I was recently asked a question: "By my calculations, Z1P should be on a parity with Afterpay if not more and that would be around $70 per share? What do you say?" I figured I could create a new thread for my answer for the most exposure that I believe may provide a beneficial unbiased and my genuine understanding of the psychological significance of Z1P's enormous daily volumes and price actions as well as to invite a discussion in regards to the topics mentioned. This is my Answer:
I have not looked in detail enough when comparing these two companies to estimate which should be at what price and if it should be similar, more or less compared to the other. Therefore i can not give an informed opinion. What I do know however, is that Z1P is a company with a lot of attention and was heavily suppressed by traders (shorters, day/short term traders) who practiced the "buy the hype, sell the news" philosophy which is reflected in the past with Z1P's stock price and reports. As this practice became a reoccurring theme for Z1P, it became a norm. Thus, an unhealthy and toxic culture, sentiment and community of traders was constructed from this herd mentality and created a lot of volatility and frustration towards investors who respect the fundamentals of this company. It was like a dung beetle pushing a ball of shit that grew bigger and bigger. Z1P's fundamentals and immense potentials were constantly being disregarded and or taken advantage of for short term gains and therefore played a major role in Z1P's price being heavily suppressed.
However, I believe that the current situation with Gamestop where "shorters" are being targeted has struck fear into the hearts of the very people who contributed to the toxic culture within the Z1P community and thus, shook the very foundation of the "Bearish" sentiment. Therefore, playing a significant role to this new bullish sentiment by providing an opportunity from destabilizing traders' strength, sentiment and thus, past traditions and for confidence to regain in Z1P as it runs and gets re-rated. The Gamestop, as well as other major catalysts such as the potential for Z1P's US Dual Listing, reports, growth, etc. gave an opportunity for bulls and the fundamentals to finally prevail and break away from it's shackles with such immense driving force behind it which was long overdue for a re-rate based on what this company had and will accomplish. With the Gamestop attack, suppressed SP, fundamentals, incredible potentials (long, medium and short term), proven growth, etc. it had created what you would call a "perfect storm" for Z1P's SP to erupt. Like a soft drink bottle, the SP being the "carbonated liquid", the shaking of bottle being the built up "announcements, positive catalysts, fundamentals etc.", the cap being the "traders" and the loosening/opening of the cap being the "Gamestop saga". I believe this perfect storm was a game changing moment in Z1P's history to finally break the trend of such a disgusting culture that once plagued Z1P and allowed it to get it's long awaited rerate.
To where it will go to and where in comparison to Afterpay? I can't tell you that as I haven't looked at the two in comparison lately. I don't believe that it is as simple as a black and white comparison even though I believe that Z1P has a better business model and is a better company than Afterpay. I believe that it's more complicated as economic moat of the public, psychology, etc. plays a role rather than just comparing things such as intrinsic value and other numbers to say which will be higher than the other or where one should be in relation to the other. However, Afterpay sets a precedent (regardless if it is over-valued or not) to where the BNPL Sector can reach to and perhaps exceed it. Because of this, I believe that Z1P will be worth more than what it is worth today, due to the fact that Afterpay, a company that I believe is fundamentally inferior to Z1P, has it's SP valued at 10x more than Z1P's SP. To which, Z1P is a better business and has better fundamentals as well as the fact that their management team, the very people who are responsible for the growth of this company, is top-tier. The continual positive reports and announcements are a testament of just that. Personally, I do not think about of where Z1P will be priced compared to or more than Afterpay. As long as Z1P continues to grow as a company (as it has exceptionally been doing) and it's SP reflects that then that is all that matters. Where it will be priced will all come down to the fundamentals eventually.
I don't think we will ever see the $5-$7 range anymore unless ground breaking news emerges. I genuinely believe that as of recent, Z1P has been reborn into a new era where there is a new culture and sentiment towards it or at the very least, a better one. This is due to the fact that the SP has finally broken and staying above the $10.64 price point. $10.64 and below, represents a point in Z1P history where "FOMO", irrationality, heavy suppression of SP from heavy trading, frustration, emotional actions, unhealthy culture, etc. heavily influenced why Z1P struggled for it's re-rate despite it's constant growth. To which, PayPal entering into the BNPL Sector, added gallons and gallons of unwanted fuel and was the cause of the enormous dumping at $10.64. I believe that the price action of a company greatly reflects the psychology of the market. Therefore, the breakout of $10.64 symbolizes a pivotal moment in Z1P's history where the fundamentals, catalysts and sentiment have prevailed over all the muck that had dominated this company which was reflected at $10.64 and below. For us to go back to the $5-$7 range would have be a catalyst that is greater than the perfect storm that had, and is, contributing to Z1P's long awaited rerate. This breakout isn't simply a "new trading range". It is a break out of it's old traditions. A break out of a toxic behavioral trend that got "dung beetled" way too fat to be considered acceptable and as a consequence, heavily suppressed Z1P's SP Value far below what it should've been, time and time again. This is an unprecedented moment and opportunity in Z1P's history where this stock attains liberation/reset from it's past traditions and thus, a healthier SP future from the bottled up catalysts pushing out it's over-grown oppressors (Traders) and it's where the bulls, fundamentals, potentials, etc. are now finally and rightfully, dominating over what once was, a heavily traded/shorted company.
Yes. There will be profit taking and consolidation phases. This is simply the nature of the stock market. However, Z1P has finally broken away from its suppressive chains and is running wild. It may rest and should it attain it's right nutrients to refuel, it will run again. It may even get caught, but it at least wont be brought back and mistreated to where and how it once was, once upon a time.
Fundamentals Prevails.
Just 2 Z1P Cents. Not Financial Advice.
Thanks, Be Healthy And Stay Safe.
P.S The pun in the name is not lame.
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