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16:50
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Originally posted by Tekvest:
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Good post FFS, but you only want to get contributions from the pump squad. You want to ignore the red flags in the financials pointing to a shortage of capital and the squeeze on margins caused by the high cost of borrowing matched against the ceiling on the revenues that ZIP can charge. And ZIP won't divulge that. You also want to ignore the fact that ZIP has closed a whole country division without explaining the costs or benefits of doing it, and without modifying the latest qtly results to explain the impact going forward. As for growth, IMO ZIP is nobbled by a lack of capital - boring and repetitive, but true, and it shows up in its declining customer numbers. BNPL is going to grow and contine to grow in popularity, particularly among ZIPs target audience of people who cannot get credit elsewhere, but will they then beome credit worthy, or will ZIP suffer losses? In Australia the lending market is saturated, the tough responsible lending rules prevent the desired switch over to ZIP Plus and the limits of those who do not convert are downgraded, so the product is going backwards here - the US is the new stage, but ZIP does not have sufficient capital to take on a population of 260 million people among stiff competition and great credit risk. ZIP agrees that it is unlikely to reach breakeven for some time yet (despite all the whacky descriptions of EBTDA gross cash profit or whatever they call it), so IMO the only way to make money out of it is by trading the stock. The very topic you want to leave out of your discussion.
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I think @FreeFromStyle was trying to be non-combative and hoping for a thread that you and Sherm's didn't pepper as you guys do ZIP threads all day, but just not naming you specifically.
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