PPH - PushPay (Church/donor software.)

[winner69]

BP ...standard practice (even Comvita did it this year)

Is real but in context of this year’s performance a bit unreal

Ignore it in your trusty spreadsheets



If really interested there’s heaps more explanation in the Annual Report
http://nzx-prod-s7fsd7f98s.s3-websit...235/299484.pdf

[BlackPeter]

BP ...standard practice (even Comvita did it this year)

Is real but in context of this year’s performance a bit unreal

Ignore it in your trusty spreadsheets



If really interested there’s heaps more explanation in the Annual Report
http://nzx-prod-s7fsd7f98s.s3-websit...235/299484.pdf

Ah yes, found the "deferred tax assets" on their balance sheet. And you are saying even the well trusted Kiwi brand Comvita would do that? Me shudders ...

Anyway, didn't expected a really earnings this year anyway - and still wondering whether NZ$1b is really an appropriate market cap for a company with NZ$140m turnover and no real earnings.

Never mind.

[NZSilver]

With you BP, I don't understand the approx 20mil of defferd tax

[King1212]

Ah yes, found the "deferred tax assets" on their balance sheet. And you are saying even the well trusted Kiwi brand Comvita would do that? Me shudders ...

Anyway, didn't expected a really earnings this year anyway - and still wondering whether NZ$1b is really an appropriate market cap for a company with NZ$140m turnover and no real earnings.

Never mind.

look at Xero...7.5b company..with 256m revenue and loss 28m...

[BlackPeter]

look at Xero...7.5b company..with 256m revenue and loss 28m...

True. Looks like we need to think bigger. The bigger the loss the better the investment opportunity. Unfortunately I am sort of old fashioned. Just can't get my head around these new ideas ...

[SilverBack]

True. Looks like we need to think bigger. The bigger the loss the better the investment opportunity. Unfortunately I am sort of old fashioned. Just can't get my head around these new ideas ...

Hi BP, I doubt if you are any older than me but what about believing the figures shown by PPH over the past few years? Even when we are in wheelchairs we can still track listed companies using the fantastic tool called the world wide web and excite our brains over new opportunties.
What's new about using shareholder funds to invest in a growing market? PPH is valued much lower than XRO on most (if not all) measures and in actual fact, I do not use XRO as a reference but place that in a different class of over-excitement while PPH has achieved positive NPAT so much earlier than XRO. However, what about PLX? It is valued as much or more but its revenue is no where near as high or as widespread (and hence not so resilient, even with McDonalds involved).
If you want a low growth, high dividend yield but "safe" investment then can I suggest the electricity generator/retailers? The only thing ramping up their share prices at present is the cut in the OCR by the RBNZ. Notwithstanding, PPH will also gain value from the decline in the exchange rate that we can now expect, because most of its revenues are gained from overseas.
PPH grew its revenue at 40% last year and is predicting 26% for the forthcoming year. Their operating margin increased last year from 55 to 60% and is expected to grow to 63%+ this coming year. I am not too concerned about debating whether tax credits are in or out of the profit declaration but would rather look at the expected growth and whether the company is controlling its expenditure in achieving that growth. Fact is that this company has not only grown its revenue in a dramatic fashion but it is now either NPAT positive or close to it, depending on whether you are prepared to accept the audited financial results or not.
Of course, this is not a company to make the most significant one in your portfolio. It is still a speculative company but is becoming less so as time goes on. However, it is one that shows real kiwi entrepeneurial success on an international market. For it to succeed in the US market, as it is doing, is a real success story.
To date, I have gained 106% on my investment, first made in 2016. I am happy to retain my level of investment since the stock continues to maintain its momentum and the company that I first invested in is a more secure company now. Even the latest announcement of management and Board changes is positive because it shows a Board and main shareholders that think about the future in a realistic manner and are prepared to adapt as the company and its market prospects grow.
PPH has seriously considered establishing a US listing in the recent past but has turned away from that to pursue its future as funded by NZ and AUS investors. Proud as I am as a kiwi, I think it is very likely that PPH will either be bought out by a larger US company or will itself migrate to become a US company. We have seen that happen in the past with successful tech companies with overseas customers that need to keep growing to increase their customer base.

Please keep questioning the results. Those of use who are invested need other opinions to make sure that our spectacles have not become rose tinted.

[nztx]

They obviously believe that there is sufficient 'chance' of using the US$60 million in Losses, Deferred RD etc in the future to now recognise that the Tax Losses have a future value.

With 2019 Year producing a Loss before Tax of US $1.4 million, then future periods would have to reflect even higher profit than 2019 to offset any Losses, but that could take quite a while

[iceman]

Hi BP, I doubt if you are any older than me but what about believing the figures shown by PPH over the past few years? Even when we are in wheelchairs we can still track listed companies using the fantastic tool called the world wide web and excite our brains over new opportunties.
What's new about using shareholder funds to invest in a growing market? PPH is valued much lower than XRO on most (if not all) measures and in actual fact, I do not use XRO as a reference but place that in a different class of over-excitement while PPH has achieved positive NPAT so much earlier than XRO. However, what about PLX? It is valued as much or more but its revenue is no where near as high or as widespread (and hence not so resilient, even with McDonalds involved).
If you want a low growth, high dividend yield but "safe" investment then can I suggest the electricity generator/retailers? The only thing ramping up their share prices at present is the cut in the OCR by the RBNZ. Notwithstanding, PPH will also gain value from the decline in the exchange rate that we can now expect, because most of its revenues are gained from overseas.
PPH grew its revenue at 40% last year and is predicting 26% for the forthcoming year. Their operating margin increased last year from 55 to 60% and is expected to grow to 63%+ this coming year. I am not too concerned about debating whether tax credits are in or out of the profit declaration but would rather look at the expected growth and whether the company is controlling its expenditure in achieving that growth. Fact is that this company has not only grown its revenue in a dramatic fashion but it is now either NPAT positive or close to it, depending on whether you are prepared to accept the audited financial results or not.
Of course, this is not a company to make the most significant one in your portfolio. It is still a speculative company but is becoming less so as time goes on. However, it is one that shows real kiwi entrepeneurial success on an international market. For it to succeed in the US market, as it is doing, is a real success story.
To date, I have gained 106% on my investment, first made in 2016. I am happy to retain my level of investment since the stock continues to maintain its momentum and the company that I first invested in is a more secure company now. Even the latest announcement of management and Board changes is positive because it shows a Board and main shareholders that think about the future in a realistic manner and are prepared to adapt as the company and its market prospects grow.
PPH has seriously considered establishing a US listing in the recent past but has turned away from that to pursue its future as funded by NZ and AUS investors. Proud as I am as a kiwi, I think it is very likely that PPH will either be bought out by a larger US company or will itself migrate to become a US company. We have seen that happen in the past with successful tech companies with overseas customers that need to keep growing to increase their customer base.

Please keep questioning the results. Those of use who are invested need other opinions to make sure that our spectacles have not become rose tinted.

SilverBack, this post is pretty much the same as some of the posts in the early days of ATM Many of us were buying in at 20-50 c and having our decisions questioned because the company was burning cash and living on dreams. I am not saying PPH will be another ATM (not currently holding PPH) but the debates are very similar

[SilverBack]

SilverBack, this post is pretty much the same as some of the posts in the early days of ATM Many of us were buying in at 20-50 c and having our decisions questioned because the company was burning cash and living on dreams. I am not saying PPH will be another ATM (not currently holding PPH) but the debates are very similar

The debate may sound similar at a surface level but ATM nearly went bust before it went stellar and there is no indication of that with PPH. ATM had to fight the viscious propaganda from Fonterra and PPH has not had to deal with anything like that. PPH is well past the stage of burning cash and living on dreams. For that, you should look at 9 Spokes (9SP.ASX).
PPH is a "tech" stock, which has never applied to ATM. PPH has established itself in a niche market in the USA while ATM's success has been in China in the presence of Chinese distrust of local providers of baby formulas. PPH has met an unfilled aspect of American church "business" and this is not comparable to the ATM experience in China.
The only parallel is as a high growth stock. There are many of these outside of NZ in today's world, especialy in the USA, and so I would look to these with a filter on tech stocks rather than ATM in particular.
I think XRO is a better comparison but PPH has moved to a net profit position much more quickly than XRO even though it is a smaller company.

[BlackPeter]

I guess every share price consists out of a combination of "fundamental value" (i.e. saleable assets + earnings capacity) and market hype.

If the earnings capacity is based on a lot of future growth, market hype typically increases.

I am not questioning that PPH can become profitable (I don't see a future potential taxgain as profit yet), but I don't see the huge future growth rates to justify its current share price.

But absolutely - I might be wrong. Maybe PPH offers something so special that they become the worldwide preferred incasso enterprise for all faith based institutions. In this case they might have the growth rates they need to earn their share price. Maybe though they are in a handful of years just on the rubbish heap of once fledgling payment providers and somebody else took over their market segment.

The odds are against them, but maybe I am just lacking faith ;