Payfare (PAY-T)

Canadian fin tech business that provides instant access to gig worker economy. Trading at low multiple, with high profit margins. Unsure on why valuation is so low. Believes market will soon recognize value and re rate the stock. Recent announcement with Lift very good for long term profits. 

Great service, but whole murkiness with last set of earnings. Stock was halted at one point. Leaves a bit of a blemish on the name until they can prove financial controls are running as they should. You won't miss a lot by selling. Valuation's a bit full.

We have quite a few comments posted on PAY; it was halted for a period to clear up an issue (discussed in the Q&A) and appears very much back on track now. It is very cheap at under 10X earnings and it has a very strong balance sheet. Very good earnings growth is expected in the next 18 months at least. Insiders own 11% and cash flow is growing. Overall, it has some good qualities for a small cap stock. 
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Large position, great future. Lets people such as Uber drivers get paid at the end of the night, instead of waiting 2 weeks for a paycheque. They skim a fee off the top. Biggest risk is customer concentration, working to expand.

It is one of his favourites with a fantastic business model, a very good core business and ROC, and trading at 8 or 9 times earnings. It is good for Uber drivers and others in the gig market since they can access their money quickly. The gig market is growing at 30% per year. It is not well known but there are lots of catalysts coming. It may move outside the gig space. For example it may start to provide fast access to capital in the fast food industry meaning that workers can access their money right after a shift. It is a capital light business.

A Canadian Fintech company that allows Canadian gig workers to have instant access to their money. It has contracts with Uber, Lyft and DoorDash, the three biggest players in that space. Using their credit card system, Payfare takes a piece of the merchant fee, not Uber, etc., or the worker. They are planning to take their technology and apply it outside the gig space. There is super high growth in a very fast growing space. it has a decent valuation and very high ROE.     Buy 6  Hold 0  Sell 0

A fintech that allows shift-workers like Uber Eats deliverers to get paid as soon as they complete their shift so the could spend that money. PAY makes money on interaction fees. They have enough cash flow to meet their growth plans. They have 1.2 million out of 70 million gig workers out there, so there's lots of room to grow.

IPO'd in 2021, but became profitable last year, tripling their revenue and became profitable in Q4 2022. Can they expand beyond Uber, Lyft and Doordash? That's what he's watching.