SPT - Splitit Payments

[Knobby22]

Any idea why it's listed on the ASX and not in Israel or the UK? Or listed there also?

These payment, credit and splitting pays is just a fad. It's just a modern way to get people to spend on things they really couldn't afford.

That's all fine and good, as a business, if you got collateral. But to do it in an environment where OZ are among the most indebted people in the world, going through the most expensive property boom in the world, and are struggling to make ends meet...

To give credit without collateral, making it quick and easy, might sound smart. It's just asking for trouble.

But then its share price is doing really well... just like those dotCom etc.

I'm very suspicious of this company as explained earlier.
It all seems to me a pump and dump riding the coat tails of Afterpay. Already Westpac has pretty much done the same thing as after all it really is just an app on a credit card. It has no future but the people who floated it will be making a lot of money. I don't even believe the users are real. When I first looked at this company a few weeks before they floated, the website wasn't even operating properly. Even now they only have, last time I looked, 8 merchants using it, and how do we know they aren't tied in to this float?

 

[citac]

Any idea why it's listed on the ASX and not in Israel or the UK? Or listed there also?

These payment, credit and splitting pays is just a fad. It's just a modern way to get people to spend on things they really couldn't afford.

That's all fine and good, as a business, if you got collateral. But to do it in an environment where OZ are among the most indebted people in the world, going through the most expensive property boom in the world, and are struggling to make ends meet...

To give credit without collateral, making it quick and easy, might sound smart. It's just asking for trouble.

But then its share price is doing really well... just like those dotCom etc.

you can own shares in a company with long term profit guidance but any economic down fall can bring it's share price down to the level of a start up too.

I'm very suspicious of this company as explained earlier.
It all seems to me a pump and dump riding the coat tails of Afterpay. Already Westpac has pretty much done the same thing as after all it really is just an app on a credit card. It has no future but the people who floated it will be making a lot of money. I don't even believe the users are real. When I first looked at this company a few weeks before they floated, the website wasn't even operating properly. Even now they only have i last time I looked 8 merchants using it and how do we know they aren't tied in to this float?

https://www.afr.com/street-talk/ipo-litmus-test-splitit-locks-in-jan-29-listing-date-20190122-h1abpd
Point of sale payments business Splitit has conditional approval to hit the ASX-boards next week, making it the first new listing of 2019.

A number of funds are understood to have tipped into the $12 million IPO, perhaps pulled in by former Vocus Communications' founder James Spenceley as a key backer and ex-National Australia Bank head of institutional Spiro Pappas' role as chairman.

See Pappas, as the story goes, headed the team at NAB that onboarded Afterpay which has been a roaring success for early investors and is now worth more than $3.5 billion

 

[Knobby22]

you can own shares in a company with long term profit guidance but any economic down fall can bring it's share price down to the level of a start up too.


https://www.afr.com/street-talk/ipo-litmus-test-splitit-locks-in-jan-29-listing-date-20190122-h1abpd
Point of sale payments business Splitit has conditional approval to hit the ASX-boards next week, making it the first new listing of 2019.

A number of funds are understood to have tipped into the $12 million IPO, perhaps pulled in by former Vocus Communications' founder James Spenceley as a key backer and ex-National Australia Bank head of institutional Spiro Pappas' role as chairman.

See Pappas, as the story goes, headed the team at NAB that onboarded Afterpay which has been a roaring success for early investors and is now worth more than $3.5 billion

So they put in 12 million to get it to float stage and got 54 million back. Smart.

I had a look at a couple of the merchants, a matress sales company based in London, a glasses seller with US in its name but looking suspiciously like it only exists here (found a link, warehouse may be in Illinois). Nothing major.
The high end speaker company looks real. very specialised. The re-usable clothing company also seems real and is very smartly marketed and appears to be a very expensive way to buy out of date clothes.

There is a big payment help section for the speaker company. No mention of splitit. https://www.devialet.com/en-au/shopping-help/

 

[citac]

The stock must be doomed then, ill keep watching it though, to see if it grows organically or is a pump and dump as you say

 

[luutzu]

I'm very suspicious of this company as explained earlier.
It all seems to me a pump and dump riding the coat tails of Afterpay. Already Westpac has pretty much done the same thing as after all it really is just an app on a credit card. It has no future but the people who floated it will be making a lot of money. I don't even believe the users are real. When I first looked at this company a few weeks before they floated, the website wasn't even operating properly. Even now they only have, last time I looked, 8 merchants using it, and how do we know they aren't tied in to this float?

That'd be messed up. I wouldn't be looking into it but yea, by what you're saying it could be one of those floating on the latest craze.

Much like those "Electronics" companies Peter Lynch talked about, or the "dot com".

 

[luutzu]

you can own shares in a company with long term profit guidance but any economic down fall can bring it's share price down to the level of a start up too.


https://www.afr.com/street-talk/ipo-litmus-test-splitit-locks-in-jan-29-listing-date-20190122-h1abpd
Point of sale payments business Splitit has conditional approval to hit the ASX-boards next week, making it the first new listing of 2019.

A number of funds are understood to have tipped into the $12 million IPO, perhaps pulled in by former Vocus Communications' founder James Spenceley as a key backer and ex-National Australia Bank head of institutional Spiro Pappas' role as chairman.

See Pappas, as the story goes, headed the team at NAB that onboarded Afterpay which has been a roaring success for early investors and is now worth more than $3.5 billion

Hard for established company to go broke if its share price just collapsed though.

Unprofitable start-ups tend to get flushed in a downturn because... well, their operations aren't bringing in the cash and no investor is going to give them any.

I, probably like most other Aussies, hang onto BHP and RIO after the mining collapse. We've done pretty well out of it... and the uptick is, I believe, just about to pick up again.

I mean it's nice if we can get in early on any craze and fad. Just make sure we're smart, or lucky, enough to know when to get out.

 

[citac]

Thanks Luutzu, I appreciate your concern about the company as a functioning business, like I have said before its a start up and it has potential to be a fully functioning long term business, however it needs to prove it.

This isn't the RIO or BHP section, we are talking about software and point of sale, not smashing the earth surfaces in search of minerals.

I hope the uptick in your mining stocks serves you well.

 

[Knobby22]

Another big jump in SPT.
Just goes to show, fundamentals are long term, sentiment is short term. Go with sentiment.
These companies are hot at present. Should have bought, it's like the lithium thing and the cryptocurrency thing.

 

[citac]

I am very surprised how high the SP is able to climb each day. With new capital willing to pay 2,3,4 and 5 times the listing price within 7-10 working days without blinking an eye lid.

You would be expecting timely and purposely effective news announcements to keep the stock rolling forward without financials.

Could be sold down in a hurry with so much profit to be made.

 

[citac]

Waiting for the decline, anyone else watching this Stock?

 

[greggles]

Waiting for the decline, anyone else watching this Stock?

I first noticed it last week but today the share price has broken out on good volume and is currently up 23.1% to $1.12.

No news as a catalyst today so I wonder if there is some around the corner?

 

[Smurf1976]

Waiting for the decline, anyone else watching this Stock?

I'm just watching this one. It's down a few % today but that's not surprising after yesterday's move.

 

[greggles]

SPT making gains again today and currently trading at $1.20, up 15.9%. I wonder if it's rising too far too fast. This Afterpay/Zip Pay/Splitit instant credit installment payment niche seems a little bloated at the moment.

The critical question is whether or not the revenue is there. Personally, I've never used any of these services but I'm a middle-aged old fart so what do I know?

 

[Smurf1976]

The critical question is whether or not the revenue is there. Personally, I've never used any of these services but I'm a middle-aged old fart so what do I know?

They've become entrenched very quickly.

Bought something online yesterday for less than $25. Or it said I could split that into 4 interest free payments with After Pay.

Now, if someone needs to spread the cost of a $25 purchase then that's a worry in terms of credit quality most certainly. It does make for lots of business however.

 

[bigdog]

Motley Fool reports
https://www.fool.com.au/2019/03/06/...e-has-rocketed-490-higher-in-just-five-weeks/

The Splitit share price has rocketed 490% higher in just five weeks
James Mickleboro | March 6, 2019

The Splitit Ltd (ASX: SPT) share price has continued its remarkable run on Wednesday and surged to a new all-time high.

At the time of writing the payment company’s shares are 14% higher at $1.18. This latest gain means the Splitit share price has risen an incredible 490% since listing on the ASX at 20 cents per share on January 29.

The Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival now has a market capitalisation of approximately $320 million.

Why has the Splitit share price rocketed higher?
With no news out of the company, I suspect investors have been buying Spiltit’s shares on the belief that it could be the next Afterpay Touch.

Splitit is an Israel-headquartered payments company providing a cross-border credit card-based instalment solution to businesses and merchants.

Its service allows consumers to pay for a product using their existing credit cards but divide the total purchase cost across as many interest-free monthly payments as they feel is necessary, up to a limit of 36 months.

Debit cards can also be used, but consumers are limited to $400 of credit and must repay the balance through a maximum of three interest-free monthly payments.

Another service the company offers which separates it from the competition is a try now, pay later service. Merchants can allow shoppers to try out items for up to 90 days before any payment is charged to their credit card.

The item cost is put on hold on the shopper’s credit card to protect the merchant, ensuring that payment is made in the event that the shopper does not actively finalise the purchase or return the item. If the shopper decides to return the item, the hold is released, and the shopper is not charged any interest or fees.

What now?
Last week Splitit released its preliminary final report which revealed full year revenue of US$790,000 and a loss after tax of $4.4 million. Clearly it is still early days for the company, but it could be worth keeping a close eye on its progress in the coming years.

 

[peter2]

Wow, short term traders are having some fun with this stock since listing two months ago.

edit: Unfortunately I'm not one of them.

 

[kid hustlr]

It's pretty frantic Pete,

back to square on the day!

 

[peter2]

Yikes, that was a serious intraday selloff after the speeding ticket.
This is a 5m chart for Mon 11/03/19. Response to the ASX "speeding ticket" was released at 15:04.

 

[citac]

Day traders having a ball over the last 45 days, I don't have the guts for it yet Peter2.

Is anyone else looking at names involved in this business, big names floating around the stock.

I'm trying to figure out if its a free carry and hold or still worth accumulating stock to be honest. The movements are huge and the volume is dropping off after it was played with really bad for a couple days.

-I personally like the way the company is positioned, in between the merchant and the customer.

-It doesn't punish the retailer or the customer and provides a quick and easy payment service which in todays marketing is a fundamental. Customers want ease of use and want it to be safe and secure.

-Credit Cards aren't going anywhere they provide flexibility.

-Customers use there existing Credit card limits to purchase goods however they get to select the best payment method that suits them while not paying interest. I would choose this any day verses my direct bank account.

-Small business will be able to use this in the same effect, most SMB have a 20k to 40k limit on credit cards, imagine not having to pay interest for a extended period of time without having to apply for new terms, you just select it at payout, quick and simple.

It has huge growth potential, however as the article says on the AFR, its unproven and needs to provide the numbers in the future.

Retail spending online is a ever growing sector and I expect SPT to be targeting the online market more than instore.

 

[greggles]

After declining from $2 to 90c in the last six weeks, SPT bounced back today following the release of its most recent Quarterly Report which detailed a $2.5 million loss, leaving them with just $6.5 million in cash at the end of the quarter.

Revenue was a modest $322,000 but it is clear from the "Highlights" part of the announcement that they are counting on continued growth to stem losses and move towards profitability. My concern with these kind of losses is that they are likely to run out of cash towards the end of 2019 and will need to raise more capital... unless that turnaround happens in the next couple of quarters.

Estimated cash outflows for the current quarter are $1.6 million.

I'm a little underwhelmed by the financial results, but the market seemed to expect worse as SPT is currently up 25.41% to $1.16 so far today.