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28.12.2022

eBay stocks are trading 50% off their peak prices despite significant progress in key businesses that increase the possibility of an increasing turnover of the auction platform. The dividend yield of the company is at 2.2%, while its buyback yield is at an impressive 24.4%. So, the overall reward for investors is at 26.6% in 2022, a record among public corporates. eBay has bought back shares for $5.3 billion during the last four quarters. So, outstanding shares have been reduced to 551 million from 685 million a year ago.

The company is actively developing collectable trading, including an acquisition of TCGplayer, a marketplace where enthusiasts exchange their collectables like Pokemon, Magic: The Gathering and others. The most important service that the platform provides is guaranteed authenticity of the collectables that ensures the buyers will not be subject to scams and also protect sellers from any malicious fraud. eBay has recently made this service available for jewellery above $500.

The company has published strong forward guidance for Q4 2022 with turnover at $17.8 billion, revenues at $2.46 billion, and EPS at $1.06. The EPS in the Q4 2021 was at $1.05. So, considering the tense situation in the retail market this year, any figures above record values of 2021 should be considered an achievement. eBay stocks will be able to recover rapidly to their peak prices once the market reverses to the upside, and that would mean 100% profit from the current values.

28.12.2022

The Most Generous Corporates: Capital One

Capital One Financial corporation shares are trading at 50% off their peak prices. This has inspired the management of the company to deliver a massive buyback program bringing the buyback yield to 19.3%. Together with 2.7% dividend yield, this has made the company one of the most generous in the market. COF shares are in great demand among investors that are focused on value stocks, such as Oakmark Fund with more than $45 billion in assets under management.

The specialisation of Capital One is mostly credit cards, auto loans provided to substandard borrowers, or in other words, people with high credit risk profiles. This business is highly profitable, although it does bear high risks too. The company says it has a reliable risk assessment model in place to run the business. The lender generates not only higher margins compared to its peers, but overruns regulators’ requirements of capital adequacy with 13.6% vs required 6%. Considering these criteria, the company is in line with some of the largest banking institutions in the world, like JP Morgan with 14.1% and the Bank of America with 12.8%.

The company’s capital base, which is built on clients’ deposits, is enough to conduct high-margin lending. Such a model of cheap resources is not only profitable but it is also stable. Capital One has a margin of 10-15% on its tangible equity. The interest for the company’s services is unlikely to decline in the foreseeable future considering the current economic environment. So, COF shares could be selected for long term investments with the upside potential of 30-40% once the market starts recovering.

24.11.2022

Major Risks for Tech Giants: Apple

Apple stocks have had a very impressive performance amid a clearly bearish market while losing only 20% of their peak values. However, investors should be prepared for elevated turbulence in these stocks considering the situation in China.

China’s zero-tolerance policy to COVID-19 led to a massive exit of employees from Zhengzhou city plant amid fears over tightening curbs. Over 200,000 workers are rumoured to have left the plant. If this is true, the production of iPhone 14 Pro and iPhone 14 Pro Max would be very complicated with no clear outlook on when it could be resumed. The delivery delay shown on Apple’s website has already hit six weeks. Americans who ordered the brand new IPhone for Thanksgiving Day will only receive it for Christmas now. Meanwhile the last two months of the year are very valuable for any mass-market company in terms of holiday sales.

Apple is planning to move iPhone production to India. But that would require years. The company has already invested $75 billion in the Chinese market and now this investment may be at risk as the ruling Communist party in China may put a local ban on the sale of Apple products. China is the third largest market for Apple with the United States at the first place with $153 billion and Europe at the second with $95 billion. Wall Street is expecting Apple’s earning to go up by five percent over the next three years. So, any troubles with production in China may alter these forecasts.

24.11.2022

Major Risks for Tech Giants: Tesla

Tesla is unique in terms of its share price. TSLA stocks rallied long before the company established the production of viable and steady electric vehicles (EV) and also thanks to the reputation of its leader Elon Musk. It is true that Tesla sometimes misses its mark and deadlines to launch new models and products but it seems that the crowd invests in Tesla not for its hit-and-run strategy but because of their belief in Musk’s ability to transform our everyday life in the long run.

Tesla stocks are trading 60% off their peak prices thanks to the market correction that has been squeezing the market since the end of 2021. Nevertheless, market participants are discussing some drivers that may hit the company’s business. For example, lower gasoline prices may hamper EV sales. It is true that Americans are now paying around $3.6 per gallon compared to $5 a few months ago. But this driver is largely exaggerated as gasoline prices is not the major reason for someone to buy an electric car. A move towards green energy and minimising carbon footprints is not a short term affair, but a sustainable long-term trend that is supported by governments, including the United States and China. Besides. oil producers forecast global demand will outweigh the supply side over the coming years while also betting on higher prices of fuel. So, no short-term movements of gasoline prices would affect EV buyers, as well as TSLA stock buyers.

The more serious issue is the declining prices for Tesla’s second-hand EVs. Tesla used cars are now 15% cheaper after a summer peak. If this downtrend is sustained pressure on sales of new model could mount. Tesla is planning to increase EV’s quarterly production to 500,000 by the end of 2022 and it is likely to increase production further after launching new production facilities in Berlin and Austin. But Tesla is not a mass market. So, Tesla fans are unlikely to pay much more to get a brand-new Tesla.

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.

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/

10.06.2024

Loopring is Looking towards the Abyss at $0.1000

Loopring (LRC) is down by 2.0% to $0.2209 this week, although it had dropped as low as $0.2159. The token has come under significant pressure after Loopring’s “most secure” wallet was hacked, resulting in losses of at least $5 million (1373 Ethereum).

Hackers compromised the wallet recovery service, which enables individuals to designate trusted entities to recover assets or freeze compromised accounts. An attacker managed to "recover" assets from several wallets. This bad news is dragging LRC prices down to a crucial support level at $0.2000. If the token fails to recover, it risks plummeting further towards $0.1000.

LRCUSD

Bash

07.06.2024

US Jobs Didn't Discourage Thirsty Wall Street Crowds

The US Nonfarm Payrolls came out as high as one could only imagine. The economy surprisingly created 272,000 new jobs in May, today's data revealed, compared to expert pools consensus projections at 182,000. Yet, no market bull actually wanted this nasty surprise, as it may rather prolong the era of both nationally and globally elevated interest rates. Average hourly earnings grew by 0.4% month-on-month, giving a potential price pressure message after 0.2% only in April. The unemployment rate at 4.0% after 3.9% was the only worse-than-expected position to paradoxically form a kind of light stripe in today's set of Labour Department's statistics.

As a result, the S&P 500 broad market indicator lost just about 0.7% within an hour of the crowd's response on Wall Street. Two or three more dozens of points could be still wasted at some moment during this choppy session, yet the Olympic style of calmness would be a more fitting behaviour for a noble man or woman, especially if he or she is a stock investor and not a currency trader. Currency traders now may care about new possible records on USDJPY, as the Japanese Yen may be going to storm its 160 barrier again, while EURUSD got itself further away from approaching 1.10 in the foreseeable future. Longer periods of hawkish Fed's policy (at least until November) make the Greenback a top choice among other reserve currencies.

As to stock investments, I feel that inflation worries, based on higher salary indications, would serve as a lifeline in the sea of doubts, because money is keeping its inspiration to escape from inflation threats, even when this money remains more expensive in terms of credit payment. If so, inflation pessimists will be bound to turn into Wall Street optimists once again, as most of them have no other choice where to put any excessive fund flows. If only the S&P 500 dares to touch the area below 5,300, most of the crowd would become so thirsty for buying fresh dips in any popular stocks.

At the same time, Gold began to sink, as higher-for-longer bond yields prospects partially derailed its ability to attract discriminating investors. Therefore, I decided to close my long positions in XAUUSD, which I successfully reinforced at nearly $2265 per ounce in early April. The yellow metal's path from below $2000 in the very start of 2024 to $2450 at the last decade of May is probably interrupted for a while, and I prefer to wait and see outside gold investments. I am not sure the major technical support area between $2280 and $2315 will survive, but time will show.

XAUUSD

Rafael Quintana Martinez

07.06.2024

Tezos May Decline Soon

Tezos (XTZ) is seeing a modest rise of less than 1.0% this week, reaching $0.934. In contrast, Bitcoin (BTC) has surged by 5.0% to $71,000, underscoring Tezos' relative weakness. Investors might be disappointed as Tezos has yet to recover from its 35.0% drop in April. The token has twice attempted to climb above the $1.000 resistance but failed each time.

Despite some positive developments, such as the launch of the Paris update on Mainnet which brought further improvements to the blockchain, Tezos has struggled to gain significant traction. The improving general sentiment in the crypto market should ideally push its prices higher, but instead, they remain stagnant. This creates significant downside risks, potentially driving prices towards $0.800.

XTZUSD

MetadoroIn-house analytics

06.06.2024

When is the Right Time to Buy the Furniture: Part II

Reaching fresh historic highs above 5,350 points on the S&P 500 broad market barometer of Wall Street now gives solid grounds for eventually purchasing some lagging stocks of U.S. retailers. At least, this represents a reasonable approach for the pool of retail firms, which previously announced better-than-expected quarterly numbers, plus positive forward guidance in terms of both revenue and profit lines.

We were wondering only three weeks ago, when the proper moment would arrive for buying shares of Home Depot. We also discussed enough details of a very good performance by Home Depot's from a business point of view. Yet, one of the main conclusions was that all the gains are solid Q1 numbers could be initially capped below $350 per share for a while, so that a possible correction may lead to testing 10% to 15% lower levels at first. Further developments on Home Depot's technical charts exactly validated this view, yet a drawdown in prices was limited by $323.77 per share at late May. Prices consolidated above $325 since that moment, with a short-lived rebound to $335, and then the volatility lessened to a rather narrow range between $327 and $330 per share.

Wall Street indexes' rally expansion this week may serve as a real catalyst to raise the demand on well-discounted stocks of the economy retail segment like McDonald's, Costco or Home Depot, as is already the case with step-by-step climbing Walmart. U.S. job data already prompted FedWatch Tool to reflect the shift in the market's attitude to chances on sooner-than-later timing for the first interest rate cut, with less than 32% of futures traders believing in the Federal Reserve's (Fed) no-change stance in September, and less than 20% of them feeling Fed governors may keep stubborning till December. Meanwhile, hitting $3 trillion in market's value by NVidia's AI flagship creates a nutrient medium not only for other AI-related companies but also for the rest of the market.

Outperform ratings for Home Depot by most investment houses makes it all the more likely that the stock may be picked up from its current lows, without waiting for a re-test of any lower price range - between $300 and $315, for example. Therefore, using the tactics of buying it now and holding until recovery to $350 again, keeping in mind upper levels like $400 for the mid-term, with a plan B of adding more purchases if the price would finally approach $300 per share, would be a smart strategy compared to just waiting endlessly for better levels to enter.