# IOU - IOUpay Limited



## System (25 September 2014)

On September 25th, 2014, OMI Holdings Limited (OMI) changed its name and ASX code to iSentric Limited (ICU).



> *Donaco International to spin out mobile payments and banking technology business*
> Wednesday, February 26, 2014 by Proactive Investors
> 
> Donaco International (ASX: DNA) should trade higher after revealing plans to spin off its mobile technology business, iSentric, into a new company separately listed on the ASX.
> ...




More: http://www.proactiveinvestors.com.a...ts-and-banking-technology-business-53184.html

Previous discussion of OMI Holdings can be found in the OMI thread: https://www.aussiestockforums.com/forums/showthread.php?t=300


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## galumay (28 April 2015)

ICU came to my attention recently and after initially dismissing it as a basket case based on its historical financials, I then did some more research and realised its a new company and it was more interesting than I first thought.

They operate in SE Asia, 



> iSentric Limited, a mobility services company, provides mobile content distribution, mobile payment aggregation, mobile banking, and bespoke corporate mobility solutions. It operates through three divisions: Digital Payments, Enterprise Mobility, and Digital Content and Services.




While they are a tiny company, they do look to have fantastic growth and with no debt, cash in hand and a niche market they may just be onto something.

Its definitely a speculative play and my position size reflects that, but if they can deliver anywhere near their expectations in the next 12 months they will be basically trading with an equity valuation that is only 6-8 times earnings.


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## Klogg (28 April 2015)

galumay said:


> ICU came to my attention recently and after initially dismissing it as a basket case based on its historical financials, I then did some more research and realised its a new company and it was more interesting than I first thought.
> 
> They operate in SE Asia,
> 
> ...




If you exclude the costs incurred as a result of Indonesian growth within the core iSentric business, the company trades at about 5-6 times earnings (assumes the 2.2m NPAT given for Arte Mobile is correct); and this does not take into account the ~$3m in net cash ($20m market cap currently).

Also worth noting the participation of insiders when it was spun-off from DNA and the subsequent capital raising.

Seems like a typical spin-off mispricing to me - I may be wrong though.


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## galumay (28 April 2015)

Klogg said:


> If you exclude the costs incurred as a result of Indonesian growth within the core iSentric business, the company trades at about 5-6 times earnings (assumes the 2.2m NPAT given for Arte Mobile is correct); and this does not take into account the ~$3m in net cash ($20m market cap currently).
> 
> Also worth noting the participation of insiders when it was spun-off from DNA and the subsequent capital raising.
> 
> Seems like a typical spin-off mispricing to me - I may be wrong though.




Thats similar to my calculations, I looked at a range of NPAT to try to understand worst/best case scenarios. I did subtract the cash to get EV. 

I failed to mention the skin in the game of management - something I like to see. 

Will be interesting to see its next financial statement, it should start to become clear whether it is a mis-pricing as we suspect, or just fluff and air!


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## Klogg (28 April 2015)

Should get a quarterly statement at the end of this month. Might give a hint as to how the acquisition is progressing.


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## galumay (29 April 2015)

Klogg said:


> Should get a quarterly statement at the end of this month. Might give a hint as to how the acquisition is progressing.




Hard to really assess based on the statement, its not enough time to see the impacts. The accompanying notice to investors mentions Arte Mobile contributed 18% to revenue in the period, and that EBITDA was up to nearly $1/2m for the quarter. 

Seems they have burnt through about half the cash reserves but that appears to be directly attibutable to the acquisition and wasnt apparent from the previous statements.

Just picked up too, there has been a payment for services via a share issue @25c, without having a chance to digest it in full, if a service provider is willing to take shares @25c when they are trading at 15c then that appears to be largely good for shareholders. 

Nothing to scare the horses, full half yearly results will be the ones to check progress.


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## jbocker (30 April 2015)

This reminds me a little of Smart Trans (SMA) doing something more specific with the big telcos and some game developers in China. Been doing it for a while and yet to take off albeit has shown a bit of promise lately.

Without ploughing through the prospectus I couldn't see how ICU intend to make money and what there target markets are. I will be patient and watch but will hold off on investing on this one for now. It may have a long way to go.


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## Klogg (30 April 2015)

jbocker said:


> Without ploughing through the prospectus I couldn't see how ICU intend to make money and what there target markets are.




Having gone through all the documentation myself, I can say that the prospectus and subsequent CR documentation is really where a lot of the key information resides. Without it, you won't be able to get a full picture.


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## galumay (30 April 2015)

jbocker said:


> I couldn't see how ICU intend to make money and what there target markets are.




As Klogg says, also I thought the same when I first started researching it, i thought it was an absolute basket case/train wreck - typically of these spin off/reverse listing setups its easy to get distracted by the financial history of the company, which typically has nothing to do with the spin off.

It was only because the person who raised my interest into looking deeper into the company is a respected fund manager that I went back and dug deeper.

All that said its a highly speculative punt and I have not allocated much capital to it on that basis, i have seen plenty of these promise lots, burn through cash at a prodigious rate and then disappear in a puff of blue smoke!


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## galumay (24 March 2017)

The story is starting to play out with ICU, I suspect that if they can get a bit of stability in their earnings and cashflow over a few quarters then there will be a significant re-rating. 

I have had a parcel in my SMSF for a while and took a small position in it as a trade in my personal portfolio. Its only the second time I have tried to make a short term trade as opposed as investing - and both took several months to get to a price where I could exit with a small profit!! I have learn my lesson and will leave trading to those better suited to it!

I will probably just hold on to both parcels as I actually see them transitioning into an investible business.


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## Padowan (5 August 2020)

galumay said:


> The story is starting to play out with ICU, I suspect that if they can get a bit of stability in their earnings and cashflow over a few quarters then there will be a significant re-rating.
> 
> I have had a parcel in my SMSF for a while and took a small position in it as a trade in my personal portfolio. Its only the second time I have tried to make a short term trade as opposed as investing - and both took several months to get to a price where I could exit with a small profit!! I have learn my lesson and will leave trading to those better suited to it!
> 
> I will probably just hold on to both parcels as I actually see them transitioning into an investible business.



 Current chart starting to look interesting


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## Padowan (19 August 2020)

Bit more volume yesterday, but less than on previous upward legs, I entered long at 0.033


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## Dona Ferentes (19 August 2020)

galumay said:


> ICU came to my attention recently and after initially dismissing it as a basket case based on its historical financials, I then did some more research and realised its a new company and it was more interesting than I first thought.
> 
> They operate in SE Asia,..
> While they are a tiny company, they do look to have fantastic growth and with no debt, cash in hand and a niche market they may just be onto something.
> .



long time between drinks.

Are they still doing the same thing?


5 year chart:


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## galumay (19 August 2020)

Yes, nothing! I finally sold today at a significant loss. Maybe one day the business comes good, but I have better quality companies I would rather have the remaining capital invested in.


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## Padowan (19 August 2020)

don't expect to be a long term holder


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## galumay (19 August 2020)

Padowan, if you can manage the illiquidity, it looks like something that could definitely be traded - it jumps all over the place with big daily moves. 

My buy price was just so far out of reach, so no point continuing to hold when I found a new home for the capital. I should have exited as soon as it was obvious that the business had lost direction, a lesson learnt!


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## Padowan (31 August 2020)

ICU continues to
 stumble upwards having gained over 100% in late August. I continue to hold.


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## Padowan (16 September 2020)

That's it for me now in ICU, sell triggered and exit taken, I will keep watching with interest and see how my alerts continue to perform in these small cap stocks such as ICU


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## Padowan (16 September 2020)

AAaaggghhhh!!, the frustration


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## Padowan (25 September 2020)

Where to from here,? hopefully not crash and burn before the month is out


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## galumay (25 September 2020)

LOL! I kept a parcel that I held in my personal portfolio, wishing I had kept the ones in my SMSF a bit longer!! 

I can't believe they are finally worth more than I paid for them. Patience really is an investors greatest virtue.


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## galumay (30 September 2020)

Sold my other parcel in the personal portfolio yesterday, 13.5c which represents a 30% profit - took 4 years though! 
It appears to be morphing into a BNPL Shitco so I lost any vestige of interest I had in the business.


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## System (5 October 2020)

On October 5th, 2020, iSentric Limited (ICU) changed its name and ASX code to IOUpay Limited (IOU).


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## Dona Ferentes (5 October 2020)

galumay said:


> It appears to be morphing into a *BNPL* Shitco so I lost any vestige of interest I had in the business.



In name and deed.


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## greggles (19 October 2020)

Running hard and fast today. 150 million odd shares traded and a 40% share price gain. Currently trading at 21c, up from Friday's close of 15c.

70,130,035 shares were issued on 2 October for 15.8c. A lot of those are probably being dumped into the market today, but there appears to be plenty of eager buyers out there snapping them up.

Isn't this just another BNPL stock? Why the excitement today? Am I missing something?


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## michael325 (1 December 2020)

partnership announcement is due anytime before Christmas . I think the SP is gonna boom !


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## michael325 (31 December 2020)

Merchant & consumer apps, Indonesia expansion, and partnership tie ups still to come.  2021 IOU is looking good.


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## Dark1975 (12 February 2021)

bought IOU 3days ago paying off today, this small fintech  , on depth 45mill (buyers)vs 8 mill(sellers), looking good,


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## oilleak (12 February 2021)

Kicking Ass today on Market article re SE Asia BNPL .....

More to come with this one me thinks ?


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## greggles (15 February 2021)

Incredible run recently for IOU, but I'm starting to think it's now overheated. There has been some good announcements recently but I'm wondering whether its run up from 15c to around 60c is based on fundamentals or just excessively positive BNPL sector sentiment.

As they say, "A rising tide lifts all boats", but I can't shake the feeling that the BNPL sector generally has run too far and has now disconnected from fundamentals and is now being fuelled by hype.

Afterpay's HY21 Results on 25 February will be interesting.


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## Austwide (15 February 2021)

5 mins later and its at 80 cents
Tons of hype on facebook etc.

As you say @greggles the APT results if not good may reset the sector.


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## Dark1975 (15 February 2021)

Yes a lot of movement, but I traded this 3 times this morning, before the trading halt,
Very volatile, but with market depth and momentum of 5min time frames , you can make very decent money , e.g the attachment


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## galumay (15 February 2021)

Be careful people, a lot of pumping of this on social media over the last few days.


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## barney (15 February 2021)

galumay said:


> Be careful people, a lot of pumping of this on social media over the last few days.




Yeah was about to throw some caution into the mix as well G.

Always happy to see other punters have a win @Dark1975 so well done for that.   Not directed at you, but just a general caution for anyone chasing "Runners"

If the substance behind why they are running is unclear, just be careful you don't get caught in a Trading Halt/Trading Suspension when you least expect it, and get left holding a very expensive baby!

I got caught very early in my "punting/trading" exploits and lost a very (very) large 5 figure sum when my "runner" came out of Trading Suspension 50-60% down, followed by another 50-60% down the day after.  

The moral of the story:  Chasing fast movers is fine, just don't put it all on Black cause it can easily turn to Red


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## Sean K (15 February 2021)

Looks pretty crazy doesn't it. Wouldn't want to be left without a chair. How much is the BNPL deal worth?


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## Dark1975 (15 February 2021)

barney said:


> Yeah was about to throw some caution into the mix as well G.
> 
> Always happy to see other punters have a win @Dark1975 so well done for that.   Not directed at you, but just a general caution for anyone chasing "Runners"
> 
> ...



You refer me in this reply as a "punter" lol, 
I've been day trading for 20years , 
I agree I don't want to ramp this thread, or give any financial advice,
This current stock looks very volatile indeed, and would not say to buy this stock,
Please note: I suggest this stock looked good on depth previous Friday? Which was before the run,
As of 20mins ago the depth and momentum has changed dramatically, I would tread lightly here, 
As for me I chopped it up two more times 😏
Pls DYOR , and please seek financial advice before purchasing spec stock.Gg


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## barney (15 February 2021)

Dark1975 said:


> You refer me in this reply as a "punter" lol,
> I've been day trading for 20years ,
> 
> Please note: I suggest this stock looked good on depth previous Friday? Which was before the run,
> As of 20mins ago the depth and momentum has changed dramatically, I would tread lightly here,





 Punter is a term of endearment in my world Dark. Definitely not trying to undermine your experience.

To the contrary, I noted your assessment of this one on Friday with an appropriate "like"  so well done on the win.

Just trying to warn any "unsuspecting/new" Traders not to chase these types of moves with excessive money they can't afford to lose, just in case the black swan🐓 (red rooster in this case) pays a visit

Cheers M8.


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## greggles (16 February 2021)

Austwide said:


> 5 mins later and its at 80 cents
> Tons of hype on facebook etc.
> 
> As you say @greggles the APT results if not good may reset the sector.




Looks like IOU is planning to take advantage of its soaring share price to raise some capital. Trading halt announced this morning.



> The  purpose  of  the  trading  halt  is  to  allow  the  Company  time  to consider  capital  raising initiatives and opportunities.The Company anticipates that the trading halt will be lifted on or before the commencement of trade on 18February 2021, or when an announcement by the Company with respect to capital raising activities is made.




The cynic in me might question the timing of this announcement as being conveniently slotted in nine days before Afterpay's HY21 Financial Results are due to be announced. But hey, might as well take advantage of a soaring share price to minimise dilution. Who can blame them?

However, I certainly wouldn't be getting into IOU at or near current prices. I think the BNPL sector is in for a very interesting 2021.


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## greggles (18 February 2021)

IOU announces a $50 million placement to fund expansion. Details to come.


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## greggles (18 February 2021)

100,000,000 million shares are being issued at 50c, a 15.06% premium to the 15 day VWAP.

Fund raised will be used for:


> The Company will be applying the proceeds from the placement towards funding existing operations including digital payments and BNPL inventories, new BNPL product development, expansion of the Company’s Malaysian operations, expansion in South East Asia, administrative and other costs, consistent with application of funds and expenditures outlined in the Company’s previous announcements including the Operational Update announced on 15 December last year and the Quarterly Report and Business Activity Update announced on 31 January this year.




IOU says that there was strong demand for the placement, far exceeding the placement limit agreed by the Company.


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## barney (18 February 2021)

greggles said:


> IOU announces a $50 million placement to fund expansion. Details to come.




I guess you have to give Management credit.  6 months ago the Stock was trading at 5 cents and struggling.

The same Cap Raise back then would have grossed them $5 million.  They now have $50 million to play with


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## greggles (18 February 2021)

barney said:


> I guess you have to give Management credit.  6 months ago the Stock was trading at 5 cents and struggling.
> 
> The same Cap Raise back then would have grossed them $5 million.  They now have $50 million to play with




Agree barney. Very astute management to minimise dilution here. They knew to hang on and not raise capital too early, unlike many companies I could name.

I can't say what IOU's prospects are like, but management have done a bang up job with this capital raising. If, as I suspect, Afterpay's financial results that are due to be released on 25 February will fall short of expectations, then the whole BNPL sector will suffer and this capital raising will seem even more like a masterstroke than it does today.


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## Dark1975 (17 March 2021)

Consolidating nicely
pls note : i do hold these shares , Pls Dyor


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## TechnoCap (3 May 2021)

Dark1975 said:


> Consolidating nicely
> pls note : i do hold these shares , Pls Dyor



thoughts after today @Dark1975 
looking pretty ordinary to say at best


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## Dark1975 (3 May 2021)

TechnoCap said:


> thoughts after today @Dark1975
> looking pretty ordinary to say at best



Agreed !
I sold my postion last week, Took a 7% Loss , Volume has disappeared / its trend lines had changed /ema, From a technical a series of lower highs,accending downwards. Fintech in general has cycled out, if the price drops below 30's it may entice me again, 
I do like this fintech for the future,
But @ the current timeframe i see lower prices in the short term.


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## Padowan (31 August 2021)

Hoping the trend over the last month continues through September


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## Padowan (7 September 2021)

OK, The company is in a trading halt pending an acquisition

I'm not holding my breadth for the September monthly competition as a result


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## frugal.rock (12 January 2022)

No news, volume on the creep up. Caution required, but there may be a general reversal going on amongst (some?) BNPL stocks.
Too easy to tell, but probably a watch this space scenario.


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## frugal.rock (14 January 2022)

frugal.rock said:


> Caution required, but there may be a general reversal going on amongst (some?) BNPL stocks.



I would like to retract that statement. I think there is insufficient data to support that theory... my apologies.
Was based off OPY having a pop, OEC consolidating and IOU doing something... at least the subject stock is behaving...? 😬
FWIW
OEC has a similar chart without the run up showing over the last few days on IOU chart.
For transparency, I don't hold any of 'em....😔


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## TechnoCap (10 May 2022)

frugal.rock said:


> I would like to retract that statement. I think there is insufficient data to support that theory... my apologies.
> Was based off OPY having a pop, OEC consolidating and IOU doing something... at least the subject stock is behaving...? 😬
> FWIW
> OEC has a similar chart without the run up showing over the last few days on IOU chart.
> ...



Had a nibble at 9c so let’s see how quickly it reaches the moon or my stop loss


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## greggles (5 July 2022)

IOU in a trading halt pending a further announcement. The share price has run up from around 4c last Friday to a high of 11c today. Very clearly something has been leaked to the market. Volume started kick up a little last Thursday but there was still plenty of supply so the price didn't move that much. By yesterday whatever had leaked must have spread further as both volume and share price fired up.

IOU is a BNPL stock, so sentiment is working against it, but given the price action today and yesterday the forthcoming announcement would appear to be positive rather than negative news.


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## greggles (6 July 2022)

IOU up another 25% today. I'm not sure that I find the below explanation particularly convincing, but that is just my gut telling me that there is something else driving this unexpected rally.



> No, the Company is not aware of any explanation for the increased securities price. However, it is the view of the Board that shareholders may be price-factoring in the recent ASX announcement from the Company dated 1 July 2022 where the appointment of the new Independent Non-Executive Chairman was announced.
> 
> This announcement, further to other recent market announcements, is likely to have been recognised by shareholders as being value accretive to IOUpay Limited Shareholders, leading to the trading activity.


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## Dona Ferentes (6 July 2022)

and a bit of _short covering_, perhaps


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## Austwide (6 July 2022)

I notice ZIP and FFG have both risen 15% or so in the last week, Is the BNPL sector making a comeback?


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## galumay (6 July 2022)

I think its largely due to passive flows thanks to the utter stupidity of BNPL being now included in the tech index. Should be a short lived rally before sanity prevails.


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## Dona Ferentes (6 July 2022)

Austwide said:


> I notice ZIP and FFG have both risen 15% or so in the last week, Is the BNPL sector making a comeback?



And SZL up 34%, SPT up 21%, OPY up 18%. Even SQ2 closing in on $100



galumay said:


> I think its largely due to passive flows thanks to the utter stupidity of BNPL being now included in the tech index. Should be a short lived rally before sanity prevails.



!00%


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