LayBuy NZ - Buy Now Pay Later

[stoploss]

Laybuy up 9% today

Punters thinking they next in line to be acquired

ZIP up 9% today , must be next in line …��

[whatsup]

LBY on an uptick after the Afterpay take over, are some S Hers switching into LBY ?

[Gecko]

Slick investor presentation this afternoon. Stated significant traction is being made into ClearPay's market share (currently UK's second largest BNPL provider).

Like their value driven decision to stay clear of alcohol, gambling, firearm and grocery sectors. On track to process hit a billion in sales transactions by financial year end.

A lot to like...except the share price.

[Cobber]

Slick investor presentation this afternoon. Stated significant traction is being made into ClearPay's market share (currently UK's second largest BNPL provider).

Like their value driven decision to stay clear of alcohol, gambling, firearm and grocery sectors. On track to process hit a billion in sales transactions by financial year end.

A lot to like...except the share price.

It's a crowded space this BNPL vertical and LBY are probably one of the smallest players out there. They also arrived at the party considerably late. I'm not sure why their CEO keeps repeating the story how he had this idea when AfterPay was light years ahead of him and already in market.

Comparing the early growth trajectory between the 2 companies shows AfterPay clearly had first mover advantage.

LBY's scariest stat right now is how much it's costing them to be relevant in market. Their losses are huge. They're burning through money like there is no tomorrow.

Which begs the question, when they come back to the market for more capital.... what will they price themselves at then? 40c? 35c?

[Cobber]

Trading volume over the last few days has been considerably high. Who's getting out before the 6 month results are published.

[Cobber]

80,000 transactions on their affiliates app for just over a 1 month period. This could turn into a very lucrative revenue stream in its own right.

[Cobber]

I was a bit shocked that Q2 income was only slightly higher than Q1 but listening in on the call, they just paid 1 million for insurance for the year and all affiliation income is not being recognised until its received. So there is a possibility of a large growth spurt in the coming 6 months. They are still bullish on beating $1 billion GMV this financial year. Could be a good price to acquire at.

[Cobber]

One has to wonder if this company is going to exist in a year.

I noticed on LinkedIn, the CEO's wife who is the Brand Creative Manager at Laybuy.... posted that she couldn't attend a sponsored woman's luncheon in London because of covid. I'm praying that the family running the business isn't using Laybuy funds to jettison needlessly around the planet for a lunch!!

Senior staff with valuable IP seem to be exiting. I suppose that's what happens when your vested options are worthless.

[mikeybycrikey]

One has to wonder if this company is going to exist in a year.

It's down almost 65% since the half year results were announced less than 3 weeks ago. That price drop does seem to suggest that it might be the end of the road.

They probably need a cap raise within the next 12 months. How do you raise capital when the market cap is only slightly more than the cap required?

[Muse]

It's down almost 65% since the half year results were announced less than 3 weeks ago. That price drop does seem to suggest that it might be the end of the road.

They probably need a cap raise within the next 12 months. How do you raise capital when the market cap is only slightly more than the cap required?

It doesn't leave the company with any good options. Any large retailers could well be wary of LBY if they glance at its charts - no one wants a supplier on the ropes or who might not be there in a year or two. Any capital raise would have to be at a massive discount to spot prices to lure investors to fund it. Many investors will have lost heaps and reluctant to put more capital in and if they don't will be diluted to hell.

Pioneer Capital floated this and you just have to look at their other IPOs to see how their other companies faired...Moa, SLI, Orion...all delisted or the original operating companies sold off for pennies on the dollar. I can't help but think this will be the same. Those guys need a new business model - can't keep raising funds on the back of IPO success stories when they inevitably flop each time - especially when their master is the NZ Super Fund....