Australian (ASX) Stock Market Forum

ZIP - Zip Co Limited

Jump to new
ASX announcement today
8/05/2020 10:04:02 AM Trading Update - Z1P Continues to Perform Strongly (Uploaded)

upload_2020-5-8_11-6-11.png


upload_2020-5-8_11-6-50.png


upload_2020-5-8_11-8-6.png


876
 

Attachments

  • Z1P April Trading Update - Z1P Continues to Perform Strongly.pdf
    118.7 KB · Views: 16
Zip Co shares have surged on its expansion into the United States, after the lender announced the $400 million acquisition of New York-based buy now, pay later player QuadPay in an all-scrip deal that will boost its customers to 3.5 million.

The deal will allow Zip to chase Afterpay in the high-growth US market, where consumers are turning to interest free, instalment payments as an alternative to paying with credit cards.
 
Dona Ferentes said:
Zip Co shares have surged on its expansion into the United States, after the lender announced the $400 million acquisition of New York-based buy now, pay later player QuadPay in an all-scrip deal that will boost its customers to 3.5 million.

The deal will allow Zip to chase Afterpay in the high-growth US market, where consumers are turning to interest free, instalment payments as an alternative to paying with credit cards.
Click to expand...
Yes, noted this today:
Let's be the devil advocate: how often have you seen an Australian company benefiting from an O/S acquisition for expansion?
From memory Slater and Gordon, NAB only to name 2 big recent ones....
Been here for 20+ years and as far as I remember it has been a rinse and repeat story... :-(
The precedents are not good but I wish ZIP will be different this time
 
When you say precedents, are you comparing apples with apples?
We're any of the other o/s deals by BNPL subsector/ industry companies?
One only has to look at the success of After pay SP. Would you buy after pay at its current highs? I wouldn't be surprised to see it reach $60 in the next week or two.
Zip's biggest volume day on record today. Over $155 million changed hands on it today.
Don't hold, unfortunately.
Screenshot_20200602-184520.png
 
Dona Ferentes said:
Zip Co shares have surged on its expansion into the United States, after the lender announced the $400 million acquisition of New York-based buy now, pay later player QuadPay in an all-scrip deal that will boost its customers to 3.5 million.

The deal will allow Zip to chase Afterpay in the high-growth US market, where consumers are turning to interest free, instalment payments as an alternative to paying with credit cards.
Click to expand...
I have an unfounded view that Australians cannot compete with Americans in America. For zip to buy quadpay it likely means that a lot of Americans turned down the opportunity first. I ask - how many times has an Australian company successfully built up a business or expansion in the US? I think maybe MSB might be the only one doing well, but they were kind of already there. Also, if you want a pair of jeans or runners in the US, you just smash a shop window and take them. Simple. BNPL has no place there. Smash and grab all the way.

On a side note I presume this is why my shares in FXL jumped up 16% today. I don't know why After-pay doesn't just use its script to buy out both FXL and Zip and just crush any competition.
 
The Triangle said:
I have an unfounded view that Australians cannot compete with Americans in America. For zip to buy quadpay it likely means that a lot of Americans turned down the opportunity first.
Click to expand...
interesting observation. ... It's going to break through or break, I suspect. One school of thought is that 'money' is being redefined and the first mover advantage is producing winners that happen to be AU. The countervailing view is the big guns will mobilise and crush the upstarts

When he finished an investor briefing this week on Zip Co’s transformative acquisition in the United States, co-founder Larry Diamond was asked where he thought the buy now, pay later player would be in three years time. It was telling his answer referenced PayPal, the US payments giant spun out of eBay five years ago.

“The shifts in sands we are seeing across Australia and globally are providing enormous tailwinds,” he said. “We have an ambition to have a global brand and global platform that is respected as a true payment leader … Just cast your eye on how many customers PayPal has – hundreds of millions. There is no reason we can’t build something similar over time.”

Diamond was quick to catch his unbridled optimism - after all, even after Zip’s purchase of QuadPay, it will have 3.5 million customers. Afterpay, its big rival, is approaching nine million. In contrast, PayPal has 325 million user accounts, including eight million in Australia.

“Obviously, that is not a forecast,” Diamond continued, “but these are our ambitions – our North Star.”

The vision driving the global march of Zip and Afterpay is turning heads in the established payments giants. The massive US credit card companies, Visa and Mastercard, are scrambling to reform themselves into broader technology players rather than just issuers of plastic.

Banks are grappling with the monumental shifts washing over the payments landscape, as big US tech companies Amazon, Apple, Google and Facebook, and China's Alipay and WeChat Pay, move into the space traditionally owned by banks.
Click to expand...
And now, as Reserve Bank assistant governor Michelle Bullock said this week: "COVID-19 might be the ultimate disrupter (because) both merchants and consumers appear to have been keen to reduce their use of cash.”

But as more payments go electronic, Zip and Afterpay are winning millions of customers because they're thinking more broadly than just facilitating a payment through their short-term instalment products. Both are intent on creating an ecosystem, a platform, a new shopping experience. And for now, at least, the retailing sector has been willing to pay up for access to digital-savvy customers, allowing the buy now, pay later providers to do away with interest charges, boosting customer loyalty.
Click to expand...
Buy now, pay later receives far more attention than its volumes deserve; its overall share of the payments pie is still minuscule compared with credit and debit card payments. The Reserve Bank estimated only $6 billion of buy now, pay later volume in 2019 - a number that would be at least twice as big this year given the rapid growth rates being reported by the listed players. But even at $15 billion or $20 billion, this is still tiny given annual spending on debit cards of $350 billion, and on credit cards of $270 billion.

But it's the growth rate capturing attention. As Diamond pointed out: “This was a sector that didn’t exist a few years ago, and in the next years, it is going to look incredibly different."
Click to expand...
https://www.afr.com/companies/finan...-global-forcing-bank-response-20200605-p54zt1
 
The facts
Zip Co advised that a number of directors have sold shares this month. This includes Managing Director Larry Diamond, Chairman Philip Crutchfield, and Company Secretary David Franks.

According to one change of director’s interest notice, Mr Diamond offloaded a total of ~5.5 million through a series of on-market trades between 18 June and 19 June. The managing director received an average of $6.125 per share, which equates to a total consideration of ~$33.7 million.

Another notice reveals that Mr Crutchfield sold 1 million shares through a series of on-market trades between 18 June and 22 June. The chairman received an average of ~$6.11 or a total consideration of $6.11 million.

Finally, the third notice shows that Mr Franks has offloaded 1.3 million shares through on-market trades on 18 June and 19 June. The company secretary received an average of $6.12 per share, which equates to a total consideration of just under $8 million.
Click to expand...
the usual bumph...
In response to the sales, Zip Co released an announcement which explains why the sales were made. According to the release, the directors sold these shares to pay personal and/or related party tax obligations, reduce personal and/or related party debt commitments, and to allow them to diversify a minor part of their total investment in Zip Co.
Click to expand...
... these directors are still heavily invested in the company, which means their interests remain aligned with shareholders.

In fact, although these were sizeable sales, in aggregate, the directors sold less than 10% of their holdings in the company. Furthermore, all three directors have confirmed that they have no present intention to sell any further shares in the medium term.
 
Livewire Markets: Okay. Blake, buy now, pay later has been all the rage. Zip. Buy, hold, or sell?
Blake Henricks (FireTrail): Zip is a sell. When you think about these growing markets, it generally is winner takes all. Afterpay is probably going to be the one. And the other thing we have done is we actually took all the analyst expectations for all the buy now, pay laters and what the TAM (total addressable market) is, and I will tell you what, this is going to be a huge market if they're all right. We do not think they are. It is a Sell.
Click to expand...
.
Livewire Markets: Zip Co has been the laggard in the buy now, pay later space. It has only gone up 100 per cent this year. Buy, hold, or sell?
Jun Bei Liu (Tribeca): It is absolutely a buy for me. Well in many parts of the technology space, if the market is small enough, it's winner that takes all, but this is an enormous market. In the US, a couple of BNPL players have now, with all that investment, only penetrated 1 per cent of the US market; 8 per cent in Australia versus 1 per cent in the US. Now Zip Co just bought into that market. And now Zip has exposure to eight different markets. Now, there's Canada, there's UK. There are so many markets that could potentially be coming online. It's enormous now. And this market is real because we've seen Silicon Valley investors putting money in Zip. We've seen Tencent putting money with Afterpay. And potentially there will be more further M&A and activity picking up because they are taking notice that this is a real market....
Click to expand...
So today Afterpay said they now can be sold through Google Pay, Apple Pay, all of that. QuadPay, which has been acquired by Zip, is already on there. So, the market is enormous and they bought a great platform onto it. And in terms of market cap, Afterpay at $18 billion, Zip, $2.5 billion. And Afterpay has 10 million customers. Zip has now, including the acquisition, over three, close to four million customers. So Zip has a long runway to go. By then probably Afterpay will be in the top five Australian companies, but Zip certainly will catch up quite a lot on that basis.
Click to expand...

(Now there's confidence in BNPL)

( DNH )
 
With Z1P having a nice pull back, I am in under $6 this morning.
Recent high of $10.64 just 11 days ago on a day when it opened at $10.46... wow.
I envisage After pay potentially getting sold down and many pundits jumping ship onto Z1P.
Either way, an certainly expecting a good run from now especially with QuadPay now fully onboard.
Customers galore.
6 month chart, I don't see much downside from here on in...

Screenshot_20200911-125313.png
 
My final pick for the 2021 comp.

It's chart doesn't look to good at present, but as a company it seems to be making good progress. Hoping it will turn around during 2021.
 
Ferret said:
My final pick for the 2021 comp.

It's chart doesn't look to good at present, but as a company it seems to be making good progress. Hoping it will turn around during 2021.
Click to expand...
Nice pick Ferret.
Market likes the news, eh?
I was wondering what catalyst would spark zip up again.
I have long expected Z1P to follow Afterpay up the ladder. Surely Afterpay is overbought by now...
Will this push give it the legs to get back and over the $10 mark?
A 5 minute chart

Screenshot_20210121-142359_Online Invest.jpg
 
Here is my reason for the competition of 2021!
Zip in my opinion is going to be huge. Today it is up 22%! I believe Larry Diamond will take this company very far. I have been involved with Zip for quite a while and truly believe with them going global, this stock will have a huge 2021. It is only just the beginning. For this reason I have made them my number 1 stock for 2021 (apart from CRO which I’ve been a big fan of for a long time).
I love using the Zip product, makes my life so much easier! I know a lot of others who also use Zip constantly and prefer this BNPL rather than using Afterpay.
Hopefully Zip continues the amazing work and will be a clear winner for this year.
 
jamezo10 said:
Here is my reason for the competition of 2021!
Zip in my opinion is going to be huge. Today it is up 22%! I believe Larry Diamond will take this company very far. I have been involved with Zip for quite a while and truly believe with them going global, this stock will have a huge 2021. It is only just the beginning. For this reason I have made them my number 1 stock for 2021 (apart from CRO which I’ve been a big fan of for a long time).
I love using the Zip product, makes my life so much easier! I know a lot of others who also use Zip constantly and prefer this BNPL rather than using Afterpay.
Hopefully Zip continues the amazing work and will be a clear winner for this year.
Click to expand...
Yes, as a holder I hope you are right. After raising $400mil. to enter other large markets global domination seems to be their goal. I’m worried that it might be too much too soon. (thoughts)
 
333.jpg


Wild ride this thing's had, almost tripling in three weeks, then halving, then shooting up another 25% in a week. Can anyone explain?
 
beejeboi said:
Theres talks the company could go to the US which is big news. surely that would be massive for the SP. Theres also talks of entering the crypto space. IDK what to make of it
prophet-invest.com

Zippay (Z1p.ASX) Raising Capital, Maybe Crypto Peer-Peer Lending is Looming? - Prophet Invest | Investing and Wealth

ZIPPAY (Z1P.ASX) RAISING CAPITAL, MAYBE CRYPTO PEER-PEER LENDING IS LOOMING?
prophet-invest.com prophet-invest.com
Click to expand...
Good news coming from Z1P all the time so why has the share price been falling recently? Is it part of a broader market correction or is the BNPL space yesterday’s news?
 
Top