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WZR - Wisr Limited

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I noticed there was no thread for berklee. Current share price 54c. In about 4weeks they are offering a fully franked dividend of 12c. That's over 20 percent half year yield. Could someone please clarify as to why the huge jump in dividends. Is it worth jumping in or am I missing something? Any thoughts would be appreciated!
 

System

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On July 10th, 2015, Basper Limited (BER) changed its name and ASX code to DirectMoney Limited (DM1).
 

greggles

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Some positive news for DirectMoney today.

Alceon, an alternative investment manager with more than $1 billion of assets under management, will take a strategic stake in the company to fund growth and innovation initiatives.

The investment will be structured through an initial placement of $600,000 at $0.042 per share (being
14,285,715 new shares), a 56% premium to the price at close of trading on 9 February 2018 and equivalent to a 3.1% shareholding. Alceon will also be granted an equal number of call options enabling them to increase their investment in the company by approximately $1.14 million at $0.08 per share, a 196% premium to the price at close of trading on 9 February 2018.

DM1 up 1.4c to 4.1c today, a gain of 51.85%. It's been trading in a very tight range since July last year and this is the first announcement that has sent it through 4c since August 2017. Volume today was almost 5.5 million shares, highest volume day since July 2015.
 

System

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On March 14th, 2018, DirectMoney Limited (DM1) changed its name and ASX code to Wisr Limited (WZR).
 

greggles

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Wisr Limited has been having a good few months, up from 4.5c at the end of February to 12c today.

WZR launched their app on 18 March and on 28 March announced that they had raised approximately $15 million after costs via an oversubscribed placement of approximately 220 million ordinary shares at 6.8c a share.

In their Quarterly Report released on 30 April they announced a 293% increase in quarterly loan originations when compared to the same period last year (Q3FY18).

With WZR pushing through to new highs today this might be one to keep an eye on.

big.chart-WZR.gif
 

Zaxon

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It's certainly has had a remarkable run up. Hopefully, this trajectory will continue.
upload_2019-5-20_8-23-52.png
 

tinhat

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This fintech is another one of my more speculative holding but I am growing more comfortable with it the more I learn about the business and watch it grow. I doubled my holdings last week.

They started off as a peer to peer lender but decided that there wasn't enough growth in that business model and relaunched under the Wisr brand as a non-secured personal loan business. They have been in a start-up phase of that business, operating as a loan originator and securitizing and on-selling the loan book to keep it off balance sheet.

Just recently they announced a deal of up to $200 million "debt warehousing" facility with NAB that triples their loan margin. This money comes from the $2 billion of funds NAB has earmarked for direct investment into the fintech sector.

Yesterday they announced that their total loans originated had hit $150m. I would hope that they use the money saved through the tripling of the loan margin to raise their sales and marketing effort.

They aim to launch a secured vehicle financing product.

The things that attract me to this business are their:

- ethical and sustainable lending model,

- focus on building a high quality non-secured personal loan book,

- ability to compete with the big banks and other lenders by offering competitive (not predatory) interest rates,

- marketing strategy of focusing on customer financial wellbeing, their 100% online business model, financial wellbeing app that helps clients pay-down debt, and overall appeal of their offering to the millenial market and beyond,

- their early mover advantage in leveraging into new competitive landscape that is opening up with the open banking platform which provides lenders such as Wizr with realtime data on loan applicants that enables sophisticated risk analysis with far less human review (cost) to writing a loan.
 

tinhat

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Wisr features in Livewire Markets top stock calls for 2020

 

tinhat

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As stated in my previous post, one factor in my investment thesis is the implementation of the open banking protocol. This was a theme amongst the speakers at the fintech 2020 and beyond seminar I attended in November.

Here is an article from today's SMH on open banking and fintech:

Open banking and rise of fintechs to disrupt big banks' 'rivers of gold'

Here is a good overview and timetable for the industry implementation of the open banking reforms
https://www.finder.com.au/open-banking

WZR has taken off on the back of some favourable coverage and the current market interest in the fintech sector. Volume has been rising since November last year with some big volume going through last week. I'd be interested to hear any views of chartists on where the next top might be.

upload_2020-1-11_9-31-47.png
 

tinhat

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Can't help but point out the irony in statements like that... I think a number of the newer lending or BNPL companies have debt/lending facilities setup with 1 of the big 4:rolleyes:

F.Rock
A fair point, but the author is talking about the retail end, the consumer interface, which is where most of the value add is at. WZR are now tapping into a debt facility with NAB and I think they have also been sourcing debt from Macquarie. Where do the big four banks get their money from? Deposit holders don't account for much of the funding. Ultimately, under the modern global fiat currency monetary system, money is printed by central banks and gets distributed through a financial system that enriches a lot of people along a chain down to where it entraps the consumer into the capitalist utopia we all thrive under.
 

Zaxon

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WZR has had a massive run up in the last 3 months. Hopefully, that will continue for another month.

upload_2020-1-29_19-50-32.png
 

tinhat

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WZR has had a massive run up in the last 3 months. Hopefully, that will continue for another month.

View attachment 100001
I don't know whether it will still be on a gallop next month or making a bit of a retracement from it's recent gallop. It will be interesting to see how much they scale back the retail share purchase plan entitlement. I think they said they are only looking to raise $1.5m from the retail SPP which is a pittance really compared to what they raised in the institutional/sophisticated investor placement. I applied for the full entitlement in expectation that it will get scaled back. They reserve the right to raise more than the $1.5m and it will be interesting to see to what degree they feel they want to look after the retail shareholders and whether they will go over that cap. The management just wrote themselves a nice new incentive plan when a whole stack of their options expired out of the money. Given that this stock has been carried mainly be retail investors for some time, it would be good to see them look after them through the retail portion of the capital raise.

I am hopeful this stock might hit $0.50 at some point this calendar year. I don't expect it will get there from here without a retracement or two along the way.
 

tinhat

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Why no talk about Wizr? A few of us tipped WZR in the yearly stock tipping comp.

I actually sold out of all my WZR between 18c and 14c. What fool me O!

I did so because I wanted to lean more conservative (I'm rather risk on) during this period. I still reckon a retrace might happen but the market is looking more like trading sideways. There is an election in the USA in November that is going to influence the market.

At the end of the day, I feel I made both the right and wrong decision in selling out of WZR.

I bought the company as a speckie that I had some conviction over. I ended up having a chat with the CEO and I thought it was worth throwing some money at as a fintech. I didn't buy afterpay, zip etc because I decided on my research at the time that WZR was the more sustainable business model, beit a speculative prospect.

Anyway, a bit before I sold out of WZR I actually sold out of all bank stocks in all three portfolios I manage (I actually manage far more money through the SMSF for my Mum that for anyone else). It was the first time ever that I had ever had a portfolio with no bank stocks! So, on that basis, I decided that I should sell out of WZR too.

There is a principle that I do like to follow, which is bottom up, which is to buy the company not necessarily the sector and not the market. That's true to some degree and also false to some degree.

I think that WZR is a small cap that is worth chasing against the market sentiment. I don't mind that on paper I've missed out on one bag (100%) because I still have made some money on trading WZR (I try and bank 50% of my profit on the first wave up of any stock purchase I make) and I've made some money on diverting funds into gold miners of late.

I'm going to jump back into WZR at some stage. It may not punch the lights out like Afterpay because it is only looking to remain domestic, but it seems all alone in disrupting the unsecured personal lending market.
 

tinhat

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Have been watching it with a lazy eye, couldn't decide to get onto it though.
Settled on a small take on FXL and hopefully some dividends.
Any thoughts on it @tinhat ?
Cheers.
Mate, I haven't looked at FXL for a few years. My longer term focus is more on biotech, my medium term focus is on copper and nickel and my short term focus is on gold. You can make money on anything is you are nimble - stocks in solid balance sheet growth companies like AX1, but I'm not necessarily nimble of mind. If I had to chose one stock to recommend to a friend to have a look at it would be PNV.

I don't see any point chasing dividends unless you can afford to live off 4-5% fully grossed-up (100% franking credit) income and still have your money at risk. Good luck and all credit to you if you can. I know many people can do this but I am not wealthy and I need to chase a higher return. I want to do a lot more travelling and even though I am still of working age I am rather busy and would prefer doing volunteer work.

I actually had my eye on pushpay payments last year but decided to put my money into WZR instead. I made money on WZR but look at pushpay payments just lately - woo hoo!

There is talk about about EML payments being worth looking at.

At best I am a mug punter. What is important is that we work for the liberty of all through justice for all.
 
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At one point I owned some Wizr I reluctantly sold some stocks some months ago including Wizr because I had to consolidate my balance sheet and reduce my loans in case the downturn got a lot worse. There is still a person I recommended previously to buy Wizr who still owns it so hopefully they will make some money from it.

I think it has a good chance of growing into a much larger company, although ultimately its operating in a space with few barriers to entry so as it becomes more successful competition in the space could intensify.
 
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Mate, I haven't looked at FXL for a few years. My longer term focus is more on biotech, my medium term focus is on copper and nickel and my short term focus is on gold. You can make money on anything is you are nimble - stocks in solid balance sheet growth companies like AX1, but I'm not necessarily nimble of mind. If I had to chose one stock to recommend to a friend to have a look at it would be PNV.

I don't see any point chasing dividends unless you can afford to live off 4-5% fully grossed-up (100% franking credit) income and still have your money at risk. Good luck and all credit to you if you can. I know many people can do this but I am not wealthy and I need to chase a higher return. I want to do a lot more travelling and even though I am still of working age I am rather busy and would prefer doing volunteer work.

I actually had my eye on pushpay payments last year but decided to put my money into WZR instead. I made money on WZR but look at pushpay payments just lately - woo hoo!

There is talk about about EML payments being worth looking at.

At best I am a mug punter. What is important is that we work for the liberty of all through justice for all.
Not as nimble as I once was. Thanks for the ideas. Don't forget uranium and zinc ;) Ooo, don't forget the oil scenario either...
Pushpay, Wzr, Afterpay, Openpay... it's been like the Dapto dogs. They all shot off and I didn't know where to look and missed em all. Once bitten, twice shy etc...ooenpay and sezzle have disgusted me...
 
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... A new pilot program with one of Australia’s leading member healthcare charities (details to be released in the coming months), as well as on-boarding new strategic partnerships covering the finance, healthcare and mining sectors due to COVID-19
This (pairing with a large non-profit, org or corporate) may well prove to be the entry for the scale so desperately needed. Otherwise, it's what? TV ads for the bogans, Google ad filters for those with initiative.

But, financial wellness? Those that need such an approach don't engage, and those that do (& download the App) probably will find the need is low soon after.
a good chance of growing into a much larger company
. its quite small
 
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