great summary and appreciate you taking the time to share your thoughts
I agree with most of this, as the inflation issue is a difficult one for everyone, hence the nervousness in the markets still.
my larger concern is the need for money that zip may have, even without sezzle, and the ramifications of needing to raise in zips current state as well as in the current market conditions.
this will have debilitating impacts on the shorter term share price, giving the investment another excuse to trade sideways for a much longer time
the other concern, which I doubt they will do, is raise again with convertible notes, which in itself, increases the insolvency risk of zip.
the second concern, is the need to raise without use of convertible notes, meaning whoever invests will want some significant upside, also meaning greater dilution. If it isn’t a tech fund or investor, then zip will be diluted out of the need for cash and acquiring another potentially distressed business. Value proposition should be considered here.
this has played out, exactly as I thought, which is why I remain sidelined as zip have some major hurdles to jump before she can begin her climb back up.
the market cap valuation is disproportionate, I agree, however zip has some significant red flags, which is why nobody has come near it for months.
Lots want her to succeed but all wait to see how the next 6 to 12 months plays out.
The risk reward doesn’t stack up yet in my honest opinion
all my own opinion, not investment advice, dyor
Z1P Price at posting:
$2.94 Sentiment: None Disclosure: Not Held
(20min delay)