look like the SP has settled...will we see investors come back in? I looked at ASX yesterday...shares being bought quite a bit...
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look like the SP has settled...will we see investors come back in? I looked at ASX yesterday...shares being bought quite a bit...
The buy depth is very weak still. I wouldn't be surprised to see this continue to slide more, especially considering the general market sentiment. A lot of early holders have made a large return and are probably taking profits. The cap raise and ASX listing sure smashed the SP - down 25% within 2 weeks.
when u look at top 20 holders...almost 73%...surely they are not letting the profit bother that...in saying that..the potential of the ACRM is huge...
http://www.asx.com.au/asxpdf/2016101...stbkz0pym7.pdf
It will be the small retail holders - volume is low. I agree the potential is large, and therefore if you have a long term time horizon, then this is just a bump. Also we have the CEO committing $1M @ 2.20 and a Director buying $1.8M @ $2.23 earlier in the year. They have proven their success in this US faith market, and each quarter is growing faster than previous, and the latest guidance re-enforced this yet again. They continue to outperform. I consider this drop a buying opportunity.
Disc: Holder
Buyer on both ASX and NZX at 185, dual listing working fine, yeah right....
NZD$1.76 on NZX, AUD$1.58 on ASX.... ??????
Down to $1.55 now... where is the bottom? Whole market looks very dicey at the moment.
Time to buy in:t_up:
Maybe I can shed some light, I'm currently super bullish on pph. Although trump winning has plenty of negatives I'm willing to bet donations to churches and other institutions will go up heavily with all this uncertainty. All helping pushpays amcr increase.
No need to shed the light. I always believe the future of this company. A lot Americans are religiously faith. The reason I sold was capital raising n election. Now, all done n dusted. ACRM as end sep was $34m. Interim result is coming soon...From now on the sp will head north...DYOR....good luck all the holders...next year 2017 will be interesting year for PPH...
http://www.stuff.co.nz/business/indu...rowing-company
Bring on interim results next week...
Interim due tmw ...good luck everyone. May god blesses us with prosperity and higher sp:t_up:
https://www.anzshareandbondtrading.c...spx?id=4305192
excellent growth!!!
Highlights FYI
"Pushpay has increased its leading metric, Annualised Committed Monthly Revenue (ACMR), by US$25.0 million over the 12 months to 30 September 2016 from US$8.9 million to US$33.9 million, an increase of 282%.
Operating revenue increased by US$9.0 million from US$2.9 million for the six months ended 30 September 2015 to US$12.0 million for the six months ended 30 September 2016, an increase of 308%.
Pushpay’s net loss increased by US$7.1 million from US$4.2 million for the six months ended 30 September 2015 to US$11.3 million for the six months ended 30 September 2016, an increase of 169% as Pushpay continues to invest in scaling its business.
Over the year to 30 September 2016, Pushpay has remained focused on gaining market share in the USA faith sector, whilst maintaining best-in-class SaaS metrics and continuing to invest in our people, product and processes. We are proud to now serve over 5,000 churches in the USA including 30 of the top 100 and process over US$1 billion in Annualised Monthly Payment Transaction Volume.
As announced on 15 August 2016, Pushpay now expects to reach its US$72 million (NZ$100 million) ACMR target prior to the end of December 2017, eight months sooner than initially anticipated. By way of comparison, Xero grew from NZ$10 million to NZ$100 million of ACMR in around 42 months and Pushpay now expects to accomplish this in less than 28 months.
In addition, Pushpay remains on track to reach breakeven on a monthly cash flow basis prior to the end of calendar year 2017."
Couldn't help wondering why 2015 FY accounts still unaudited?
Almost missed this.....
Pushpay Holdings Limited (NZSX:PPH, ASX:PPH, ‘Pushpay’ or ‘the Company’) announces that it has entered into an agreement to acquire a church app business from Bluebridge Digital, Inc (Bluebridge) for the consideration of up to US$3.1 million.
Key highlights
- Pushpay Holdings Limited is to acquire a church app business from Bluebridge Digital, Inc for up to US$3.1 million
- The transaction remains subject to a number of customary conditions and adjustments. It is anticipated that, subject to satisfaction of these conditions, the acquisition will be completed on or by the end of November 2016
- Bluebridge is one of the leading providers of church apps in the world
- This acquisition is fully cash funded from the proceeds of Pushpay’s AU$40 million private placement in October 2016
- Pushpay continues to perform well and remains on track to reach US$72 million (NZ$100 million) in Annualised Committed Monthly Revenue and breakeven on a monthly cash flow basis prior to the end of calendar 2017
Pushpay is acquiring Bluebridge’s church app related business which includes over 200 customers and around US$1 million in ACMR.
LF - result are only for the half year so won't be audited
The Bluebridge transaction is the most exciting part. Will strengthen there position (with customers and against any future competition) and also accelerate their growth.
Also encourage by their commment that the quarterly rate of ACMR increase will be ahead of the last quarter....translation, don't be surpised if they hit the $100m ACMR sooner than their target
PPH is a keeper...very happy with the result!
Subdued market reaction to this and the last announcement. Both very positive in my opinion, but did the stock get too far ahead of itself?
Way ahead of itself IMO. 450m market cap... should be around 300m max I would have thought given its low starting point for its growth rates. Big oppourtunity though so can understand why its higher. But be wary ANY bad news I would expect the SP to drop sharply. I can imagine Trumps big supporters (the evangelicals) jumping on to the protectionist bandwagon pretty quickly. In which case any overseas companies (to America) may experience a backlash... the last thing PPH would want is a couple of congregation leaders to start talking about the evils of overseas corporations and then come across PPH and hold them up as an example that has "infiltrated their church". Probably won't happen, but something like this may torpedo them.
A lot of expected growth already built in otherwise. But they don't seem to miss targets, if history is an indicator they keep exceeding them.
Personally I feel that it is undervalued, but that's what makes the market I guess. My reasons are that in just over 12 months time they will be generating over $100m ACMR and cash flow breakeven...everything points to this being achieved. We don't know the exact operating costs and margins etc, however we know that large costs are in sales for which there is a long trailing revenue and low variable costs given saas model. The higher the growth, the more the reported result at a point in time looks worse than it really is. If you consider some of the sales costs are investment the "Underlying" profitability at $100m ACMR may well be significant. Start applying a PE ratios on forward earning or even better PEG ratio on a business growing at say 100-200% by Dec 2017 (rather than 300% now) then it should look very enticing.
I can show you a perfectly reasonable growth 'curve' derived from the numbers in the interim report that says they will hit $100M ACMR in 2Q 19 ( two years time) [Deleted :eek2:: H2 FY20 ( three and one half years time)] .
I can come up with some variations of that that vary from a 'little better' to 'quite a bit better' (both widely recognised accounting terms).
So "in just over 12 months time they will be generating" is perhaps a little too definite statement of the future.
Best Wishes
Paper Tiger
Which is fine, but my advice is don't count your chickens until they hatch. Everything is going swimmingly and the market has priced in that growth for 12 months. My point is that every business has bumps in the road and bumps can be big or small. One big bump and PPH could be in trouble and the SP tanking.
Yes,but with internet companies with single products in single markets growth can be very lumpy. They are high risk and have the next years growth (if not more) priced in. Don't bet your house on it, is all I am saying and be aware of risks through rose tinted lenses!
This time last year a lot of people were predicting WYN to be the next big success story and they had major league US investors eyeing them up to take a large share of the company to keep accelerating their growth. Less than a year later they are gone and have left a LOT of pissed off investors.
This I strongly disagree with, this election would have increased the amount given to charity because of spooked Hilary supporters and happy Trump supporters. To suggest that people will jump off certain phone apps because of a protectionist mindset is crazy.
So far Pushpay hasn't missed a beat and has only over delivered. Agreed that if they can't hit targets pph will drop like a rock but with xmas + election drama I'm confident we will see another quarter of over deliverance.
Interesting times for the Digital payment sector....
https://www.bloomberg.com/news/artic...gital-payments
I think these are wise words blobbles. Investors need to understand the big risk and large SP fluctuations with companies like PPH, particularly newcomers to the sharemarket. They would be well advised to do some research into DIL, XRO and WIN before investing in PPH.
Having said that, I dipped my toes into PPH a few months ago with some of of my DIL funds.
The report shows a fast growing company that is in a high cash burning state, but they have pretty much done what they said they will, so far. What I like the most from the report is the large growth in number of merchants from 2,102 last year to 5,286 now, as well as the good increase in ARPM from $361 to $534.
The number I dislike (apart from the loss) is the huge growth in staff headcount which has doubled in 12 months. This concerns me.
I believe SP will take a hammering if they do not deliver on their forecast of positive cashflow and NZ$100m ACMR by end of next year. If they meet it, we will be OK, but will need to exceed forecast significantly for SP to jump much from where it is now.
Looking forward to the journey.
An interesting development in the digital payments world.....
https://www.bloomberg.com/news/artic...-new-valuation
Seems to be going down nonstop.. where's the bottom at?
Bottom could be $1.50 where support holds, but if it breaks through that then it could keep going.
At the current prices its good value especially when you compare it to the price they raised capital at not too long ago ($2.20). Story hasn't changed and things keep chugging along, so one would think good value exist at these levels for these prices.
"At the current prices its good value" - how do you measure that?
P/E: negative 30
P/S: 27,5 (10 would sound ok for a software startup);
NTA: 9 cents
Is a $370m market cap really good value for a loss making SW company with $15m annual revenue (in FY2016)?
Sure, there is always hope ... and I agree, they are in the hope industry, but still?
Well if you're gonna use those metrics then its not going to serve you well in coming up with a fair valuation for SaaS companies. You have to consider that this is a company growing faster than Xero was in terms of ACMR, of course its still a risky investment but this is hyper growth that most SaaS companies don't even come close to replicating.For me tracking how fast it grows its a better metric than using multiples and if they grow as they are growing now, adjusting for slower growth in later years they can very much have hundreds of millions in sales.
*Also I have seen much more aggressive valuations in the US market that will make you think this looks cheap.
You are better of buying the ASX shares if interested in this. They are getting absolutely smashed.
Getting smashed all around really. The company hasn't announced anything other than good news recently, but obviously sentiment has completely changed.
Is this starting to look quite cheap given their growth and success at hitting targets? (Not that one should jump to buy into a downtrend)
It doesn't help that the COO has been selling down at these prices. If anyone knows what is going on in the company it is him. Are they going to miss quarter guidance, or did he simply need some cash to buy that sports car for his Christmas gift? Either way, it is a red flag and there is no way to know until the quarter result is out on Jan 11. Be careful out there.
Indeed, any sell down by management is a huge, huge red flag. Hence further SP degradation.
Do you mean like this ~170k 2016 Audi RS6 with an oddly recognisable plate I spotted a few days ago? a fairly excessive company car or xmas just came early for someone. There is one on trademe for about 200k if anyone is looking to treat themselves hahaha.
Attachment 8526
Yes it is but as has often been said on various threads here they are human beings that have needs for themselves and their families and sometime like to sell some of their shares for various and understandable reasons that have nothing to do with the company's performance. I think it is different and more serious when senior people sell from unprofitable startups like this one where we the small investors are very much relying on them knowing much better than we possibly can and them doing the right think in managing the Co. So obviously any sell down y senior management or Directors in Pushpay is a great concern and not helpful to SP. This ride is starting to remind me of early DIL ride :-)
PPH responds to NZX query re price drop
Pushpay Holdings Limited (‘Pushpay’ or ‘the Company’) continues to comply with its continuousdisclosure obligations under the NZX Listing Rules, including Listing Rule 10.1.1. We are not aware ofany material matters relating to company performance that would explain Pushpay’s recent share pricemovements, and do not consider that the current share price is reflective of Pushpay’s performance andoutlook.
Pushpay wishes to take this opportunity to note the following:
- - Pushpay continues to exceed guidance. The Company exceeded its target for the quarterended 30 September 2016 by achieving net Customer (previously Merchant) growth of 795Customers for the quarter ended 30 September 2016. This exceeded the net Customer growth of725 Customers in the previous quarter ended 30 June 2016.
- - Pushpay is continuing to make progress in the USA faith sector. As at 30 September 2016,Pushpay was servicing 30 of the top 100 largest churches in the USA, six more than as at theend of the previous quarter. To give context as to the sizes of these organisations, the largestchurch that Pushpay services has over 39,000 average weekly attendees.
- - Pushpay is delivering on its growth strategy. Pushpay increased its total Customer numbersto 5,286 as at 30 September 2016, while also increasing Average Revenue Per Customer(ARPC, previously ARPM), which indicates that deal size is increasing in accordance with thestrategy to attract larger customers.
- - Pushpay remains on track to meet its targets. Since the latest operational update on 23November 2016, the Company has made good progress and remains on track to meet thetargets to:
- - Exceed, in the current quarter ending 31 December 2016, the ACMR increase over theprevious quarter ended 30 September 2016;
- - Reach US$72 million ACMR prior to the end of calendar year 2017; and
- - Reach breakeven on a monthly cash flow basis prior to the end of calendar year 2017.
- - Pushpay’s growth is gaining recognition. Pushpay has been placed number one on theDeloitte Fast 50 New Zealand list and number 10 on the Deloitte Technology Fast 500 Asia
Pacific list, with 4,574% revenue growth over three years. This achievement is testament to thecommitment and expertise of our team, the growth strategy that we continue to execute on andthe industry-leading solution that we offer.
Pushpay will release its next Quarterly Operational Update on Wednesday, 11 January 2017.
https://www.nbr.co.nz/article/why-pu...ed-cg-p-197892
Anyone got a subscription?
Quite a healthy turnover today and SP holding. Will this be the bottom this time ???
Well, explains to some extent why Paul Shigles Chief Operating Officer has been offloading his shares in past few months. Leaving the company end of Feb '17 along some key management changes as per notification given today on NZX.
My take is that Paul has been shown door diplomatically.
And big push to US based staff means they're very serious about maximising opportunities over there as they mentioned in their last update that starting from thanksgiving day until Christmas is whe they expect huge growth in church donations.
Another point is Chris has more time to look into more strategic areas to bolt in future growth. Having said that from sp perspective, there still seem to be lot of selling pressure for one or two big holders and looks like that won't vanish anytime soon.
A relatively small part of my portfolio is often invested in high risk and often unproven businesses. Some have done me very well such as ATM and DIL, some terribly like PRC. None of them meet the investment criteria I use for the largest part of my investment portfolio. But they've been fun.
This one so far is in the red for me but I will be holding it very long term unless something unforeseen happens. May even top up along the way :-)
Have a good Christmas mate and all other SH as well. May 2017 be a prosperous and happy one for us all.
I don't have any inside knowledge, but the way i read is he don't want to move to US. Pity he's sold down.
Looks like share price is recovering
I suspect we will need to keepseTbelts securely fastened on this ride for quite some time yet. Bring it on 😀
Looks like we are heading for a "please explain" from NZX. Answer probably will be that it was oversold before Christmas 😀
The price recovery has happened on combination of two things in my opinion, one next week's (wed 11th) quarterly update which I'm expecting would be a boomer after thanksgiving and Christmas events in the US and second being I suspect the seller has done all the selling...
Did top up more in the last few days....didn't have guts to catch falling knife last year and buying into current uptrend is bit more safer bet.
well I caught the falling knife twice, once at 1.79 thought afterwords I had made a short term mistake,so when i saw the volume come in at the 1.33 level i doubled my holding at 1.35, I'm pretty glad it's gone up.
I do really like the look of this company at this stage.
If this team manage to continue to pull off what they have been and deliver on cash flow positive in 2017 then this price is a steal.
PEB get a mention in here:
http://www.einnews.com/pr_news/36078...ver-12-by-2022
I'm forecasting for 3rd Quarter (31 Dec 2016) that in total
USD$40 million ACMR (increase of about $6 million)
6130 Merchants (increase of 844 Merchants)
If they beat that then I'm super optimistic that they will reach USD$72 (or $100 million NZD) and if they deliver below that I'll watch with a bit of caution.
https://nzx.com/companies/PPH/announcements/295301
"Pushpay is pleased to announce that it has exceeded the previous quarter ACMR increase by 10.6%, resulting in an ACMR increase of US$7.3 million over the quarter ended 31 December 2016 (excluding ACMR derived from the acquisition of Bluebridge’s church app related business in November 2016)."
Very positive. Now we need to wait for the full numbers on Wednesday.
Looks like Mr Market likes the little snippet we got this morning.
Wow, wonder how much they will like it after Wednesday :scared:
You're almost dead right about merchant numbers, slightly better at 6143....Good forecast!!!
https://nzx.com/companies/PPH/announcements/295403
OK - so they achieved another quarter of growth as planned. Great. I am sure the punters will flow in and create (now or later) a RAK / WYN / XRO / PEB - like peak. Great times for traders (who know when to exit) ahead. Question is - how does the SP look after that? Is this where the faith industry comes into play?
Maybe I don't understand their business model (and very interested to learn), but from where I stand: they are offering just another way to (electronically) transfer funds from a client account to a receivers account using a mobile app.
Basically mobile internet banking as any other banking app, including a bit of accounting on the receiving end (to allow the preparation of annual donation slips).
Did I get this right? If yes - what is their moat? What stops Apple (Apple pay), Pay Pal, Amazon, Google Wallet or any of the credit card companies (to name just a few) to move into this field if the numbers start to look interesting?
Given that their incredible market cap ($475m) is based on basically exponential growth assumptions - where will this growth coming from, given that it is not hard for competitors to move into this market?
Are we sure the emperor is wearing any clothes?
Given that I neither hold nor intend to probably a bit inappropriate for me to gate crash their conference call. I would have thought that any holder could easily respond to these questions - I guess, why would anybody invest in this company without having done the research?
Fair enough...for your benefit..
"Playback Details
Replay of the Interim Investor Briefing will be available for 30 days following the completion of the call.
New Zealand: 0800 122 135
All countries: +64 9 950 7088
Replay Pin: 2428"
And by the way one of the questions was along the competitive threats from legacy players like Google, Paypal etc...you can listen and make an assessment out of that.
You are very nagative on this company,so why do you bother to post?
you wonder why one of the big boys hasn't got in and gate crashed the party,either they havn't noticed the opportunity,or maybe its easier for them to wait and pick up the leading player once it is a serious enough opportunity, and therefore big enough enterprise to make a material difference to their profits.
I believe this company is on the same path as DIL, Read the numbers! You don't believe what they report?
So far no bigger techie has, or serious competition has attempted to compete,so why worry about that when it Hasn't happened.
Sorry - didn't realize you want to turn this into a fan club for cheer leaders only .... ;)
Why do I bother to post? Well, several reasons:
(1) Actually - I was not negative but asked only (I think very reasonable) questions every serious investor should ask herself before investing. Given that some of the people here are holding (I assume) I hoped to get the answers through this thread. Apparently I was wrong, but this is good information as well. Stocks hyped up by people who invest without serious research are highly dangerous ...
(2) I find investor psychology fascinating. Some people gamble their hard earned money away but aggressively attack anybody who dare to have a different opinion about their beloved investments. "Why do you comment if you don't like this stock" is just the beginning. If you don't know what I mean - have a read through the PEB thread. You can learn more about these investors when communicating with them, so consider it in part as experiment ...
(3) I always keep in mind that there are not just old experienced investors around, but as well lots of newbies (many of them not even posting). If the whole thing turns (in my view more likely than not) to custard, than at least I don't want to hear complaints that people haven't been warned. I consider it unethical to see a risk without warning others (who might be effected) about it.
Just for the record - yes, you might be right and this stock might turn into another DIL (but than it might be better to pick the shares up when they are at the bottom - what was it with DIL - 5 cents? Maybe the "faith industry" is that special that they need a different "cash in" app. Pecunia non olet.
More likely however is in my view that this stock goes the way most of the hyped up but half baked tech-stocks go ... and this is a typical peak / bubble profile (and I have no clue whether this stock will peak at WYN's $3 or XRO's $40+). From there however it is more likely to drop .... and the climate on this thread will get more frosty :scared:.
For anybody who wants to know more about previous tech stocks - I'd'highly recommend to study the WYN thread, the RAK thread, the PEB thread and yes, why not? - the DIL thread.
BlackPeter you can't base every tech stock on wyn,xro,rak. For instance it has been well known for quite a while that rakon lacked the financial management to make a consistant success of their business particularly for their shareholders. Wyn, geo yep not great, but xro isn't finished yet,c'mon of course people get over optimistic on the near term prospects,but that does not mean its all over,dil came back and did very well for their shareholders.
PPH, you need to give the newbies, (if thats to whom you aim your advice to) ,a chance to also make some money on a very good recent rally in shareprice.
For their performance to date,they excede their projections,and longer term plenty of room to grow further.
No way would we want another peb thread,but also we aren't all Lovers of this stock,maybe some just see great potential to make a buck in the medium term.
You are right though, we still need a balance of opinion. Maybe you could expand on your thoughts as to why you are not that keen on this one.
Pehaps BP as many others do, sees a company that has had large cash burn with 0 profit at close to half a billion dollar market cap. Hearing those facts is enough to turn many investors off. But to me Pph presents a unique opportunity to invest in a company that is gaining an ever increasing reach within a part of the world that more money then they know what to do with(religious Americans). If pph can deliver on a becoming cash flow positive this year my guess is today's share price will look mighty cheap in 12 months.
Reponse to BlackPeter -I respect all opinions because at the end of the day none of us know if we have a sure thing or not, its fair if you want to be sceptical about the company given technology companies are risky and all new investors to the scene should be prudent in their thinking, decision making and ultimately their investing. However I think some have found you too aggressive with your scepticism that it feels more an attack with negative connotations rather than a warning to be cautious (if you know what I mean).
--------------------------------
Pushpay so far has been very consistent in what it has set out to achieve and no matter what company you are to invest in that’s a great sign of things going well, especially their phenomenal growth rate and a path towards break-even.
It's not like RAK who have tried to produce hardware (chips) that aren't as competitive when it comes to cost, which was always going to be a losing battle when there are many hardware giants that were already established in their field and in Asian with a cost and scale advantage. Management at RAK also entrenched themselves on all seats of power in the company refusing to take on much change, but things do look like they a slowly changing.
Not like WYN who did not deliver on promises, tried to expand too quick on an inefficient cost base and looked nowhere near break-even, which ultimately broke them.
Xero in my opinion is a success story who have performed well in NZ, AUS and UK, but with some possible struggle with established player Inuit in US, but making ground. You could have viewed Xero as small (in terms of funding) and the minute every other accounting software maker started offering cloud accounting platforms Xero wouldn't not be able to compete on their budget, but they are doing fine. Yes the share price did shoot up beyond what would seemed unreasonable, but sometimes that happens and you'd call the $45 per share crazy, but currently its fairly priced and worth a lot more than when they first started trading on the market worth a fraction of the value.
Its not like PEB who set a forecast of $100 million in 5 years without understanding the market they were trying to get those sales in, which looks like they won't achieve that target unless they get more aggressive in their sales.
PPH has: achieved targets set, restructures management when required (as witnessed recently), understands the market they are selling in and not spreading out on expansion and mainly focusing on the US, so cost have not spiralled out of control and they are on track to break even.
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They have a very simple business model, they are a payment app and yes you could probably use a banking app that would do the very same thing.
Its unique in that is specialised and concentrated for donations and no other details are needed by the person donating except the Church's name. Face it humans are very lazy creatures and yes you could give them the information to make a bank transfer, but something about it feels like a cold transaction. Theres something much warmer about a donation app and not having to remembering any other details if they are travelling and forget. PPH has even proved that by integrating the app more donations are received, so its pretty hard to argue about the results it has proved with thousands of churches.
However they are creating a uniqueness about themselves now with more addition of user engaging content with the Bluebridge acquisition, which starts deviating away from making just a payment, but also engaging with the content too.
Also annual giving statements can be produced, which for your bank transactions you'd have to deal with the mess of sorting between other transactions too. The say they can cut down the time with dealing with these transactions from 30 hours to just over 5, which itself makes for great time and cost saving if hiring someone to do it. With PPH it only stores donation information and makes like a lot easier for the ones managing the church's accounts. That creates a good point of difference from a banking app too and start creating a moat with the user who finds the app engaging and the Church who have a better collation of information.
As already mentioned today in the investor briefing, theres currently no app competitors in their space competing with them for churches. The big players would likely take on a general solution for the market if they did offer one as they are big and don't need to target a niche group like churches. PPH is a first mover advantage and they are doing a good job making themselves more unique that by the time there are other solutions they are so unique no churches would have any incentive to change solutions.
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As it stands they have 6144 Churches that they offer their service to. There are 314,000 churches in the US, so its fair to say they have a lot more market share they could be capturing to grow and that’s only one country. They can also use the same payment app for charities and businesses, so there is a lot of untapped growth as it stands, they just need to continue to execute as they have done.
Hope that proves I'm a serious investor who considers this company valuation fair.
Have just read through the comments here today. Haven' t had a chance to listen to to presentation yet but just want to say that as a PPH investor who has significantly increased my holding recently, I very much welcome the posts from BP and others who have a different view to me on this stock. That is what this forum is about, sharing differing views. I am glad silverblizzard888 has taken the time to answer BP in some detail and it is a good answer that I fully agree with it. Thanks sb888.
I would add that they have been successful in targeting the large churches, including 5 of the top 10 churches and 30 of the top 100 churches in the US. They have a first mover advantage in a huge sector worth billions, that is only starting to move from cash or cheque to online donations, so as my mate Percy would say, PPH is very well positioned. Online giving is only 24% of donations today and was only around or just over 10% 3-5 years ago. This is forecast to increase steadily. Some of the churches using PPH's platform have reached 40% already.
I would also add that we have some very astute investors that have invested large amounts of money in this company, including in the recent capital raising. They have not been selling. That is a good sign.
Companies like PPH are notoriously difficult to value and it can be debated endlessly what valuation method should be used. I would argue at this stage, while the company is growing at this rate and meeting targets, including towards being cashflow positive fairly early in its life, that price to sales ratio would not be an unusual method to use for a company like this. Then it is up to each investor what multiple they find reasonable.
Having said all that, I think investors have to be extremely careful and only invest in a company like PPH if they are ready for a high risk investment that will no doubt have wild swings in SP. I have researched all the companies PB mentioned (over the last 5-6 years) for comparisons and only ever invested in one of them, DIL. It was a very sucessful investment for me but a wild ride and it sure had its fair numbers of sceptics for a long time on this forum. It was a good debate Sadly it was sold far too early in my view and I am sure the new owners are doing very well with it now.
I have done my homework on PPH and am comfortable with my position. I expect to increase it. It is in the risky part of my portfolio and certainly wouldn't meet the criteria I use for most companies and the largest part of my portfolio. But I encourage people to share their views, both for and against investing in this company. It helps us all.
Go BlackPeter!
yes I think the moat is that tithers are sticky. Tithe collectors dont want to rock the boat by changing things that might make the tither payers reconsider.