PPH - PushPay (Church/donor software.)

[RupertBear]

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

Always read your comments Mr Beagle, they have helped me a lot and they helped me decide to get into this company. So thank you for taking the time to share your thoughts with us.

[King1212]

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.

What about donation collected on funerals. One can register their families death over Pushpay then people that come will use thier app...no more cash giving.....

[gbogo]

... 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.

agreed. FNZC, for example, does not cover it yet and I think it would make a big difference if they did, just as you suggest. I understand that now it is in the NZX50, they may indeed start some analysis in 2018.

separately, I subscribe to the broadly-accepted idea that passive funds are a better way to invest due to lower fees and the inability of active managers (except for you and I, of course!) to sustain out-performance, especially for markets that I cannot keep a close eye on. but the kind of price action around PPH in the last week, makes a mockery of passive performance, doesn't it? we saw them coming and bought up ahead of their forced buying, thus reducing their return (though of course they will look fine against their benchmarks) and increasing active managers' returns.

but even if I'm right on this, let's not make too much of it, or we may kill the golden goose.. is it just NZ with a relatively thin market where this is exacerbated? or are there similar opportunities globally?

[Beagle]

Good question and probably worthy of some investigation. It seems to me that this is not an isolated incident by any means and is indeed a free lunch for astute investors obtaining a first mover advantage over passive funds. I saw the same thing when CVT was included into the NZX50 and that went from ~ $10 to ~ $12 approx. a 20% gain as well. Sigh..if only investing was always this easy

I guess the passive funds do okay for the fact that the inclusion draws the extra interest we've discussed. I'd like to think in more liquid markets the effects weren't quite as pronounced but perhaps that's wishful thinking ? Agree 100% about not jawboning on this issue for too long...better to let some things stay under the radar as much as possible. Price action today will be interesting. Will we see some retracement on the gain so that canny investors who sold some on Friday can replenish their holding at a cheaper price ?

[iceman]

Interesting depth for PPH now pre open with highest bid at $ 3.88 and lowest sell at $ 4.85 with only a few shares. No doubt this gap will close up when market opens

[winner69]

Market cap now about US$800m

Better say that’s still awfully cheap or else will be shot down in flames

Chart looks pretty good though

Come next announcement early Jan and we be looking at $5 I reckon ...the market is @ funny thing.

[minimoke]

Interesting depth for PPH now pre open with highest bid at $ 3.88 and lowest sell at $ 4.85 with only a few shares. No doubt this gap will close up when market opens

Didnt take long - both now at 4.14

[winner69]

Hey Mr Beagle ...as a matter of interest is your personal trainer and your ‘little birdie’ the one and the same?

They tend to under guess the value of Push ...wonder their latest gues / valuation is?

[minimoke]

n ...the market is @ funny thing.

I'm loath to say it - but I think the Mr Market still likes technology. Having not quite got over the dot.com opportunities and now all the hype around crypts I think there is an appetite to be seen holding tech stocks - especially a unicorn

[winner69]

Do you mean like this ~170k 2016 Audi RS6 with an oddly recognisable plate I spotted a few days ago? a fairly excessive company car or xmas just came early for someone. There is one on trademe for about 200k if anyone is looking to treat themselves hahaha.

Attachment 8526

Hope he’s traded up to a more expensive model