It will stay out of whack until: - Receivables turnover increases significantly, reflecting greater contribution of Pay in 4 type products (ie. Quadpay and Zip Pay) - Credit losses improve - hopefully on the horizon from lower arrears rates and again greater contribution from above - Interest expense improves - again related to higher contribution of Pay in 4 voumes. - Significantly improved stability in share float - i.e. having the market awash with shares so traders/shorters can easily move the price is not attractive - Quadpay name change to Zip - global brand recognition - US-based institutional investors (attracting potentially higher multiples similar to US-listed stocks) - US-based retailer investors (as above) - More enterprise merchants in US for Quadpay - Confirmation of merchant fee maintenance from Tap&Zip - I personally believe this one is fine, but not all share that view
The play here is simple - you either believe the above will happen in 2021 and the stock will re-rate significantly from here, or you don't. But if the above doesn't happen, this will continue to f*ck about in the mid-single digits. There's no mystery.
Z1P Price at posting:
$6.02 Sentiment: Buy Disclosure: Held
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