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mackum8

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14/11/18

00:12

Post #: 36492816
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Originally posted by chachabear: ↑

The market is factoring in the risk of APT coming under consumer credit laws right or wrong. The average purchase price on APT is $150 of which APT takes $5 in fees, further their customer churn is around 20% per year, so this will be a big issue for them. The cost of doing income and credit checks per customer would be close to this if not more. If such laws pass they will have to reign in their late payment fees as well - which is their source of any EBIT margin currently, and will be subject to arbitration raising their legal exposure. If these laws pass their business in Australia will become unsustainable. I believe the market would then only value their US business. This is real risk - it’s not just people shorting or downramping.

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I met with a credit company in Vietnam recently, they had an algo that checked my credit score in less than 10 seconds? I had an approved loan within a minute? crazy. I would imagine APT have similar algos running credit checks, its not that expensive these days.

APT Price at posting: $11.75 Sentiment: Buy Disclosure: Held
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I wouldn't want to go anywhere near an Afterpay..., page-22

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