This is hard for investors who invest based on fundamentals, as...

This is hard for investors who invest based on fundamentals, as it seems that TA has taken over for now.

With a market cap of $140mil, cash of circa $55mil and re-occuring revenue of $8.5mil it feels IOU is undervalued on its current business alone. I.e.
- 8.5mil on a multiplier of 10 (standard for SAS/fintech business) = $85mil
- $55mil in the bank for a fintech can also attract a multiplier by some analysts, and sometimes a 1.5 multiplier. Assume no multiplier is used.

$85m + $55m = 140mill.

That means using fairly standard/conservative valuation metrics that IOU is valued correctly for its current business.

However, that also means the market is not looking forward at all and has 0 priced in for IOU's BNPL stream. This is despite the fact we already know they have access to 85,000 merchants and have signed with huge international companies, and by last count have onboarded and gone live with at least 300-500 of them in the first two weeks of launch alone. That means revenue is currently being processed right now for its BNPL.

This also means the market is also not pricing in at all some of the following:
- future on-boarding of merchants - I could be wrong but I had thought I had read/heard that IOU planned to have onboarded 10,000 merchants by end of 2021.
- expansion into either Indonesia/Phil - given IOU has met all of its timelines and objectives to date, it seems rather apparent that the expansion will also move seamlessly, and given a lot of the merchants they have signed with have business in Indo/Phil these merchants could come online much sooner than many people think (particularly if their business has already signed up online in Malaysia, it will likely just be a "switch" that needs to be flicked to add another territory)
- additional business services - Calvin in his last interview said that IOU will soon be offering business services such as life insurance or potentially small loans.

As we sit at more or less the same SP we were at when IOU announced its move to providing BNPL services, it is worth understanding that although TA may take over in the short term, once operational updates, expansion updates, new customers and new services are announced that the market will start to price in the BNPL business and a valuation north of 24cents will be likely.

Until then it seems best to whether the EOFY sell-offs and portfolio adjustments, and wait for these announcements that are almost guaranteed to come in the next 2-5 weeks.