Hi Adrian and welcome to the HUM family. I am a shareholder with a modest holding compared to some, but have been with FXL->HUM for the long journey and lost (paper) considerable capital along the way.
I am really hoping one of the many things you bring to HUM is a marked improvement in shareholder relations, especially retail holders. Outside of our blocking holders there has been very poor communication of strategy and insufficient (absent even) communication about the progress of offshore expansion and specifically the value those expansions are expected to bring.
A good example is the UK flop where even the website wasn't live, no UK merchants existed (Ireland only), and all communication to the market was void of a single statement about what the KPI/OKR/targets were and the value proposition which make them compelling.
The share price has declined significantly and is still in a strong bearish downtrend when we are a diversified lender with an impressive capability to enter new markets. The reason is primarily the lack of clear communication about our direction and how we will monetise those aspirations, especially BNPL which is at the direct cost of our cards business.
I strongly encourage you to take the bold step of coming online and simply saying Hello! to shareholders, and perhaps let us know about what value you personally bring to HUM. please visit us at https://hotcopper.com.au/asx/hum/ just to add confidence that the significant negative sentiment regarding the performance of Rachael is going to be augmented by your excellent experience and ability and willingness to improve communication.
It is deeply depressing to almost never see HUM even mentioned in any article related to BNPL despite the shift so monumental we even rebranded for it.
How will HUM monetise UK when Z1P can't? Why wouldn't we takeover Laybuy who is the #2 player with only $130m MC and enter directly.
Why will Canada work? It cannot be simply because Rachael is from there.Why are we not expanding in the USA?
Why do we consider HUM BigThings to be compelling differentiator? What market research has been done?
I would really like to see us:
- Enter Auto/Boat finance space, same day funding (look at MME, just wow!!)
- Offer traditional cards with built in BNPL and zero interest, now that would be ground breaking. A 0% credit card is the headline (same pig, different lipstick)
- Sign big ticket vendors like Dell, HP, Lenovo, Bunnings, EBay, Amazon, etc...
- Sign Qantas, Virgin, Rex at point of sale
- Sign big hotel/holiday chains at Point of sale, like IHG
- Unify ALL of our products in to ONE APP and stop the different confusing products
- Replace Citigroup as the domestic branded card partner of choice. We know Citi wants out and is for sale.
- Build on this to offer branded wholesale BNPL to the likes of Coles, Woolies, Credit Unions
- Approach non bank lenders and provide branded card backed BNPL to the likes of Pepper, Liberty, RAMS
Can I add one last thing. Please I beg you, stop death by PowerPoint at the market announcements. We don't want vanilla board packs to interpret. We want to "hear you and Rachael" say !! and narrate the vision.
response.......Hi ...., I just got my feet on the ground and am listening carefully to feedback from all of our stakeholders. I appreciate you reaching out and taking the time to share your views. Regards Adrian
...... additional thoughts of mine:
IMO we don't need to different ourselves from Z1P, we already are. Why?
- Our marketing company would never come up with Paint95 bullshit logo they just realised. Wow that is going to be great for us.
- We make a profit (enough said here really)
- We already have financial relationships with commercial, retail, and wholesale bodies
- We have an established cards business ready for innovation. Its not sexy for us to start issuing cards, it's just business as usual
- We have BNPL to diversify and address an emerging but yet unqualified (long term) millennial market
- We are already in international markets (though under Rachael the further expansions are being done very poorly)
- We don't need to tap the ASX for operating capital, now or ever on the future map
- We are well placed to make strategic acquisitions such as Laybuy (UK, Europe) etc, but leadership until now has no experience on this
- We have an incredible PE ratio
- We are massively undervalued. So once we can replace or awaken/augment Rachael to realise our potential we have significant upside in both share price and dividend capacity
(20min delay)