Unless you bought in Thursday or later, you guys should be ahead. But I have said it since the start, what makes this company worth 10-15% higher each day & even now, 6 x the price the investment bank & owners sold their shares into?. Make a strong argument for your thesis, come up with a price & if its below that, its a buy for you, if its more, it should be a hold or sell. The company has been listed for a month, it hasn't done anything except raise some funds for a marketing push (which will hopefully pay off in the short/long term). All those considering this company should note the following:
The sales it makes under its 'simple plan' are likely to be once or twice a year/once every two years. This will be an issue for merchants wanting to allow large quantities of sales via Splitit as it may defer too significant an amount of revenue, unless they are prepared to sell their receivables book. Use of Splitit will also restrict a customers number of times they use the product annually (as the amounts are likely to be large & place a hold on the cards)
It runs on others (MasterCard, Visa) technology with their own take on it - therefore those who say the sky is the limit - well I would think perhaps 5% of the market cap of MasterCard/Visa would be their absolute future limit.
It is not a win/win like other Buy Now - it is certainly a win for interest conscious credit card holders - has no benefit for debit card holders (unless the banks allow a hold amount to be an offset against a loan account) - it has limited benefits to merchants unless they get upfront payments (this is at a higher cost to other available products).
This is not a ramp up nor down ramp, but those riding these ups & downs should be aware of what the company they are buying into will offer the market & where their advantage is.
