Bad debts are 0.7% but they are 40% of revenue. This is huge....

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Christos12

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23/02/18

18:31

Post #: 31300960
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Originally posted by alfred137 ↑

as a finance company, the key is never the growth, profitability or creativity, is how you management the risk. Afterpay is running great in many way: sales and revenue more than doubled with net transaction lost maintain at low level 0.7%, due to its nature and reasonable charge. why is it so low? 1. kids dont have credit card, they only have small amount of money and are willing to have a little luxuries; 2. they can afford the instalment, >75% of customers have outstanding balance of <$300; thats why, 3. 93% of orders incur NO late fee. is it overvalued? I dont know, i have no idea how to value this company at this growth, so i will sit tight with cost of $2.4 and see how it goes. ideas?

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Bad debts are 0.7% but they are 40% of revenue. This is huge. They need to find a way to reduce this further. Their tech should make it stronger as they exclude more users but I will believe it when I see it.

I expect higher bad debts in the next report but lower thereafter.
If the shareprice rockets again, I will probably sell.

APT Price at posting: $7.19 Sentiment: Hold Disclosure: Held
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Bad debts are 0.7% but they are 40% of revenue. This is huge....

Top Stories

Syrah jumps +19% as graphite tariff threat spurs optimism down under

Strategic Energy extends its QLD copper-gold frontier with Diamantina acquisition

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

HotCopper Highlights: Trigg; Droneshield; Lumos & more

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Burgundy plunges -20% after turning to layoffs to navigate record-low diamond prices

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ASX Market Open: Can we squeeze one more record reset into Week 29? | July 18

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

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