@poppypop : APX and ZIP represent two vastly different entities....

@poppypop : APX and ZIP represent two vastly different entities. Their common ground lies in experiencing near-catastrophic challenges, marked by significant fluctuations in their market positions and facing intense scrutiny on the ASX.

ZIP, as a money lender, requires a substantial amount of capital—preferably inexpensive—to sustain its operations. It faces the burden of securing funds at rates exceeding 15%, junk bond levels. The situation in August highlighted the uncertainty of obtaining any funding, making the prospect of another capital raising (CR) seem unlikely.

On the other hand, APX operates as a technology outsourcing firm, specializing in low cost outsource services that have become technologically outdated. The company must navigate a transition towards offering high-value, professional specialist level outsourcing services, moving from low-cost, low-skill tasks to those requiring high skill and specialization (lawyers, medico, financial), I am skeptical about APX's ability to undertake another CR. Instead, they are more likely to reduce their size and strategically navigate their way out of difficulties or opt for a sale T/O. In my view, stabilizing and then selling the business is the most probable outcome.

Good uplift today. Good news for holders.