Possible target price of $15-20, page-850

Hot copper really needs a 'poor analysis' button - the amount of people on here overreacting to fluctuations in international markets.

We already saw from last two monthly reports Z1p flourishes in a covid economy as it fast-tracks the move to online sales. It also has enough diversification of non-discretionary items (phone / rego bills / home improvement ) aswell as consumer (retail / fitness equipment) that it can weather poorer retail sentiment. If anything a more negative outlook (to an extent) will lead to a greater necessity for flexible payments (e.g. even if total overall sales in economy are slowing, BNPL will take a larger market share in the downturn and grow).

The original share price drop to $1 dollar was due to (and unlikely to ever drop below 5s due to):

- how BNPL products would react with poorer retail sentiment - proven to be strong with transition to online sales and reaffirmed guidance of 100% revenue growth and TTV 2.2bn set at start of FY19.
- potential bad debts - the median age of customers is 35 ave salary +70k, not millennial and is credit checked - monthly arrears have been downtrending in may and bad debts under industry ave of 3%. There is however an unknown in sept when jobkeeper ends.
- liquidity risk and cash flow - this has been de-risked with successful cap raise and acquisition.