Tag: fintech

A Brief analysis of Lending Club Corporation and StoneMor Partners LP

LC – Lending Club Corporation provides an online marketplace for connecting borrowers and lenders.

LC – Lending Club Corporation

Fundamentals Previously closed at 7.31
Day’s high 7.40
Day’s low 7.19
P/E ratio NA
EPS -0.01

 

Analysts opinion The research firm Raymond James recently initiated action on Lending Club, giving it a “Market Perform” rating. LC is currently trading at 7.31, which is 5.79% away from its 52 – week median, towards its 52-week low. The 12-month consensus price forecast for the stock is $14. Currently, the stock is trading at almost half the consensus, and analysts are bullish about the stock. Also, LC has an agreement with The National Bank of Canada, which allows the bank to familiarize themselves with fintech, while allowing LC to sell their loans to the bank. Louis Vachon, CEO of National Bank announced last Friday that the National bank will buy 300 million US assets owned by Lending Club in the US market.
Sentiments Lending club seems to be having an upside activity ahead of its earnings report early next month. The monitoring system of Optionmonster detected a purchase of ~4,600 May 9 Calls for $0.25. This shows that investors are expecting a positive revenue and have bullish sentiments for the stock.
Social Media Pulse The stock has 91% higher chatter than usual.

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Why Mastercard Inc is a good long term investment

Summary

  • Mastercard has delivered positive dividend yield over the years.
  • Entering into P2P business could be a great thing for Mastercard.
  • MA has Positive earnings estimates

So far, Mastercard has been very investor friendly. Mastercard’s Return on Equities is 59.10%. In December, MasterCard announced a $4 billion repurchase program. The company considers its current valuation as relatively cheap for buying back the stock. It also paid a dividend of $0.19 on 6th April 2016.

Mastercard has consistently delivered a positive dividend yield.

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Investors also expect a positive Q1 Revenue for Mastercard. The wallstreet consensus of EPS is $0.84, while the estimize consensus is higher at $.85, also we can see that the actual EPS has outperformed the wallstreet consensus 7 out of 8 times.

Many Investment firms like EQIS Capital management, Auxier Asset Management, MUFG Americas etc have stakes in Mastercard. Institutional investors own ~79% of MA shares, which is a good thing, since this means that many big firms are betting on Mastercard.

 

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Time and again, we see that companies which evolve themselves and their product according to the changes in the industry have been the most successful ones. After its digital wallet – “MasterPass”, Mastercard is exploring the area of Peer – to-peer payment services via social media. It has a free cash flow of $45.9 Billion, and is looking out for partnerships with the social media giants Facebook or Twitter. Currently we see a lot of fintech companies like HiFrank, Prosper, Upstart, Puddle etc in the Peer-to-Peer lending market. Given the brand name, Mastercard if entered into P2P lending especially with tech giants like twitter, would definitely be successful.

Also, MA has good fundamentals, with a Return on Equity of 59.1%, EPS of $3.35. Since it has a cash rich business model, in turbulent times, it can cushion the dividends, and even debts.

According to our proprietary algorithm, which gives us the Analyst Confidence Meter, based on various fundamental parameters and analyst opinions, Mastercard has a 69% buy.

 

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The social media pulse, which tracks various social chatter, and analyses the sentiments for the stock, shows that Mastercard has 29% lower Social chatter than usual. The News Sentiment and Revenue Prediction are positive.

 


Disclaimer: This blog contains an aggregated view of analysts and opinions by the author. Do not consider this as financial advice. See http://stockal.com/legalities/

The Other FinTech Business!

Money is pouring into fintech. In 2014, global investment in financial technology startups spiked to USD 12 Billion. That’s three times what it was just a year prior, according to Accenture. There have also been some huge funding wins this year  as well.

Those are big, headline-grabbing numbers. But only using funding as a benchmark can mean focusing too heavily on consumer fintech – and ignoring another large fintech opportunity.

Recently, Business Insider analyzed Goldman Sachs’ business segments and said that it had more engineers and programmers, at 9,000, than Facebook, Twitter or LinkedIn. Which makes Goldman Sachs a Fintech Company!

But it’s not just Goldman. A booming fintech industry is incubating surrounding exchanges, hedge funds, banks and proprietary trading firms. But startups developing technology for trading and “markets” has been overshadowed by its consumer finance counterpart. They shouldn’t be

What was abundantly clear is that the trends that dominate technology – big data and networking, social media and app ecosystems – also dominate fintech startups.

There are just a fraction of the companies developing new technologies around market trading and analysis. This area is so ripe that the CME Group launched its own venture capital arm last year, Liquidity Ventures I LLC, to invest $500,000 to $5 million in startups that could help it develop new lines of business. Spanish bank BBVA, Fidelity and Bank of America have all created venture arms for increased investment in technology.

Another reason to look at institutional fintech is that it proves its value very quickly whereas the jury is still out on consumer fintech, which has not yet seen tough times. Robinhood and Wealthfront have exploded, but so too have equity markets. If these consumer-focused companies existed in 2008 and 2009, would they have survived the massive exodus when consumers fled equity markets? How will they perform during the next bear market? At best, the answer is unclear.

Financial markets are active, and banks, hedge funds and traders will need to make money no matter where the S&P 500 trades. Fintech startups in the trading space are still open to disruption, but aren’t subject to individual investors’ emotions. For that reason, this sector deserves closer attention from global VC’s.