hope you don't mind my views as I have done a tonne of research...
1, Are they still offering the ability to buy things $400 or less through 3 installments via a Debit Card. If not, why not.
I have seen merchants that offer payments below $400 with split it, I believe it was a hair extension company.
2, How many of the 15.9m shares obtained by Simpel at 13c will be available for sale on day one. Same for the 25.7m shares issued at 11c. Nice to see funds used to buyout stale existing holders though.
I believe Simpel & 11c investors will be offloading some parcels along the way not on day one.
3, The business model extends the time it takes for Visa and MasterCard to get paid. What happens if this upsets them and they somehow disallow it through their platforms. This is a major concern of mine.
I can't see how extended time will hurt these to CC companies if anything it may increase their future revenue via interest fees
4, A very strong team of Directors, but until those with none buy some shares I'm not convinced they care.
this is true, but holding can also be a distraction for performance, if they perform they get free shares
5, This will burn through its raised cash in quick time. As an investor I'd be waiting for raise number two, what price it is and how much.
2 years is the planned timeline, most money spent is going into capturing more customers and better integration and services for the consumer, the 2nd raise potentially will not happen as I expect by 2020 the company making profits in the millions, any cap raise will be to offer funds to merchants up front simular to what simpel did by memory
6, They have shown the graphs of Merchant growth, I would like to see one of Merchant departures
this would be nice, departures would occur for merchants who have low profit margins in their products which creates a poor cash flow scenario, but I doubt more than 20-30% would use split -it
7, They average 12.4 users in each country, which I think is pretty average. It's a similar number to a statistic used once by GetSwift.
12.4av for merchants is low, but it depends on the value going through the books, I just heard that the transaction volume for SPT for december was over 90Million... so thats circa 1.5 Mill in the bank just in 1 month, i assume majority was from jewellery purchases for Xmas.
8, Will it be too expensive for small Merchants. On a plan where a Merchant is paid in installments over 12 mths, a $120 sale would be $19.80 in fees(BAD), $1000 would be $33(OK). My math wrong?
your math is correct this is why I believe they recommend value of order to be over $400 & most like too expensive for low value merchants unless mark up on product is huge
9, I'd like to know the fees for the other two options the Merchants have for receiving their funds.
I have looked into getting Splitit for my business... Bricks and mortar only, so can't calc e commerce setup costs into the scenario.... So cost for me is 1.5% + fees from splitit, +1.5 from braintree as the payment gateway, + anyline of credit you may need to setup whilst waiting for payments to keep cash flow for your business, everyones business model is different.
10, Point 8 makes me want to see Point 6.
Splitit is not for every business if you can increase sales and fits into your model, go for it!
11, It's Armada as lead manager. Not a fan.
there has been some negative media from this lead manger, but its the listed companies that failed not armada so its hard to blame them for doing their job, majority of specs fail, its the hard truth and I have lost money in the past, its all about risk mangement and for me a spec thats already turning revenue and has good growth models is a big win for me
12, Why is Miranda Kerr's hubby in this. Intriguing.
Husband is a tech investor & entrepreneur... heard of snapchat! Miranda kerr & Myer relationship, she also has her own branding... read between the lines on this one
13, The number one shareholding of 58m shares is owned by an entity connected to a quitting director. Do they want out.
I believe there may have been a rift with Gil at some stage potentially with the director leaving, who knows how this will play out
14, The targets of the performance rights are outstanding. BIG targets. If they get met, this thing will fly......EDIT. looked deeper and realised $150m in transactions is around $2.7m (gross) to Splitit at the 1.8% they seem to average. It's really what they should have now to justify the $42m odd EV they have.
I believe some future growth and the tech I.P is factored in, not just revenue in this case.
15, No late fees as the automated payment schedule and hold on card should not allow it, but no interest! Is this a clever workaround? What happens if the charge to the person's CC is not paid by the due date? Is this just 'No interest charged by Splitit but you may incur interest from your card provider'
Correct, clever work around, but if you can not manage your CC you will get their fees and interest.
16, Has the company already addressed this possibility in the prospectus. The only way to be unable to re pre-authorise already pre-authorised amounts would be if the CC had attracted an interest charge right? Or I guess if it's maxed out and they charge the installment before the new pre-auth.
Not 100% what your 1st Q was here, But once the purchase has been made via Splitit platform there is no risk in retriving funds about, all about the waiting game month by month
19, They list all the reasons that shopping carts are abandoned, their main selling point to merchants. They actually shoot themselves in the foot on this. 85% of carts are abandoned due to lengthy checkout times. If they can already check out with their credit card, is that extra step to check out with Splitit what pisses of 85% of us.
The idea of making a split payment keeps the shopper on the page longer and is more likely to increase cart value and follow through with the order.
20, $100 Amazon gift cards to people who have complained online! Hmmmm.
I havn't heard this one, but like any business you need to keep customers happy
21, "Today, over 800 merchants have registered for Splitit" RewardExpert June 2018 interview with Gil Don.
22, "over 1,000 merchants are selling their produce on his website and over 100,000 consumers are making purchases through Splitit" Forbes October 2018. Why is the highest figure quoted for merchants in the prospectus 310. Saving it for the staggers pump?
Can't answer these?
23, I assume on top of the fees mentioned by Splitit are the transaction fees charged by Visa/MasterCard. If these include a % PLUS a 10c (or so) fee PER transaction it is a worry.
no fees from Visa or Mastercard they want your business and want you to max out that unused credit... only other fees is payment gatway and cashflow line of credit which may be needed as per my answer from Q9
It's just my thoughts, like them or hate them. I'll be watching this closely, and as mentioned, possibly be interested in raise 2.
Thanks for your input, some great questions always do your own research and look for flaws.
If you are so inclined to deem me a downramping clueless loser then I'm up for the fun but would much prefer an emotionless discussion about where my points are incorrect or irrelevent.
All of my comments are IMO and no you seem very level headed time will tell how this all goes
Cheers and gltah, we need a good stagger. Market feels ready to get excited again too. Perfect timing to list.
Hopefully I have been watching the US markets closely, some stability in the markets is what we need.
Best of luck all My Own Opinions
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