HMY - Harmoney Corp Limited

[Dlownz]

Hey Jimdog i largely agree with your thesis. Especially potential takeover target, lets hope it doesn't get to that though.. this should be a very good long term compounder.

I have invested in HMY because i believe they have the best model out of all the new fintechs on the block. All of HMYs competitors like plenti, moneyme, wisr etc use brokers (as well as going direct to market). HMY have chosen a direct to consumer model. This model is scalable globally. They have built (and continue to refine) Stellare which is the technology that profiles potential customers using many many data points.. originally via google but now also via the meta social media platforms (FB and instagram). When their target profile searches 'car finance, house renovation finance, consumer finance' etc HMY will bid more than its competitors to be the top search result. And when the dodgy profiles search for finance HMY dont bid.. amazing stuff. All their competitors have a shotgun marketing approach hitting all profiles that search finance..

Better Margins: If i was to have a guess a broker is going to typically want 1.00% - 2.00% cut of the rate (i.e. funder provides 10% rate to broker who sells it to the customer at 11-12%) for placing a deal with a funder for consumer finance, not mortgage finance.. So straight away HMY has this great advantage where they do not need to pay this. They can either enjoy higher margins (which they do as they reported being cashflow positive on a much smaller book than their competitors), or they can secure more A+ customers by offering a 1-2% lower rate to win the deal.

Better Customer Retention If a broker places a customer with a funder who controls the customer? I say the broker. I say the next time that customer needs additional consumer finance they go to their broker and the broker places the finance where ever the next best deal is (or next best margin for them). This is where HMYs 3 Rs business comes in. They control the customer and can remarket to the customer at no cost. Easy for the customer to stay with HMY rather than go through the process of setting up a new account elsewhere.

In a nutshell I believe HMY is better at finding and retaining A+ customers. As each quarter goes by the model is proven even more than the last. Aussie is remarkable. Next quarter we could see book growth of $70m based on current run rate. That will mean it has grown from $135m at the start of the financial year to $309m at the end. The total book will be around $700m. Their original guidance earlier in the financial year was to grow the book by $100m and end at $600m. Wow they are going to smash that. Obviously even management didnt expect Aussie to be such the success story it is.

The fintechs are the future and the big banks are slow to react and change their models. Everything is going online and being automated. HMY are in the right space and executing. Shareholders will be rewarded in time.

Thanks guys I enjoy all this reading and the research and info is great. I really appreciate it. I'm a little overweight on this one now... Certainly brought into the dip recently I'm still down around 10% but comparing to how everything else is going its fairing reasonably well. Still hoped this would be above 1.70 by now but usual story nothing really moves till the instos get on board. Patience like with nzme and sky is needed.
My mistake this year was not selling the rest of my nzme when it hit 1.70 and watching it track down. Really thought with the share by back I was going to see it stay stable but oh well still a great hold. On another note I'd love it if beagle got on in this but as he's said he has HGH which has shares in this alreasy so HGH is a safer hold. 😁

[Rawz]

Yes Dlownz we need the instos and I guess they won’t be interested until they can read a report without all the proforma crap. End of this financial year can’t come soon enough- one more qrt to go!

Beagle won’t touch this in the current economic environment lol. He’s a very risk adverse accountant

Also- pretty sure 99% of HMY investors are underwater so nobody should be too hard on themselves for taking a position. End of the day the business is tracking nicely and that is the main thing

[Balance]

400,000 borrowers now behind on their loan repayment.

Mostly on unsecured loans.

https://www.stuff.co.nz/business/128...ise-in-arrears

[Muse]

400,000 borrowers now behind on their loan repayment.

Mostly on unsecured loans.

https://www.stuff.co.nz/business/128...ise-in-arrears

interesting article, thanks balance.

[Dlownz]

400000 seems like mostly credit card type ecpenditure

[Balance]

https://www.newshub.co.nz/home/money...ng-crisis.html

Pressure continues to pile on unsecured loans as the cost of living crisis deepens.

Not a good space to be in.

[winner69]

https://www.newshub.co.nz/home/money...ng-crisis.html

Pressure continues to pile on unsecured loans as the cost of living crisis deepens.

Not a good space to be in.

But Harmoney has a computer that weeds out the riff raff

Their data scientists make sure it’s working well.

[Balance]

But Harmoney has a computer that weeds out the riff raff

Their data scientists make sure it’s working well.

The next 12 months will test the computer and see if it lives up to its promise!

[jimdog31]

This thread has drifted into obscurity.... Fiordland moose, you still believe? or on the Balance of probabilities you out?

Dont leave me and Rawz here alone

[Muse]

This thread has drifted into obscurity.... Fiordland moose, you still believe? or on the Balance of probabilities you out?

Dont leave me and Rawz here alone

Slow / no news times.
I sold ~ 30% of my shares, intend to keep the rest. I expect sentiment to weigh heavily on this the next 12mnts or so.