# HUM - Humm Group



## Trader Paul (18 January 2008)

Hi folks,

FXL ..... expecting a run up soon, as it is sitting on a 50%
retracement from the highs, about a year ago and we
are also expecting a positive cycle about mid-week to
lift FXL off its lows, making a v-bottom pattern ..... 

many thanks

  paul



=====


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## chilliaa (27 July 2008)

Trader Paul said:


> Hi folks,
> 
> FXL ..... expecting a run up soon, as it is sitting on a 50%
> retracement from the highs, about a year ago and we
> ...




really? dam but my maths must be pretty weak, doesnt look that way to me.
Thats the trouble with trading, looks good in theory, but in practice much harder.


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## michael_selway (27 July 2008)

chilliaa said:


> really? dam but my maths must be pretty weak, doesnt look that way to me.
> Thats the trouble with trading, looks good in theory, but in practice much harder.




Hm yeah, in hindsight things look different "technically" 

*Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 16.7 14.6 12.5 14.5 
DPS 5.5 8.5 6.0 6.2 *

Business Description 
FlexiGroup Limited (FXL) is a leading point of sale financier in Australia and New Zealand within the leasing and rental finance sector for computer equipment and office technology. FXLs distribution network has 11,000 third-party salespeople representing 4,400 retailers including Harvey Norman and Noel Leeming. 

thx

MS


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## the bard (11 November 2008)

Does anyone know if Flexigroup are paying a dividend in Nov, I have had a look around but are unable to find any info to clarify this ? Thanks.


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## ROE (11 November 2008)

I post some hard questions to their investor relation while doing my research on this stock sometimes ago and never got one answer back...that tell me avoid at all cost 
nice what scuttle butt can do and filler out all the baddies of the ASX


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## hecko (28 August 2009)

Well it took a little longer than initially expected but it has been making some good progress recently and seems to be consolidating atm so could be getting ready to make the next move up soon


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## RamonR (28 August 2009)

Would love to see it continue higher but div yield is fairly low now due to run it has had.
I would rather put new money into bank shares at this stage.


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## So_Cynical (13 January 2010)

25 cents to $1.80 in less than 12 months deserves a new chart...and its a boring financial.  perhaps FXL could channel from here until the inevitable dividend upgrade.

Hey do i see a wedge forming...what's that mean again?


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## Boggo (31 July 2012)

This just keeps on going.
I should really have a look at who they are and what they do, on second thoughts that would probably just jinx it 

(click to expand)


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## prawn_86 (31 July 2012)

From their website:


> FlexiGroup is a leading provider of vendor and retail point-of-sale finance and telecommunication services.




Seems to be the company behind a lot of credit offers "buy now no deposit" sort of things. Key partner is Harvey Norman


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## RamonR (2 August 2012)

Harvey Norman was definitely their key partner but have expanded.
They offer a interest free finance product through Ikea these days as well as through many smaller companies.

I have the shares and they have been a stellar perfomer as well as paying great dividends for years these days.
Recent moves have been as moving into Top 200 shares so index funds buying their allocations.


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## Boggo (14 September 2012)

FXL, it has been a (financial) pleasure being involved with you again, we will meet again soon I think but for now we must part ways until you work out whether you are an assett or a liability


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## MaZed (12 September 2013)

Anyone holding Flexirent shares? What are your thoughts on them currently? They seem to be quite solid... Feedback anyone?


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## VSntchr (12 September 2013)

MaZed said:


> Anyone holding Flexirent shares? What are your thoughts on them currently? They seem to be quite solid... Feedback anyone?




Not holding.

If your interested enough to post about them on the forum then perhaps a better way to inspire some discussion would be to start off by providing some of your own analysis!

I previously held shares in ThinkSmart (TSM) which had a similar business model - however that investment didn't turn out too well. Clearly FXL would have been the superior choice!


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## Ves (12 September 2013)

I don't like the business model and financial structure of FXL and the fact that it needs leverage (and other external funding - equity raising) to achieve satisfactory returns and fund growth. Looks like another financial intermediary type business like SIV. Could be dangerous if earnings risk appears and the financial structure is threatened - not good for holders. Probable? Maybe not at the moment.  Possibility is enough for me. Not on my watch list for that reason.  Has looked really good on the way up of course.


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## VSntchr (12 September 2013)

FWIW, interest got the better of me and I had a quick look.

Operating margins are excellent at 60% and have been steadily improving up from 54% a few years back.
Revenue growth is very consistent and heading in the right direction - but is it commensurate with the issuing of new shares and increasing debt every year?? Further investigation needed there...

If its dividends your after then that stream is growing nicely too, although perhaps with the level of debt the company holds, which (without looking into it) is a little alarming, they would be better reinvesting in the operations of the company...

With a company like Flexi you should be able to gain quite a good understanding of their simple business model. Understanding where their key relationships are and how they translate into cash shouldnt be too hard to find out.

Just some initial thoughts after a 5 minute scan that might give you some areas to research...


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## MaZed (12 September 2013)

Thanks. Where would I start to look? Sorry a novice with shares


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## McLovin (12 September 2013)

Ves said:


> I don't like the business model and financial structure of FXL and the fact that it needs leverage (and other external funding - equity raising) to achieve satisfactory returns and fund growth. Looks like another financial intermediary type business like SIV. Could be dangerous if earnings risk appears and the financial structure is threatened - not good for holders. Probable? Maybe not at the moment.  Possibility is enough for me. Not on my watch list for that reason.  Has looked really good on the way up of course.




The debt is non-recourse, isn't it? I'm not really sure how that would actually affect the company, ie if they can't make payment then whether or not it's recourse to the company may be a moot point because no one will lend to them after that. 

These guys are pretty much tied to the fortunes of HVN. I don't really like most of these micro lenders/lease companies.


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## Ves (12 September 2013)

McLovin said:


> The debt is non-recourse, isn't it? I'm not really sure how that would actually affect the company, ie if they can't make payment then whether or not it's recourse to the company may be a moot point because no one will lend to them after that.
> 
> These guys are pretty much tied to the fortunes of HVN. I don't really like most of these micro lenders/lease companies.



In my opinion it appears that the fate of their operations is in as much the lender's / financier's hands as it is their own.   I'm not fond of this in businesses.  If the lenders turns off the debt tap, as you said is a big risk, then how do they finance their operations going forward? Internal OCF doesn't look like it does much of the funding.  Note 34 in the financial statements seems to say that as much as the fair value of assets is at risk if they default on their payments.   They obviously need to match their own lending rates with the profitability of their customer financing.  There's a lot to juggle.   Simple business model,  but lots of variables.  Credit risk is something to keep a close eye on.  Bad debts can really add up quickly in a down turn.  Government legislation may or may not come into play at some point.  Probably not the same extent as something like CCV.


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## Ves (18 July 2014)

McLovin said:


> These guys are pretty much tied to the fortunes of HVN.



I was looking at this company again recently,  as I was probably fairly quick to judge it initially myself last year (refer post above).

Not sure where my interest lies yet, if at all,  but it looks like they have and will continue to diversify away from relying heavily on HVN as a source of revenue / profit.

Do you agree?  Am I missing something in this respect? Any idea how much of their earnings come from the alliance with HVN?


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## kid hustlr (21 July 2014)

This one popped up on my radar over the weekend as I see its gone on a bit of a run the last few days.

Ves/Mclovin (and you other balance sheet gurus) I always like reading your posts but as a general rule most of it goes over my head so bare with me.

Reading the posts above - you noted that the high level of debt was a bit of a concern? These guys are pretty much a bank in a lot of ways aren't they and as such you'd expect them to have a pretty high debt level? Also, thinking back to my accg101 days but if a lot of their 'services' are leases then that gets thrown on the assets/liabilities portion of the balance sheet inflating the debt/liabilities number?

Interesting to hear you talk about FXL's source of financing, I saw an article about secularization posted recently on the ASX site and I guess it kind of confirms what you said above, cheap funding is important to them as they have 'bank' type model of accessing cheaper financing and then lending it out at higher rates.

So overall what's the major risk? Increased debt funding costs hurting profit margins? Customer defaults? Competitors?

Just trying to put together what these guys are about and what the downside(s) could be but looks ok as a business to me?


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## Ves (21 July 2014)

kid hustlr said:


> This one popped up on my radar over the weekend as I see its gone on a bit of a run the last few days.
> 
> Ves/Mclovin (and you other balance sheet gurus) I always like reading your posts but as a general rule most of it goes over my head so bare with me.
> 
> ...



Hi kid,

Probably should take my earlier posts in this thread with a grain of salt - I am looking through this company with different eyes now than previously. Maybe I've learned something or maybe I've still got it wrong.  I will be honest in that I don't and have never had a position in this stock,  and I am still very unsure whether I want one.

Yes, this company is like a bank or financial intermediary. 

My current thoughts on how I will look at this company (and believe me they will need a lot more investigation) are:

Profitability over the long-term be driven by the following factors:

*Scale of business & transactional volume* (I note that in the last couple of years they are expanding their product offering into niche markets to substantially grow volumes).

How much potential is there to grow their existing product lines?  Can they open these up to new customers?  Can they also create new product lines in other niche areas?

*Net interest spread* -  is essentially the difference between their lending rate to customers & how much the Funds cost them to acquire

Therefore you need to look at how much does it cost them to Fund the receivables (ie. money loaned to customers). Where do they get this money?  If they can grow transactional volume and maintain profitability,  the company has the potential to be perceived as less-risky by financers & new funding avenues will open up, and potentially lower costs of funds. I understand that we have seen this in the last couple of years.

In saying this,  you appear to be correct,  they are now able to access securitisation or in other words wholesale funding, which means they do not necessarily need to rely on the banks for funding - this is a big plus, and gives them more control of their future IMO.

*Credit control* - Another cost of Funds which decreases net interest margin is bad debts.  If there customers cannot pay then this affects their net interest margin / profitability.  Credit control is essential.   The most profitable companies in these sort of financial intermediary industries have the best credit controls.  Risk management / probability,  very similar to what you no doubt do with trading perhaps?

At the end of the day they need to generate cash flow from their receivables to a) create shareholder value and b) service the existing debt. 

*Competition* -  as you rightly pointed out is important.  Any company that is able to earn in excess of its cost of Funds, in this industry or another, will be attacked by competitors who also want a share of the pie.  The only way to protect profits and margins from this competition is being able to do something that competitors cannot.   In this case it may be scale and access to cheaper funds combined with better credit control than others. Do they have access to exclusive customer bases that competitors cannot gain?  (ie. Flexirent is associated with Harvey Norman -  doubly,  what happens if this is opened up to competition or the agreement is torn up?)

If any of these things are compromised there probably won't be much left for equity holders once the debt financing is paid out  (ie. a massive write-down in receivables).


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## kid hustlr (21 July 2014)

Outstanding post ves


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## msarpi (20 November 2014)

*Flexi Group*

What is happening with Flexigroup? FXL.AX


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## skc (20 November 2014)

*Re: Flexi Group*



msarpi said:


> What is happening with Flexigroup? FXL.AX




The market doesn't seem to like the AGM commentry yesterday. 

UBS downgraded them to sell overnight.


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## notting (11 August 2015)

Every analyst on earth it seems had been recommending this one over the last few month especially since it tanked after the CEO left abruptly.  
Whoops.  16% smashing today on more abrupt music stopping musical chairs. 
Worth creeping into I reckon.


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## notting (25 August 2015)

*Re: Flexi Group*



skc said:


> UBS downgraded them to sell overnight.




Geniuses.  

Note to self - Never listen to anything UBS says, ever.

Flexi is smashing em out of the park and hasn't blinked in the last week!!!


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## greggles (21 August 2018)

FlexiGroup has bounced back nicely today after a significant share price decline on 6 August when the company announced that Chief Executive Officer Symon Brewis-Weston has resigned effective from September 3rd 2018.

The catalyst for today's bounce was the release of the company's FY18 financial results, which beat expectations.






The FXL share price finished the day up 48.5c to $2.30, a gain of 26.72% and sending it back to where it was at the beginning of August.


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## The Triangle (18 December 2018)

I’m in.  I must have bought most of the shares this morning.  

Reaffirmed guidance, should be a sustainable dividend - which is already on a low payout ratio having been cut a year or two ago. Obviously negativity towards this sector and a history of falling short with their forecasts.  This could go lower but LT (12 months) hard to see this not at some stage being up significantly on 1.40.


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## bigdog (27 February 2019)

https://www.livewiremarkets.com/wires/flexigroup-transforms-their-buy-now-pay-later-service


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## greggles (27 February 2019)

Gap up for FlexiGroup today after yesterday's release of their H1 FY19 financial results.

The financial results themselves were OK but not anything to write home about. Increasing impairment costs have weighed them down. Looks to be a bit of optimism around the company moving forward, as outlined in the article above posted by bigdog. Must be a bit of the Afterpay effect rubbing off on them.

FXL up 21.37% to $1.59 today.


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## The Triangle (28 February 2019)

Half yearly results were known a few weeks back with the earnings (write down ) downgrade announcement.  It’s about the Strategic investor onboard with seat at the table.  Doom and gloom of royal commission is lifting.  ASX performing after last quarters sinking.  FXL just moving back toward where it should be.  PE and EV metrics were low relative to SP when this was 1.10 last month.  Was a good little pickup (Still a dog of a stock! Never performs! 
)


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## bigdog (11 April 2019)

https://www.theage.com.au/business/...ted-over-alleged-tv-scam-20190409-p51c6n.html

*‘Systemic contraventions’: FlexiGroup investigated over alleged TV scam*




*By Cara Waters*
April 10, 2019 — 10.42am


The corporate watchdog is investigating ASX listed finance provider FlexiGroup over its role in an alleged TV financing scam targeting small businesses.

The Australian Financial Complaints Authority (AFCA) referred FlexiGroup to the Australian Securities and Investments Commission (ASIC) under its obligation to report “systemic and serious contraventions of financial services laws” following an investigation by _The Age_ and _Sydney Morning Herald_.

Thousands of small businesses around Australia have been caught up in the alleged scam which involved paying $430 to Viewble Media and its associated business, the Shoppers Network, for a television set which was to display advertising of other small businesses for which payment would be provided.

However, many small businesses have received no payment for the advertising.

The contracts cost up to $15,500 over three years, however small businesses had unwittingly signed a rental agreement with financing companies including FlexiGroup, which traded through its subsidiary Flexirent, and  received payments of $1.5 million under the scheme.

The alleged scam was exposed in November 2018 just under a week after FlexiGroup confirmed market guidance to the Australian Securities Exchange of a net profit after tax guidance of $90 million to $100 million for the 2019 financial year.

At the time, a spokesperson for FlexiGroup told _The Age_ and_ Sydney Morning Herald_ it was aware of the issues some Viewble customers were experiencing and was corresponding with the small business ombudsman "on a case by case basis" to reach a satisfactory resolution.

Earlier this year Viewble Media and The Shoppers Network both collapsed into liquidation leaving the televisions without advertising and the small businesses stuck in contracts with the finance providers.

Following the collapse on February 5, FlexiGroup announced an after tax impairment in its commercial leasing business of $12 million reducing this guidance to $76 million-$80 million following the liquidation of one of its “equipment finance vendor program partners”, Viewble.

FlexiGroup’s share price plunged from a close of $1.26 on February 4, 2019 to an intra day low of $0.975 on February 5, 2019.

The Australian Securities Exchange wrote to FlexiGroup on February 20, 2019 questioning when FlexiGroup was aware of the issues with Viewble.

The letter questioned FlexiGroup’s compliance with ASX listing rules which require listed companies to immediately tell ASX any information concerning it that a reasonable person would expect to have a material impact on the price or value of the company’s securities.

The letter cited _The Age_ and _Sydney Morning Herald’s_ investigation and noted a failure to respond by February 25, 2019 meant the ASX “will likely” suspend FlexiGroup’s trading.

A spokesperson for FlexiGroup wrote to the ASX on February 25, 2019 defending FlexiGroup’s disclosure and confirming its compliance with the ASX’s listing rules.

The spokesperson said FlexiGroup first became aware of complaints about Viewble through an anonymous “whistleblower” email on September 17, 2018 when it was warned its customers “may” have been receiving financial rebates from The Shoppers Network.

The spokesperson said FlexiGroup was due to receive $700,000 a month in payments from customers under the scheme, however 83 per cent of FlexiGroup’s loan portfolio involving Viewble is in arrears.

FlexiGroup explored replacing the advertising content agreed under the deal with Viewble but found this would cost up to $1 million and would “not provide an appropriate return” to FlexiGroup.

The spokesperson said 10 per cent of FlexiGroup’s loan portfolio involving Viewble was subject to complaints with AFCA and it is not permitted to enforce against these small businesses until the complaint process is finalised.

FlexiGroup has volunteered a temporary moratorium on the remaining 90 per cent of its portfolio involving Viewble while the complaint is finalised and has “reserved its rights” while it “explores settlement options” with AFCA

However, FlexiGroup's spokesperson told the ASX FlexiGroup remains of the view that Flexirent’s underlying rental agreements with small business customers “are valid and enforceable”.

A spokesperson for ASIC said the regulator had separately received a number of complaints and was "examining the conduct of some financiers".

It also received complaints via AFCA.

FlexiGroup declined to comment.


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## Smurf1976 (20 April 2019)

A broad concern I'd have about investing in this, from a fundamental perspective, is that there seems to be an arms race underway regarding consumer credit offerings for smaller purchases.


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## Ann (8 May 2019)

Up 24.44% today to $1.68

*Flexigroup locks in major retail partners for new Buy Now Pay Later platform to rival Afterpay and Zip Co*


_Australian finance provider Flexigroup (ASX: FXL) is giving rivals Afterpay Touch Group (ASX: APT) and Zip Co (ASX: Z1P) a run for their money, unveiling a string of deals for its new Humm Buy Now Pay Later (BNPL) platform.


In an announcement today, the company revealed new partnerships with high-profile retailers including Myer, Ikea, JB Hi-fi New Zealand, Strandbags and Solomon’s Carpets, as well as health groups National Dental Plan, National Hearing Plan and City Fertility.


According to Flexigroup, these new deals boost total Humm retailers to more 13,000, including both physical locations and e-commerce platforms. More..._


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## Zaxon (8 May 2019)

Smurf1976 said:


> A broad concern I'd have about investing in this, from a fundamental perspective, is that there seems to be an arms race underway regarding consumer credit offerings for smaller purchases.



There does. I think mainly because millennials are shunning credit cards, and they're looking for reasonably priced alternatives.  Afterpay is the clear leader in this space though.  There's enough room for more than one player, but I doubt people are going to keep opening new BNPL accounts if they're happy with the one or two they already have.


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## rnr (15 September 2019)

Flexigroup's recovery from the August low of $1.43 looks very impressive given the amount of attention/competition from other more recent additions to this market.


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## barney (16 September 2019)

I wonder if that double top around $2 will be too big a hurdle again?


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## greggles (26 September 2019)

barney said:


> I wonder if that double top around $2 will be too big a hurdle again?




It was, until today. FXL has smashed through the $2 mark today on high volume after announcing that high profile retailers such as Mitre 10, Home Timber & Hardware, Hanes Australasia, Zanui, KOOKAÏ, Surf Stitch and Smile Solutions - among others - have joined its Buy Now Pay Later platform, humm.

Financial YTD total transactions up 25% year-on-year and financial YTD volume in humm's key verticals up 85% year-on-year. Its new Buy Now Pay Later products, bundll and wiired money are to launch in FY20.

Really good news for FXL and a little surprising given the state of retail in Australia at the moment. I guess in tougher economic times, buy now and pay later options are quite appealing to people. Retailers need to maintain turnover and these kind of arrangements are a good way of achieving that.

FXL currently up 21.9% to $2.39.


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## barney (27 September 2019)

greggles said:


> FXL currently up 21.9% to $2.39.




Up again today on tidy Volume … It sitting at a 2 year high around these levels (Currently $2.53)


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## Trav. (10 January 2020)

FXL has retraced since the last posting here ( recent low of $1.80 ) and is having a go at $2 today. ( high of $1.98 at time of posting ) 

One to watch if it breaks $2 then next resistance @ $2.20

Holding


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## Trav. (10 January 2020)

oh so close, hopefully next week we can continue this little run. up ~ 6.91% for the week


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## Trav. (13 January 2020)

some movement after the close today managed to get SP up to $2  which is always a significant level to reach and hopefully breakthrough tomorrow.






holding


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## Trav. (8 February 2020)

Very disappointing end to this trade as I got stopped out on Monday after the big 11% drop.

1 minute counting the $$$ up a couple of grand then *nek minute* out on the kerb with with a $1k loss. A bit hard to manage risk when the trade gaps down but in hindsight I should have locked in my profit and moved onto the next trade as there are a couple of signs that I should have noticed but when in a winning trade you can be very biased with what you see on the chart.

Lesson learnt....well hopefully


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## barney (9 February 2020)

Trav. said:


> Very disappointing end to this trade as I got stopped out on Monday after the big 11% drop.
> A bit hard to manage risk when the trade gaps down but in hindsight I should have locked in my profit and moved onto the next trade




Everyone knows your pain Trav. The market is tough at times (especially recently in my view, but maybe that's just my lack of awareness) 

I wish I could go back 12 months and re-do a few of my trades as well 

In hindsight (mine), taking profits off the table should be seen as a sensible decision (even if the stock goes higher).  Getting the timing right is the hard part.


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## frugal.rock (18 February 2020)

Might be time to dust this one off and revisit?
Have released Bundll, a BNPL service through the MasterCard system.
Raiz plans to have a MasterCard through Flexi/ Bundll in near future.
Trading around the $1.90 mark.
Am watching this one.
F.Rock
PS, what do you think @Trav. 
Bargain now? Cheaper than January...


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## Trav. (18 February 2020)

frugal.rock said:


> PS, what do you think @Trav.
> Bargain now? Cheaper than January...




Not for me at the moment, I think that if it breaks $2 then worth looking at it but if you enter now with no clear indication any action then it has the possibility of tying up funds for a period of time.


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## frugal.rock (18 February 2020)

Wise words.
However, it's trend cycle seems to be every 2 to 3 weeks... has been sitting steadily for around 2 weeks with a little spurt a few days ago, then yesterday's down bar...says signal to me? Look for setup?
Will watch a bit today...
F.Rock


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## Dona Ferentes (24 June 2020)

Looking for a player in the Buy Now Pay Later sector that's down 30% for the year?

Hmmm


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## systematic (24 June 2020)

Dona Ferentes said:


> Looking for a player in the Buy Now Pay Later sector that's down 30% for the year?
> 
> Hmmm




Well, the stock in this thread (almost) fits the bill, on a YTD basis. That's assuming you meant price, not revenue or some other metric. 
You weren't any more specific, so...


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## Dona Ferentes (24 June 2020)

not trying to be too enigmatic, but .... FXL has some similarities, but quite a few points of differentiation, to the new tear-aways
One year chart
Flexigroup FXL .. in purple
AfterPay APT .... in Blue
Zip Co Z1P ...... in Red
Sezzle SZL ...... in Green
Splitit SPT ....... in Brown





But is it a fair comparison? In some ways, yes. Flexigroup, which operates in the sector mainly under the _*Humm *_brand, rose almost 12 per cent on Wednesday after it released a trading update that said it now had more than 2.1 million customers across its Australia and New Zealand businesses, having added 380,000 in the past 11 months. But it has two other profitable arms in credit cards and SME lending also make it less of a pure-play _buy now, pay later_ stock


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## Dona Ferentes (24 June 2020)

_*Humm *_concentrates on transactions with an average around $1,000; health, solar power and home improvement categories have become key targets.  The newer arrivals concentrate around $100-150, which may be more spontaneous decisions and more frequently made.

Humm has a well trialled and tested _'credit decision'_ engine and a flexible payment structure that lets customers push their payments out up to 60 months.

Humm is only A+NZ focused, whereas the newer BNPL players are looking to grow internationally

Flexigroup has been in the _buy now, pay later_ space for 20 years, and is * profitable*; its long history might actually count against it in a sector where agile new businesses, without legacy brands or products, arguably look more focused. It is also still in transformation, and has spent the past year consolidating some legacy products and grandfathering others. In the year to May 31, retailers have processed $2 billion worth of transactions on the Humm platform; this is a 25%pa growth.


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## Dona Ferentes (27 June 2020)

I see @frugal.rock has tipped a few pennies into this stock (WZR thread)

_flexigroup is a diversified full service payments company with leading offerings in Buy Now Pay Later, revolving credit and SME finance. Serving a broad footprint of millennial spenders, through to young families and small and medium businesses, it facilitates purchases for over 2.2 million customers._

Back of a napkin, it seems some of metrics are fair, but debt is high (its a financial product, so that skews things). Earnings and quality has slipped, but if the new approach, of a coherent offering without legacy products, works, then a trim and focused company could build margins /get back to form. 





................._Earnings ........................................... Return on Equity ..._........................

Company says it is growing, then the big question; will the new BNPL players be a block to new customers as they're all competing in their own way in the same area, or will the banks cede space such that there are multiple winners? Customer usage of the products is up to 9 times, a year. Loyalty through the app would drive things (600,000 downloads)?  

And don't blow it on international dreams?!?!


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## Dona Ferentes (20 July 2020)

_*humm*_ 4Q20 retailer update

• humm welcomes high profile retailers in 4Q20 including Temple & Webster, Amart Furniture, Snooze and luxury brand Bally
• Strong online growth continues with 4Q20 ecommerce volume up *315% *and total transactions up *447%* on 4Q19
• Momentum driven by a record number of ecommerce and instore integrations in 4Q20
• BPAY feature launched in 4Q20 allows customers to pay for bills in manageable interest free instalments with humm at a range of service providers.

_humm_ can now be used to pay a range of bills that offer BPAY. This will enable customers to pay for services including, but not limited to, electricity, gas, telecommunications and school fees, and repay them in budget friendly, interest free instalments at these billers.

- _ a thinking person's BNPL?_


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## Dona Ferentes (31 July 2020)

_FXL taking a hit on deteriorating conditions (economic slowdown)? Down 6% this morning_

Flexigroup expects to report Cash NPAT for FY20 of $29m. This includes a macro overlay *provision* of $31m (post tax). This *forward looking provision* relates to the projected impact of economic conditions due to COVID-19. 

_flexigroup benefits from a diverse business model with a product suite that spans Buy Now Pay Later (BNPL), credit cards and SME lending, which is a significant strength in a challenging economic environment. flexigroup continues to support its customers and generate sustainable profits. The Company also continues to closely monitor the impacts of COVID-19 on its customers, and for signs of recovery in the domestic and global economy. From the beginning of March 2020, flexigroup has made pre-emptive adjustments across its portfolio to accommodate expected future increases in unemployment. _

_The Company has also taken a proactive and supportive approach to assist its customers, including an outbound contact program for those who had requested hardship assistance, to discuss their financial position and offer support. This has been well received, and is having a positive effect with customers, many of whom are now feeling in a position to commence repayments or to enter into payment programs. Additionally, the number of hardship requests from existing customers peaked in April 2020 and new requests are now similar to pre-COVID19 levels. Against a challenging backdrop of bushfire relief and COVID-19 support, these actions have helped deliver unaudited net losses2 / average net receivables performance of 4.1% in FY20 (FY19: 4.2%). _

_



_


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## Knobby22 (31 July 2020)

Dona Ferentes said:


> _FXL taking a hit on deteriorating conditions (economic slowdown)? Down 6% this morning_
> 
> Flexigroup expects to report Cash NPAT for FY20 of $29m. This includes a macro overlay *provision* of $31m (post tax). This *forward looking provision* relates to the projected impact of economic conditions due to COVID-19.
> 
> ...




They concentrate on the poorer members of society.
I feel that government help has kept a lot of people solvent but as the government lowers the amounts on jobfinder and jobkeeper then this will seriously impact Flexigroup. But... if we are entering a depression they might in the medium term find lots of customers.


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## Dona Ferentes (31 July 2020)

Knobby22 said:


> They concentrate on the poorer members of society.
> I feel that government help has kept a lot of people solvent but as the government lowers the amounts on jobfinder and jobkeeper then this will seriously impact Flexigroup. But... if we are entering a depression they might in the medium term find lots of customers.



too true.  First the bait is offered, then there is a virtue signal of "_proactive and supportive approach to assist its customers". _Got to keep regulators happy.
_
Comsumption; a modern disease._


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## frugal.rock (21 August 2020)

One to revisit IMO.
Very much sideways action of late from which I am anticipating a change of tone once yearly is released and dividend announced.


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## Dona Ferentes (26 August 2020)

*FY20 RESULTS HIGHLIGHTS *
• FY20 Statutory Net Profit After Tax (NPAT) of $21.4m and Cash NPAT1 of $29.2m, reflecting COVID-19 macro overlay provision 
• 2.3 million active customers, up 30% on prior year 
• 73,000 retail and commercial partners, up 13% on prior year 
• $2.5 billion in transaction volume, up 17%2 on prior year  
• Cost to income ratio of 49% (FY19: 48%) 

*STRATEGY UPDATE AND EQUITY RAISING*
• Continuing to deliver on our key strategic pillars with significant rationalisation of products while achieving double digit volume growth and strong customer engagement 
• flexigroup products will unify under our most recognised and loved brand, *humm*, to create a seamless checkout ecosystem to harness the natural synergies across our consumer and SME offerings
• Announcing an *equity raising via a 1 for 3.20 entitlement offer* with total offer size of ~$140 million and total estimated underwritten amount of ~$115 million to provide balance sheet flexibility and support the sustainable and profitable growth outlook

Entitlement Offer price of A$1.14 per new share which represents: 
>> 12.6% discount to FXL's closing price of A$1.305 on 25 August 2020. 
>> 10.0% discount to the theoretical ex-rights price (TERP) of A$1.266


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## frugal.rock (26 August 2020)

I guess I can get an extra 228 shares through the offer then? (Hold 730 currently)
Do I wait for a mail out? All new to me... Cheers.


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## Dona Ferentes (26 August 2020)

frugal.rock said:


> I guess I can get an extra 228 shares through the offer then? (Hold 730 currently)
> Do I wait for a mail out? All new to me... Cheers.



or email.... then can pay by BPay


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## Dona Ferentes (26 August 2020)

frugal.rock said:


> I guess I can get an extra 228 shares through the offer then? (Hold 730 currently)
> Do I wait for a mail out? All new to me... Cheers.



Assume you are Chess sponsored... with HIN starting with X000......... (nine digits) rather than Issuer Sponsored I000.......  ?

are you registered? go to https://www.linkmarketservices.com.au/ and enter HIN plus registered address postcode, then work your way through the site, add email, bank details etc.

The details of the offer will be sent to you soon. (takes a few days)


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## frugal.rock (26 August 2020)

Chess sponsored HIN, but only 8 digits?
Do I need to put an X in front?
Thanks Dona.


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## Dona Ferentes (26 August 2020)

frugal.rock said:


> Chess sponsored HIN, but only 8 digits?
> Do I need to put an X in front?
> Thanks Dona.



old school  ... 8 will do. (will need password, but) set up as a Registered Portfolio rather than Single Login as you can achieve more. not the most intuitive site but you'll get the hang of it 

(and I've actually got a HIN from way back with only 6 digits... early '80s when Chess first came in))


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## frugal.rock (26 August 2020)

Dona Ferentes said:


> (and I've actually got a HIN from way back with only 6 digits... early '80s when Chess first came in))



fossil old school 
Much obliged.


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## Dona Ferentes (26 August 2020)

frugal.rock said:


> fossil old school
> Much obliged.



just reaching my prime

(mind you, 2% commission each way on a trade plus stamp duty!! ... didn't do too much day trading in those years)


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## frugal.rock (28 August 2020)

frugal.rock said:


> One to revisit IMO.
> Very much sideways action of late from which I am anticipating a change of tone once yearly is released and dividend announced.



Well, the pre auction today is lifting from the trading halt.
The change of tone is already clearly visible in the starting lineup.


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## frugal.rock (2 November 2020)

Starting to look like a buy again, however the whole financial/ fintech sector has been a bit soft and deflatory over the last few weeks and with covid impacts in relation to delinquencies still largely to yet flow through, I will wait and watch on this front.
Was thinking that we might get a bounce from election etc as it's outside its lower trading range. Previously held, but sold not long after recent dividend due to a "failure to thrive" scenario.
Any current  thoughts Dona? Cheers.


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## Dona Ferentes (19 November 2020)

_Flexigroup shares have surged (lifted, risen, reacted favourably) after it announced a deal with Mastercard, which will roll out its buy now, pay later product to global banks to help them compete against the likes of Afterpay as credit card usage further tanks._
_
Mastercard's distribution of Flexi's *bundll *product, which provides a $1000 line of credit with a fast application process that puts a virtual Mastercard into a smartphone app, points to another competitive response to the wild popularity of instalment payment plans, which don't involve the same level of regulation as traditional credit cards because customers don't pay interest (but can pay fees).
_
_Mastercard will invest in bundll's product development and promote it to its global banking network under a five-year deal, as lenders fret about the shift away from credit cards leading to lower revenue in their card portfolios. Flexi said discussions were "well progressed" with some global banks._


> "_With the growth of BNPL [buy now, pay later], Mastercard understands that many issuers around the world are looking to solve this increasing consumer preference,” _said Richard Wormald, division president of Mastercard Australasia_._




-up close to 6%


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## System (30 November 2020)

On November 30th, 2020, Flexigroup Limited (FXL) changed its name and ASX code to Humm Group Limited (HUM).


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## The Triangle (3 May 2021)

At a reported 1/2 year earnings of 8.5 cent, a sub 90 cent SP is a little silly.  There has been a big drop from $1 from only a month ago (have been a few small caps that have seen a dramatic drop in the past month).  strip out intangibles and net assets are probably about the same value as the MC.  I bought more.  

Ultimately you have to trust the company is not playing any games with the loans, bad loans, etc. etc...   But Hum has essentially never been a benefit to long-term shareholders.  The dividends provided income but the capital losses wouldn't have been worth it.   There have been a few CRs which do not appear to have created much of any value and debts/loans have increased by about a third while earnings decreased by about the same amount in the past few years.   The lack of certainty on the current dividend (is it or isin't it cancelled?) wouldn't be helping either although I think its a good idea to can it.    

Thought we would have more consolidation in this sector by now.


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## Dona Ferentes (17 July 2021)

Hmmm

_Between 2016 and 2018, flexigroup’s decommissioned Managed Services business provided equipment finance to a number of vendor programs in the Australian market. 

Following recent reported investigations into Forum Finance Pty Ltd, humm group limited has undertaken a thorough review of historical records within the flexigroup Managed Services division, which was decommissioned in 2018.  

Records indicate that flexigroup Managed Services generated business linked to Forum Finance between 2016 and 2018. However, following the shutdown of flexigroup Managed Services, the majority of these assets were sold to a third party and transferred off the hummgroup balance sheet in 2018. 

At this stage, we have not confirmed if the assets are fraudulent, but simply that they are associated with Forum Finance. Investigations are continuing in this regard, and we await information from third parties.  _

*Impact to hummgroup *

_On initial review, hummgroup estimates the maximum historical exposure to Forum Finance including receivables on-sold to be $12m post tax.  There is no exposure in hummgroup’s current lines of business. _


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## Dona Ferentes (19 July 2021)

ho ho humm

_hummgroup business update_ 

• hummgroup 4Q21 transaction volume of $774.9m, up 57.3% on pcp 
• Record quarterly BNPL segment transaction volume of $304.9m in 4Q21, up 68.7% on pcp 
• Cards (Australia and New Zealand) 4Q21 transaction volume of $287.5m, up 44.3% on pcp with spend continuing to return across key categories 
• Commercial and Leasing transaction volume in 4Q21 of $182.4m, up 62.2% on pcp  
• Total hummgroup customers of 2.7m as at 30 June 2021, up 19.7% on pcp 
• Continuing improvement in net loss (gross write-offs net of recoveries) of $30.2m in 4Q21, down 20.3% on pcp 
• 1,362 new merchants integrated across Australia and New Zealand in 4Q21 including strong growth in key verticals of health, luxury retail, home improvement, and automotive 
• Based on unaudited accounts, *Cash Net Profit After Tax of $68.4m, up 121.1% on pcp*


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## The Triangle (20 December 2021)

Stunning, Andrew Abercrombie has stepped down as chair of HUMM.  HUMM/FXL has been a complete dog of a stock.  pretty much nearly a decade decline.  If I recall Andrew had over 20% of the company?

They've also noted that there have been proposals to acquire parts of the company - but with no other wording on details.   

I wonder if this is a pump-n-dump scheme to allow players to get out?  We see this tactic all the time with mid-cap companies that hover around the ASX300.   Don't think a $1.20/share would be an unreasonable offer given past earnings.  Been a very strange ride lately - the only BNPL company that appears to have profits and it is the worst performing on the market?   Hate to be short HUM today!


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## The Triangle (30 December 2021)

10% up.  Rumour out is that BOQ are interested in HUM (According to the Australian)...  FFS.  I own both, and really wanted to dump HUM last week to buy up more BOQ - but not if BOQ is buying HUM!  Would be an interesting concept if BOQ could combine your mortgage payments with BNPL...  go get that microwave and new dress and pay it off over the next 20+ years as it gets tacked on to your mortgage.

I'll note that something seriously stinks here.  All of a sudden The Australian knows all these things about HUM and HUM takeovers...  It's BS and I think it should be considered market manipulation.  How did these journalists get these stories all of a sudden?  Isn't this stuff price sensitive?  Surely someone knew these articles were going to be published today and bought up shares in HUM yesterday.  And same thing goes for the article last week as well. I know this all benefits me as I'm a holder, but I don't think it's right.


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## Dona Ferentes (6 January 2022)

So, what will be left of HUM?



> Latitude has made a $335 million offer for the BNPL *consumer operations* of Humm, as the Ahmed Fahour-led company looks to build scale to take on sector leaders Afterpay and Zip.



With the offer of $300 million in shares and $35 million in cash, Latitude’s proposal equates to 68¢ per Humm share based on a $2.00 Latitude share price (Latitude closed at $1.96 on Wednesday).

The deal, which would also see Latitude take on Humm’s *credit cards*, is being considered by Humm’s board.


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## The Triangle (6 January 2022)

Dona Ferentes said:


> So, what will be left of HUM?
> 
> 
> With the offer of $300 million in shares and $35 million in cash, Latitude’s proposal equates to 68¢ per Humm share based on a $2.00 Latitude share price (Latitude closed at $1.96 on Wednesday).
> ...



Board and executives keep their jobs...

Depends entirely on how current cash is split up.  If they keep 200+35 thats about 47 cents per share.  Plus 68 for latitude plus commercial business.   Which is about 1.15 to 1.30 per share valuation total

Hum said multiple proposals...   This is just one.  WTF.    I wonder if ASIC/ASX politely told them to either suspend trading or put out something regarding takeover rumours.   These announcements were pretty weak and lacked detail.

So why did AA step down as chairman?   Something stinks but that's aussie corporate culture for ya.


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## Dona Ferentes (30 May 2022)

or , is that Hmm?

_ • The Majority Directors strongly believe the sale of Humm Consumer Finance (HCF) is a highly compelling value proposition for all Humm shareholders 
• Preliminary financial results indicate HCF has not been profitable in the four months to 30 April 2022 
• There is significant risk of Humm’s share price declining if shareholders do not approve the HCF Sale _


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## frugal.rock (31 May 2022)

Dona Ferentes said:


> or , is that Hmm?



Hummdinger, a fitting synonym is 
stonker.


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## Dona Ferentes (20 June 2022)

and fallen out of bed; certainly no buzz about this one .... HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.



> _In light of the current major disruption in financial markets, Latitude Group Holdings Limited (ASX: LFS) and Humm Group Limited (ASX:HUM) have mutually agreed to terminate the proposed sale of humm consumer finance (HCF) to Latitude. _




and Latitude LFS not doing too well, either, falling because their growth pathway could be crimped


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## The Triangle (22 June 2022)

Dona Ferentes said:


> and fallen out of bed; certainly no buzz about this one .... HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.
> 
> 
> 
> and Latitude LFS not doing too well, either, falling because their growth pathway could be crimped



Oh my.  4 directors resigned today after sending out a stunning letter to shareholders - specifically stating they:

_"cannot remain on the Board of Directors with Andrew Abercrombie"

"As you will be aware, Andrew Abercrombie undertook a strident campaign against the proposed sale, strongly encouraging shareholders to vote against the transaction. *Much of the commentary he published was emotion-driven, inflammatory*, and provided little clarity on what precise future strategy he envisages for HCF, or on what basis he believed Latitude were going to pay more for HCF. There is still essentially no clarity on the future strategy he envisages for HCF. *Some of the information he published was false and misleading,* which we instructed him to take down from his website. He persisted in telling shareholders to vote against the transaction."

Given this, the Majority Directors asked Latitude to improve the terms of its offer, which it refused to do.* Public pressure from Humm shareholders threatening to side with Andrew Abercrombie and vote down the transaction had no impact on Latitude’s position*, which was unsurprising given the deteriorating economic environment, crashing sector stock prices and lack of any alternative bidding interest. *The Majority Directors believe Andrew Abercrombie overplayed his hand quite fundamentally in a transaction that could have been very beneficial for shareholders"*_

On the statements above and given Mr. Abercrombie is (or was?) a liberal party treasurer and sometimes in the media referred to as a liberal party power broker I suspect things might start to get a little interesting for HUM, himself, and the board.    Not only are there going to be confused angry shareholders, but there will also be confused angry shareholders who are labor supporters..  The last 3 years have been a debacle for HUM/FXL and really most of the listing history of this company has been a dumpster fire as far as shareholder returns.  Andrew has been there from the beginning.  

On a related note situations like this reinforce my "sell half now and the rest in a week or two" philosophy when a takeover is announced.  So glad to have dumped this junk.   Was a poor investment.


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