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APT, AFTERPAY HOLDINGS LIMITED
blacksheep
post Posted: Aug 15 2019, 10:27 PM
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Calls for greater regulation of 'buy now, pay later' services like Afterpay and Zip Pay
extract
QUOTE
Popular "buy now, pay later" services like Afterpay and Zip Pay have been the subject of more than 250 complaints to the Australian Financial Complaints Authority in the eight months to the end of June.

Key points:
Calls for the federal government to increase regulation of buy-now-pay-later services
Companies like Afterpay and Zip Co are resisting increased regulation
More than a million transactions are now made a month using the service

The complaints relate to unauthorised transactions, incorrect fees and negative impacts on credit ratings.

"I really think that complaint levels are the tip of the iceberg," Gerard Brody from the Consumer Action Law Centre told 7.30.

"Many people won't even know where to go when they've got a complaint with a buy now, pay later provider.


read whole article - https://www.abc.net.au/news/2019-08-15/buy-...ection=politics



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 10 2019, 11:49 AM
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In Reply To: blacksheep's post @ Jul 24 2019, 12:51 PM

APT gets a mention here - https://www.theage.com.au/business/companie...808-p52f3d.html
extract
QUOTE
"What they are doing wrong is comparing these companies to Australian companies who can only grow at that rate for a couple of years before they take all the Australian market. These companies could grow at 20 per cent for 10 to 15 years,” he says.

A focus on price to earnings ratios cannot capture the huge potential for Afterpay, or the ability of these companies to scale so quickly.

Ophir uses a discounted cash flow valuation. It starts with an estimate of what sort of market share Afterpay could get in a given sector of the global online payments market, looks at the current rate of adoption and how long will it take to get there.

"You need to make sure that the adoption curve is playing out, because if the acceleration slows then that’s a real risk given a discounted cash flow valuation is based on a multi-year time period,” he says.

"We’re focused on the adoption curve and not on the noise like the recent Visa announcement. For us that was a good buying opportunity,” he says, pointing to the price dive which followed the news that Visa was looking at introducing its own instalment payment options for customers.

"We’re focused on the key things that will drive where it’s going to be in 10 years.”

On Friday, Afterpay reported that its strong pace of customer and merchant growth in the US continues. It now has more than 2 million active customers and 6500 merchants that are either active or in the process of being added to its buy now, pay later platform.

In June, when the company raised $300 million from investors, Afterpay reported that it had 1.5 million active customers in the US and 3300 active merchants.

"The world's most valuable consumers, the Millennial and Gen-Z generations, are quickly moving away from traditional credit," said Afterpay co-founder Nick Molnar in the announcement of the latest US numbers on Friday.

The news comes just days after the Commonwealth Bank announced it had invested $US100 million in Afterpay's US rival Klarna, and unveiled plans to bring its service to Australia and New Zealand.

The move from the ASX's third-most valuable company underlines why both sides agree that these high growth stocks have great potential. The issue seems to be whether they are worth the price.


QUOTE
According to Lakehouse Capital's Joe Magyer, seven of the ten most valuable companies in the world were powered by network effects.

And these effects are hard for even savvy US investors to grasp at times.

"PayPal, which is widely followed and presumably well understood, has beaten consensus expectations for normalised net income in 14 out of the 15 quarters since the company was spun off from eBay," he says in a column posted to the fund manager's web site.

But Investors Mutual's Whittaker points out that Afterpay is not a great example of the network effect because it needs to find finance for each new customer that uses its service, unlike eBay and Google.

"Once these platforms are built, the cost of adding a new user to the platform is near zero, which means the operating margins are very high," he says.

"In contrast, Afterpay is a consumer finance company that requires capital to grow."


Total short positions as at 5/8/19 = 1.90%
https://www.shortman.com.au/stock?q=apt
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 24 2019, 12:51 PM
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Posts: 6,130
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In Reply To: blacksheep's post @ Jul 1 2019, 03:01 PM

Extract - Why the best performing hedge fund is selling

QUOTE
Among LHC's shorts are Afterpay, the buy-now-pay-later firm facing questions about its path to profitability; Lend Lease, on account of issues with fixed cost contracts in engineering unit; IOOF in the face of regulatory challenges; and Link Market Services, predicated on worries about its UK unit.


read more - https://www.afr.com/business/banking-and-fi...20190723-p529t2

https://www.shortman.com.au/stock?q=apt
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 1 2019, 03:01 PM
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Posts: 6,130
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In Reply To: nipper's post @ Jul 1 2019, 02:24 PM

QUOTE
I find it somewhat amazing how many people think that the AfterPay model is attractive, and for them.


Me too! But it seems many do not share our view sadsmiley02.gif

QUOTE
For investors in Afterpay, the most worrying thing in Visa's announcement that it's entering the buy now, pay later space isn't necessarily the specific threat of competition from one of the world's biggest financial services companies.

Rather, the most concerning aspect of the announcement was a number: $US1.2 trillion ($1.7 trillion). That's Visa's view of the buy now, pay later sector, which it prefers to describe as the "instalments" market.

An optimist might say Visa's desire to enter this market, one supported by an avalanche of statistics about sectoral growth, is validation of Afterpay's belief that consumers are shifting away from products like credit cards and towards new payment models that are more about budgeting than borrowing.

But a pessimist would say that this $1.7 trillion honey pot will create several waves of competition for Afterpay at a time it's been made vulnerable through ambitious growth plans, the poorly timed decision of its founders to sell stock, and corporate governance weaker than it should be for $5.9 billion company.

Chanticleer has the full story here.https://www.smh.com.au/business/trade-truce-to-ignite-markets-20190701-h1fts9.html




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Jul 1 2019, 02:24 PM
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In Reply To: blacksheep's post @ Jul 1 2019, 11:48 AM

QUOTE
Visa's entrance into Afterpay's market validates the fact the Australian group is riding a big global trend.

But it also shows even more competition is coming.

- I find it somewhat amazing how many people think that the AfterPay model is attractive, and for them. Usually they've been in an "abusive relationship" with credit card(s).

Oh well, try something new, but self-control, nah!




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: blacksheep  
 
blacksheep
post Posted: Jul 1 2019, 11:48 AM
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In Reply To: blacksheep's post @ Jun 28 2019, 04:06 PM

APT down 3.31% currently @ $24.24 - opened much lower hitting a low of $22.50
https://www.shortman.com.au/stock?q=apt

Z1P down currently 5.44% @ $3.13 - hit a low of $3.08.
https://www.shortman.com.au/stock?q=z1p

Meanwhile SPT started in the green hitting 67.5 on the news they partnered with KGN - didn't last long SP currently down 2.38% @ 61.5



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Jun 28 2019, 07:41 PM
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In Reply To: blacksheep's post @ Jun 28 2019, 04:06 PM

AFR article also suggests Visa was the cause - Afterpay shares slump as Visa enters buy-now, pay later
QUOTE
Shares in buy-now, pay-later firm Afterpay Touch plunged as much as 15 per cent in late trading on Friday following a press release from payments giant Visa that revealed the incumbent player would begin testing its own payment instalments technology.

read more - https://www.afr.com/business/banking-and-fi...20190628-p522cw



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jun 28 2019, 04:06 PM
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Posts: 6,130
Thanks: 2193


Something certainly spooked APT holders this afternoon - EOFY sale or something else? Visa Unveils Installment Payment Capabilities to Give Shoppers Simple and Flexible Way to Pay
New APIs will allow merchants and financial institutions to give Visa cardholders more ways to pay - https://www.businesswire.com/news/home/2019...s-Give-Shoppers

Z1P seems to have followed - ditto SPT
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Jun 15 2019, 11:21 AM
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In Reply To: mullokintyre's post @ Jun 13 2019, 11:39 AM

QUOTE
A day after consumer credit group, Afterpay Touch raised more than $300 million and the three founders sold shares worth more than $100 million to two US investment companies, the shares plunged 12% after the financial intelligence regulator, AUSTRAC revealed it believes the company had been involved in money laundering. It is the second major financial group in a year to be revealed as being caught up in an audit and investigation by Austrac – the other was the Commonwealth Bank.

It is a major blow to the credibility of Afterpay Touch which has become one of the hot stocks on the ASX this year with a low-value credit payment system for small purchases. AUSTRAC has hit the company with demands for an external audit of its compliance with anti-money laundering and counter-terrorism financing laws.

“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations,” AUSTRAC chief executive officer Nicole Rose said in a statement on Thursday morning.

The notice served to Afterpay by AUSTRAC, which was released to the ASX, states the regulator has “reasonable grounds to suspect that Afterpay is a reporting entity that has contravened and/or is contravening sections 32 and 81 of the AML/CTF [anti-money-laundering and counter-terrorism financing] Act”.

“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations. These laws are in place to protect businesses, the financial system and the Australian community from criminal threats,” Ms. Rose said in the statement from the regulator.

The audit will determine the extent of any compliance issues and whether further regulatory action concerning Afterpay was required, AUSTRAC said. The regulator said it was looking at potential compliance issues dating back to January 19, 2015.

Afterpay said it did not know of AUSTRAC’s decision to serve the notice until it was received on Thursday morning. Yet the risk had been “previously identified”, Afterpay said in response to the regulator’s notice.

“Beyond the update as to AUSTRAC’s issue of the notice, Afterpay does not currently have any material information which is in addition to the disclosures made in the investor presentation released to the ASX on June 11, 2019, and the risk factor regarding AML/CTF laws.” AUSTRAC said “The extent of the auditor’s examination is determined by AUSTRAC and will be at Afterpay’s expense. A preliminary audit report must be provided to AUSTRAC within 60 days.”
https://www.sharecafe.com.au/2019/06/14/aus...aundering-laws/

Afterpay’s shares plunged more than 15% to a low of $21.93 after the announcement – below what investors paid for their shares in the company’s $300 million capital raising on earlier in the week. The shares ended down 12% on the day (the biggest fall in the ASX 200) at $22.55, below the $23 a share issue price in this week’s $317 million fundraising.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Jun 13 2019, 11:39 AM
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APT drops 10% after it was revealed that AUSTRAC is peering inside to ensure it is complying with the anti money laundering laws.
Wonder if they will find anything??

Mick



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