Monday 21/9 price prediction, page-48

No one is saying Zip is insolvent but they are heavily dependent on borrowings from the very financial institutions that they are trying to disrupt.

Once the bad debts start to accelerate the lenders will withdraw the facility or increase the interest charges.

So Zip will face downward margin pressure from increased competition from Paypal and BNPL offerings from the banks and upward margin pressure on cost of funds so that their entire business plan is not viable.

They then go to plan B and borrow from venture capitalists/hedge funds by way of warrants and convertible notes.

Said lenders are comfortable they can convert said instruments at a much lower strike price than prevailing market price and short the stock heavily.

Its a self fullfilling prophecy and part of market dynamics that will return Zip to its fundamental value of $1 or less.

Who had the bright idea of let's disrupt the credit card industry but in order to do so we need to rely on finance from those we are trying to take the bread from their table.

What could possibly go wrong ?

Winner takes all ....my money is on the cashed up incumbents like Paypal and the Banks not some under capitalised upstart like Zip

It always had a short shelf life but Diamond has banked $60 million for little or no financial input...I'm sure he won't cry himself to sleep