APT - Afterpay Limited

[bigdog]

AGM was held this morning in Melbourne

The APT Business Update (file uploaded)

At the end of October, the company’s global underlying sales reached $2.7 billion. This was a massive 110% increase on the prior corresponding period. This comprises ANZ underlying sales of $1.9 billion, US underlying sales of $0.7 billion, and UK underlying sales of over $100 million.

At the end of the period its underlying sales had increased to over $8.5 billion on an annualized basis and that’s before the all-important holiday period.

During October, Afterpay signed up an average of 15,000 new customers per day.

A number of major brands have either recently integrated or are in the process of onboarding. This includes ecommerce giant eBay (Australia), Ulta, Finish Line, and Marks & Spencer. Afterpay is also launching with David Jones and Myer Holdings Ltd (ASX: MYR) in-store.

The deal with eBay Australia is expected to go live in the 2020 calendar year.

Entered into a strategic partnership with Mastercard in the Australian market to help scale Afterpay’s business and deliver services to merchants with greater efficiency and flexibility. In addition, Afterpay will utilise Mastercard data and services and technology capabilities. Further information on this collaboration will be provided as products and services are introduced to the Australian market.

SP shares surged as much as 10% higher before giving back all their gains and sinking lower with high of $31.98 and currently $28.97

Also discovered today that Afterpay is available for bookings made online at Jetstar.com for all Jetstar Airways (JQ) Australian domestic and international flights where you see the Afterpay logo and a price breakdown at the bottom of the page.

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[bigdog]

Also announced today was the details of its new strategic partnership Coatue Management may have played a role in some investors selling their shares today.

Here are the key features of the deal:

• $200 million private placement with the US based technology investor
• Completion of placement to happen later this month at $28.50
• Price of $28.50 is a 2.4% discount to five-day VWAP as of Tuesday
• 12 month escrow arrangement
• Funds to be used to fund global expansion

So when shares are issued at a discount, it’s not uncommon to see the share price fall to a comparable level.

From ASX announcement today

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[Knobby22]

I'm still waiting for the SPP.

 

[Ferret]

I'm still waiting for the SPP.

Ha ha - me too!

 

[frugal.rock]

Good one Big Dog.
I couldn't resist, after I saw it at 10% up on yesterday's close SP, I said to myself, 'i am gunna get me some of the honky tonk action'.
So I waits for the elasticity of human? (sheep) sentiment, and bought in after it hit bottom and bounced back at around -3% below yesters SP. Out on close.
It was certainly pumpin today, and I witnessed gap ups/ downs of 50c literally in seconds in the earlier part of the day.
A profit of $ 134 for a little boogie woogie, not bad aye. Better than a poke in the eye. Might have to trade dafteray again, today was a first.
Cheers Al,
F.Rock

 

[bigdog]

I'm still waiting for the SPP.

At AGM yesterday
Afterpay has deferred its planned shareholder purchase plan @ $30 pending the outcome of the AUSTRAC audit but Ms Rubin told shareholders the company remains committed to it.

One shareholder suggested a $400 million SPP for retail shareholders and not the $30 million announced!

Nick Molnar announced that Afterpay did not report defaulting debtors credit file data to credit reporting bureaus!

I would expect the SP will head upwards today

I hold APT

 

[bigdog]

https://www.afr.com/rear-window/david-hancock-s-wife-sells-1-5m-afterpay-shares-20191113-p53a6x

David Hancock's wife sells $1.5m Afterpay shares
Between October 8 and October 31, Fiona Hancock sold 50,000 of her 950,000 ordinary Afterpay shares.

When Afterpay Touch announced on July 2 that executive director and “Group Head” David Hancock was stepping down “at the conclusion of 2019 financial year-end matters”, the company assured investors that “David will facilitate the transition of his role to [co-founder Anthony Eisen] and other members of the leadership team for a period of up to 12 months”.

When Hancock resigned from the board on October 8, the announcement was that “David is stepping down as a director and will continue in a role with the company as a consultant”.

Window dressing
But Hancock’s role with the company as a consultant ended on the morning of October 18, having lasted just seven business days. Surprise, surprise, it was all just another hearty helping of Eisen’s formidable window dressing.

And sometime between October 8 – when Afterpay lodged Hancock’s final director’s interest notice – and October 31, David’s wife Fiona Hancock sold 50,000 of her 950,000 ordinary Afterpay shares, raising between $1.4 million and $1.8 million in a volatile three weeks for the stock.

They are what’s left of the 2.5 million shares awarded to David (but issued in Fiona’s name) in Afterpay’s 2016 float at $1 per share. Equity granted in the course of employment being issued to the employee's spouse – sounds like a trick question at the ATO's staff trivia night.

The 3Z notice classified Fiona's shares in which David Hancock isn't the registered holder but has a "relevant interest" under Section 608 of the Corporations Act. A person holds a relevant interest if they have "power to exercise ... a right to vote attached to" shares, or "power to dispose of" them.

After Australia’s financial crimes authority AUSTRAC ordered Afterpay to appoint an external auditor to report on its compliance with the anti-money laundering and counter-terrorism financing law on June 12, the board formed a subcommittee dedicated to the regulator’s inquiry. As a member of that subcommittee, Hancock was privy to the contents of auditor Neil Jeans’ interim report, provided to the company on September 24 (the announcement of which the following day Afterpay designated as "price sensitive").

Afterpay circumscribed the interim report “confidential” despite AUSTRAC confirming that the company was free to release it. Just how material to the share price the report’s contents are remains to be seen.

But while David Hancock was in possession of that confidential, price-sensitive information being freely withheld from his fellow shareholders, his wife trousered $1.5 million disposing of stock (in which, on October 8, he held a relevant interest).

“This is a matter for Mrs Hancock,” we were told by an Afterpay spokesperson. “The sale of shares occurred after Mr Hancock had ceased to be a director … and a full-time employee [of] the company.”

Notably, David has not exercised a single one of his 2.9 million options (2.7 million of them exercisable at $2.70 and 200,000 at $1). Won’t that be a red-letter day?!

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[bigdog]

https://www.theaustralian.com.au › business › trading-day
9 mins ago - "Bell Potter's Lafitani Sotiriou has raised his price target on Afterpay by 9pc to $45.50 and reiterated his Buy rating based on his view that the ........."

Bell Potter is reportedly bullish on Afterpay’s deal with eBay citing it as evidence that AfterPay is becoming a leading global payments player.

Yesterday Goldman Sachs slapped a $42.90 price target on the shares and noted an additional new partnership with U.S. payments giant MasterCard.

 

[WolfInvestor22]

After pay target set as steep as $44 by Morgan Stanley . There is no doubt BNPL companies will be the talking point of 2020 but will AfterPay continue its infamous growth ?

https://youth-investment-group.com/...-heres-how-you-can-capitalise-on-apt-in-2020/
https://l.facebook.com/l.php?u=http...WNIeg3iceMzfMVMnFsFTNqnhR4ryWwod05vFb1reoD6tQ

 

[PatrickBateman62]

Very informative. Afterpay is one to talk about right now, especially with Morgan Stanley's target price. What are you're thoughts on ZIP right now?

 

[WolfInvestor22]

https://youth-investment-group.com/...-time-to-join-the-zip-train-or-was-ubs-right/

 

[bigdog]

ASX Announcement today AUSTRAC Update - Final Audit Report (uploaded)

Share price at 10:15 today

The Independent Auditor has confirmed that Afterpay's current program is aligned with the AML/CTF Act and that Afterpay is a low risk business in regards to its vulnerability to be used for money laundering or terrorist financing. The Auditor also notes that Afterpay has a strong compliance culture and recommends Afterpay continues to maintain its current level of Board and senior management oversight of AML/CTF compliance as the business grows.

Afterpay reaffirms that it has not identified any money laundering or terrorism financing activity via our systems to date.


Findings:

• Governance and Oversight – over the course of Afterpay’s evolution from a start up to an ASX 100 company, Board and Senior Management oversight and governance has matured significantly. There is now an appropriate level of awareness and engagement.
• Understanding Risk – Afterpay is a low risk business in regards to its vulnerability to be used for money laundering or terrorist financing. Notwithstanding this, the risk controls in place must remain commensurate with business growth. Afterpay must enhance its existing controls to identify Politically Exposed Persons (PEPs) and the risk they may pose. It is noted that Afterpay have commenced a project to address this issue.
• AML/CTF Program – Afterpay’s AML/CTF Program has also evolved over time and is now appropriately aligned to the AML/CTF Act and Rules. Afterpay commenced to provide designated services from February 2015. The first AML/CTF Program was finalised in June 2016.
• Key AML/CTF Controls – Based upon legal advice in 2016, Afterpay initially focused its AML/CTF controls upon merchants. Afterpay’s current AML/CTF controls are more appropriately focused on consumers, given the Designated Service Afterpay provides.

Six Recommendations

• Board and Senior Management oversight and governance of compliance with AML/CTF Act and Rules – The auditor recommends that the Afterpay board continues to maintain its current level of Board and Senior Management oversight of AML/CTF compliance as the business grows.
• Low Risk Designated Services Exemption – In the auditor’s opinion, Afterpay’s service poses a low ML/TF risk. As such, it encourages Afterpay to engage AUSTRAC regarding its buy-now pay-later service being formally designated as low ML/TF risk in the AML/CTF Rules.
• Compliance with applicable customer identification procedures – Another recommendation is for Afterpay to engage with AUSTRAC about its historic approach to consumer identity verification, which was outside of the safe harbour set out in the AML/CTF Rules.
• Compliance with politically exposed person (PEP) identification and risk management requirements – Afterpay should ensure it complies with all of Parts 4.1.3 and 4.13 of the AML/CTF Rules regarding the identification and management of the risk of politically exposed person (PEPs) using the service.
• Compliance with ongoing customer due diligence requirements – Afterpay should review the application of its enhanced customer due diligence procedures to ensure the processes are applied proportionately with regard to the ML/TF risk posed by the consumer.
• Suspicious matter reporting content – Afterpay should continue to evolve its procedures to ensure all actionable information or intelligence available to it is included in suspicious matter reports submitted to AUSTRAC.

I hold

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[bigdog]

https://www.afr.com/companies/finan...-1trn-addressable-market-call-20190925-p52uqg

Afterpay shares surge on Goldman upgrade

Shares in Afterpay surged by more than 13 per cent after the buy-now pay-later juggernaut updated the market on its anti-money laundering audit while Goldman Sachs upgraded its share price target on the stock to $42.90

In a note sent to clients Goldman Sachs says Afterpay is chasing a $1 trillion opportunity to capture retail payment transactions in Australia, the United States and the United Kingdom and said customers were using the platform more frequently making it a more valuable business.

The upgrade added to bullish analyst calls and helped push the stock to an all time intra day high of $36.65 before closing at $36.99

Out of the 10 analysts covering the stock, seven have a buy rating, two a hold rating while one analyst from Morningstar maintains a sell on the stock with the consensus price target of $35.85.

Afterpay is up more than three times this year and almost 50 per cent higher than the $23 price of its controversial June capital raising and founder sell down

I look forward to the $23 per share SPP offer to existing shareholders that has been deferred since June 2019 and hope that the $35 million SPP is increased

I hold

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[Knobby22]

Fingers crossed. I somehow think they may not set it at $23. I bought a few extra yesterday anyway.

It's funny that some people say it's not reputable yet they have the clean skin now and Westpac are the company that enables paedophiles.

 

[Toyota Lexcen]

Why did they have to deal with AUSTRAC?

They are not providing credit or are they?

 

[Knobby22]

It's not about credit, its about using money for crime.

This is their own words:
Australian Transaction Reports and Analysis Centre is an Australian government financial intelligence agency set up to monitor financial transactions to identify money laundering, organised crime, tax evasion, welfare fraud and terrorism. AUSTRAC was established in 1989 under the Financial Transaction Reports Act 1988 to implement in Australia the recommendations of the Financial Action Task Force

 

[Toyota Lexcen]

thanks knobby

 

[bigdog]

Fingers crossed. I somehow think they may not set it at $23. I bought a few extra yesterday anyway..

I was at the AGM and APT confirmed SPP $23 is the price; someone suggested raising $400 million where note below reports $30 million SPP

SPP is awaiting sign off by AUSTRAC before proceeding and acceptance of audit report submitted!

 

[Knobby22]

New name, they have removed the Touch.
Also I notice they tapped another private investor, US based technology investor Coatue Management at$28.50 a share which will help justify the SPP.

I have done a small amount of research on this company, the founder Phillippe Laffont has become a billionaire from tech.

 

[sptrawler]

I have no understanding why, but it still scares the hell out of me, another opportunity lost?