@JCoure Hope all has been well with yourself. You are clearly misinformed in your statement.
ChinaPayment is just one of the many businesses that Novatti owns through of its many subsidiaries.
First and foremost ChinaPayment is merely providing a cross-border payment solution for China's residents residing overseas to pay their bills in Chinese Yuan (RMB). The situation in Russia-Ukraine has had no effect and very likely will not have any effect ChinaPayments in any way shape or form.
Novatti's subsidiaries includes Flexewallet Pty Ltd (
https://www.flexewallet.com/), Flexe Payments Ltd (
https://flexepayments.com/), Emersion (
https://www.emersion.com/about/), ATX Malaysia (
https://www.atx.my/), ChinaPayments (
https://www.chinapayments.com/), Vasco Pay (
https://vascopay.com/). Inovapay (
https://www.inovapay.com/). Also owns 19.9% stake in ASX listed Reckon (ASX:RKN) and collects dividend.
Novatti's card issuing business customers/partners include:
1) iGoDirect (
https://igogroup.com.au/)
2) Lifepay (
https://lifepay.com.au/)
3) LITT (
https://home.thelittapp.com/)
4) Marqeta (
https://www.marqeta.com/)
Marqeta themselves are a card issuing company (a much bigger version of Novatti - billions of dollars worth). Listed on the Nasdaq under the code MQ. Reason why Marqeta uses Novatti is because Novatti has a Principal Issuer License in Australia.
These are the key markets in which Novatti operates and targeting *Banking
Novatti is increasingly becoming the partner of choice for tier-one, global players, with partnerships already in place with Visa, Alipay, UnionPay International, Google Pay, Samsung Pay, Marqeta, and Decta. These partners all validate the quality of Novatti’s products and services.
Furthermore Novatti also has a foothold in the Crypto payment space. Not only is Novatti Ripple's major partner, Novatti assisted CryptoSpend to launch Australia's first Visa-powered cryptocurrency payments card - enabling Australians to make payments with Bitcoin (BTC).https://thesentiment.com.au/cryptospend-launches-first-bitcoin-visa-card-in-collaboration-with-novatti/Last but not least, the latest venture into the online Banking world that will take Novatti to the next level.
IBOA (
https://projectinternational.com.au/)
Clearly those who lack experience or exposure to the banking/finance world are unable to comprehend online banking. Reason why Xinja failed was because it started taking deposits before it made loans and thus meant it had to pay interest to customers before it was generating income.
There are plenty of successful online banks - Judo (2 billion dollar market cap), 86400 (recently purchased for $220 million by NAB to combined with it's own digital bank UBank) to name a few.
A little bit of online digging will show you that Novatti's online bank IBOA is literally on the verge of acquiring their RADI from APRA.
Now why would they splurge money and hire a head of finance not even a month ago back in February 2022?
I first bought NOV in the 20s/30s (Jan/Feb 2021) and took profit in the 60s after the APT partnership as couldn't justify the sudden share price increase. Over 100% return in couple of months by complete luck (due to APT partnership announcement).
Share price as of today 22.5c is below my initial entry even though the company has continued to make positive progress. Have just started topping up again as I believe it's good value now. Obviously share price may continue to slide further down in the interim but I believe it's a relatively safe entry due to the longer term support at 20c which is inline with management's recent exercise price. Several reasons why the share price has plunged to this levels is due to technology stocks being out of flavour and hence Novatti dragged down along with other tech companies. Also Regal has been selling after participating in the last capital raise.
If and when share price return to previous capital raise price, it will be an easy 100%-150% ROI from today price however long that takes.
Obviously no PE or PEG ratio as Novatti isn't cash flow positive. Another useful metric is PB ratio.
Net tangible assets sits at 11.32 cent - just under half of current share price.
That's pretty low PB ratio for a company that is growing it's revenue.
All that being said, invest only what you can afford to lose and remember to diversify in different industry/sectors so you don't get caught out in industry/sector cycle.
