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Zaim Credit Systems
@ZaimCreditSyst
·
14m
#ZAIM Following a strong end to 2020, with unprecedented growth for the Company,
@optivalondon
ascribes a target price of 11.6p to Zaim, for an implied target valuation of £50.7m.
Agreed! Ive worked hard due to low liquidity in building a decent position in Zaim. The positive in my opinion to low liquidity due to low free float is this company although listed is effectively acting like a private company and thus very attractive to said parties such as Klarna and PayPal....
The customer data alone is probably worth many multiples of the current mcap. And that before we’ve even got the mobile app live. This is only going one way
Have to agree with that. 400,000 customers, a huge proportion of whom use Zaim 2 or 3 times a year. Very appealing
Cant help but feel a Klarna or Paypal would take this out in a heart beat at a huge multiple
Ah that explains that then. So someone got a bargain at 4.25p.
There was another trade over 1m shares earlier than mine.
My trade isnt showing but I screwed up I did it with a limit. I dont normally buy trades with such low liquidity so it executed at limit - doh. Thanks Optiva for that :). I paid 4.7p. Obv still cheap on a 5yr view - which is what I am interested in.... there was a trade earlier than mine. Maybe mine will show as a delayed trade tomorrow.
Wasarunner, the FD paid 4.4p - so your buy today was cheaper.
As annoying as your purchase price will be, it'll be worth it.
Its still cheap. Excellent, well established company. The online will really make it scale.
Just a shame some silly sausage algos sold £20 worth of shares putting you in the red immediately
I've been in for a month or so. Just waiting for the market to realise how good this company is
I think this has so much potential, been following it closely for sometime, got a fairly large position in it. Think 11.6p can be realised pretty quickly!
Added 1m shares. Liquidity (lack of) is a pain but I'm in for the long haul. You can't beat compound growth opportunities. And with relatively fixed overheads (for the online business) divis soon? Already profitable etc etc. Only slight annoying thing is I paid more for my shares than the FD but nevertheless our interests are now aligned! GLA
Early Bird, Have you got a link to the broker note, can’t seem to find it
hopefully more start cottoning on here
For the Sipp so a long term hold here. Looks a very exciting prospect. Gla.
Thats a very meaningful amount and a great show of confidence for things to come.
That default rate is not high. Also read the below from recent broker note, lots of the defaulted loans are actually paid back.
Aside from the Algorithm, Zaim also screen against several databases, including CBR blacklists, criminal databases (both national and international), and sanctions lists. An important consideration to make is that due to Zaim’s CBR regulated status, any borrower who defaults on a Zaim loan is put on the aforementioned CBR blacklist. Not only are individuals on this list unable to access financial services from any regulated entity, but also forbidden from leaving the country or working in the public sector. Since the defaulting loan needs repaid in order for an individual to be removed from the blacklist, Zaim consistently see customers repaying debts which had been written off, and can therefore count these repayments as extraordinary revenue items for accounting purposes.
In 2018, Zaim reported an 8% default rate for existing customers, and a 38% default rate for new customers. Given that the company has stated a 50:50 split between these two groups, an average total default rate of 23% can be inferred. Whilst this might seem high, the company also reported that 89% of loans issued in 2018 were repaid. Note that this implies 11% outstanding loans in default, and therefore that over half of loans written off as bad debt were in fact repaid within the calendar year. This incentive to repay bad debts, combined with the risk mitigation provided by the Credit Scoring Algorithm, allow Zaim to operate without any use of repossession services or repeat calling to debtors, either of which might be considered uncompliant or a punishable abuse of power upon examination by the CBR.
That rising default rate is a bit concerning though?
I’m seen this algo at work on several companies recently - so easy on SETS to move the price in whatever direction it chooses
the algo style trades in this share are very odd indeed.. an entity trying to accumulate without moving the price? never seen it before on a company like this with such a small Mcap
Sky is the limit especially with the online/app business. Its a blessing in disguise theyre slowing the physical store side down as thats the side of the business that has a lot of overheads. The app based side once live is pretty frictionless in its expansion model.
These eastern block countries are tailor made for these bridging loans, all their credit history is linked to their national ID card so it makes the process of giving loans to the lower risk much much easier and the algorithms much more straightforward.
Could really be an exciting ride here over the coming months
At least. And that’s being conservative - they’re adding new customers all the time and growing rapidly., and reducing costs massively with huge online uptake. The next trading update should be interesting.
Worth between 6.25p and 8.00p
Zaim has 300,000 customers who borrow an average of £95 for 20-25 days and they’ll use the service two or three times per year, paying 1% in interest per day.
Ok, i will have a punt.