I am a new comer to this stock, started buying after the FY...

I am a new comer to this stock, started buying after the FY results came out.

Looking at the metrics, this stock is expensive PE wise at SP 2.04 sits at ~20 PE. To justify the high PE I reckon at least 10% EBITA growth is needed. If no growth, the PE should be closer to 14 to be reasonable.

The risk growth wise are Banking partner/regulatory pressure/No moat to competition, there also seems to be a big fraud/unauthorised issue with their travelex card in Apr-Jun 2015 (going by the travelex card review online).

However the main business is transferring money country to country, and this seems solid so far with a competitive rate and lack of complaints regarding the service.

Personally I am investing in this one with a view I may lose half my money if it doesn't work out, if it does work then this is a sure long term growth stock. I wouldn't put more than 10% of the portfolio in this one.

The IPO price was $2, so current price is a good entry point for first parcel. Personally wouldn't touch it again unless it falls to $1.8 or something (18x 2015PE)