Zip boss frustrated by stock's valuation relative to Afterpay, page-10

Noteworthy is the fact that Z1P have diluted the bananas out of their shares. Z1P's share issue methods are more akin to a 'free ASX money ATM' than a business expansion tool. Keep track of wash notices, and you’ll see family and friends are incessantly being issued shares. The wife’s retirement fund pops up a fair bit (that thing must be HUGE), some other family members (buried under performance rights rules), and some strange names, among who is probably the crafty accountant. This should be a HUGE red flag to shareholders, as it chokes growth with insiders dumping shares (who technically aren’t listed as insiders, so it goes under the radar).

Printing money (issuing shares from thin air) is fine when it funds expansion, but when it’s to the level of Z1P, you have to admit the shareholder is being taken for a ride. At the current rate, the share price will still be $5-7 in two years, just an extra billion shares would have been issued to themselves.

When shares aren’t constantly issued, the price growth on a positive company outlook is often exponential, not linear. Liquidity is limited, and prices spike upwards. APT’s enormous growth is due in part to NOT printing money for mates and family members. With no family members dumping shares for $$, APT has grown incredibly well. Z1P continues to dilute the hell out of shareholders, and is basically draining away the gains into their pockets.

Individual shares issued :

APT Shares : 285.16 million

SZL Shares : 102.04 million (hence the stellar growth lately)

Z1P Shares : 541.6 million. Nearly twice as many as APT

Unless Z1P stop using the ASX as a free ATM, these shares are still going to be $5-7 three years from now. I think we're all good with expansion, but millions of shares under 'performance rights' to the wife's retirement fund every couple of months?