Afterpay vs FXL, page-48

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investor_jackson

1,524 Posts.

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26/04/18

20:33

Post #: 32705713
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Originally posted by akkatracker ↑

To be honest I think APT's model is great and the product is good, however I just don't think it warrants the ambitious valuation. FXL on the other hand may be a worse business, but the market acknowledges that and values it at piss all. APT definitely has the brand name out of all the 'pay later' services.

Very few Aussie companies manage to crack the states and I don't think APT will. APT has to prove it can grow otherwise it will get slaughtered, FXL just needs to prove it's not a dog and that's already over-delivering in the eyes of the market.

Anyways, I've been in and out of FXL - up just over 25% on my most recent purchase so I think I've been extremely lucky w.r.t buying in the cycles - It's definitely worth more than $2 a share at the moment - and pending no downgrade IMO could be >20% upside from here depending on how the cards business is going.

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For now, the brand thinking associated with APT is favorable, however, I think this could turn sour very very fast, if impairments rise... and then while 'customers' may still love it (because they can get fast, and easy access to credit - who wouldn't like this?) businesses won't because they won't get their cash from an increasingly unstable APT.

FXL have taken the slower, but more prudent route - taking more time to setup a system and integrate it with other powerful FXL systems, they will probably decline more people than APT, but then again down the track when those declined customers don't pay, FXL may well have the last laugh.
(all theoretical situations referenced above at this point in time at least)

Last edited by investor_jackson: 26/04/18

FXL Price at posting: $1.98 Sentiment: Buy Disclosure: Held
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