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Is BlockChain Mania 2.0 Ready to Roll Again? (GCAP, XALL, OSTK)

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For traders and investors involved in the markets and focused on cryptocurrency, the blockchain, and Bitcoin, the month of April has certainly been a welcome relief. The price of Bitcoin rallied during the month nearly 50%, carving out what may turn out to be a key double bottom confirmation of support. Naturally, enthusiasm for blockchain related projects has begun to recover powerfully during this period.

In that spirit, we want to take a look at several stocks that could be poised to benefit from this rejuvenated enthusiasm given recent action and catalysts.

 

GAIN Capital Holdings, Inc. (NYSE:GCAP) has to be on this list as an interesting play on this renewed momentum in the space.

The company provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe, and the Asia Pacific regions.

GCAP shares have been outperforming most blockchain related plays over the past 6 weeks. The stock continues to hold onto upward momentum in place since late March. Since its lows under $6.50 per share last month, we have seen a rally in the stock of over 30% on strong volume to retake all of its major moving averages on the bullish side and break out to new multi-month highs. At this point, traders are looking for signs that the stock will be able to hold onto its recent gains and breakout even higher.

 

Xalles Holdings Inc. (OTCMKTS:XALL) is another stock that needs to be watched closely here. If you’re looking for a potential emerging leadership play, then you want to look for companies that have recently made acquisitions to take them into direct operational integration within the blockchain phenomenon. In broad strokes, this is a company committed to the goal of becoming a dominant Fintech Accelerator by providing payment systems through its subsidiaries and partner companies.

 

The company recently executed a Share Purchase Agreement for the acquisition of BlockForge Inc., a blockchain design, development, and implementation firm. This is particularly important given the recent resurgence of enthusiasm for blockchain, cryptocurrency, and Bitcoin over the past 2-3 weeks. The company’s approach, according to its materials, is to roll up strategic acquisitions that are launching financial supply chain solutions to under-served markets. The focus will be on solutions for the business and Government markets. The goal is to capture recurring revenue streams through services, audit recovery fees, and revenue sharing licenses.

 

The stock has currently been establishing potential support around the $0.20-$0.25 per share level. This issue hasn’t been trading for long, but the initial action suggests a potential RSI-related bounce setup in play already, as initial liquidity establishes itself and the world becomes acquainted with this interesting story. We would also note that the company recently announced the restructuring of its common stock and the completion of additional debt reduction, which could force the issue in favor of the bulls before long. According to the release, Xalles recently took measures to reduce the number of outstanding shares of common stock by more than 69%.

 

Overstock.com Inc (NASDAQ:OSTK) is a stock you probably know as an online retailer based in Salt Lake City, Utah that sells a broad range of products at low prices, including furniture, décor, rugs, bedding, and home improvement. However, in addition to such goods, the company has started to move aggressively into the blockchain space over the past year, and its shares now trade far more on that business segment than on its retail business. It would appear as though shares of OSTK have been roughly mirroring the blockchain in Bitcoin trading action for the past month, with the stock pushing as much as 25% off its pivot lows in early April. After a stunning run higher last fall, where shares blasted from $15 to better than $80 per share, the stock has seen a sharp pullback in recent months culminating with a break under the $40 per share level, which also represented a break beneath the 200-day simple moving average.

However, recent action suggests a strong-handed bid entering the picture once again, which could indicate a possible test of major moving averages 10 – 20% above current levels.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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How PayPal Holdings Inc. (NASDAQ: PYPL) could change?

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Today, we are going to evaluate PayPal Holdings, Inc. (PYPL) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 3.69B. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of 0.2%. However, in sequential terms, the situation looks a little different, with sales decline by -0.02% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

PayPal Holdings, Inc. (PYPL) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 2.12B, which yielded a gross basic income of 1.58B.

The company?s recently reported data shows total diluted outstanding shares of 1.22B, which implies an overall EPS (or earnings per share) of 0.42. To give the reader a little context that number compares to an analyst consensus expected value of 0.54 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 43 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 89.37. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.83 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 29.63 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for PYPL, the company has about 2.96B in cash in the bank, according to its most recent reports. That cash sits opposite about 3B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been growing. The company also has 42.32B in total assets, balanced by 27.68B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at (527M) last quarter, which represents a net change for the quarter in cash levels of 442M. That works out to about (349M) in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Why Intel Corp. (NASDAQ: INTC) might wilt?

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We are going to take a deep look at Intel Corp. (NASDAQ:INTC) to get a better view of the company and its prevailing status, as well as the prospect it may offer for investors. Today’s prime focus will be a fundamental assessment of the equity from top to bottom.

As such, let’s begin with the top line, i.e. revenue trends. Last quarter, the firm saw its overall revenue come at $16.07B. That represents a change in revenues, on a quarterly/yearly basis, of 0.08%. If it is translated into sequential terms, the firm witnessed sales decline by -0.06% from quarter to quarter.

It’s important to track the top line data. There’s no better way to compute the end market’s reception of a firms products. But no one wins without bottom line performance, which is what is required to look at next. Intel Corp. (NASDAQ: INTC) is intriguing when segregated to its core data. The cost of selling goods in preceding quarter was $6.39B, resulting in a gross basic income of $9.67B. For shareholders, provided the total diluted due shares of 4.79B, this means earnings per share of $0.93. Note, this assesses with a consensus analyst projection of $1.07 in EPS for its next quarterly report.

Given that data, now is the time to turn to a thorough glance across analyst projections for the firm going forward. At present, analysts have a consensus average recommendation of Overweight. This is grounded on a total of 40 analyst. While we don’t recommend taking analyst calls as face value strategies for action in a portfolio, we do consider it is vital to note where consensus is on an equity to understand what basic assumptions are possibly already discounted into the pricing of shares. As far as price targets, market analysts have an average target of $59.60. In addition, for next year, estimates of a fiscal year forecast is 4.11 in total EPS. On a median price to earnings ratio, that outlook results in a valuation of $11.98 times earnings.

For Intel Corp. (NASDAQ: INTC), the firm presently holds around $3.55B in cash. That cash is balanced against around $3.84B in total current liabilities. The firm’s debt is $growing, while total assets are $128.6B balanced by total liablities of $58.43B. The free cash flow last quarter was $3.37B, representing a net change in cash of $121M. On a net operating level, the cash flow was about $6.28B.

Let’s take a look at the technical analysis. The Barchart Technical Opinion rating is a 40% Sell with a Weakest short term outlook on maintaining the current direction. Longer term, the trend strength is Weak. Long term indicators mostly agree with the trend. See More Share Trade INTC with: Get API Access to INTC Quotes !function(t, w) { var e = document.getElementById(t);e.style.width = w+”px”; var n = function(w) {var n = e.parentNode,i = n.clientWidth,r = i / w;e.style.webkitTransform = “scale(” + r + “)”, e.style.transform = “scale(” + r + “)”, e.style.webkitTransformOrigin = “0 0”, e.style.transformOrigin = “0 0”, n.style.minHeight = e.getBoundingClientRect().height + “px”}, i = function(e) {var n = window.onresize;window.onresize = function() {e(w), “function” == typeof n && n()}},r = setInterval(function() {var o = e.getBoundingClientRect().height;o > 40 && (clearInterval(r), n(w), i(n))}, 100) }(“type_3300″,”300”); INTC Related ETFs Symbol %Holdings 3M %Chg INTC +1.35% Intel Corp FTLS 1800% +1.30% Long/Short Equity ETF FT SPY 1% +4.42% S&P 500 SPDR QQQ 3.22% +9.67% Nasdaq QQQ ETF IVV 1% +4.41% S&P 500 Ishares Core ETF VOO 1.12% +4.44% S&P 500 ETF Vanguard Symbol %Holdings 3M %Chg INTC +1.35% Intel Corp PVAL 0.43% +3.02% Principal Contrarian Value Index ETF ACWI 0.5% +0.23% ACWI Ishares MSCI ETF FDLO 1.65% +4.79% Fidelity Low Volatility Factor ETF IUSG 0.99% +6.61% S&P US Growth Ishares Core ETF SPYG 1.06% +6.73% SPDR S&P 500 Growth Portfolio ETF Business Summary Intel Corporation is one of the world’s largest semiconductor chip maker. The Company develops advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. It also develops platforms, which it defines as integrated suites of digital…

We will apprise the interesting story of Intel Corp. (NASDAQ: INTC) as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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What’s not driving Cisco Systems Inc. (NASDAQ: CSCO)?

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Today, we are going to evaluate Cisco Systems, Inc. (CSCO) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 12.46B. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of 0.04%. However, in sequential terms, the situation looks a little different, with sales grow by 0.05% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

Cisco Systems, Inc. (CSCO) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 4.63B, which yielded a gross basic income of 7.83B.

The company?s recently reported data shows total diluted outstanding shares of 4.84B, which implies an overall EPS (or earnings per share) of 0.56. To give the reader a little context that number compares to an analyst consensus expected value of 0.69 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 31 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 49.14. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.90 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 14.89 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for CSCO, the company has about 6.72B in cash in the bank, according to its most recent reports. That cash sits opposite about 7.74B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been falling. The company also has 114.01B in total assets, balanced by 67.35B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at 2.18B last quarter, which represents a net change for the quarter in cash levels of (10.91B). That works out to about 2.42B in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE