This is my biggest issue with investment forums; anyone can post whatever they like. There's a lot of misinformation floating around and I would encourage everyone to do some research before stating things as fact. It's all good if you don't know but it's all bad if you talk about it like you do know.
IOU didn't buy a bank.
IOU don't get $4m per year to do with as they please
IOU don't have an AG License
I'm not aiming this at anyone. I want us all to do well from this investment and the best chance of that happening is by contributing valid, useful information.
The investment from my perspective is sound. It took a while for me to get my head around it because it was very left field compared to what I thought the company were trying to do. There's a focus on high margins and profit which is contrary to other BNPL companies. I believe there will be tempered growth with a sustainable, profitable goal in mind. With that being said I'm not sure whether the company will be valued the same way other BNPL companies are being valued. It's a digital payments company with a short term lending facility. It's quite a unique position when you think about it.
Before the MCO the company seemed very focused on picking up in-store merchants and actually have payment terminals for merchants. That to me sounds like Square.
Then there's the synergies with ISDB and the cross pollination of customers and merchant networks. This is like lining up the best customers that will pay their bills on time and offering them some BNPL candy. It's securing the ideal customers which is very clever and you know what, we'll take a slice of those ISDB profits for our financials while we're at it.
MCO ending soon I read somewhere yesterday so let's have a crack at onboarding those in-store merchants again to keep the growth ticking over. The next six months is going to be a thing of beauty imo.
(20min delay)