Sign Delaware Banking IOU Later

Industry sign banking delaware iou later

hello everyone my name is lachlan i write for monday morning and i'm also an analyst on exponential stock investor and today it might be time to get hyped because we're talking about a height stock it's iou pay limited now if you look at the chart here that's a pretty wild take off i'll uh i'll be going through some charts some announcements and financial statements today hopefully it gives you a bit of a bit more of a sense for the company and what they do as well as their potential uh going forward so i hope you stick with us uh as we go through uh this latest buy now pay later sector stock so what i'm going to do at the start is uh just take you through chronologically some of the announcements that have come out of this company now this company has targeted the southeast asian market uh with the buy now pay later product it's got a market cap of 277 mil at the time i shot this video and you can see it's falling back a bit here so what we're just going to do is go through some of these announcements so it used to be called eye centric and this was there quarterly from the 31st of july so they announced every branding of course software platform and malaysian subsidiary so they're changing to the iup platform there and they also made some new board appointments um so this this happens a lot with certain companies uh they they pivot their model they they decide to go after a new market and this was all sort of underpinned by new uh board appointments and then the next one you get out of the companies from the 31st of august preliminary final report they reduced their expenses revenue was down marginally for the year and you know it's it's it's it's a relatively decent uh result there for its revenue known to be down two percent given it was sort of pivoting its model now fast forward to october 2020 and this is the flashy new investor presentation for their ioupay product now if you go back to the chart in october you can see a bit of movement starting to creep in here so this is where things started to get interesting um so we'll just take a quick look at this investor presentation now there's a fair bit to digest but they they put a fair bit of work into the presentation and you know they covered that early rise in the share price there and they're specifically targeting malaysia it looks like and the southeast asian region more generally um it's it's a it's a nice presentation and it gives you a sense for the rebranding and i guess the e-commerce sector which they're going after and what we also know about the asean region so that's the association of southeast asian nations so one of the statistics that i've previously drawn your attention to there is that they actually have a huge amount of people going online for the first time there's a lot of increase in online uh marketing activity and the other thing to consider is that they also have a very rapidly growing middle class so all of this seems to suit the i guess niche that i you pay is trying to carve out now if you fast forward the 15th of december you get an operational update some strong numbers in there um and uh and yeah this this looks like to be the the key announcement that got the share price moving again sort of late in december but it wasn't enough for investors so um this this was a key one 19th january they got a malaysian money lending license which is essential for their operations so look back at the chart january it starts to move again and then let's have a look at some of the more recent announcements that send in share price flying so you've got the december quarterly which came out in uh 29 january now this is where they stood sort of start to cement some of the the key components of the bnpl platform so the compliance uh with mandatory central bank and global credit card standards that's important but in any 4c it's important to look at what's actually going on beneath the surface so we'll just skip all of the i guess uh well it's not blather but it's less important than what's actually going on underneath the hood so you see receipts from customers they're 2.165 million australian now that's actually pretty good considering how early days this was for our you pay product and manufacturing cost so that's getting their platform up and running administration corporate costs and then you can see there they're going through about 834 000 in operating activities which is actually not that bad i'd say by by now pay later standards um and then cash of 9 mil now if they were this and this was this was the quarterly for the period ending uh 31 december so at 31 december which is this point they had uh 9 million cash and uh at that rate you know that would be a decent cash to market cap ratio but let's dig into some of the uh more recent announcements of center flying so are you paid partners with easy storage provided by now payload services now this is a sort of e-commerce oriented uh southeast asian move you can see some of the more details there anyway this was this was a big win and that was on 9th february so 9 february was about here and that's when the share price started to move and then it started to move in a really big way um they actually got on 15 february a sort of these are referred to as speeding tickets um and it's an nsx price square because it was starting to move by now pay later stocks are you know they're incredibly volatile um they go up and down quite quickly but the general general trend has been for these by now pay ladies to do quite well so [Music] here's the big news which is that the afr actually covered that's the australian financial review that actually covered iou's hunt for 40 mil cash injection now this was street talk and that was 15 sorry 16 february so you can look at the chart again here that was around about there and then they actually got the 50 million dollar placement now there's this is a bit of education for you so a placement that means it's going to institutional investors uh as opposed to a share purchase plan which is for retail investors now they offered it at let's see what the discount um discount was here uh so they offered it 50 cents per share uh that was a 28.57 discount for the closing price of 70 cents on 15 february so they basically i mean this is just my view but they sort of nailed the capital raise um in terms of getting it at the highest point there and then what frequently happens is that in a small if a small cap goes to raise cash they will frequently see a retracement in price down to around about where the discount was offered so let's just take a look at the details here so that's that's the terms of the uh the capital raiser placement and 50 mil is we give it a fair bit of room to grow given its 27 million dollar market cap now not many people use cash to market cap ratio but uh i actually do it's quite helpful to give you a sense of how much room a company can grow and it also also informs some of the share price action that you see play out that's just my experience of small caps so let's look at the iu chart now this is a pretty wild chart so it went absolutely vertical in the space of three trading days there now where would that sort of uh 50 uh discount fall it would be just below this red bar so it's possible that you know this is all speculation um but it could potentially find some support around that 50 cent mark what you could also do is insert a fibonacci retracement so the fibonacci retracement what you want to do is take in a low point and a high point so all this sideways trading you got a low point then you go a high point so it actually went as high as about 85 cents there 85.5 cents or so so you then extend that out to here and you'll see that that 50 cent um around about the 50 cent mark you get this 0.382 fibonacci level now i'm no technical analysis aficionado but this is just one way you could look at the retracement from a massive breakout like iou pays experience so that's about all i have to say about iu they now have that 50 million dollar placement in place now that will hopefully for investors see them expand into southeast asia more successfully i've given you a sense for the where it could retrace two now it could also retrace to say the 0.5 flip level um or you could even draw this this fibonacci level or sorry fibonacci retracement from a different point but the point remains is that small caps are incredibly volatile and risky and it's important to manage risk so on that topic i've got two reports for you which are both great resources now one is a risk management report written by our chart guru maori doors who runs the excellent pivot trader service you can find that report in the video description below um i've also got another good report to you on three fintechs features three different fintechs so if you're into these buy now pay letter stocks it's a great resource if you want to learn about three small cap from text that you might not have heard of before um and yeah three three companies are profiled in that so definitely check out that report in the video description below um also just you know i'm trying to make as good content as possible here so just be sure to subscribe if you like this kind of stuff uh mash that subscribe button and also if you want to comment you know by all means maybe i'm completely way off base here maybe you're uh uh you pay fanboy maybe you think it's it's rubbish but you know have a little chat amongst yourselves and let me know what kind of content you want to see going forward and i'll look into doing that for you guys um so yeah check out those two reports and you can also find the link finally one more thing uh you can find a link to the article on ioup in the video description as well so uh i hope you've enjoyed this look at this hype company um i've managed to figure out the lighting so i no longer look like only witness protection which is a win and uh yeah i hope you have a safe week uh and enjoy uh this period out of lockdown and i'll speak to you soon thank you bye