Zip have changed management but not the disingenuous style of reporting,with lack of detail and transparency.
The purple haze always contains ambiguous figures that paint the company in a positive light, but no detail on finance costs or closure of key territories.
In keeping with the last report they espouse a 30 million EBTDA and vash flow positive position in a release only a few weeks before official figures are published highlighting the EBTDA was almost exclusively due to creative accounting and not operational, and cash flow was achieved by amonbts due to merchants increasing by almost 100 million dollars.
They have replaced the "broken credit card model " with up to 30% APR with an even more dysfunctional model with APR of up to 200 %.
The market has woken up to the fact that this model is unsustainable and customers are leaving in droves.
I would expect the market to severely punish any further disingenuous reports and even if they somehow can produce a sustainable $20 million NPAT this still only equates to a share price of circa 20 cents.
This has a long way to fall.
ZIP Price at posting:
$1.19 Sentiment: None Disclosure: Held
(20min delay)
