You mentioned that if the company can get things in order and appoint a strong CEO, $0.80 would be a bargain with significant upside. Could you clarify what you mean by getting things in order?
The company currently has 2.7 billion shares on issue with no clear business plan. Even if they proceed with their BNPL product, margins in this sector are extremely thin. In the first half of 2025, Zip processed $6.5 billion in TTV and only achieved a net profit of $23 million. Zip’s market cap is currently $2.5 billion.
Unfortunately, it appears you have been caught on the wrong side of this trade. Simon Keast’s abrupt and unexpected departure was the final blow, leaving the company in further disarray.
Given these figures and the current uncertainty, how do you justify $0.80 per share, valuing the company at approximately $2.2 billion, as a bargain?
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