Peak Fintech Group - $TNT

Dear All,

I‘m new to this board and this is actually my first post. But I‘m reading since March this year and thanks to Saul, I discovered Upstart in March and bought an initial starter position and kept accumulating. Now it‘s my biggest position of nearly 20%.

Another big position of mine is newly uplisted Peak Fintech Group $TNT.It‘s newly listed on NASDAQ, a Canadian based SME B2B company, mainly operating in China right now. I know, China is not on Saul‘s favorit list, but because it‘s extending it‘s business to North America and Europe, I would like to present Peak Fintech Group $TNT to you.

Actually I prefer sharing a link to a new article on SA. Because, to be honest, they can explain Peak much better than I could have done it.

Just as an appetizer: Peak just updated their multi year guidance.

https://static.seekingalpha.com/uploads/2021/9/14/191022-163…

https://seekingalpha.com/article/4455547-peak-fintechs-promi…

And here is the link to the article. Hope it helps. If my post is not in line with board regulations, please feel free to delete the post.

Many thanks and all the best
HaikiliKona1

8 Likes

The company is not growing based on their latest quarter (blamed on seasonality - Chinese new year, etc.)

Their “take” on revenue looks to be 2% of loan value. The average growth over several quarters is insignificant given their SMB focus. If their product and system is going to go hypergrowth, they need to change something as their growth rates are low, even when smoothed.

Their cash on hand is very low, equating to 30 days of revenue currently. Their margins on services revenue is horrible. Their plans for bringing those services in house to cut out the middle man have a very long and very small improvement (to 50% in-house) by 2023?

This is a company with lots of big words and, seemingly, the entire market of opportunities before them. The problem is, they are inefficient with capital due to using so much local support, they are not growing quickly due to S&M concerns and all of their relationships with social influencers do not, with the numbers, appear to be bringing value in revenue.

Their stock price has risen 500% in the last couple months.

Analyst coverage calls this “speculative”. I agree.

This will be a great candidate to watch as, theoretically, their business appears to have some value for the SMB clients they assist.

I’d like to see:

More growth
Consistent accelerating earnings
Services margins to improve to more than 70% in the next 12 months (be aggressive with bringing all of that business service in-house)
Development of some channel partners which are funneling significant revenue to them as a benefit
Narrowing of their focus to get a few things VERY right.

It feels like they are amidst many good ideas. They need to execute on them and prove that they have a winning strategy. I welcome counterpoints and discussion.

No position.

7 Likes

TNT currently halted by NASDAQ, due to news pending…