I'll disagree with you on this one, Stefan. I think the report was VERY good! I will agree that the week leading up to the report the SP increased over 10% so was pricing in the already anticipated growth and record revenues/sales. The profit takers gained their 20% profit and cashed out. Add in a few shorters and it dropped heavily but recovered well enough imo.
In regards to why I think it was a really good report; The growth is never going to be the ANZ market. It'll just be the crumbs on the ground (I read that here somewhere and thought it was a good analogy so have stolen it) whereas the cake is the US/UK, even Europe or Asian markets for the cream on top.
I've also said this before; this last period of reporting is usually the worst for growth and sales. The fact it still increased was surprising to me. It'll no doubt smash that over the next qrt with Amazon and Christmas sales and add in Quadpay's figures.. well you know the answer here. But the ANZ market isn't where I am looking for growth to say it is a success. Overseas is where they are pushing hard and where the growth is. Look at the quadpay figures and app downloads for a start to see this is already becoming huge. It's not a sprint this SP game, it's a marathon and one I know the LT holders will win!
I am not concerned one bit about this 'bad debt' %. Any big company that promotes growth as their priority will have some hiccups along the way. The bad debt isn't even that concerning as a % imo. It is very manageable and within expectations as reported each qrt by the company. Look at most other new start-up e-commerce companies and you'll see the exact same thing. It will be managed and controlled.
Lastly, we are basing the SP on current company info and I agree, current situation a fair SP is between the $7.50-$8.50 SP range imo. This is solely based on MC/sales/revenue figures. What you or I believe the fair SP value is though is irrelevant, the market decides that. What we don't know is the what is yet to come. We know they are going strong in the USA with Quadpay, however, what future agreements/partnerships will they form heading into UK? Larry and his team are going big here and won't do it without some big news! It'll happen and when it does, the SP will follow.
People are so short sighted here which is why there are very successful people in this big bad world who have a wider scope and view on things. Larry has hired impressive people who are going to drive ZIP to a global phenomenon. It is never going to be like APT because I believe Larry isn't that short sighted. They are not comparable companies. ZIP has so many strings to its bow and is increasing it by the month that come 2021, we'll be all holidaying on whatever Island we want to buy with our profits... okay I am exaggerating here, but the realist in me says the share price will be $10+ again. Not 'if' but 'will be' - sooner rather than later. My educated and realist guess, by the end of 2020.
Those that worry about a 3% drop here or a 5% drop there need not worry. That is the ASX with ZIP. As soon as they announce the "UNKNOWN's" they will be be back in droves... Okay I have gone on longer than I'd hoped. Sorry for the Novel but I wanted to give you my reasons.
Z1P Price at posting:
$7.36 Sentiment: Buy Disclosure: Held
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