Chart - Z1P, page-5631

ZIP{$11.97; -195; -14.01%} after stock had rallied 10 days in the last 12 from $7.27to $13.92… up+$6.65or+91%,the stock – as I said yesterday.. “after a rally of that magnitude there will be (has to be) a sharp selloff coming(it’s just normal mkt behaviour) – that will test the resolve of some who have bought it..” Well a few were “tested” today as stock at one stage traded to a low of$11.27 -19%,which would have seen a lot of the “hot money” run for the exits. The shorts have comedown from 8% a month ago to 4.3% a few days ago, but has “kicked up” to4.67%..There will be some who will see this breakdown as their chance to short them–their logic that after a near doubling of the stock in 2 weeks – it cannot continue the valuation they perceive is ridiculous. But others are wondering if co-founder Peter Gray’s point on the valuation gap vs Afterpay is maybe now (finally) closing. In December quarter Afterpay posted total transaction value (TTV) of $4.1 billion versus Zip's $1.6 billion, and both businesses enjoy similar merchant fee margins. Despite. Afterpay's TTV being just 2.6 times that of Zip over the December quarter, Afterpay is11 times more valuable. But what he pointed out & this gave the market an idea of where ZIP could go to if he’s correct – he pointed out that if Zip were valued on a similar multiple to Afterpay's 10 times quarterly TTV(as the closest proxy to revenue) its share price would be $28.90 on a $16 billion valuation, versus $7.36 2weeks ago- which had it then on a $4.1 billion valuation.

Report from yesterday.