MENU

The Splitit share price is making Bitcoin’s rise look pathetic

The Splitit Ltd (ASX: SPT) share price is up another 26% to $1.98 this afternoon and is now up nearly 10x from its initial public offer price of just 20 cents per share in January 2019.

Splitit boasts that it’s in the hot buy-now-pay-later space in the same way as AfterPay Touch Group Ltd (ASX: APT) and Z1P Co. Ltd (ASX: Z1P) and the popularity of the space among day traders and get-rich-quick dream chasers largely explains its parabolic share price moves.

After all if the company’s insiders, professional fund managers, and investment banking capital markets experts and advisors agreed to value the business at just 20 cents per share two months ago it’s ridiculous to think the business is now worth 10x that on the back of no material changes or updates.

For the fiscal year ending December 31 2018 it posted just US$789,000 in revenue that translated into a loss of US$4.4 million. It reports it has 380 retailers and 118,000 shoppers signed up to its buy-now-pay-later services worldwide.

According to its prospectus it has 173 million shares on issue to give it a market value around $342 million at $1.98 per share.

Splitit has seen around 30 million shares traded today already which suggests its wild popularity with day traders and speculators is creating a momentum all of its own in a similar way to the likes of Bitcoin and Ripple.

As you’ve probably guessed, I would not suggest jumping on the Splitit bandwagon and I expect even Voltaire’s Dr Pangloss would be a seller on current valuations.

As an alternative to Splitit, I’d suggest one of the three blue-chip retirement makers below….

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson owns shares of AFTERPAY T FPO.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now