PPH - PushPay (Church/donor software.)

[King1212]

Hi gurus, can anyone please explain PAY is planning to split the share, what does it means? Thanks

[Yeshiva]

Hi gurus, can anyone please explain PAY is planning to split the share, what does it means? Thanks

Hi everyone - first time commenter, long time lurker!

King1212 - it means stuff all in a mathematic sense. The market capitalisation of the company doesn't change one bit. You still own the same amount as before in dollar terms. The announcement on the NZX pages here - https://www.nzx.com/companies/PAY/announcements/276312 means that the number of shares will increase by 4. If you have 100 shares worth $700 now, then soon you will have 400 shares worth $700 in today's dollars. So not much in a mathematical sense. I'm happy to be corrected if I have any of this wrong but I think this is right.

HOWEEVR - in a psychological sense, increasing the number of shares has a slightly positive improvement on liquidity, as potential buyers perceive the shares to be cheaper, and holders feel they own more shares and are happy to trade more. There is a nice article on this on the Investopedia website which I think is a superb resource for investors. http://www.investopedia.com/articles/01/072501.asp

What is really nice about this announcement is not the share split, but the revenue growth numbers. 46% revenue growth over the last three months is quite remarkable. If they can keep up this kind of growth then they will outgrow Orion and Diligent in market cap before too long.

[King1212]

Thank heaps!

[Yeshiva]

Thank heaps!

The investopedia article I linked to above makes another good point. A share split helps liquidity by reducing the bid/ask spread. I had not ever considered that before, but it makes sense.

[Cobber]

Hi everyone - first time commenter, long time lurker!

King1212 - it means stuff all in a mathematic sense. The market capitalisation of the company doesn't change one bit. You still own the same amount as before in dollar terms. The announcement on the NZX pages here - https://www.nzx.com/companies/PAY/announcements/276312 means that the number of shares will increase by 4. If you have 100 shares worth $700 now, then soon you will have 400 shares worth $700 in today's dollars. So not much in a mathematical sense. I'm happy to be corrected if I have any of this wrong but I think this is right.

HOWEEVR - in a psychological sense, increasing the number of shares has a slightly positive improvement on liquidity, as potential buyers perceive the shares to be cheaper, and holders feel they own more shares and are happy to trade more. There is a nice article on this on the Investopedia website which I think is a superb resource for investors. http://www.investopedia.com/articles/01/072501.asp

What is really nice about this announcement is not the share split, but the revenue growth numbers. 46% revenue growth over the last three months is quite remarkable. If they can keep up this kind of growth then they will outgrow Orion and Diligent in market cap before too long.

These guys are flying at 100 miles an hour.

I still think they are massively overvalued.... but when you compare them against Slack, Yammer etc which are all over a billion in valuation, then these guys still have quite a lot of room for potential SP growth.

However.... with the markets the way they are.... if the bottom was to drop, these are the companies that will potentially get hammered first.

[Yeshiva]

These guys are flying at 100 miles an hour.

I still think they are massively overvalued.... but when you compare them against Slack, Yammer etc which are all over a billion in valuation, then these guys still have quite a lot of room for potential SP growth.

However.... with the markets the way they are.... if the bottom was to drop, these are the companies that will potentially get hammered first.

Yes, they are flying at 100 miles an hour, but I think there are two tiers of tech companies in NZ. Those with large amounts of cash on hand, and those that don't have much cash at all.

Pushpay, like Xero, Orion and Diligent, is very well capitalised (or in the case of Diligent, free cashflow positive which is the best of all)

If the markets got global wobbles, then yes, all companies will be negatively affected. But those companies that need to raise more capital would be the worst hit, for all the obvious reasons.

Given that Pushpay has almost $20m cash on hand (see their announcement earlier today), you can see how they would be able to ride through a rocky six month patch when it would be hard to attract capital.

Some of the other NZ tech companies would be performing brutal discounts on their share price to raise money in such an environment - if at all. I won't mention their names, but I'm sure most investors could identify those companies pretty quickly without much need for research.

The top tier of companies like Xero and the others above have heaps of cash on hand and so the smart money won't take fright like they might with those companies that have weak balance sheets. Markets might go sour for half a year or more, but those companies will still demonstrate their high performance over that time, reassuring investors.

[Leftfield]

Nice to see a 30% plus hike in SP over the last few days. Their latest investor presentation is possibly fuelling the interest. I like that PAY are signalling diversification beyond from the Church/Non profit giving to more general bill paying and are confirming forecasted 100% plus ACMR growth for 6 months to 31 March 2016.
Have a read; https://nzx.com/files/attachments/232382.pdf
Disc; happy holder. DYOR.

[HeartOfGold]

Nice to see a 30% plus hike in SP over the last few days. Their latest investor presentation is possibly fuelling the interest. I like that PAY are signalling diversification beyond from the Church/Non profit giving to more general bill paying and are confirming forecasted 100% plus ACMR growth for 6 months to 31 March 2016.
Have a read; https://nzx.com/files/attachments/232382.pdf
Disc; happy holder. DYOR.

https://www.nzx.com/companies/PAY/announcements/279682

They have had a few please explain letters now.
Undecided whether the big movements are due to the low liquidity of the stock or something more sinister...

Continuing to watch closely. Looking forward to next full report. Fintech is an exciting industry right now.

[Leftfield]

https://www.nzx.com/companies/PAY/announcements/279682

They have had a few please explain letters now.
Undecided whether the big movements are due to the low liquidity of the stock or something more sinister...

Continuing to watch closely. Looking forward to next full report. Fintech is an exciting industry right now.

Mmmm, interesting, the enquiry and PAY's response adds nothing new!? However SP has been pruned in the interim, so maybe NZX happy.

[King1212]

Below is the comment from The Moose. I don't really know him or her, but read heaps of his or her good opinions on NBR. I did a small research about him or her , she or he used to be sharetrader member but his or her ac was suspended? People said he or she is a legend. I mean investor legend......anyone know him or her?

I totally agree with his comments, he commented last December, saying a lot investors ignored this company which is fast growing! I knew a lot of church members and lived in USA, yes most churches still use boxes for donations and manually done.

http://www.nbr.co.nz/article/pushpay...rally-b-186591

The Moose 2 hours ago
Still quite illiquid and tightly held share, nothing to see here. I remember Xero being the same way back in the day. Why would you want to sell such a fast growing company which is dominating a niche US market? Good to see the company presentation today showing them broadening their horizons refarding payments. Future is still very bright for PushPay!