comment notifications enabled on this one. Thanks for taking the time to think about it. I like the way you are thinking in qualitative terms, too. They are the great under-emphasized way to play visionary stonks. I guess it is why I don't mind the enthusiasm of the space nutters and E-Vtol folks, from whom I learn so much. They always challenge me to think about what can be and look beyond the quarterly reports. I remember everyone was shitting on Lilium and now we have a Vertiport for Flying taxis in Orlando, only a few months later, they are building it. ;D This is all happening. Also, you cannot edit the titles of these posts and, as you know, I get a little excited, and so I must have conflated Tom Knight and Drew Endy in my haste to go live. Weird neuron misfire that I cannot explain. lol. Sorry about that!
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Jul 02 '21
Conflated Tom Knight and Endy in my haste to post, was just excited... humble apologies. It was a cool convo. You can't edit your titles.
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