Paysafe Share Discussion Threads

[kuss1] 23/4/2017 23:39

More negativity Nurdin. Pays up more than 1000% in short shrift. It's not a question of rose coloured glasses for you, it's just a question of glasses.

[nurdin] 23/4/2017 21:30

50% rise? It is only back to where it was before the Spotlight report...and that is despite the very positive newsflow in the intervening period.

[kuss1] 23/4/2017 20:45

Nurdin, perhaps you are over-exposed as I find it irrational that you can be so negative with a few pennies decline in the share price after a near 50% rise.

But all comments on the business of pays are most welcome..

[nurdin] 23/4/2017 20:16

kuss..that is very patronising, must say.I raise issues for discussion purposes only and ask questions which others are too afraid to ask.I look at the key issues in all the stocks I have a holding in..its called risk management. I have a large holding here so naturally I am a bit nervous that the share price is not behaving the way I expect it to.I have ignored similiar trend in one or two other stocks that I hold and have paid a heavy penalty for it ! Perhaps I should put my rose tinted glasses back on again...

[eh9] 23/4/2017 16:46

As the share price is merely around 5% below its ath and this is the weekend of the French elections when no iis would be increasing positions last week I really don't think there is anything but a good story here.

[djbilywiz] 23/4/2017 16:02

May take a while for price to break and hold above the big overhead resistance level of 470p. Not enough strong demand at that level, too much supply. I believe at about 470p last year is the level at which the short positions increased? All IMO

[kuss1] 23/4/2017 15:52

nurdin you seem a particularly nervous investor raising concerns and then dismissing them only to raise other concerns .. most unrelated to the business itself.

Share prices go up and down I'm afraid. You have to learn to live with volatility and take a longer-term view, unless you are geared up on margin. But then you'll lose anyway.

On another point, any idea if there will be a trading statement on 9th May with the AGM?

[nurdin] 23/4/2017 15:35

Yes I agree...thats why I said Brexit should not be too much of a problem.

Having looked at the main risks, and by and large having discarded them,I cannot fathom what is causing the share price slide, specially when the stock is already so undervalued....

[eh9] 23/4/2017 14:43

Paysafe is one of the best set up companies to cope with Brexit - they can use Vienna or Bulgaria to passport across the eu as they already have very sizeable offices there so would be welcomed with open arms without having to shift any people around.

[nurdin] 23/4/2017 11:42

This excerpt from the 2016 AR goes someway towards answering the issues raised here Should have read the document properly:

" Operating in a highly-regulated environment means adapting to changes and uncertainty in various legislative and industry frameworks. Examples include the new EU Payment Services Directive ("PSD2"); changes to EU Anti-Money Laundering Directives; the UK's referendum decision to leave the European Union leading to volatility in exchange rates and uncertainty around licencing; and the General Data Protection Regulations coming into force in the UK in May 2018.

Our strategic planning process covers risks and uncertainty as well as opportunities, and we view ongoing regulatory developments as an opportunity for us to become more relevant to our merchants wherever possible. For example, our strength in alternative payment methods sets us up well for responding to PSD2. The investments we have already made in compliance and risk management capabilities, as well as the prudent assumptions in relation to additional costs built into internal forecasts, gives us confidence that changes to anti-money laundering regulation will not have a material effect on our expectations for revenue growth and adjusted EBITDA margin in 2017. In addition, we have a diverse geographic spread of merchants, consumers and operations, supported by a strong compliance and monitoring team, which positions us well to respond to ongoing change."

I can safely (reasonably so) lay regulatory worries to bed now.I also think Brexit will not have a major impact on their licenses in Europe,which they have referred to obliquely in their write up.

Asia gateway is another matter however. I have no feel for the risks there.

[steptoes yard] 23/4/2017 08:52

PAYS will have had two years from 26.6.2015 to put the best team in place to deal with the transition from 3rd to 4th directive. The impact would have been some time last year when the investment had to be made.

post 26.6.17 is when they come under the scrutiny of their supervisory authority....and it's the same for their competitors.

[eh9] 23/4/2017 00:18

As I explained above I expect no impact from the ml legislation. The product has been digitised in a big way (direct app top-ups) in readiness plus brand 2.0 is around the corner which will involve a supercharged app with the entire paysafe group functionality as well as supercharged retail gateway with the entire paysafe group functionality. Small payments will remain exempt anyway

[trentendboy] 22/4/2017 22:01

All positive. PAYS are a FTSE company and tightly regulated.Could reduce competition from fly by nights and move more business to legit companies like PAYS

[nurdin] 22/4/2017 17:55

How do you think ML legislation will impact us EH9?

[eh9] 22/4/2017 16:59

The paysafecard app has already been upgraded to allow mobile topups in shops and on line i.e. it has not only been enhanced to meet the regs but also updated and given additional functionality. Plus paysafe brand 2.0 is about to be launched around everything under the brand further enhancing functionality.In addition psd2 is a huge opportunity to paysafe and not a threat

[dan_the_epic] 22/4/2017 15:19

I think there is some concern that paysafecard users will have to do some form of online registration to unlock the cards they purchase.

In all, means they are slightly less anonymous than before, and for some who want total anonymity, it might be less attractive as a payment solution.

If the regs pass and paysafecard numbers remain strong, then in a SOTP calculation I'd be increasing the multiple on that business

[nurdin] 22/4/2017 13:30

Here are the main highlights of the 4th ML Directive which as you rightly say,come into force on 26th June 2017:


Key Highlights

Enacted on 25 June 2015
Full implementation by 26 June 2017
Replaces the EU Third Anti-Money Laundering Directive
Emphasis on ultimate beneficial ownership and enhanced customer due diligence (CDD)
Expanded definition of a politically exposed person (PEP)
Cash payment threshold lowered to €10,000
Expanded to included entire gambling sector beyond just casinos
Enhanced risk-based approach, requiring evidence-based measures

The key question is how does it affect Paysafe apart from perhaps adding greater administration burden? I do believe Paysafe have been upgrading their vetting procedures in readiness of this legislation since it was first announced in 2015 but I need to double check on this.

Perhaps the main concern is whether they will lose customers as a result of this tightening of the directive.That is a harder question to answer.

[nurdin] 22/4/2017 10:53

Ah yes...many thanks.

[steptoes yard] 22/4/2017 10:46

anti money laundering regulations currently operating from the 4th Money Laundering Directive in EU. Member countries have until 26.6.17 to transpose to their own legislation. The obligations are more imposing than the 3rd EU directive

[nurdin] 22/4/2017 10:42

I think Dan_the_Epics take ,his post 7897, is more plausible than the the French election argument.

"The market is sceptical of the longevity of Asia gateway, and the potential impact from AML regs on paysafecard, which is fair enough. The reality is that any deal outside of Asia would dilute it down to a small part of the group. Would expect a multiple rerating on the back of that.."

Still trying to work out what he means by 'AML regs' lol

[malcolmmm] 21/4/2017 19:57

The big focus for global markets near term is the first round of the French elections. If no candidate wins an outright majority, a runoff between the two candidates having the most votes will be up in early May.

Polls this week showed Emmanuel Macron, pro-European independent candidate, maintained his lead. But analysts said the results are too close to call in one of the most unpredictable races in recent history.

Right-wing candidate Marine Le Pen has advocated for France's departure from the eurozone. France is the second-largest economy in the eurozone, so investors are concerned that an exit could lead to a collapse of the monetary union.

A late surge in support for left-wing candidate Jean-Luc Melenchon, who also runs an anti-Europe platform, further complicates the outcome.

The biggest risk for investors, say traders, is that both Mr. Melenchon and Ms. Le Pen outrace mainstream candidates and enter into the second round.

"If there is any upset, we would have an ugly Monday," said Marc Bushallow, managing director of fixed income at Manning & Napier. "There would be flight to safety at least in the short term

[nurdin] 21/4/2017 18:01

ermmm....what is the connection?

[malcolmmm] 21/4/2017 16:47

Most likely the French election this weekend

[lw425] 21/4/2017 16:39

Looks like more shorting activity to me.

[nurdin] 21/4/2017 16:32

PAYS affected far more though.Dont understand what is going on here...