TIPS FOR THE AUSSI INVESTOR
Before we begin I’d quickly love to mention that this is not financial advice ,investing involves a certain risk and please do your own research around these stocks .There are helpful links throughout the whole article that you can find to educate yourself .
Extra Tip
Before you do get into any kind of investing in the share market I highly recommend paying off your debt .Paying your debt is also an investment and it brings greater joy to be a financially free individual
WHY YOU SHOULD CONSIDER INVESTING IN BUY NOW PAY LATER SECTOR
Buy now pay later industry is relatively new compared to other industries in any stock market .For those who are not familiar with BNPL ; BNPL was introduced as an easy option for many people to make a purchase without having to pay the full amount for the product they purchased . For example ,lets say you purchased an apple computer and you do not have the full amount to pay at the checkout (Whether its online or in the store) ,BNPL Platforms that are accepted by the retailers will give you the option of paying the amount in installments ,the leading BNPL giant AFTERPAY offers the consumer to pay the amount in 4 installments . Financial advisors predict that this BNPL trend with the increase of online shopping due to the Corona virus moreover it will gain more traction as Corona Virus hits new levels of cases and deaths causing millions of job losses throughout the world . Hence, it is a good time to think of investing in some BNPL Companies.
The Granddaddy of Buy Now Pay Later : Afterpay (ASX:APT)
Afterpay is the leading BNPL company in the world with a market cap of 19.80 Billion US dollars , its rapid growth and performance has stunned many experts in the world .Founded in 2015 ,the company has come a long way in such a short period of time . Observe the bellow chart of its performance in the ASX
When the company first entered to the ASX its share price was as low as AUD$2.95 ,and after 5 years its share price was currently closing at (7/8/20) AUD$70.70 .
SAY WHAAAAAAT
This is due to the huge popularity of the platform in the retail sector . Afterpay has partnered up with major fashion and tech retailers in Australia, New Zeeland, UK and US offering a wide variety of shoppers with the financial relief .Now with the click of a button you can purchase anything you want without having to pay the full price .Instead you can pay the full amount in 4 installments
What will the future hold for Afterpay
As a modern age investor I myself often think about what will happen in 10 years ,will we finally have flying cars . But in my opinion I think this stock will ascend to AUD$100 hence I decided to buy stocks worth of $1000 to see how it performs . I purchased my stocks 2 weeks ago at AUD$68 and in two weeks( a really short time) the stock has risen up to AUD$70 and is holding up strong . Again I’m not a financial advisor ,this is my take on this particular stock and please do your own research before buying in to ATP.
Split Pay (ASX:SPT)
Split pay is a pretty interesting stock that said to have huge potential ,currently trading AUD$1.52
it hasn’t had that much volatility compared to APT but many ,and it currently has a P/E ratio of 7 (bellow 10 is good) .Many including myself believe that this is set for greatness due to their unique business model . (https://www.asx.com.au/asxpdf/20200730/pdf/44kzcmxqw328gy.pdf) . Here attached is their investor update for FY 2020 ,I highly recommend you have a look at this and their company portfolio before investing in SPT . But to give you a quick brief of what I meant by unique business model ,have a look at this chart
Their business model aims to reduce New Debt whereas other platforms such as afterpay ,sezzle does exactly the opposite .
Moreover , Splitit recently partnered up with master card and sprite allowing it easier for consumers to use card based payments in installments .
Furthermore,Splitit is the only platform which allows to reduce the “Cart Abandonment” (https://www.salecycle.com/blog/strategies/what-is-cart-abandonment/) making it easier for the merchants ,So if you are a business owner this is one of the platforms that’s thinking about you .
Is SPLITIT a good investment ?
Given how BNPL is slowly taking over the world . I certainly believe it is ,hence that’s why I purchased 1000 units very recently again this is not financial advice ,hence I highly recommend you do your research before investing in SPLITIT .
Last but not least OPEN PAY (ASX:OPY)
With a market cap of 394 million US dollars open pay is relatively a small player in the BNPL Industry however their numbers are staggeringly increasing . Their recent investor updates showed that the active plans have increased in 229% in the last financial year which is a good sign for the new investors looking to buy some stocks in the OPY .The reason why I believe they are a promising stock is that their recent partnership with the 1st Group ,a telehealth company operating in the Australia ,allowing OPY to be the first BNPL company to partner up with a health provider . If you observe the above chart you can clearly see that the stock is gaining traction and is on the bullish trend .hence I highly recommend doing your own research and consider buying this stock. It could go to AUD$10
All the information that you need regarding the company is in their investor page .
Conclusion
I do not consider myself as a financial advisor this is my take on these three stocks I personally believe these have potential hence that why I purchased them at my own risk .I invite you to do your own research on the industry and on these stocks individually ,I will be talking about other stocks that are good byes in the coming articles . Lastly , I listen to Justin Baldori and Jason Pazzino (https://www.youtube.com/user/highcarbhealth)(https://www.youtube.com/c/JustinBaldori) for fundamental and technical analysis on ASX stocks ,I find them quite useful for my own investment strategies .
