Big Future, page-40

Mate,

Lets look at this as a business, not based on speculation, hype and broker dross.

Now ZML's figures came out over the course of the last day... so lets delve into the numbers shall we...

ZML little over $4m in revenue since inception, and have lent $50m or there abouts.... that means, for each dollar they lend, they are making 8 cents or 8 % yield on its book.

Compare that to other lenders in the market, Flexi being the best direct comparison...being Consumer finance. They have give or take a $1bn book and $400m in revenue... so for every dollar lent it makes 40 cents... or 40% gross margin...huge by comparison.

So while its great that AFY and ZML are trying to grow quickly, they are potentially growing themselves either into an early grave, or into mass dilution... For if they were to possess a $1bn book it would only net $80m in revenue... 1/5th that of Flexi...and as shareholders, you would have had to dilute another 10x, to get the equity up in the business to support it.

So once again, beyond making money on speculation and hype, unless AFY are charging margins 5x ZML...(which they can't because market equilibrium will mean they cant get away with it - as ZML will just take the business), AFY is in the same damn boat.

Now, lets look at Valuation... Flexi is trading at maybe 10x PE... and little over 2x revenue... pretty low... considering the market average is 17... AFY ... 400 times revenue. NEED.I.SAY.MORE?

Oh and if its "Financial Gobbledeegook"to you, then you should probably stick to property investment my friend.