Z1P was the markets top performer yesterday rallying almost 14% following the news that unlisted US BNPL giant Klarna had taken a 4% in Z1P. As we mentioned yesterday there’s a huge 8% short position held in Z1P and personally I would be extremely uncomfortable to be amongst this particular crowd in today’s aggressive M&A environment. However at this stage this feels more like a strategic stake as opposed to an imminent takeover but either way it does show that a company very familiar with the BNPL sector believes Z1P is great value at current levels.
Previously we had flagged our intention to reduce our position if / when we saw Z1P revisit $10 but after this news were more inclined to give the position some room. Also we remain long and bullish the BetaShares ASX Tech ETF (ATEC) which has an enormous ~20% exposure to APT which implies if this position is correct then the whole BNPL space should perform strongly over the ensuing months.
MM remains long and bullish Z1P
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NB MM currently holds a 5% exposure to Zip (Z1P) in our Flagship Growth Portfolio: Click here to view & a 7% exposure in our Emerging Companies Portfolio: Click here to view
