PPH - PushPay (Church/donor software.)

[dreamcatcher]

Goldman also liked upgrade on CL raised TP $10.55

Good numbers trading today some are grabbing early bird special...............

[Nigelk]

Screenshot 2020-06-24 at 13.38.53.png The increases are being driven out of Australia. Look at how much the SP jumps when the ASX opens.

[Cadalac123]

Recent upgrade was well received . Great buying at the previous prices. Getting pretty heavy now could run but topping up is tricky

[Longhaul]

I'm still 100% convinced my logical and analysis is correct.

Thanks for the laughs.

[tango]

I'm holding for now but I did think of selling some down. Not sure how sustainable this is. Given that Covid is likely to have a sustained run people could permanently switch to electronic donations and this behaviour might be permanent. In which case this continues to be a winner

[gbogo]

something going on with this - very aggressive insto buying last few days.

[Longhaul]

Wirecard now filing for insolvency.

It had a similar business model as Pushpay. It start off focusing on alternative industries like gambling and porn then expanded into other areas looking for growth to justify it's share price.

Why are you so insistent on displaying your ignorance?

[Cadalac123]

Wirecard now filing for insolvency.

It had a similar business model as Pushpay. It start off focusing on alternative industries like gambling and porn then expanded into other areas looking for growth to justify it's share price.

In just a matter of weeks it's gone from $20 billion to nothing!

Pushpay's recent share price appreciation is based on what? A few broker reports? A questionable acquisition? Covid-19 being a positive?

Maybe Pushpay goes to $20, maybe not. The stock price is irrelevant.

What matters is the narrative and the underlying business. Nothing has changed in my opinion.

Will see who gets the last laugh on this one.

Have you actually read their reports though? They became actual NPAT positive (without being accounting NPAT positive) for the first time and steadily demonstrating operating leverage and just updated their guidance again a week ago.

Their business model is pretty transparent and they acquired a chunk of market share through their acquisition . Huge jump in customer numbers in late half of FY20 meaning further revenue squeeze potential.

More convincing rise in shareprice than some of the BNPL fads

[Zaphod]

How high is the barrier to entry for a competitor though? Especially one like PayPal or Google etc. That is a significant risk.

IMO the best scenario is for PPH to be bought out by a larger incumbent.

[Cadalac123]

How high is the barrier to entry for a competitor though? Especially one like PayPal or Google etc. That is a significant risk.

IMO the best scenario is for PPH to be bought out by a larger incumbent.

PayPal and google have existed throughout PPH's entire existence and that hasn't stopped them improving their balance sheet YoY. It's more the church interface and community links that support PushPay rather than its basic utility of a tithing service which isn't what the app is all about anymore, especially after the church builder acquisition.

This brings notable degree of stickiness and somewhat of a subjective switching cost associated with pushpay. Given it's also an established player in the field and big - medium churches need the metrics pushpay also provides its customers a competitor would need a big differentiating factor to push them out of the space.

Ignoring all this, objective analysis of the balance sheet provides evidence of market share consolidation and growth.