02/08/2022 09:22

Zip Co Ltd (ZIP) $1.06

BNPL adrenaline junky stock ZIP rallied 4-fold in a similar fashion to BRN over recent weeks but it’s just as easily fallen ~40% from last week’s high – we are very 50-50 on this stock.

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21/07/2022 17:31

Zip Co (ZIP) 77.5c

ZIP +16.54%: shares in Zip surged to 6-week highs today after showing signs of improvement at the 4th quarter update. We hosted co-founder Peter Gray today who was keen to talk up the turnaround in the business which saw revenue grow 27% year on year, and transaction volume growth of 20%. Margins remained more or less stable in the final quarter and while the loss rate fell in...

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07/07/2022 16:55

Zip Co (ZIP) 54.5c

ZIP -5.22%: UBS cut their price target for the BNPL stock in half yesterday which put pressure on the stock today. The analyst talked to higher bad debts and the strategies put in place to limit the issue potentially doing the opposite. While bad debts in the retail arms of banks are decreasing, BNPL has been experiencing the opposite. In an economic downturn, this is likely to accelerate further at the same time capital dries up causing added problems for the smaller lenders.

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29/06/2022 09:28

Emerging Companies Portfolio

The portfolio was up 4.94% in the week, ahead of the small ords index which rose 4%. Cash remains at around 4% with no changes to the portfolio. There was a wide spread of performance during the week as the EOFY washing machine of trades flowed through. Audinate (AD8) and Adore Beauty (ABY) rallied 16.9% and 13% respectively. Zip (ZIP) continued its poor run to fall -9.5%, and Tyro Payments (TYR) was also weak, down -8.2%.

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22/06/2022 17:10

Zip Co (Z1P) 46.5c

Z1P -11%:  fell despite talking up their prospects and saying that they had enough capital to see them through to cashflow breakeven in FY24 which is a positive, however more interesting was the point that a 25bps increase in base rate increased costs of funds on a per transaction basis by 2bps. Margins are already slim here + rising rates increases costs on one side and also hurts bad debts on the other. We’ve got this totally...

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15/06/2022 09:31

Emerging Companies Portfolio

The portfolio was down -8.28% in the week, outpacing the 9.4% decline in the small ords – a tough week! Cash remains at around 4% with no changes to the portfolio. The weakness was driven by Calix (CXL) which fell -14.62%, while the biggest percentage fall was Zip Co (ZIP) down -18.32%, although it’s a very small weight in the portfolio. Adore Beauty (ABY) and Capitol Health (CAJ) were the outperformers this week.

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18/05/2022 09:37

Emerging Companies Portfolio

The portfolio added +0.76% for the week while cash sits around 4%. Our most recent purchase in Lynas Rare Earths (LYC) was the top performer up by +9.53% while Praemium (PPS) +7.96% & Audinate (AD8) +6.10% were also strong. Zip Co (Z1P) was down -11.54% and PointsBet (PBH) fell -6.74% to be the biggest drags.

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21/04/2022 17:24

Zip Co (ZIP) $1.15

ZIP -4.56%: the BNPL company was out with their quarterly report for the 3 months to March and there was a bit to unpack – they also started trading under their new code, ZIP, previously Z1P (number 1). Shares initially traded higher but faded through the afternoon to close lower. Transaction volumes grew 26% year on year to $2.1b while revenue grew 38% to $159m as the business saw transaction margins...

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20/04/2022 09:32

Emerging Companies Portfolio

A very strong week for the portfolio adding +5.28% while cash sits at just over 9%. We saw 5 of the 18 portfolio positions up more than 7.5% with the portfolio’s largest position, Aussie Broadband (ABB), the strongest adding 10%. Zip Co (Z1P) was the weakest, falling -5%. We are looking to make some changes to the portfolio, increasing two existing positions while taking profit on another to make room for a likely new holding.

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13/04/2022 08:51

Emerging Companies Portfolio

The portfolio was down -4.89% in the week with cash sitting at a little over 9%. Calix (CXL) traded to all-time highs but that failed to offset falls on a number of positions with tech particularly hard hit on the back of rising interest rate expectations. PointsBet (PBH), Whispir (WSP) and Zip Co (Z1P) all fell more than 15% to drag on performance this week. We are still looking to add Paladin (PDN)...

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