Not a pumper, Kev. Just don't like to see people make incorrect or pointlessly negative statements, ie, that 1% bad debt is bad performance for a lender.
That IOU is a strict BNPL company, that they just took peoples money and burnt it. It's not demonstrably the case - people don't know whats happening and they're hurting because this was pumped to the moon.
>$21mil went to payment for 21% stake in idsb. $15mil or so went into bnpl churn $19mil expensed into the business i guess. Theres over 100 staff apparently..
Yes, so.. they're a company with multiple simultaneous activities and have put the funds into different things. Regarding the expenses, they have multiple simultaneous activities that all need funding and staff.
Stig >IDSB was most probably a mistake a very costly one. paying out approx 28m for 42% for no ROI for 10 years at least. I think this is the biggest problem IOU have. They haven't adequately explained the reasoning for purchasing IDSB. You're right that it's pointless for them to have bought it just for the revenue. But as I said - they could have pumped that 21 million bucks into BNPL churn.
I can't accept that they put funds into IDSB for that reason alone - there must be other tangible relatively short term advantages to their business plan otherwise why would they have bothered?
>133 staff, 4.5m in running costs per Q, its obvious what is and isn't working. Well, no, because you don't know what the staff are doing and what the money is being spent on. What percentage of staff and funds are allocated to what? What are they building in terms of infrastructure? They'll soon own 42% of IDSB, surely it would make sense to prepare in advance for whatever they're doing with that - which will cost staff and funds...
The general concern about cash burn would make absolute sense if they *only* had BNPL. So why would they buy IDSB which has relatively little value to the BNPL arm??
IOU fails at communicating what they're doing. It's not reasonable to take this to assume they will fail at achieving their business goals.
IOU Price at posting:
5.6¢ Sentiment: Hold Disclosure: Held
