HUM - Humm Group

[Dona Ferentes]

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

 

[Dona Ferentes]

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)

 

[frugal.rock]

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

 

[Dona Ferentes]

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))

 

[frugal.rock]

(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.

 

[Dona Ferentes]

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)

 

[frugal.rock]

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.

 

[frugal.rock]

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.

 

[Dona Ferentes]

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%

 

[System]

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

 

[The Triangle]

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.

 

[Dona Ferentes]

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.

 

[Dona Ferentes]

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

 

[The Triangle]

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!

 

[The Triangle]

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.

 

[Dona Ferentes]

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.

 

[The Triangle]

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).

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

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.

 

[Dona Ferentes]

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

 

[frugal.rock]

or , is that Hmm?

Hummdinger, a fitting synonym is
stonker.

 

[Dona Ferentes]

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