Q: I’m a bit surprised this stock doesn’t have a better looking chart. Great active user growth and financials trending upwards. What is you take on this company and SP performance? I did notice insiders tend to dump shares quite regularly over the last few years. Is this a concern? Thanks
5i Research Answer:
Looking at the business itself, we think that PAY has brought forward a good platform which caters to a specific customer base to serve a distinct problem faced by gig economy worker. It is cheap, growing at a high rate, generates recurring revenue and does not have any debt which we like. Additionally, PAY is already integrated by some of the biggest employers of gig economy workers like Uber, Lyft, and DoorDash. Insiders hold about 7% of shares which is OK and being such a new company we are not overly concerned with the sale transactions. PAY will need to continue to effectively grow its user base at a high rate to see it's margins expand, but overall we do think it is being somewhat overlooked at a valuation of 11x forward earnings.