Australia's largest stock trading and investment forum Australia's #1 stock forum

APT

Click for more information

0.00%

$66.47 afterpay limited

I wouldn't want to go anywhere near an Afterpay..., page-18

First 18 Last

Share
Profile

Follow
Christos12

3,781 Posts.

331

13/11/18

23:48

Post #: 36492711
Share

Originally posted by chachabear: ↑

The market is factoring in the risk of APT coming under consumer credit laws right or wrong. The average purchase price on APT is $150 of which APT takes $5 in fees, further their customer churn is around 20% per year, so this will be a big issue for them. The cost of doing income and credit checks per customer would be close to this if not more. If such laws pass they will have to reign in their late payment fees as well - which is their source of any EBIT margin currently, and will be subject to arbitration raising their legal exposure. If these laws pass their business in Australia will become unsustainable. I believe the market would then only value their US business. This is real risk - it’s not just people shorting or downramping.

Expand

Do you have any evidence for anything wrote? Churn rate of 20%? That is laughably inaccurate.
The regulation, as stated in other threads, is not possible without regulating every business in the country. It won't happen. Perhaps you should read something other than fairfax for your info on this company.

APT Price at posting: $11.75 Sentiment: Buy Disclosure: Held
6 Upvote

1 Great analysis

Reply

Top Stories

Wealth Within considers potential takeover targets in Australia's booming infrastructure industry

AI stocks: What to expect in 2024-25

Warren Tredrea’s weekly sports business wrap: the latest on business in sport

Week 29 Wrap: Trump in spotlight again; China's Third Plenum a yawnfest; RBA's August move a mystery

MCT

Metalicity looking for offers on Admiral Bay zinc project

IMR

Imricor raises $35M to pursue growth and expansion into Australia and NZ

LKE

Lake Resources implies news article on job cuts made up; non-core sales "not material" and no rule 15.7 breach

FG1

Flynn Gold flags mid-grade drill hits and always eye-catching rock chips

GNX

NSW approves J-POWER's $380M buyout of Genex Power, giving it ownership of QLD net zero project

Talking Australia's very competitive property landscape: Realty Talks

There are more pages in this discussion • 71 more messages in this thread...

First 18 Last

Add APT (ASX) to my watchlist