Some random thoughts for today - gosh price and people's views...
I get it that retail holders of SPT are a bit annoyed. hey if I'd invested in one of the other first mover BNPL even at same time as SPT I'd be extremely wealthy if I dumped that stock now...this is a fact, BUT also in the past.
Now that this is out the way, I'm not going to dump SPT stock and go join them... this would be nuts you don't buy in a company after/during its last climb, this is why many are getting burned now...
- why chose SPT now?...well apart from the fact the others have had their bull runs.. well it's if you bet that the current credit system isn't broken (it just needs modernisation).
The thing is to me anyways SPT was it's going to take a bit of time to clear the murky waters as the new kids on the block are so flashy and new and perfect timing with Covid..they are really pretty simple to create an account (errr you link them to your existing bank/credit card system and away you go, watch those auto payments come out or errr if your having trouble cancel your bank/credit card and yeah run for it I guess..)
ok competition has been low for existing big credit card players for too long , so new players (credit providers) is good, and given time it should do its thing and lead to an improved credit market for us all.(err hello this is SPT)..there is plenty of room for much needed competition and that competition and new innovation spawned the SPT concept in a way.
That is the current credit system just needs some modernisation/options to compete with a new wave of demands young people want and deserve. They want to get their goods up front and pay for them later (without fees).
Let's face it the other BNPL have done a great job meeting this new want and their share price has reflected )..SPT numbers have not shown the same ....yet! and I feel like the company has been pretty honest about this, they knew it would be hard to grow (they told investors this was the big risk/fact it will be hard to get such numbers as they are backing the old in a way.....and they must hussle now vs. chase instant profits for shareholders..
I figure Brad/SPT has to be careful now as SPT's time to shine grows near, in that as a technology layer service he doesn't need to grow a team as large as the other BNPL (he doesn't need credit people - so this should be driving down use of our investment money as in theory he should need less staff), yet he needs to show he can grow capability rapidly enough to get market share. He will need to some how balance the growing of staff and increased costs against growing profits --- I wanna see those profits go up in away that is exponential against the increase of costs (the staff he is hiring for example), yet if he doesn't grow fast enough, he could lose the whole war... so in my mind I want to see expenses going up, but I want to see them for quality/value growing staff and infrastructure --- which is what I am seeing..
He has everything he needs now (no excuses) to deliver, now is SPT chance -- he will need to be careful it doesn't look like he is just empire building friends (to me it doesn't look like that, he is hiring talent in marketing and technology)...sometimes it's seems like he is saying lots but the numbers don't show... to me this is because he has been focused on scaling... of course expenses will come first..
moving forward he will need quarterly reports to show increases in merchants are improving inline with the staff he is hiring and infra building, if it gets outta whack too much, then fair enough I might bail out if the company a bit, but to date I've seen nothing bad to deserve the drop in share price - just retail investors anger when they compare against the other BNPL...
finally he need to prove that it's not all just show pony and pie in sky and that this is actually happening, that SPT is the result of modernisation of a non broken existing credit system...I believe he can do this (the ingredients are all there).
a few retail investors have said "thanks Brad your letting us down"... err hello it seems to me we are letting them down if we continue selling on no news...
BE Brave!!!
it's all coming together, this is our shot coming, the next 6- 12 months is critical -- if you missed the bull run for the other BNPL here is possibly your last shot to make a steal in the BNPL sector ... but I think it's reasonable to say investing in SPT means you don't think credit cards are broken, instead you think they need to be modernised...
end of today's rant haha
SPT Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
