• Metadoro
  • Products
  • News and analysis

News and analysis

Check market insights shared by our community members
06.10.2022
Top 3 Financial Stocks: CME Group

CME Group is the largest market place for derivatives. CME stocks dropped by 25% from the beginning of 2022. The only reason for such a decline is the overall market correction and not any business issues. High volatility is a benefit for the company as it offers the most important derivatives to mitigate financial risks. Among those are the most popular S&P 500 index futures and other indexes linked to derivatives, agricultural products, gold, silver, and crude derivatives. So, the company continues to receive decent profit that allows for the payment of high dividends to its investors.

Free Cash Flow (FCF) of the company in 2022 is expected to hit $2.8 billion. CME is improving its efficiency as every Dollar received in 2021 was converted into $0.48 of FCF, while this year this figure is expected to rise to $0.55, and in 2023 to $0.57. Regular annual dividends is at $4 or 2.3% of share value. CME is also paying interim dividends. By doing so, it paid $3.6 regular dividend and $3.25 interim dividends in 2021, or $6.85 per share, slightly above FCF per share at $6.77.

CME has a solid business model and sound financials without substantial debt. These facts allow the management to take more care of the company’s shareholders. The current overall downside configuration offers great opportunities for investors to add CME stocks to their long-term investment portfolios.

11.08.2022
Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12th position by market cap with $7.8 billion, which is 4% less than Ethereum’s market cap. AVAX prices dropped by 82% of its peak values, allowing investors to buy it at early 2021 prices. Avalanche’s infrastructure consists of three logically isolated networks, each of these with their own processing, validators, and own set of rules.

This platform is often compared to the existing internet web infrastructure with core connection protocols like HTTP, surrounded by a huge number of networks to their apps. Avalanche allow for the creation of public and private systems as a blockchain or DAG (Directed Acyclic Graph) and for the use of different virtual machines for apps, including EVM engine (Ethereum Virtual Machine) that allows Enthereum network programs to be developed.

Avalanche includes C-chain to create smart contracts that are processed on an advanced EVM engine, P-Chain that coordinates validators that process transactions and also allows for the creation and management of new subnetworks, and X-Chain which is a directed acyclic graph regulating issuance and trade of cryptoassets. DAG systems record new transactions on top of the old ones, allowing for processing speed to be increased and for capacity substantially. It is quite different to other blockchains, where transactions are compiled in blocks in order to be processed.

The advantage of Avalanche is that it provides anyone with the opportunity to create his or her own isolated blockchain with its own set of parameters, including access to apps and the programming language with which it will work. Every subnetwork can process around 4,500 transactions per second compared to 14 processed by the Ethereum network.

11.01.2023
Advanced Crypto Assets: dYdX

DYDX tokens suffered a lot during the ongoing market correction and lost over 95% off their peak prices. dYdX is an advanced decentralised exchange, where clients can exchange cryptocurrencies and derivatives with marginal collateral. There are no KYC procedures to be followed within the exchange, as well as no need to disclose your personal data.

dYdX is runs on the Ethereum blockchain, known for its expensive transaction fees. However, StarkWare solution allows for lower fees as only commissions for trading are charged. The platform now runs on Layer 2 protocol which is incorporated into Ethereum’s  main network. This solution allows for transactions to be conducted instantly, while traders do not have to pay miners for validating transactions.

Market players are closely monitoring the dYdX V4 vehicle, which is  a standalone Cosmos blockchain, featuring a fully decentralised, off-chain, orderbook and matching engine. In other words, developers are going to create the entire trading infrastructure to scale up processes without involving any third-party applications. The service  cancelled two stimulus programs in order to lessen the effects of inflation within the dYdX platform and to support token prices.

04.08.2022
Ethereum’s Most Important Update

ETH is a native token for the Ethereum blockchain and is one of the two most reliable digital assets in the market along with Bitcoin. Ethereum is the first platform that became a hub for thousands of blockchain apps and other digital solutions. The recovery of ETH prices to November 2021 peaks at $4,900 would bring investors 190% profit.

Second layer solutions (Layer2) were introduced to improve stability and effectiveness of the Ethereum blockchain. These are blockchain network add-ons that are added on top of the primary blockchain. The most popular add-ons are Arbitrum, Loopring, Immutable X, and Polygon that have recently partnered with Meta (Facebook owner). In other words, the Ethereum blockchain network has a much broader use than the native blockchain itself.

Ethereum developers promise to release a new Proof-of-Stake (PoS) consensus protocol in late 2022. This protocol will allow miners to stake tokens to a special deposit to mine blocks. Some networks within the Ethereum blockchain have moved to PoS protocol this summer, while others are expected to move to this protocol in the middle of September.  This move will allow for the increase of processing capacity of the network to almost 100,000 transactions a second from the existing 30 transactions and lower commissions. This would also allow for ETH to switch to the deflation model when coins are algorithmically burned, while some coins would be removed from circulation as they would be blocked by staking - more than 13 million ETH or 10% of overall coins in circulation are blocked by staking. The problem is that coins are blocked for a long period of time and cannot be sold or exchanged for fiat currency.

15.12.2022
Three Undervalued Value Stocks: Costco

Costco Wholesale Corporation has presented quite disappointing earnings report for the Fiscal Q1 2023. Revenues were reported up 8.1% year-on-year to $54.44 billion missing expectations of $54.65 billion. This is obviously not the reason for long-term investors to remove COST stocks from their portfolios as the company is set to maintain strong financial discipline and cost structure, not to stimulate high growth in the short term at any cost.

The operational margin in financial Q1 2022 was at 3.4%, and in Q1 2023 it was 3.2%. Costco is aiming to provide the most reasonable prices on their products to keep their clients loyal. That is why the operational margin is suffering. Meanwhile, EPS was up by 4.4% to $3.1, and membership fees rose by 6% year-on-year. So, the strategy seems to be buying itself.

Inflation in the United States is expected to return under control over the next year. So, there will be no need to deliver various marketing activities like coupon sales and others while loyal clients will be grateful for the support during the period of uncertainty. Costco is planning to open 24 new stores in 2023, increasing its potential to generate revenues.

Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Investments in Apecoin Became too Risky After Recent Token Unlock

Apecoin prices dived to all-time low at $1.056 after a $54.4 million token unlock on September 17. The decline of its prices was no surprise as the same drop happened in May, July, August on the date of the unlock event. Prices have usually stabilized during 2-3 week after this date, but dropped again afterwards. Thus, APE prices may recover in the coming two weeks. They did recovered by 10% since the last unlock event, and may continue to do so. Most worrying is the support at $1.00. This might be the last stand for the coin as no major long positions are seen below this level. In case of a major breakthrough the coin may easily dive to the new bottom. So, the APE has to prove its stability if its prices would hold above $1.50 threshold. Otherwise, investing in this crypto asset would remain an extremely risky venture.

1111
A
Fantom is Offering Sell Opportunities

Fantom prices are continuously sliding since August 29, and are moving down without any haste. So, it may reached a higher resistance during its current correction. Only then, prices may accelerate to the downside. This, it would be important to wait for the prices to hit 0.1979-0.2008, which is a strong resistance, to open short trades targeting 0.1823, which is the low of September 12. The stop loss-could be set at 0.2052, the high of September 5.

1065
A
GALA is Likely to Continue Moving Sideways

GALA prices are moving sideways for almost a week. The trading area is limited by the 0.0150-0.0151 resistance and the support at 0.0136-0.0138. Senior timeframes indicate a general downward trend for the coin. So, it might be interesting to look for a correction to 0.0150-0.151 to open short trades targeting 0.0138, the low of September 17. The stop-loss could be set at 0.155, the low of September 8.

770
B
Gold Price May Go Up Amid a Mixed Mood on Forex

Spot prices for Gold (XAUUSD) jumped like a scalded cat from a nearly $1900 low of September last Thursday to around $1930 per troy ounce. Meanwhile, December futures for the yellow metal already exceeded a $1950 landmark. This happens due to a confusing uncertainty around the interest rate difference between the U.S. Dollar nominated and the Euro nominated fixed-income bonds. Traders are not sure which side to choose in the EUR/USD battle, and they often prefer buying Gold.

EUR/USD dropped to its multi-month lows at 1.0630 but recovered to above 1.0685 after last week's comments of the European Central Bank's (ECB) Christine Lagarde, who provided the latest rate hike with a telling comment that the ECB "have made sufficient contributions under current assessment to returning inflation to target in a timely manner". Of course, she didn't absolutely rule out scenarios of further hikes "if needed", because "we can't say that now - that we are at peak". Yet, Mrs Lagarde reiterated that the focus "is going to move, going forwards, to the duration". She added that there was "a solid majority of governors to agree with the decision we have made", even though "some ECB board members did not even want to raise rates on Thursday".

All taken together was at least a strong hint on the possible finish of the ECB's rate raising - if not in this cycle, then for 2023 and some further months, at least. The ECB had to downgrade its own GDP forecasts to 0.7% saying that "the recovery we had planned for the second half of 2023 has been pushed out over time", which is on the verge of an acknowledgement that regional recession may wait around the corner.

The U.S. Federal Reserve (Fed) is unlikely to raise its rates again on September 20, yet investors are still guessing what further projections on the interest rate path for 2023 and 2024 the Fed may offer them on the same Wednesday night. The Bank of England will finish its meeting next morning after the Fed, which makes the currency puzzle even more complicated. Investing in Gold, including short-lived speculative trades on XAUUSD, may be a good solution to avoid cutting that Gordian knot for the moment. So, testing the next resistance levels like $1950, $1980 or even $2000 seems to be much more likely than dipping below $1900 where just stop loss orders could be properly placed.

737
178

Join our community

Share your professional and amateur observations, exchange experiences, anticipate developments

Category
All
Stocks
Crypto
Etf
Commodities
Indices
Currencies
Energies
Metals
Instruments
Author
All
Metadoro
Contributors