We’ve been keen followers of AfterPay since last year. We issued a BUY on AfterPay on the 14 September 2017 (click here) and said, “We like the business and we think this stock could be potential ten bagger. Buy now.” The stock was trading at $4.61. It’s now $14.91. That’s a three-fold increase. Bravo. If you still hold AfterPay you’d be punching the air in delight, you’ve done well. But now, we think it’s time to sell. By now, you’ve probably heard all the huff and puff about the AfterPay phenomenon that’s sweeping this country. It’s of no surprise. Gen-Y or Millennials they’re called, want it all and they want it now. Most don’t have the money, so AfterPay is the perfect answer. Its share price is evidence enough. APT shares have rocketed 43% this week alone driven by millennial madness. This week’s rise came on the back of encouraging plans to expand into the US, shares are up almost 400% in the year to date. Investors welcomed the news as they digested the massive upside potential from this recent announcement. The US consumer market is absolutely huge. It will launch a partnership with lifestyle giant Urban Outfitters, who have sales of about $US3 billion across the US. It has also signed preliminary agreements with 50 other US retailers which include names such as Lorna Jane, Cotton On, Margaux and P.E. Nation. So far, so good. But is it? In a nutshell, AfterPay is the Gen-Y lay-by system on steroids. It’s great for those that don’t have sufficient funds to purchase an item they otherwise couldn’t. Smells a bit like a credit card? Keep reading. AfterPay makes full payment to the retailer, on your behalf. All you have to pay is 25% of the original purchase price. The remaining 3 payments are made every fortnight. Essentially you now can buy four items for the price of one. AfterPay will send you reminder emails, letting you know, well in advance, that it is about to direct debit your bank account. The service appeals to millennials. People aged between 18 to 34 make up 67% of its customer base and over 85% of transactions occur on debit cards rather than credit cards. Millennials don’t like credit cards and are wary of getting into debt. This works well because AfterPay technically isn’t a credit card. The best part about AfterPay is that it’s so easy. A simple online form takes a few seconds to complete. No credit checks. No ID checks. No rejections. You’re ready to buy now and pay later, all interest-free. Hard to believe isn’t it? Anybody can open an account. Heck, you could probably open an AfterPay account for every bank account and email address you’ve got. You could even do it under bogus names. Essentially, AfterPay allows customers to buy now and pay later even if they cannot repay their debts. In some instances, shoppers are allowed an AfterPay account, despite having a terrible credit rating. Shoppers are signing up in droves to the fee-free payment instalment plan because they simply can. You’d be crazy not to. What’s the catch, you ask? There isn’t one. Well, that’s of course if you pay on time. Miss an instalment and you’ll cop a $10 fee. Do it again within a week, and you’ll cop another $7 fee. Miss all of the repayments on any purchase and it will end up costing an extra $68. Ouch. But fair enough. It’s business. The message here, pay on time. There is, however, a limit. Once you’ve established a credible track record, the maximum…

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