PPH - PushPay (Church/donor software.)

[JeremyALD]

Wow. I have a very small share of PPH but am up 50%. Thanks for your advice on this one all. What a run this year.

[gbogo]

Mr Dog, Please thank the birdie on my behalf. Fabulous confirmation.

[iceman]

I have been sceptical about us reaching the NZX50 for the very reason that the shares are tightly held. I did not foresee what happened today which was a clever move by substantial holders. As you know Mr Beagle, I’ve taken a big bet on this one and am mighty happy with that decision

[Hectorplains]

I think it is a mistake to think of PPH in terms of church's only. At its core PPH is about 'facilitating payments for communities and organisations'. While in its early stages PPH has made huge progress with churches, the longer term could easily see the PPH 'system' extended to schools, universities, charities and much much more.

I disagree..."easily" done it won't be. They've made sod all progress in those areas in the last 2 years. Those markets are competitive and much more developed than the 'faithspace.' It will more likely be a long, expensive slog. PPH have said there is plenty more to be made from the churches - they still only have 6% of the US large church segment. Given the potential why wouldn't you just focus on that market?

[Leftfield]

I disagree..."easily" done it won't be. They've made sod all progress in those areas in the last 2 years. Those markets are competitive and much more developed than the 'faithspace.' It will more likely be a long, expensive slog. PPH have said there is plenty more to be made from the churches - they still only have 6% of the US large church segment. Given the potential why wouldn't you just focus on that market?

Time will tell Hectorplains, the 'faithspace' has been great for them and it is rightly their priority. I'm just observing that PPH could diversify when the faithspace is no longer a priority. in the meantime I'm just loving the recent PPH SP appreciation.

[iceman]

I think they should continue focusing on the faith space only for now. They have a first mover advantage there and are obviously doing well in it. Stick to the knitting. We will be taken over before we need to think about anything else. !

[Beagle]

Last Friday on 8 December it closed at $3.46. Confirmation that it would be included in the NZX50 on Friday afternoon saw it open at $3.50 on Monday morning on the 11th and steadily track higher for most of the week as the news spread. Friday's close of $4.15 represents a 19.94% premium on last week's close on no new news other than NZX50 inclusion and index tracker funds being forced to buy in.

I like the stock and was aware they were likely to be included before last Friday so took a decent sized position which I added to this last week on confirmation of inclusion. Even so I was very pleasantly surprised by Friday's close and would have been very happy with $4.00.
The question in my mind...is it suddenly worth 20% more just because of index inclusion ?

Answer...No but there are some mitigating factors. (I know this seems like a contradiction but this is how the little birdie explained it to me).
Once in the NZX50 analysts are more likely to start covering it. Institutions other than tracker funds are more likely to take an interest in it and brokers who are managing funds with full discretion on behalf of clients are possibly more likely to take a position in it. Further, brokers are more likely to recommend it to their clients as part of their normal advisory role.
The stock isn't suddenly intrinsically worth 20% more but it could be that with wider market acceptance institutions and other investors are prepared to pay more.

Finally in conclusion to answer the question I posed myself...Does the answer really matter with a Nasdaq listing sometime in the near future anyway ?
It only really matters in the short term.

[see weed]

Last Friday on 8 December it closed at $3.46. Confirmation that it would be included in the NZX50 on Friday afternoon saw it open at $3.50 on Monday morning on the 11th and steadily track higher for most of the week as the news spread. Friday's close of $4.15 represents a 19.94% premium on last week's close on no new news other than NZX50 inclusion and index tracker funds being forced to buy in.

I like the stock and was aware they were likely to be included before last Friday so took a decent sized position which I added to this last week on confirmation of inclusion. Even so I was very pleasantly surprised by Friday's close and would have been very happy with $4.00.
The question in my mind...is it suddenly worth 20% more just because of index inclusion ?

Answer...No but there are some mitigating factors. (I know this seems like a contradiction but this is how the little birdie explained it to me).
Once in the NZX50 analysts are more likely to start covering it. Institutions other than tracker funds are more likely to take an interest in it and brokers who are managing funds with full discretion on behalf of clients are possibly more likely to take a position in it. Further, brokers are more likely to recommend it to their clients as part of their normal advisory role.
The stock isn't suddenly intrinsically worth 20% more but it could be that with wider market acceptance institutions and other investors are prepared to pay more.

Finally in conclusion to answer the question I posed myself...Does the answer really matter with a Nasdaq listing sometime in the near future anyway ?
It only really matters in the short term.

Beagle, Thanks for all your input over the last year or so on different companies. I wish I had bought PushPay a while back, hearing your comments, but might buy some another time. I do think you should start a weekly column in the NZ Herald, and also start up a company called Beagle Asset Management .

[Beagle]

Beagle, Thanks for all your input over the last year or so on different companies. I wish I had bought PushPay a while back, hearing your comments, but might buy some another time. I do think you should start a weekly column in the NZ Herald, and also start up a company called Beagle Asset Management .

That's very kind of you to suggest mate. I'd like to think I help make the odd bit of difference here and there, (probably wishful thinking on my part) but would be the first to confess this is often in my own financial interests with holdings. I fear some on here see the Beagle's musings as barking and whining not opining but hopefully one or two others appreciate the hounds propensity to chew the fat on various bones of contention from time to time. Must admit... Beagle Asset management does have a bit of a ring to it..."taking a dogged approach to building wealth"... maybe one day

[kizame]

That's very kind of you to suggest mate. I'd like to think I help make the odd bit of difference here and there, (probably wishful thinking on my part) but would be the first to confess this is often in my own financial interests with holdings. I fear some on here see the Beagle's musings as barking and whining not opining but hopefully one or two others appreciate the hounds propensity to chew the fat on various bones of contention from time to time. Must admit... Beagle Asset management does have a bit of a ring to it..."taking a dogged approach to building wealth"... maybe one day

Hmmn Bam sort of a ring to it. I would like to second See weed's comment, Sound judgement and comment,maybe we tend to pick these companies but it's always interesting and nice to hear that you are on board as well.