Hey Niraj, sorry for the slow reply and happy New Year to you....

Hey Niraj, sorry for the slow reply and happy New Year to you.

Subsequent to my last post was the Q3 result which I was very impressed by. Since my last post they reported a great result and the share price has fallen slightly despite a very strong bounce for BNPLs, and small caps generally. I feel better about B4P today. I’m not in it yet - I’m still cautious of the end of escrow and I want to see what happens. I’m hoping that the additional liquidity creates a great buying opportunity.

Just keep in mind B4P’s business model is very sensitive to any changes in their loss rates. When they writeback credit loss provisions in a quarter it provides a big tailwind to the NTM but it’s not a sustainable driver of the transaction margin. So I like to look at how the transaction margin is trending over multiple quarters to get a better understanding of the underlying.

So long as unemployment rates remains low I think they should be able to keep delivering these strong NTMs, which hopefully drives regular profitability.