Sub holder reducing their holdings

If I'm not mistaken, Anacacia looks like a private equity firm - https://www.anacacia.com.au/

Have sold a while back after going through the last update.Given growth has flattened and sellers still active, maybe revisit at $1.20 or when the macro becomes clearer

Downgrade from Bell Potter but still price target $1.97:

Smartpay Keeps Buy Rating Despite Moderating Revenue Outlook -- Market Talk

  0114 GMT - Slowing consumer spending and moderating inflation prompt Bell Potter to lower its transaction revenue forecasts for Australia-listed payments company Smartpay. Analyst Hayden Nicholson lowers the forecasts by 4.5% for fiscal 2024, by 9.1% for fiscal 2025 and by 15% for fiscal 2026, reflecting the assumption that average revenue per payment unit will slow. Yet he tells client in a note that he sees an improved earnings outlook from fiscal 2025 amid lower variable costs, lower software capital expenditure and industry regulation on mobile-wallet transactions. Bell Potter trims the stock's target price 6.2% to A$1.97 and maintains a buy rating. Shares are flat at A$1.525. ([email protected])

(END) Dow Jones Newswires

August 08, 2023 21:15 ET (01:15 GMT)

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Some selling by Wilsons asset management which is unusual given the recent solid results

I admit I came into Smartpay (around 95c) early this year with a bit of apprehension as I'm more mining/biotech but was attracted by the financial metrics, product scaling, customer satisfaction and also see it being used in a few places.

One broker on Capital IQ (I believe it is Bell potter) also forecasts EPS of 0.03 for FY24 which implies a PE of around 56 at current price. Overvalued but looks like you are paying for quality.

So the selling could explain the weakness today (14 July). Maybe Wilsons is selling some to chase other opportunities or they see the Bell potter report as well.

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Not sure what others make of this tweet. I know TLX put out only revenue numbers in the JP Morgan conference before the formal business update came through.

Also a bit unusual for me being a holder of Smartpay given they operate in a highly competitive industry. But do like the fact there are lots of positive testimonials about their service and they seem to be growing.

Given the macro picture is against retail at the moment, I didn't think Smartpay share price would hold up this well.

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Saw Smartpay terminal being used at the local Shanghai Chinese Restaurant at Chatswood.

Obviously when I saw it, I knew immediately I will be given a surcharge.

So I opted to pay for cash instead. Once a cash person, always a cash person.

I'm sure it will be useful some day when I have no cash in my wallet. But smartpay appears to be getting more visible.

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