SPY - Smartpay Holdings

[Rawz]

I bought in a few months ago when the moose from the fiordland started making loud bellows

Cheers FM!

[Balance]

I bought in a few months ago when the moose from the fiordland started making loud bellows

Cheers FM!

Louder please next time FM!

I am late to the party, enjoying the steak but champagne & crayfish are still available to be served soon?

[Muse]

TBH I'm new to the party I only starting accumulating this year. I bought an utterly insignificant parcel years ago which, if I hadn't, I dont think I'd have taken any notice of what Smartpay have been doing the last few years (I often do that just so I will take some notice of a company). It's been listed forever, its changed lots and people lost track of what it was, and until maybe ~4 years ago was just a roll up of some of the Provenco Cadmus assets bought out of receiverships. Was effectively a captive NZ business leasing EFTPOS machine with lots of debt used to fund some of the acquisitions, together with some weird convertible note causing havoc in the financial accounts. Pretty easy to miss right?

But to their credit they've rejuvenated the company. Raised capital and reduced debt, the convertible note is gone and don't have to suffer the brain damage of trying to understand what that was, smartly invested to develop the capability to move from being an eftpos leasing provider to an Australian transactional acquiring provider (where the economics are outstanding), got a new managing director cut from private company cloth who is highly focused on profitability and unit economics, found their differentiated niche in the Australian market and magnificently executed on their gameplan without plunging the company into losses to fund growth. Now profitable and cashflow generative and has been scaling. Oh yeah - has got $27m of off balance tax losses available to offset future tax.

Still lots I am trying to get my head around. Mainly on the industry and competitive situation. Never saw myself getting interested into a terminal business. Pleasing to see the board and management with rather chunky shareholdings and for a historically small and speccy company have got some great institutional investors who have been building their shareholding (Milford and Microcap equities)

Best guess for 1H FY23 (which moves around by the hour) is revenue $35.4m, EBITDA ~$9m (up ~150% on prior year) , and NPAT of ~$3m (up ~640% on PCP). That's the thesis - maybe buy a bit more if I'm right or close enough to it

[Muse]

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[Muse]

1.9 million shares crossed on the ASX today at AUD 0.77 (NZD 84c). Rolling 20 business day volumes now the highest since July 2021. At some point would expect to see some SSH notices filed. Will be interesting if a new investor coming on board (and who have they been buying from) or if Milford or Microequities are trading amongst themselves. Very good price discovery at these heavy volumes rather than the day to day movement in small trades.

Disc...have acquired a meaningful position over the last 6 months.

[Balance]

1.9 million shares crossed on the ASX today at AUD 0.77 (NZD 84c). Rolling 20 business day volumes now the highest since July 2021. At some point would expect to see some SSH notices filed. Will be interesting if a new investor coming on board (and who have they been buying from) or if Milford or Microequities are trading amongst themselves. Very good price discovery at these heavy volumes rather than the day to day movement in small trades.

Disc...have acquired a meaningful position over the last 6 months.

Actually, 2.9m shares crossed at A77c!

Going higher and higher on good volumes, albeit via crossings.

Most likely to be institutional investor(s) getting set and as I was told by Australian fund managers in years past, they do not mind paying up when they evaluate a stock as having 100% upside over a 3 to 5 years’ time frame.

[Muse]

Actually, 2.9m shares crossed at A77c!

Going higher and higher on good volumes, albeit via crossings.

Most likely to be institutional investor(s) getting set and as I was told by Australian fund managers in years past, they do not mind paying up when they evaluate a stock as having 100% upside over a 3 to 5 years’ time frame.

Sorry 2.9m - tad dyslexic - lets hope that doesn't happen when I wind up placing a bid!

Per my theory we've now had today a SSH from MA Financial Group (the recently rebranded Moelis Australia) who I had previously omitted as a major shareholder, as selling down a few million shares. They sold to someone, and they sold to someone large. If in a few days another SSH doesn't occur from either Milford or Microcap Equitiies that implies a new shareholder/acquirer is on the hunt, whether they wind up eventually breaching 5% or hover just below. Decent retail volumes in recent days following block trades.

[Muse]

Interesting to read today that Shaw & Partners said dual listed Smartpay was their highest conviction stock under coverage despite the run up in share price. Glad that I didn't wait to start buying before that little excerpt - I'm up about 35-40% on the smartpay shares I purchased this year in a down market.

Another special crossing today and good retail volumes (both on the asx where the action is).

Moved this from my specy portfolio to my core holdings and a long term holder.

[Balance]

880,000 crossed at A0.84c or NZ0.92c.

Looking better by the day indeed!

[Mel]

Interesting to read today that Shaw & Partners said dual listed Smartpay was their highest conviction stock under coverage despite the run up in share price. Glad that I didn't wait to start buying before that little excerpt - I'm up about 35-40% on the smartpay shares I purchased this year in a down market.

Another special crossing today and good retail volumes (both on the asx where the action is).

Moved this from my specy portfolio to my core holdings and a long term holder.

I'm a fan of SPY and I wish I had bought a more substantial stake. For transparency, Geoff Carrick is an independent director at Smartpay - and used to be Head of Corporate Finance at Shaw & Partners until 2019.