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ZIP - Zip Co Limited

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APT & Z1P both right on support levels now:
 
Looks like Z1P was oversold under $7 during May and June. It is looking much healthier now and has just poked its head over $8 today. With the Australian economy on the road to recovery, we should be seeing more activity in retail in the second half of 2021.

The most recent April figures are showing improvement.



I think we'll see a little more bullish price action from Z1P between now and the end of the year as long as the recovery in retail spending remains on track.

 
I've trimmed some APT today. Not often a 6% run doesn't get a pullback, even if just over the next day or two.

FYI: They're both just following the U.S tech trend - the inflation fears are now in the rear view mirror and so tech is now running again. I've been over this in length in the virus thread. I could plot APT over FNGU to show you how closely they've followed each other but I don't think there's any need as you've probably gotten the point by now.
 
Thinking about a 7.25/7.00 bear spread for August or September. Will Z1P recover with the announcements of APPL and CBA getting in to BNPL ?

Gunnerguy
(Options trading beginner)
 
Gunnerguy said:
Thinking about a 7.25/7.00 bear spread for August or September. Will Z1P recover with the announcements of APPL and CBA getting in to BNPL ?

Gunnerguy
(Options trading beginner)
Click to expand...
I don’t think Z1P will be around much longer, the BNPL companies will consolidate and Z1P is not (globally) the biggest player. I could be wrong, I usually am but to much uncertainty for me. Sold all my lot on the Apple news, doubled my money so can’t complain. Looking at the lithium scene next, ??‍
 
Some may know I have followed Z1P and BNPL for a while.
I have re-entered last week with a buying the dip outlook.

By my loose ball park calculations, there's still immediate growth room for 8 to 10x current worldwide BNPL market. (Overall, not saying Z1P specifically)
That's current space for growth only.
Future growth space depends on many things including population aging, ie; younger people coming of age where they are working/ borrowing etc.

A vote of confidence from Bank of America which owns a good chunk of Z1P and have increased their holding.
Substantial holding increase announcement lodged this morning.

I will be holding until it hits the $10 area, unless it looks like it will get through that area with a bit of gusto.
iSL set at $5.70

 
Dear Z1P enthusiasts,

I am considering a Short 5/10 Strangle on Z1P for September.
Selling a Put at $5 strike , and Selling a Call at $10 strike.
Not a great premium, however breakevens are $4.8 (-30%) and $10.2 (+46%).
Background - if I get assigned the Put I am happy to take the Z1P shares at $5.

Comments, critics greatfully recieved.

Gunnerguy.
(Just trying to use the IV of Z1P)
 
I read that Z1P is considering allowing their US customers to transact using cryptos. Seems like desperation to me as they can't get the customer numbers up.

Z1P is too volatile for me to recommend as a short position.
 

BNPL bloodbath: Sector sells off again after US regulators flag more oversight - Stockhead

The CFPB said on its website that it was particularly concerned about the impact BNPL providers have on the accumulation of consumer debt.
stockhead.com.au
 
I picked this in the 2021 comp. It shot out of the blocks in January and has now fallen in a heap.

I'm picking it again, in the belief that BNPL isn't dead and buried.
 
Lots of announcements today including trading halt and half yearly results

Buy now, pay later operator Zip is seeking to buy ASX-listed rival Sezzle in a $491 million deal that Zip says will accelerate its path to profitability, as it faces tougher industry conditions.

Zip on Monday said it was offering 0.98 Zip shares for every Sezzle share, which represented a 22 per cent premium to Sezzle’s closing price. The announcement came as Zip also reported a $214.3 million loss for the December half.

The merger, which was supported by both company boards, is aimed at giving the businesses greater scale in the crucial US market, where the BNPL firms are trying to take on a deep-seated shift away from credit cards. BNPL firms provide short-term interest free loans, which make revenue from fees charged to merchants and in some cases from consumers.
Zip chief executive Larry Diamond acknowledged Zip was under more pressure to be profitable, and he argued the merger would support this goal.

“”We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability. Combining with Sezzle positions us as a leading global BNPL provider and prioritises our ability to win in the important US market,” Mr Diamond said.
Zip is raising $148.7 million in new equity to help strengthen its balance sheet and “execute on the potential synergies” from the Sezzle deal.

Zip, an ASX-listed rival to Afterpay, also on Monday reported revenue was up 89 per cent to $302.2 million and customer numbers were also growing, but it also made a $214.3 million loss.

BNPL company shares have plunged in recent months, as the prospect of interest rate rises has hit loss-making technology companies especially hard.

Zip’s results said the loss was driven by a number of non-recurring items, including acquisition costs, re-branding costs, and the impairment of goodwill in its UK business. It also said that its margin fell from 3.7 per cent to 2.1 per cent in the period due to higher credit losses.



 
Miner said:
In twelve months Z1P like many BNPL, has reached at near $2 with a SELL
Click to expand...
Clearly the time to buy then isn't it?
It's undone around 2 years of SP gain in around 4 months.
I would think in the coming years it should do quite well, depending on pending legislation of course.
 
frugal.rock said:
Clearly the time to buy then isn't it?
It's undone around 2 years of SP gain in around 4 months.
I would think in the coming years it should do quite well, depending on pending legislation of course.
Click to expand...
Good luck mate @frugal.rock
I do not have any more Lotto Luck or coins to be at Crown after reading the following clocks for 1 day , 7 days and 30 days scenarios.
Could be misleading data to influence market however. Could stoppage of Russia money flow be a blow for these BNPL stocks ? Who knows wherefrom the BNPL companies money to support the lending ?? :



 
ASX Release
7 March 2022

Directors purchase Zip shares
Zip Co Limited (ASX: Z1P) (“Zip”, or the “Company”) wishes to inform the market that on 4 and 7 March 2022, co-founders Larry Diamond and Peter Gray purchased approximately $1.5 million of Zip shares (873,198 shares).

The Non-executive Directors, including chair Diane Smith-Gander, also purchased Zip shares on 4 March 2022.
Under Zip’s Securities Trading Policy between 31 December 2021 and 2 March 2022, Zip’s Personnel (including the
Board) were prohibited from trading in Zip’s shares (due to their knowledge of market sensitive information).

In addition, due to the structure and timing of the institutional placement announced 28 February 2022, it would have
been difficult for the directors to participate without seeking shareholder approval.

While market factors and external conditions have impacted the fintech and broader technology sector in recent months, the co-founders continue to believe that the market opportunity to deliver transparent, fair, and innovative
financial products remains significant.

The founders remain committed to the successful execution of Zip's strategy and in delivering long-term value creation for all shareholders.
 
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