Digital Transformation and Opportunity

I have been following the HUM story with a lot of interest following the rebrand from Flexirent.

The point of interest for me is the digital transformation that has taken place with the business in a short period of time and the massive opportunity this presents in the current environment. They are successfully building a lot of value, goodwill and a strong brand that is very much consumer focused,

There are a lot of similarities IMO to that of Zip when they went through a similar digital transformation and the impact that it had market share, ease of use and repeat business.

I have recently used HUMM for the first time whilst purchasing an item online through Myer. Previously I would have used Afterpay. Why the change? I wanted to get a better understanding of the experience as a consumer and an investor. It reminded me how far they have come in a short period of time with their brand awareness and digital transformation.

The point of difference IMO is the flexibility and the range of finance options available to the consumer. It is a one stop shop for purchases big or small.

We have also purchased a couch through Nick Scali and utilized HUM for the interest free finance. Walk into IKEA and their branding and awareness are everywhere. They are continually adding more retailers.

I understand that the main concern is the increased competition from the BNPL companies. IMO it has been the catalyst for the digital transformation and the massive opportunity unfolding.

My call is 12 month target of $2 and a 2-3 year target of $4.

Get ready for the Key Reversal