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22-01-2018, 10:23 PM
#1381
Originally Posted by Cricketfan
There was something in the news around a month ago about how charities in NZ were now able to collect donations by having a terminal in certain retail stores. Customers would be asked if they wanted to donate to the charity at the checkout, and if so, they use the terminal to make an electronic donation. Is that something that PushPay could get into?
Always found those to be a bit of a nuisance haha.
I am sure they will do whatever presents the best returns for shareholders... might be a long time before they need to branch out and away from church giving.
Read somewhere that churches in Europe have started leasing eftpos machines to facilitate cashless donations as cash baskets are drying up.
Last edited by hardt; 22-01-2018 at 10:26 PM.
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23-01-2018, 08:35 AM
#1382
Originally Posted by Schrodinger
Slightly pricey at 10x ARR ($1B/$100M ARR) so I would be looking at their chances of a US listing to maintain this high valuation. High chance they might be a takeover target for a payments company. I also like that a huge number of their team are in US so would reduce takeover risk.
I still think this is already built into share price (IMO currently 30-40% over priced).
I agree with you Schrodinger — but still ‘invested’ in PPH because as long as punters believe the story the share price will reach new heights
I still contend that the $100 odd ARR is not really what it is because about 40% of it is shunted off to VISA, MasterCard and other third parties straight away. Quite a few analysts eliminate cost of sales of this nature when assessing SaaS companies. So I reckon your 10x is closer to 16x.
So maybe your mention of PPH being 30% to 40% overpriced might be a good assessment ...some say I’m foolish holding if I believe it is way overvalued but I respond as long as I think there are greater fools out there I may as well continue to hold.
Last edited by winner69; 23-01-2018 at 08:40 AM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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23-01-2018, 09:16 AM
#1383
Originally Posted by winner69
I agree with you Schrodinger — but still ‘invested’ in PPH because as long as punters believe the story the share price will reach new heights
I still contend that the $100 odd ARR is not really what it is because about 40% of it is shunted off to VISA, MasterCard and other third parties straight away. Quite a few analysts eliminate cost of sales of this nature when assessing SaaS companies. So I reckon your 10x is closer to 16x.
So maybe your mention of PPH being 30% to 40% overpriced might be a good assessment ...some say I’m foolish holding if I believe it is way overvalued but I respond as long as I think there are greater fools out there I may as well continue to hold.
This is more of a note to shorter term investors seeking quick profits within a year. Longer term you arent going to worry too much buying in at these levels as you need a slice FOMO. Might be better to split your purchases if unsure about direction.
I agree on the margins and if I had more time I would look into Paypal and a few other who I think would have low gross margins due to being a payments company. Strategically I would also be looking for network and platform effects for the company. If they are strong then they can be a nice bolt on and/or they can add extra "features" to their customer base.
The global financial sector is renowned for M&A as the back office can be automated/merged to a high degree.
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23-01-2018, 02:41 PM
#1384
Some big trades going through today... Big funds still buying?
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23-01-2018, 03:58 PM
#1385
Originally Posted by blobbles
Some big trades going through today... Big funds still buying?
Good sign. With them going through at prices well above my average holding price I'm happy. Nice endorsement.
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23-01-2018, 06:01 PM
#1386
Originally Posted by Left field
Good sign. With them going through at prices well above my average holding price I'm happy. Nice endorsement.
Not to put a pin through your bubble, but I had this same feeling when Wynyard went up up and away...... only to fall down slowly till it went bust. Not saying pph will go bust I am only advising if effluent hits the fan do you have an exit strategy?
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23-01-2018, 07:26 PM
#1387
Originally Posted by Ggcc
Not to put a pin through your bubble, but I had this same feeling when Wynyard went up up and away...... only to fall down slowly till it went bust. Not saying pph will go bust I am only advising if effluent hits the fan do you have an exit strategy?
Thank you for kind suggestion. The answer is 'yes,'
BTW - I checked my records. I purchased WYN at 1.74 and sold at $1.91 Not a bad exit strategy considering what later happened. Sorry to hear of your loss with WYN and can fully understand why you are watching PPH carefully.
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23-01-2018, 07:30 PM
#1388
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23-01-2018, 08:08 PM
#1389
Lance Wiggs wrote a pretty solid piece about Wynyard...
https://www.nbr.co.nz/opinion/what-c...administration
"That same interim report, dated six weeks ago on September 12, 2016, noted: “It is the considered view of the directors that the company and group will have access to adequate resources to continue operations for at least a period of 12 months from the date of signing these interim financial statements.” But later noted: “The directors are in the process of undertaking a strategic review of the group’s operations and product portfolio. This review also includes an assessment of the plans should one of more of these material uncertainties result in an adverse impact on the forecast cash position of the group.” That second statement is normally code for major changes, including redundancies, in a business. But, while the investor presentation released at the same time as the interim report itself showed Wynyard had already reduced staff from 306 to 250 FTE, it is clear today that the process had not continued, at least not aggressively enough. At over $20 million in annual revenue and $10 .8 million in cash, Wynyard easily had enough funding to support 150 highly professional people but not 250 people and their associated spend. The board needed to make the costcutting decisions earlier, well before administrators were called in to make it for them"
Last edited by hardt; 23-01-2018 at 08:18 PM.
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23-01-2018, 09:37 PM
#1390
Originally Posted by Left field
Thank you for kind suggestion. The answer is 'yes,'
BTW - I checked my records. I purchased WYN at 1.74 and sold at $1.91 Not a bad exit strategy considering what later happened. Sorry to hear of your loss with WYN and can fully understand why you are watching PPH carefully.
Good for you on your trade and thanks for your comment. I was told to enter PPH when it was worth $1.80 per share but due to my loss on Wynyard I was inclined not to. Instead I invested in a2 which was easy as it makes a profit.
I for one hope PPH takes off like a rocket. I love success for kiwi companies
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