# SZL - Sezzle Inc.



## System (28 June 2019)

Sezzle is a technology-driven payments company based in the United States with the mission of financially empowering the next generation.

Sezzle provides a payments platform that facilitates fast, secure and easy payments between End-customers and retailers. Sezzle's payment product is a short-term, interest-free instalment plan that delivers to End-customers both a budgeting and financing value proposition.

It is anticipated that SZL will list on the ASX during July 2019.

https://sezzle.com


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## Knobby22 (28 June 2019)

I read it is a clone of Afterpay and looking at how it works it appears extremely similar.

Initial funding was US. Why is it listing in Australia? Traders with them look a bit second tier at present.
Name is a bit weak and it's always harder to be no.2.
https://www.afr.com/technology/tech...s-rival-sezzle-to-list-on-asx-20190402-p51a0q

Anyone know much about the founders?


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## bigdog (31 July 2019)

Great start on ASX the stock closed 80 per cent above its $1.22 IPO price

ASX announcement July 30
30/07/2019 8:51:49 AM Sezzle lists on the ASX - Operational Update


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## Dona Ferentes (4 January 2020)

A spokesman from California’s Department of Business Oversight told _AFR Weekend_ that although its decision to deny Sezzle a licence to issue loans in the state did not expose the company to fines or penalties, it reserved its rights to pursue the company via other avenues.

“The Department of Business Oversight is not precluded from doing so in additional actions, such as a desist and refrain order or a civil action for ancillary relief,” the spokesman said.

_- and if it is a clone of Afterpay, I'd suspect the nimble upstarts are in for a tough time._


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## Knobby22 (4 January 2020)

What is also interesting is the way this company rips off the consumer. 

Unlike Afterpay which it says it is cloning, the company has massive charges and it's model seems to be to make money that way.

A truly cynical company riding on the coat tails of an innovator. It does not surprise that it's behaviour is morally suspect in more ways than one.


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## verce (4 January 2020)

I would wait and see what the company says on Monday. Until then, based on the recent AFR article we know that:

♦ *No fines*
♦ *No penalties*
♦* 15 days to appeal decision*

And the company is still operating in Canada and the wider United States with its existing Afterpay style offering. It’s a bit of a storm in a teacup honestly.

https://themarketherald.com.au/sezzle-asxszl-faces-u-s-hurdle-with-rejected-lending-licence-2020-01/

*However, the rejection of the lending licence does not stop Sezzle from operating in California. Rather, it stops the company from smoothing out operations by cutting out a middle-man.*

Currently, the company explained, merchants will initiate sales contracts then assign those contracts to Sezzle in order for the company to service the payment processing. Under this model, Sezzle acts as a sales finance company and does not make loans.

Sezzle said in an announcement to the ASX today *its goal is to remove these merchants from the financing process.*


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## frugal.rock (4 January 2020)

A timely reminder that the IPO was for $1.22 (thanks Bigdog) and less than 6 months ago. 
Might be a suitable retrace available after the dust settles... and after the knife catchers are all bloody and cursing
F.Rock


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## Knobby22 (4 January 2020)

Yes, reading their latest announcement they argue they are not a lender and so have not broken the law.
I would want to see how this plays out.
There may be a large fine.


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## Miner (5 January 2020)

https://www.asx.com.au/asxpdf/20200103/pdf/44d15bjsxkpswc.pdf
I can smell rotten eggs here


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## verce (5 January 2020)

Knobby22 said:


> Yes, reading their latest announcement they argue they are not a lender and so have not broken the law.
> I would want to see how this plays out.
> There may be a large fine.




https://themarketherald.com.au/sezzle-asxszl-faces-u-s-hurdle-with-rejected-lending-licence-2020-01/

*"The rejection of the lending licence does not stop Sezzle from operating in California. Rather, it stops the company from smoothing out operations by cutting out a middle-man."*

According to the AFR weekend article:

*♦ No fines
♦ No penalties
♦ 15 days to appeal decision*


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## Knobby22 (5 January 2020)

I read that article from the AFR yesterday.
Four paragraphs of interest:

A spokesman from ....that although it's decision to deny Sezzle a licence to issue loans in the state did not expose the company to fines or penalties, it reserved it's rights to pursue the company via other avenues.

The Department of Business Oversight is not precluded from doing so in additional actions, such as a resist and refrain order or a civil action for ancillary relief, the spokesman said. 

(My comment  civil action means court action, the USA loves this type of action, highest concentration of lawyers per head of population in the world.)

If a consumer uses Sezzle to finance a $35 purchase and was charged all fees provided under the user agreement, the consumer would have paid an equivalent annual percentage interest rate of 600%.

The regulator said Sezzle had been engaged in illegal unlicensed lending after it denied the company a licence which rival Afterpay had secured only seven weeks earlier, describing credit sales made by Sezzle's partners as "not bona fide".


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## verce (5 January 2020)

· *Expanded receivables financing facility* was just announced in December 2019 of USD 100 million – up from prior USD 30 million. This would suggest very strong prospects for growth and sales/new merchant volume.

· * Strong Black Friday/Cyber Monday sales* - 36,000 new customers and Underlying Merchant sales of USD 11.3 million achieved over 4 days.

· *Denied license in California - but this is subject to appeal* within 15 days - and it has been revealed in the weekend news that this ruling comes with no penalties and no fees.

· Sezzle’s position is that it does not operate as a lender but under a different financing model as does its competitors. *Sezzle says that it will work with the California Department of Business to find a path to resolution* and correct any issues.

· *Quarterly update coming this month*, January 2020.

· * The share price has already fallen* minus 20.81% and minus 15.71% over two days in a row, probably due to a combination of panic, low shares on issue and cascading stop losses.

· * You get all the new business developments and extra traction for only $1.40* right now. Just one week ago it was sitting comfortably at $2.10


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## Miner (6 January 2020)

Knobby22 said:


> I read that article from the AFR yesterday.
> Four paragraphs of interest:
> 
> A spokesman from ....that although it's decision to deny Sezzle a licence to issue loans in the state did not expose the company to fines or penalties, it reserved it's rights to pursue the company via other avenues.
> ...



Personally, until the smoke is clear, I would not be too tempted to try this one. It is a high risk and gain now to invest on Sezzle. I am not that brave to sizzle my fingers and wallet


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## verce (6 January 2020)

Possible gap up on the open due to bargain hunters? Cooler heads prevail?


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## frugal.rock (6 January 2020)

verce said:


> Possible gap up on the open due to bargain hunters? Cooler heads prevail?



I considered this an unlikely scenario today... however tomorrow this may happen, or not!.... managed to watch it a bit earlier on today out of interest only.
Was greatly interested after seeing the 4 largish candles down around 11am, followed by a double bottom, was satisfied enough that the bottom was in around 1.18.
I bought in at 1.24 and again at 1.285.
Missed the close at 1.36 but am satisfied a possible decent retrace is underway... eeeks!
Was going to dump just before close but resisted the urge, have to wait until tomorrow to see if that was the right decision.
F.Rock


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## barney (6 January 2020)

frugal.rock said:


> was satisfied enough that the bottom was in around 1.18. I bought in at 1.24 and again at 1.285.



Good entries if it does reverse FR. Good luck with it.


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## bonox (7 January 2020)

bought in yesterday at 1.27 having fat fingers on the buy button and missing at 1.2, but a sale at 1.72 has made up for that. Now, where to spend the proceeds. Good luck all.


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## barney (7 January 2020)

frugal.rock said:


> was satisfied enough that the bottom was in around 1.18.  I bought in at 1.24 and again at 1.285.
> *Was going to dump just before close but resisted the urge*, have to wait until tomorrow to see if that was the right decision.F.Rock




There is a lesson for all of us …. Trade your analysis not your urges

I remember a smart trader once told me … never trade on "impulse"(personally still get that wrong a bit) 

You assessed the low was in and acted, then resisted the impulse to sell ….

Who said you can't pick bottoms!   Nicely done FR

ps What level are you considering taking some profit off the table?


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## frugal.rock (7 January 2020)

It's all off.
Shaking fat fingers cost me at least $1000...
But the good news is, $3360 total profit!
That was yesterday's double dip, then sold today, dipped in again... sold again. $680 profit from today's re-dip but that's included in the the total above.
I'm out, however, if they are successful with the Calli licence, the SP will do silly things on open again.
Cheers, F.Rock


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## fergee (7 January 2020)

frugal.rock said:


> I considered this an unlikely scenario today... however tomorrow this may happen, or not!.... managed to watch it a bit earlier on today out of interest only.
> Was greatly interested after seeing the 4 largish candles down around 11am, followed by a double bottom, was satisfied enough that the bottom was in around 1.18.
> I bought in at 1.24 and again at 1.285.
> Missed the close at 1.36 but am satisfied a possible decent retrace is underway... eeeks!
> ...



Great call @frugal.rock big pop this morning, well done that took watermelons man.


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## fergee (7 January 2020)

frugal.rock said:


> It's all off.
> Shaking fat fingers cost me at least $1000...
> But the good news is, $3360 total profit!
> That was yesterday's double dip, then sold today, dipped in again... sold again. $680 profit from today's re-dip but that's included in the the total above.
> ...



3k in a day aint nothing to be sneezed at! 
Go treat yourself lunch mate you deserve it


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## bonox (7 January 2020)

close 20c over what i let them go for. Oh well - that's the nature of risk management


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## frugal.rock (7 January 2020)

bonox said:


> close 20c over what i let them go for. Oh well - that's the nature of risk management



Haha, that's the way it goes. I had it pegged to get to 1.80 but that retrace is phenomenal. 
I was eyeing off another dip in at 1.74 after the above posts, but have no regrets not doing it. Support seemed flimsy and I had other things to do. Hoping to do some BNPL industry research with a few case studies when time permits. 
Thanks to Verce for the information bits. Cheers.
F.Rock


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## barney (7 January 2020)

frugal.rock said:


> Shaking fat fingers cost me at least $1000...
> But the good news is, $3360 total profit!




Compare that to the result if you had left it all sitting on Z1P

Good trade … Your shout


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## Knobby22 (7 January 2020)

Yes great timing when oversold.


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## frugal.rock (7 January 2020)

barney said:


> Compare that to the result if you had left it all sitting on Z1P
> 
> Good trade … Your shout



I'LL BLOODY SHOUT YOU ANYDAY BARNEY!

And for the record, I only dumped 1/3 of zip to cover this opportunity... (however I still concede a retrace to 3.20 is possible...)


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## barney (7 January 2020)

frugal.rock said:


> I'LL BLOODY SHOUT YOU ANYDAY BARNEY!




SAY AGAIN, I'M A BIT DEAF!

Since you're offering though … I'll have a Carlton dry, a bourbon and coke … and a partridge in a pear tree (no ice on the partridge thanks)


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## bigdog (17 January 2020)

ASX Ann today
17/01/2020 8:24:09 AM  *Sezzle Receives California Lending License* (uploaded)

Good news for Sezzle and its shareholders, the DBO has had a change of heart. According to today’s release, it has now formally approved Sezzle’s application for a lending license in the State of California.

This will allow Sezzle to continue operating seamlessly in the state, which management believes will solidify its position as the leading US-based instalment payment platform.

Impressive start to the day!!











610


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## frugal.rock (17 January 2020)

It was a good feeling to be holding this morning. Nearly dumped yesterday afternoon.... not knowing when the announcement was expected or if to be good or not and the trend was getting washy.
Sold half at the high of today, and the rest at post auction. ~2k up on this one today. (Lovely when the high of the day is your sole order..."
Sezzle has sizzled my fingers with some fast hot money @qldfrog and paying some bills. Love it.
I have no idea where this stock is going from here though.... I'm out.
F.Rock


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## barney (18 January 2020)

frugal.rock said:


> Sold half at the high of today, and the rest at post auction. ~2k up on this one today. (Lovely when the high of the day is your sole order..."
> Sezzle has sizzled my fingers with some fast hot money




Some nice short term/day trading there FR ….. Not too many punters on ASF over the years who have day traded ASX Stocks that I can remember.  Who are you using for brokerage?


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## frugal.rock (18 January 2020)

Westpac currently.


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## scarlettsmith694 (12 May 2021)

Sezzle Inc has an interest-free, short-term instalment payment plan that provides budgeting and financing benefit to customers. szl asx offers a payments platform that promotes secure and fast payments between customers and retailers.


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## Ferret (30 December 2021)

A pick for 2022.

One of the most beaten up BNPL players.  Is the sector dead? Maybe not...


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## Miner (3 March 2022)

Is current scrip of SZL ex rights of the SPP for z1p ?


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## Miner (3 March 2022)

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02494057-2A1360364?access_token=83ff96335c2d45a094df02a206a39ff4


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## Knobby22 (11 March 2022)

They are saying they are cutting staff to  become profitable. Doesn't sound like they are going to get there.
They are second tier in this market to Afterpay and the BNPL market is second tier to Credit Cards. Not the place to be.


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## Dona Ferentes (12 July 2022)

SZL down 35%. Now 27c.

and that is after Zip paying Sezzle $16.3 million as part of the mutual termination to cover, among other things, Sezzle’s legal, accounting, and other costs associated with the transaction.

What chance another BNPL chancer taking it over after the ZIP buyout fell through?


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## waterbottle (12 July 2022)

Dona Ferentes said:


> SZL down 35%. Now 27c.
> 
> and that is after Zip paying Sezzle $16.3 million as part of the mutual termination to cover, among other things, Sezzle’s legal, accounting, and other costs associated with the transaction.
> 
> What chance another BNPL chancer taking it over after the ZIP buyout fell through?




Why would anyone take over? 

Consumer spending is crashing. The cost of finance. BNPL seems like a horrible business to be involved in right now...


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## Dona Ferentes (14 July 2022)

Broker RBC Capital Markets has stunned the market by slashing its valuation on buy now, pay later player Sezzle from $12 to 1¢ and discontinuing coverage.

“Underperformance has been driven by expected increases in funding costs, bad debts and general market reluctance to support cash-flow negative, growth businesses,” RBC said. “Our PT of *A$0.01/share* assumes SZL are unable to generate sufficient free cash in the near term before depletion of their cash runway. Further, our base case assumes SZL are unable to raise additional equity or be acquired.”

..._ Now normally we shouldn't attribute too much credibility to broker forecasts, but this one amused me. The price target may never be reached because they may shut up shop beforehand. The likelihood of another white knight is remote, in the current market._


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## galumay (14 July 2022)

If anyone ever takes any notice of broker forecasts again, then they deserve to lose every cent. From $12 to 1c. Why would you even publish it? Just exposes your incompetence.

Anyway, 





Your browser is not able to display this video.


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## Knobby22 (14 July 2022)

galumay said:


> If anyone ever takes any notice of broker forecasts again, then they deserve to lose every cent. From $12 to 1c. Why would you even publish it? Just exposes your incompetence.
> 
> Anyway,



Yes, stunning. to be fair they though they were merging with Zip, but still....looks terribly incompetent, maybe they were conflicted, involved in the deal?

The model is broken with rising inflation and much higher interest rates.


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## Austwide (14 July 2022)

$12 to 1c when was that written, currently around 20c


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## Dona Ferentes (27 July 2022)

What's SZL doing; up 90%


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## peter2 (27 July 2022)

Trading halted ~3pm.  Something's up.  *ZIP* is also up plenty along with the rest of this sector.


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