ziptrade
Short

AFTERPAY - SHORT NOW, COVER LATER

ASX:APT   AFTERPAY TOUCH GROUP LIMITED
Australia heading into recession
Consumer Balance Sheet Stretched
Bad Debts > 15%
Can't Make a profit on 1bn of OP CF
Asset base not large enough to support loan book of that size
International Expansion Plans not a good idea when they havent bedded down home market or become profitable
I totally disagree on the bad debts ratio being a huge factor in troubled times. Their loans are 8 - 10 weeks max and with a meaningful % increase in bad debt over several weeks, they update their lending model to accomodate for this. Within an 8 week cycle they can mitigate the risk of bad debt, correct?

International expansion is also ideal to mitigate single market risk, should the Australian customer base shrink due to increased lending requirements.
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last day of qtr- not even the fund managers wanted it on their books at end of QTR - exit stage right and short it and/or its peers

These stocks will be used as funding sources for the latitude IPO - also its probably been 2 years since listing so id check the vesting conditions of the seed/founding shareholders and promoter shares
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