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04.08.2022

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.

15.09.2022

Safe Haven Assets for Long-Term Investments: Broadcom

Broadcom is an American semiconductor and infrastructure software development company. Soon it is expected to close a merger deal with VMware, a cloud computing and visualization company, that will open new cross-sales opportunities for Broadcom to boost its revenues. Broadcom stocks are now 25% off their peak values.

According to the Q3 FY 2022 financial report that ended July 31, consolidated revenues grew by 25% year-over-year to $8.46 billion, and EPS went up by 40% to $9.73 per share. The semiconductors segment, that added 32% year-over-year, was the primary driver for the company’s profit. The company’s free cash flows (FCF) topped $4.3 billion, allowing it to spend $1.7 billion on dividends and 1.5 billion on the shares repurchase program. The company is planning to continue spending at least 50% of FCF on dividends that added 43% every year on average since 2016.

According to the Q4 FY 2022 forward guidance, the company is expecting its revenues to go up by 20% year-over-year to $8.9 billion and for EDITDA to go up by 25% to $5.6 billion. Broadcom has great experience in expanding its product portfolio by M&A operations, and apparently it will continue on this way. The company is also expected to benefit greatly from the $52.7 billion CHIPS bill in the United States.

11.08.2022

Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12^th 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.

16.06.2022

Not Every Tech Stocks are Equally Strong: SAP

SAP stocks have lost 30% since the beginning of 2022. The German tech company develops enterprise software and solutions to manage business operations. For example, one of its services can be used to manage all business travel financial activities and related spending. In other words, it is quite a routine company with a stable and strong cash flow. Once SAP software is installed on a corporate level it is hard to do without it as it is deeply integrated into the business core processes. Moreover, SAP is restructuring its business model around its subscription base and this will allow for cash flows to be even more predictable and balanced through the financial year. Such a model is in favourable to Wall Streel investors.

The war in Ukraine has a 300-million-euro negative effect on SAP business, and it is only a marginal 1% of the overall revenue base for the company, while its dominance in the ERP segment is secure. The revenues added 11% year-on-year to 7.08 euros in Q1 2022. The revenues grew by 6% in Q4 2021.

The company has made some successful M&A deals, acquiring Qualtrics, a cloud-based subscription software platform, that delivered +48% revenue in Q1 2022. This company had a gross margin above 90% in 2021 while SAP’s gross margin was at 70% for the same year.

SAP management promised to triple its cloud-based business by 2025, and boost revenues to 22 billion euros, while operational profit is forecasted to grow by 40% from the current 8.4 billion euros. This is a very extensive growth for the company that has a high P/E ratio at 17. The company may not perform very high growth rates as its younger tech sector peers, but it may certainly recover to new all-time highs in the long-term perspective. However, the sector may require several quarters to recover, and the recovery would be headed by such reliable companies as SAP with a low risk profile.

26.04.2023

Diversification Inside Tech Sector: Taiwan Semiconductor

TMS is the most valuable semiconductor producer in the world. Its stock went down by 40% during the recent market correction, and rebounded slightly after a strong Q1 2023 earnings report. The company reported an operational margin at 45.5% as production of 5 nm and 7 nm chips is increasing. The company continues to generate profit despite decreasing demand for personal computers after surging during the pandemic in 2020-2021. Its financials are looking much stronger than its major peer Intel. In the worst-case scenario TSM’s operational margin is expected to decline to 40%, while Intel is expected to deliver a 39% operational margin with a negative net cash flow in Q1 2023. Taiwan Semiconductor is planning to spent between $32 billion to $36 billion on CAPEX this year, while Intel has cut CAPEX to $20 billion despite being 30% co-funded by the U.S. government. On the negative side, the company is quite vulnerable to geopolitical risks as tensions between China and Taiwan are mounting. Although, it is hard to believe that Beijing will take the island by force, these threats could not be discounted. China is building its image as a global peacemaker while promoting its roadmap to establish peace between Russia and Ukraine, and the recent China-brokered agreement between Iran and Saudi Arabia. Economic ambitions of China are also a major hurdle for a military solution of the long-lasting conflict as the destruction of the chip production facilities of TSM will make such military operations pointless in the economic sense. In other words, TSM stocks may interest very optimistic investors that are seeking extra profit amid recovering demand for chips in the second half of` 2023.

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/

21.01.2025

Brent Sell Stop at $78.00

Brent crude prices are unlikely to sustain levels above the key resistance at $78.00-80.00 per barrel. Following a 10.0% rally to $82.78 in the first half of January, driven by new U.S. sanctions targeting Russia’s oil sector, the market now appears primed for a pullback.

Prices have returned to the trend resistance zone at $79.50-80.00 per barrel. Should the pullback persist, Brent crude may re-enter a downtrend, effectively closing the door to further upside opportunities if it drops below $78.00. While there are still prospects for upward movement, current conditions make short trades particularly risky at this stage.

However, if prices consistently remain below the $78.00-80.00 resistance level, I plan to initiate a short trade, targeting an ambitious downside range of $69.00-71.00 per barrel. This trade will be set up following a retest of the resistance zone, with a stop-loss placed at $87.00 per barrel to safeguard against excessive market volatility.

BRN

1232

MetadoroIn-house analytics

20.01.2025

Investment Banks Are Ahead of Lenders

An advance guard of the U.S. banking segment has reported for the ending quarter of 2024 ahead of the corporate earnings season's major chapters, which are still coming in and are supposed to make an overall positive contribution. But what's interesting is, the variety of lending institutions performed a solid organic growth in terms of both revenue and pure income, while the essentially investment giants like Goldman Sachs (GS) and BlackRock (BLK) grew up on a much firmer foundation. There is an impression that well-organised asset management, based on proper contextual ad hoc and mid-term stock transactions, is still producing enhanced results when compared to the returns of somewhat shabby loan portfolios at still quite heavy interest rates.

A temporary increase in Blackrock market value was up to 6.5% at its highest intraday point on January 15, following its record ever $11.93 of equity per share (EPS) on an also absolutely highest number of $5.68 billion in quarterly sales. Blackrock's three-month achievements provided a 23.5% annual boost in EPS vs nearly14% expected at EPS of $11.06 per share, which was supposed in analyst pool projections in reputable news outlets like Bloomberg and Reuters. Many investment houses quickly adjusted their price target areas for Blackrock shares, while also keeping Outperform ratings on the stock. As an example, Keefe, Bruyette & Woods (KBW) revised its price goal for Blackrock to $1,180, citing the investment bank's diversified inflows and global expansion growth initiatives which made the company favorably positioning in the eyes of analysts and investors alike. Blackrock is currently traded around $1000 per share.

However, the Goldman Sachs (GS) effect even surpassed the previous case, with an emergence of totally new peaks above $625 on GS charts, where the shares of this widely recognized investment giant had never been before. The weekly gain was more than 11.5% from $560 per share at the closing price on January 10. Goldman Sachs provided last quarter's EPS at $11.95 per share, beating a $8.12 consensus forecast, with its revenue achieving as high as $13.87 billion vs $12.15 billion previously estimated on average. This means that GS net revenues are up 7% YoY but its adjusted income soared by 54%, so that the firm maintains its clear leadership in global investment banking, including merge and acquisition advisory and wealth management services. Such a strong kind of resilience revived inner projections for EPS of $47.50 for fiscal year 2025 and $52.50 for fiscal year 2026. Isn't this a ready-made reason for targets above $650, or even $700 per share in the coming months, or at least before the end of 2025? By the way, Goldman Sachs CEO David Solomon was freshly rewarded by an $80 million stock bonus to stay at the helm for another 5 years, and John Waldron, a chief operating officer who is seen by many as a successor to Solomon, who is 63 now, was also awarded with his retention bonus of the same $80 million in restricted stock. However, the huge crowd of Goldman Sachs investors on Wall Street is hardly feeling offended or sad either, given the stock's crazy growth pace by the banking segment's standards.

The very fact that a cycle of lower borrowing rates has started in 2024 on both sides of the pond is helping the banking environment tremendously, which may in turn expand into a real business so soon, but the process may be happening more slowly than many Wall Street inhabitants would like to see due to a pause in the dovish shift by the Federal Reserve and other financial regulators. Wells Fargo (WFC), which also has an increasingly advanced investment focus among its recovering lending business, gained more than 8% since last week's earnings' report, coming very close to all-time peaks around $78 per share. Shares of JPMorgan Chase (JPM) and Morgan Stanley (MS) also broke their previous price records, but gained within 5% and 7%, while the Bank of America (BAC) failed to add more than 2% for the reporting week, while its quarterly profits and sales were high but still within its previous lofty standards. The smaller part of investment business versus the credit component for the last three banks mentioned above seems like a reasonable justification for this tendency.

1169

Rafael Quintana Martinez

20.01.2025

Altcoins Are Lost Amid Launch of Trump-related Coins

ApeCoin (APE) is down 0.77% this week, trading at $1.029, underperforming the broader cryptocurrency market. Meanwhile, Bitcoin (BTC) is up 4.7% to $108,170, retreating slightly from a new all-time high of $109,974.

Altcoins, including APE, could see improved performance ahead of Donald Trump’s inauguration on Monday. The incoming U.S. president is expected to issue around 100 presidential decrees on his first day in office, some of which may provide a boost to the cryptocurrency market.

However, APE and other altcoins may face challenges as they attempt to regain momentum. The anticipated launch of Trump-related altcoins, such as $TRUMP and $MELANIA, could draw significant liquidity away from existing cryptocurrencies. These new tokens, riding on speculation and political hype, might temporarily overshadow other altcoins and dampen their performance.

APEUSD

1191

Rafael Quintana Martinez

17.01.2025

Harmony Is Struggling to Continue Up

Harmony (ONE) has surged by 18.8% this week, trading at $0.0274, significantly outperforming the broader cryptocurrency market, where Bitcoin (BTC) is up 8.8% to $102,330. The altcoin reversed its recent downtrend after falling below the key support level at $0.0250, briefly hitting $0.0210 on Monday. Speculation about a gradual implementation of new U.S. tariff policies and a drop in inflation provided a much-needed boost to market sentiment, driving Harmony’s recovery.

Despite this rally, Harmony faces significant headwinds from negative fundamentals. Binance recently delisted Harmony from its Flexible Rate Loan programme, preventing investors from creating new loan orders and limiting them to closing existing ones. This development has raised concerns among investors and could weigh on Harmony’s outlook.

Should the broader cryptocurrency market enter a correction phase, Harmony’s recent gains could be at risk, with the altcoin potentially resuming its steep decline towards $0.0150.

ONEUSD

994