MENU

The Afterpay Touchcorp share price is going nuts

There’s no stopping shares in the newly-merged Afterpay Touch Group (ASX: APT) that have climbed around 18% since hitting the ASX boards last week.

For now the shares are trading on a deferred settlement basis until July 10 when they should trade by normal settlement as the market assigns the combined group a value greater than $500 million.

Afterpay’s meteoric rise has been based on its ability to sign up retailers as clients at rapid rates as it offers retailers the ability to let their customers buy now and pay later, with Afterpay largely carrying the credit risk.

Although Afterpay’s spectacular rise has made the headlines, it’s the Touchcorp business that is more established with a track record of net profit growth. The merger came about in part because Tocuhcorp as a transaction processor already held a substantial equity stake in Touchcorp and provides the technology that lets Afterpay process its transactions.

In fact it looks like that the two groups combined offer investors an exciting prospect, with the sales focused Afterpay model now married to the profitable Touchcorp as a rich suitor meets a popular bride.

As always investors should remember no businsess is a buy at any valuation, but the combined group looks one for the watch list as both companies have some excellent qualities and put together could perform well long into the future.

Rich listers know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.