APT
I first heard about APT from a colleague. Not as an investment tip but to inform me that his clients are asking him for APT facility for cosmetic treatment. Then I read that it is making a big inroad into the credit industry. In theory, it is a more acceptable face of taking advantage of credit facilities for the younger people.
Some time after I bought, a journalist pulled a stunt by getting a child to obtain APT credit at a store. It worked! Because of the ease and lack of credibility check, APT was savaged in the market for providing too easy credit. In fact, that was one of the best constructive criticisms that APT can receive! It doubled its effort to make sure that there is a credibility check before credit is issued.
When APT shares were in turmoil over that issue, it was heavily sold off. I didn't think it was a difficult fix so I bought more... The management has managed to solve that issue and the share price is on a tearaway again.
posted by Club Mulgoa @ 5:31 PM
5 Comments:
Today, it went over 100% of my average buy price. It is great when I topped up when people dumping because a journalist got a child to get credit from APT!
The company tighten lending practice after that incidence, i.e. it learnt from it. And it is extending its business model successfully in the USA, too.
I put a buy at $14.01 and missed out for the last few days. But today, it fell to $13.97. I am glad that I didn't raise my buy price!
Crazy... it has gone over $18 in a space of a few days. I suspect someone inside must know that the technology is doing well in the USA. If the next update shows many retailers taking it up and the retail turnover using its system has shot up, then this stock will rocket upwards.
It went ballastic, over $21. So the company sought investment from fund managers and sophisticated investor at $17.05. Because they were caught short, especially index hugging funds, they had to pile in.
However when trading opened, smart ones dumped their holdings! I was going to participate in the SPP but when it fell to $16.71, I got my top up. Today, it might fall even further!
Unless the governments (in US, UK and Australia) put a stop to its modus operandi, then I cannot see how this stock would plunge much further. This kind of "micro" credit is very popular to young peoples, and increasing so.
Senses have prevailed since... but it is still very much overpriced by convention. There is no dividend yet.
At the moment there is a Labor-initiated Senate Inquiry, backed up by the Greens. However, it looks like curbing its operation would sound trivial as checking for credit worthiness when the average amount transacted is less than $250 is madness.
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