APT is currently priced for massive growth.
In America & Australia about 70% of people have a debit or credit card.
33% of Americans have a credit card, a drop of 7% in the last few years.
44% of Americans have a debit card, an increase of 9% over the last few years.
The average wage in America is $56,500 with average credit card debt of $16,060
The average wage in Australia is $78,800 with average credit card debt of $4,200
America could well be a harder nut to crack, with many already testing their CC limits.
I just hope those who have made a simple population multiplication to gain a
simple answer, have in fact taken all the variables into account. A rise in delinquent
loans could well compromise this wafer thin margin, business models, future growth.
For each loan of $100 that falls over, $2,500 of sales are required to cover the $100
loss @ 4% commission.
Ideally, APT should "test run" the state of Alabama, which has the lowest income
per head, which, if the model is profitable there, roll it out to the other 49 states. The
scatter gun approach used in Australia will need to be modified for the US market,
for investor confidence to be retained. This is a good business model, however
caution should be placed in front of enthusiasm.
APT Price at posting:
$14.23 Sentiment: Hold Disclosure: Held
