I will never invest in Paytm, Policybazaar or Fino. Why?

What is their USP?
Convenience, Options and User friendly way to buy loan, wealth management and insurance products.

If you go to ICICI or Kotak app, it offers all the products with same USP. So there is no MOAT.

@kunalb11 Over-startupting

Bull markets are a great time for fraudster promoters to make money. If you are a fraudster and also want to benefit from this bull market, here's a thread that explains how you can defraud shareholders and get rich.

1. Have a good story to catch investor's attention. Something like "only listed XYZ company" will help. Has zero value in terms of improving long-term cash flows of the business but is excellent branding for a stock. Change the name of the company to what's booming in the market

2. Draw analogies to D-Mart or other businesses that investors love (next Page Industries maybe?). Doesn't matter if your business is nothing like the ones you are comparing it with.

3. Give aggressive guidance. 15% growth is pedestrian. Talk stuff like 1 lakh cr sales/loan book or 50% growth for next 10 years. Your stock should be a potential multi-multi-bagger. Claim that there is no limit to how large you can be.

4. Start making up the numbers. Only Revenue and PAT matters. So don't worry if the Balance Sheet has all sorts of large unexplained scary stuff. No one looks at the BS in a bull market.

#nykaa reported H1 FY22 EPS of Rs. 0.1/-

If we annualise H1 EPS, the PE multiple we get is onlyyy 11500

#timepassfact

#PayTmIPO – Long Thread:
There is a new game in town. The rules are “well laid out” by VCs – Report just 3 yr financials, blame flat sales since 2019 on covid, pick consultants to project fancy story, price IPO at 45 times sales, create scarcity of “limited offer” of 12% shares”

12% stake sale ~matches the “principal investment” by VCs. Oh, by the way, get some tranches of funding just before IPO that values your company closer to issue price. It’s like you buying your own house again for 2x price. May not work for you but somehow seems to work for VCs.

Now rope in mutual funds with 75% of this scarce offering (SIP money will go somewhere after all) & leave retail scrambling for 2.5% stake of a brand that is now a “household name”. Get brokerage firms & YouTube advisors to keep pumping story with same broken records from DRHP.

Vola ! You have launched a successful IPO. With principle off the table, you still have 88% ownership to be gradually transferred overtime to domestic mutual funds, riding on retail (other peoples) money.
They say “a fool & his money will always be parted”.

Everyone rewards excellence & those are rare. Internet is about winner takes all, where one or 2 players dominate the entire industry.
But who rewards mediocrity? Well, enter #PaytmIPO. If Infosys & TCS were a bet on excellence, Paytm is a bet on mediocrity. We’ll see how.

One of the best sites for IPO