I have no doubts that they will have increasing revenies in this quarter its a sexy product .
What my concerns is the model for making money
Forgive this if it isnt 100% accurate but it will be about right.
So as i understand tbings then they make circa 4.2% in fees from the retailers and lose 1.6 to 1.8% in bad debts......so roughly 40% of revenue is bad debts?. This is is offset by late payment charges but this seems a bit serendipitous as the late payment guys are also the guys likely to default.
I am way from convinced that thier model can make money but i have been wrong very often and they could well do it. and are likely to do well......but at 1.65b market cap i would pass this up.......as i said to a friend a few days ago this is a business you would love to find at 60M market cap and see it rise to 1.65m market cap and sell it...not be buying it at 1.65b with no earnings despite the obvious growth etc
APT Price at posting:
$7.32 Sentiment: None Disclosure: Not Held
