Z1P Discussion 2022

[Fastback6666]

I posted this on HC around the mass staff redundancies:

ZIP have built the bulk of their smart tech platforms, they have built their customer and merchant base to a large stake in the market.

They have merged various companies.

This mass staff cut was fully overdue and was needed and was fully planned. It is normal to not advertise it excessively, most companies want to hide they are cutting stuff as it is a strategy. I have worked in a top asx50 company, when they performed a mass redundancy for approximately 50% of staff. It is a business strategy.

ZIP definitely don’t need that many staff now.

Time for the cull and to be lean and focus on profitability.

All companies go through this employment cycle for various reasons. If you are saying a mass staff cut is bad then you are saying that most of the top asx50 companies in Australia are awfully crap as well. As they have all done it! It’s a strategy and it’s good business. Not good for the individual being made redundant thats for sure, but as one person said you are basically a tradable commodity in big business.

Time for them to focus on moving to profits now in the longer term and I am glad to see it....and I don’t mean they will be in profit in the next 3 months for those bunnies who will say such short term statements.

I am extremely happy that this mass cut has occurred as it shows ZIP have a strategy and a plan to be very profitable.

 

[COB2]

I posted this on HC around the mass staff redundancies:

ZIP have built the bulk of their smart tech platforms, they have built their customer and merchant base to a large stake in the market.

They have merged various companies.

This mass staff cut was fully overdue and was needed and was fully planned. It is normal to not advertise it excessively, most companies want to hide they are cutting stuff as it is a strategy. I have worked in a top asx50 company, when they performed a mass redundancy for approximately 50% of staff. It is a business strategy.

ZIP definitely don’t need that many staff now.

Time for the cull and to be lean and focus on profitability.

All companies go through this employment cycle for various reasons. If you are saying a mass staff cut is bad then you are saying that most of the top asx50 companies in Australia are awfully crap as well. As they have all done it! It’s a strategy and it’s good business. Not good for the individual being made redundant thats for sure, but as one person said you are basically a tradable commodity in big business.

Time for them to focus on moving to profits now in the longer term and I am glad to see it....and I don’t mean they will be in profit in the next 3 months for those bunnies who will say such short term statements.

I am extremely happy that this mass cut has occurred as it shows ZIP have a strategy and a plan to be very profitable.

Well said as always.

 

[Wags]

What the hell is going on with ZIP??

 

[COB2]

What the hell is going on with ZIP??

It's a bloody mess atm. Hopefully a turnaround soon. It's hard to look at the sp lately.

 

[Wags]

It's a bloody mess atm. Hopefully a turnaround soon. It's hard to look at the sp lately.

Gidday @COB2 thanks for the reply, its a bit of an echo chamber here and Id prefer to stay away from the Hot Crapper.
Ive been in Zip for a fair while and have averaged both up and down, though sitting sadly in the big red at the mo.My average sits mid $4's. Im that far backwards I'm just going to sit and watch the parade and hope the cost savings produce some increased margins. The current economic outlook doesn't look great though for anything with debt and interest. Ive read plenty of your posts on HC and respect your views. How long do you think it will take to turn around?

 

[COB2]

Yep it can be a bit quiet in here for sure. I still look at HC every few days to see if I've misses some news but it's usually a pile of crap from shorters and those not owning a single share.

I'm not good with the tech stocks. But all tech stocks have been well and truly massacred this past year so I don't blame zip for it's performance.

I didn't like it when Larry loaned his shares for finance but like anyone who's honest we don't know what the alternatives were so I have to trust that the management are trying to do the best they can with what they have. Especially as they are so personally and financially involved.

I did like it when management bought that 1.5m worth a while back. I can't imagine them investing like that in a company they thought was going belly up. Again it's a bit of a trust thing.

I've been investing long enough to have seen tech wrecks before so not too alarmed at this stage.

I haven't done a proper tally as I've invested in super and personally and I've also been averaging down but I guess I'm probs about 150k in the red. I did sell some to crystalize some losses to offset gains but then ended up buying more at a lower price or similar so I'll need a but of time to work out where I'm really at.

Now we know interest rates are going to rise and we have approx dates etc I'm expecting tech to settle and rebound. Always amuses me that so many see rising rates as so negative. If interest rates are rising it should mean companies are doing better not worse. Yes the heavily indebted companies are a worry with very high rates.

I just would like to see management start doing what they said they would last year. We've heard very little from them of late so I'm thinking there may be a few positive announcements coming.

Nasdaq had a great rally last night so hopefully a good day for zip.

I honestly think the current share price is ridiculous so either a good rally coming or a takeover on the cards. I'd prefer a good rally myself.

 

[COB2]

Zip held up better than I expected yesterday. I bought more the previous day at 1.055. Hoping we don't drop below 1.00. There has to be a floor somewhere. I'd be happy with consolidation for a bit while the markets settle on the interest rates news. Then hopefully an upward trend when the markets realize the sky isn't falling after all.

 

[Wags]

Zip held up better than I expected yesterday. I bought more the previous day at 1.055. Hoping we don't drop below 1.00. There has to be a floor somewhere. I'd be happy with consolidation for a bit while the markets settle on the interest rates news. Then hopefully an upward trend when the markets realize the sky isn't falling after all.

More power to you @COB2 I could and probably should, but I just can't get myself to tip in any more. I hope Im wrong but I have a feeling its going to be a long grind back. I trust we will get there, just will take a while IMO.

 

[COB2]

Well I'm bloody amazed zip has held today after the carnage in the US last night. There's hope for the old dog yet. Markets globally are sure over reacting. Tantrums being thrown in most sectors. I don't think miners deserve the kick up the butt they're getting either.

 

[COB2]

Hoping for a bounce in zip today after seeing what happened to the affirm share price in the US overnight and also looking at their after hours price.
I'm guessing zip took a flogging yesterday on the presumption that affirm was going to have some dire figures to report. I haven't read their qly but can only think it must have been better than expected with the share price increase.
I would so love zip to report a brilliant qly not just for my own benefit but also to shut up the naysayers on HC for a while.
Here's to a good Friday 13th for zip.

 

[Wags]

Hoping for a bounce in zip today after seeing what happened to the affirm share price in the US overnight and also looking at their after hours price.
I'm guessing zip took a flogging yesterday on the presumption that affirm was going to have some dire figures to report. I haven't read their qly but can only think it must have been better than expected with the share price increase.
I would so love zip to report a brilliant qly not just for my own benefit but also to shut up the naysayers on HC for a while.
Here's to a good Friday 13th for zip.

Thanks for that update @COB2,
I haven't seen the overnight action as yet, but a bounce will be good. I know it will be a long grind, and take awhile to shut those mouths up, but anything in the right direction is welcomed. Im sticking it out here, and on other stocks, but some are looking pretty sad. Having said that, their are still opportunities abound.
Do you follow any lithium?
Enjoy.

 

[COB2]

Thanks for that update @COB2,
I haven't seen the overnight action as yet, but a bounce will be good. I know it will be a long grind, and take awhile to shut those mouths up, but anything in the right direction is welcomed. Im sticking it out here, and on other stocks, but some are looking pretty sad. Having said that, their are still opportunities abound.
Do you follow any lithium?
Enjoy.

Affirm went up 23.31% in US last night and futures showing a further rise of 33.87% as of a few minutes ago. No don't follow lithium as such but do have mining shares and think the mining sector has a great future ahead especially here in Australia

 

[Wags]

Affirm went up 23.31% in US last night and futures showing a further rise of 33.87% as of a few minutes ago. No don't follow lithium as such but do have mining shares and think the mining sector has a great future ahead especially here in Australia

awesome news, thanks, have a great day

 

[Fastback6666]

It looks like we could be in for another very good recovery day for ZIP today.

There is not a lot of stock on the Sell side and noticeable there are no big sell walls in place yet. There is some minor ones at 60c but if it pushes past that in a rapid way it will be interesting where the price will end up at. Let’s see what happens.

Great also that shorters are exiting their positions in a bulk way in the last month. A great sign that the SP is allowed to move back up again somewhat and the manipulation can ease off again.

I feel that the next report may the catalyst for intso’s to start saying - ZIP is now a buy(as they will already have bought their position in the last month)

 

[Wags]

It looks like we could be in for another very good recovery day for ZIP today.

There is not a lot of stock on the Sell side and noticeable there are no big sell walls in place yet. There is some minor ones at 60c but if it pushes past that in a rapid way it will be interesting where the price will end up at. Let’s see what happens.

Great also that shorters are exiting their positions in a bulk way in the last month. A great sign that the SP is allowed to move back up again somewhat and the manipulation can ease off again.

I feel that the next report may the catalyst for intso’s to start saying - ZIP is now a buy(as they will already have bought their position in the last month)

Lets hopes FB6. Its got a loooong way to go before its green again for me, so any push up is a good thing. cheers

 

[Fastback6666]

Lets hopes FB6. Its got a loooong way to go before its green again for me, so any push up is a good thing. cheers

Yes very much agree - My super side has some recovery to do though personal shares I am green on for now. A bit of recovery from here.

The company has been trashed but only due to mass shorting manipulatioon then added on top was a tech correction. Which is all nothing to do with the company no matter what anyone says. This is the whole BNPL sector trashed - but you would have to think big banks and their credit cards would have a large and powerful influence here and would not want BNPL to exist at all.

One glaring point of undervaluation is that the company has 300mil cash in the bank and the market cap hit 300mil in itself recently. Sure that cash will be eaten away until they are at cash flow neutral/positive territory but that won't be too hard to achieve since they are now focused on profit after their mass expansion effort which they did at the right time when the market sentiment and SP was well up. They have a huge base now - fine tune for profit is underway.

 

[Wags]

Yes very much agree - My super side has some recovery to do though personal shares I am green on for now. A bit of recovery from here.

The company has been trashed but only due to mass shorting manipulatioon then added on top was a tech correction. Which is all nothing to do with the company no matter what anyone says. This is the whole BNPL sector trashed - but you would have to think big banks and their credit cards would have a large and powerful influence here and would not want BNPL to exist at all.

One glaring point of undervaluation is that the company has 300mil cash in the bank and the market cap hit 300mil in itself recently. Sure that cash will be eaten away until they are at cash flow neutral/positive territory but that won't be too hard to achieve since they are now focused on profit after their mass expansion effort which they did at the right time when the market sentiment and SP was well up. They have a huge base now - fine tune for profit is underway.

Yeah FB6, I hear you. I hope your right. I don't want to be a negative Nancy here, Im just a bit short on confidence at the mo wrt to ZIP. Overall the portfolio is pretty good even given the current conditions, but would be better without the ZIP torpedo hit in the side.
I think now banks and other institutions can make bnpl just another payment option, but does not represent or burden the entire business.
I'd be happy with even money at the mo. (just being honest, not negative)

 

[Fastback6666]

Yeah FB6, I hear you. I hope your right. I don't want to be a negative Nancy here, Im just a bit short on confidence at the mo wrt to ZIP. Overall the portfolio is pretty good even given the current conditions, but would be better without the ZIP torpedo hit in the side.
I think now banks and other institutions can make bnpl just another payment option, but does not represent or burden the entire business.
I'd be happy with even money at the mo. (just being honest, not negative)

Yeah I hear you - time will tell here, it's about watching the customers and revenue, then profit increasing or decreasing. The thing to keep in mind is that BNPL are still winning over bulk business from credit cards and small personal loans with horrific interest rates - this should go on for a decade or more tbh for how ingrained credit cards and small loans are built into the peoples finances. That is a step change still occurring and the banks hate it - unfortunately banks lept too late in general as they just wanted to keep racking in the easy dollars from the costly finance products they have and names like affirm and ZIP have now become household names and taken a foot hold and not going away as they have their place and they are marketed well. People trust banks less and less these days as well.

All signs point to BNPL staying strong and continue to grow. If it points the other way then that is the sell signal.

 

[Fastback6666]

I do believe ZIP in the next report will show more revenue growth as it is reported that retail are still doing quite well, particularly in the US.

Bad debts should have reduced a little as ZIP said last report they were reigning that in and modifying their credit policies to bring this down.

They also are reducing operating costs and increasing margins. We know staff have been laid off across the board at the start of last quarter and we know they have put up merchant fees and other fees.

All this leads closer to profit territory in the future.

If this is all shown in the report the SP should be popping back above $1 and above as investors will see the numbers are stacking up....I believe insto’s know the numbers are going to be stacking up as short positions have been rapidly reducing.

 

[Wags]

I do believe ZIP in the next report will show more revenue growth as it is reported that retail are still doing quite well, particularly in the US.

Bad debts should have reduced a little as ZIP said last report they were reigning that in and modifying their credit policies to bring this down.

They also are reducing operating costs and increasing margins. We know staff have been laid off across the board at the start of last quarter and we know they have put up merchant fees and other fees.

All this leads closer to profit territory in the future.

If this is all shown in the report the SP should be popping back above $1 and above as investors will see the numbers are stacking up....I believe insto’s know the numbers are going to be stacking up as short positions have been rapidly reducing.

Thanks FB6, what is the reporting period, is the quarterly by the end of the month the same as brn?