Not sure it’s supposed to be funny, it’s just a statement of my opinion based on readily available information:
- Made a ($652M) loss in FY21
- Made a ($172M) loss in H122
- Bad debts were close to 50% of operating income in the most recent half
- They could only raise $148.7M from institutions (barely enough to cover their bad debts for the previous half, and not even one half’s loss)
- Share price is already almost 25% down from the raise price at $1.90, and 35% down from when the CR was announced at $2.21 just weeks ago
- They are attempting to acquire a company in an even worse position than Zip is in, whose 'Merchant Interest programme' is Sezzle basically borrowing from their merchants, trying to act like a savings account – they owe US$96.5M to merchants as at 31/12 (as the AFR recently noted, what would happen if these merchants got nervous about Sezzle’s financial position, and all wanted their money back at once?)
Sorry... but no point sugar-coating it. I really do see a failed business model, one last throw of the dice, and a real probability this goes to zero or de-lists inside 12 months. I’m not here to sledge or gloat, I truly feel for people who have poured savings into this and are underwater – but I really can’t believe retail holders are on here talking about “topping up” or “loading the truck” at $1.20 or $1.00 or whatever. Honestly, why throw good money after bad? I can only imagine there were holders at $4.00 thinking
“I’m so far down, no point selling now”. Yet here they are in the mid-low $1’s. Is there a real chance this keeps falling under $1.00? Absolutely. Look at Zebit, soon to be delisted. In FY21 they did US$116.6M in revenue… and their market cap is less than A$5M! Doesn’t matter how much revenue you’re doing, if the business model doesn’t work, it will go bust.But every rational person here knows this…
@Goodfella58 has been saying this for months if not years now. People topping up are just asking for more punishment, it's truly sad to watch. GL.
(20min delay)