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Fintech

A Success Tunnel for 360 DigiTech: Business TransformationChina's outstanding loan balance reached a fresh record of CNY 172.75 trillion in 2020 and keeps growing, spurred by the increasing digitalization and booming e-commerce market. In China, 2020 was a milestone year for fintech. The year saw heightened regulatory scrutiny, intensified competition and business patterns were altered by the COVID-19 outbreak, both in the corporate and consumer sectors. The Matthew effect in the industry has been further exacerbated under such circumstances, where small-sized companies with less capital or poor risk resistance ability will be forced to quit the stage. Although 360 DigiTech, Inc. (QFIN:NASDAQ) is a late starter, it is one of those niche players able to stand up to this fierce competition, mainly due to the reputation of its parent company – 360 Security Technology, Inc. (601360:SH) which brings significant brand visibility to the table. Strong performance with low valuation This USD 6.57 billion company is currently outperforming what the market expects. On May 27, 360 DigiTech released its unaudited financial results for the first quarter of 2021. The total net revenue increased by 13.1% to CNY 3.6 billion (USD 0.55 billion) from CNY 3.2 billion in the same period of 2020, while the non-GAAP net income reached CNY 1.41 billion (USD 0.2 billion) with an astonishing increase of 452.8%. The operating income along with the account under the non-GAAP measure achieved a growth of 745.7% and 533.0%, respectively. However, given this relatively strong financial performance, 360 DigiTech's P/E ratio appears to have been lower than that of its peers for a long time, although it is currently ranked the highest among the top four. Lexin (LX:NASDAQ), a leading online consumption and consumer finance platform, is also using technologies to encompass risk management and loan facilitation systems, just as QFIN does, but its P/E ratio is far higher than that of QFIN. For example, in the third quarter of 2020, Lexin's P/E ratio was more than 5 times that of 360 DigiTech; by Q2 2021, Lexin was lower than 360 DigiTech for the first time, at the level of 8.1. Along with the progressively upward stock price, the necessity of re-assessing 360 DigiTech is becoming more obvious. How the asset-light business model works 360 DigiTech is one of the earliest platforms in the industry to proactively initiate the transformation of reducing the proportion of self-operated loans and improving loan facilitation. This turned out to be an informed decision. In the third quarter of 2019, 360 DigiTech first proposed its new strategic target for adopting the 'capital-light,' or more commonly as 'asset-light' business model. More colloquially, this refers to the company directly navigating the borrower to their cooperative financial institution, while collecting service fees from credit evaluation, credit management, or other technical-related services. According to the published unaudited financial results of 360 DigiTech for the first quarter of 2021, the total loans originated by financial institutions were CNY 74.15 billion, of which CNY 37.25 billion (50.2%) was under an asset-light model and other technology solutions, achieving an astonishing increase of 211.9% over the same period in 2020. Haisheng Wu, CEO of 360 DigiTech, stated that "...over 50% of the loans were facilitated under the capital-light model and other technology solutions..." and it is a "fundamental change to the nature of our business, from being capital-driven to technology-driven." The highlight of this model is that as a loan facilitator, the company is not required to inject any margin for each loan. In other words, the credit risk of the asset-light business is borne by the capital; the loan facilitator is thus riskless. Besides, it can better respond to regulatory requirements and resist the impacts of uncertainty on business stability. Moving further towards 'tech' In policy terms, the tightening regulatory rules pose a little impact to loan facilitators like 360 DigiTech – even as fintech giants like Ant Group and JD Digits may suffer – as its targets are excess leverage and systematic risks. It creates opportunities for 360 DigiTech to jump a queue. The asset-light model is hence the core strategy of reducing the regulatory and credit risk. Besides, QFIN is trying to use less capital and more technology-powered services to open up more opportunities, both in terms of client acquisition and risk management. The improved portfolio quality, as indicated by the relatively low delinquency ratio, was one of the contributors for its shining performance even in the special 2020, although it showed an upward-trending slope for the period during the epidemic. However, it seems reasonable: due to the lag of loan repayment as well as its timeliness of statistics, the negative effects of China's -6.8% GDP in 2020Q1 only started to appear in the second quarter of 2020, causing a history of high non-payment ratio of 2.82%. Up to date, the company's delinquency ratio has nearly risen back to the level before COVID-19, and we will keep an eye on its future performance. Moreover, with a few innovations and technologies, for example, Argus RM Model, Intelligence Credit Engine (ICE), Cloud Bank System, Cosmic Cube System, Apollo Platform and AI Robots, 360 DigiTech is working hard towards the 'tech side' of the fintech business as well as being technology partners with banks. The strategic collaboration with Kincheng Bank (KCB) is a good example. The bottom line 360 DigiTech's asset-light model works well, and it has the potential to pay off from the long-term perspective, which brings further expectation for its growth prospects. The company's business expansion plans are proceeding with KCB as the first step. These strategies will further improve the company's flexibility in this competition for market share.
NASDAQ:QFINLong
by EqualOcean
Payment services at the centre of attentionThe fight against cash is continuing all over the world and in this context of economic recovery the increasingly basic payment services certainly play a fundamental role in the daily life of every individual. Online payments, in stores , in supermarkets are increasingly digital and because of electronic tools and Fiserv with its worldwide presence does just that, provides banks and institutions the right means for the continuous digital challenge related to finance of our century. The Market Miracle advisor generated an entry signal for Fiserv Inc. where capital seems to be coming from the world of corporations the target is expected to be 118.43 USD In the months precedence the interest in the Stock has been shown from part of the institutions but now this has attenuated and the price has been diminished leaving space to new investments. The price of the company would appear to be below its fair value by more than 13 % Analyzing on the chart you can see that the Sentiment market is good and the price is close to some supports, this could give momentum to a price increase in the next hours or days. This idea is based on the signal generated by the Marketmiracle advisor whose link you can find by scrolling at the bottom of this page.
FLong
by MarketMiracleAdvisor
Can This Tokenizing FinTech Maintain Its TrendI'm hoping ABXX can keep the support along the cup and handle trend. New support was recently found around $3.33. The Simple Moving Averages on the 4 hour and 6 hour charts are both crossing at $3.64. $3.64 also acts as a resistance point on the hourly chart as shown below. Huge resistance is coming around $3.70. The next major resistance level is at $4.00. A close up on the 4-Hour chart shows a gap that must be filled around $3.95. Zooming out to the Daily chart, we are on candle number '7' out of a '9' candle trend. Hopefully after this '9' candle-trend to the downside is complete, ABXX shareholders should see bluer skies ahead. I do not give financial advice, but you can see my earlier, more in-depth analysis of ABXX & ABXXF under my 'Related Ideas'. I do adjust trend-lines and other info as the chart changes. I really like this FinTech company, it's team, and their mission. This a great play for investors like me who are interested in: ESG (Enviromental/Social/Governance) Blockchain technology & Tokenization Mining, Precious Metals, LNG (Liquified Natural Gas) I try to follow the smart money. I am long ABXXF.
NEO:ABXXLong
by the13thalien
1
Square Has Pulled Back to SupportSquare is one of the hardest-charging growth stocks in recent years. Like many growth names, the fintech has paused since vaccine news triggered a shift toward value stocks in November. But now the risk / reward may be swinging back toward the bulls. First consider the area around $200 where SQ is trying to bounce. It was also a low in late January, early March and late March. Second, the support also matches the 200-day simple moving average (SMA). In fact, it is SQ’s first test of its 200-day SMA in over a year. Third, stochastics have been oversold. The fundamental story also seems to remain intact, with earnings and revenue beating estimates on May 7. Cash app also grew 139 percent (excluding Bitcoin). TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:XYZLong
by TradeStation
Stock pick sharing: Peak Fintech GroupCompany Name: Peak Fintech Group Inc. Stock ticker: PKK (CSE) / PKKFF (OTC) *** Plans to change ticker to TNT after NASDAQ uplisting Sector: Technology Industry: Information Technology Services General Business: - Parent company headquartered in Canada, has a group of subsidiaries operating in China's commercial lending industry. - SME's in China contribute a large to the GDP, and yet also face difficulties in getting loans to facilitate their business operations. - Peak Fintech Group uses tech, analytics and AI to create an ecosystem of lenders, borrowers and other market participants in China's commercial lending space. Current milestones (some major ones): - Has deals with subsidiaries of large Chinese conglomerates and online marketplaces to provide their Cubeler Lending Hub services - Implementation of digital currency (China is pushing strongly on this front) - Agreement with China UnionPay subsidiary to implement payment processing and fund transfer services (could be equivalent to Paypal partnering with Amazon in the U.S.) - Fund transfers from China to Canada already tested and successful - Partnership with China's top e-commerce software provider, ShopEx - provides access to shops operating on 28 online marketplaces and social media platforms - Has applied for NASDAQ uplisting which would likely happen soon (estimating within 1 month from post if no further delays) - Revenue for FY20 has beat guidance (Estimated $40mil but achieved $42.7mil). - Hired MZ Group to lead strategic investor relations and shareholder communication program (increase awareness and interest of this company leading up to the uplisting) Potential in future: - Fintech is one of the hottest sectors in the market, stock price could follow the demand on NASDAQ. - Investors who missed on Ant IPO will want to find an alternative to invest in fintech. The company has already been approached by a Chinese fintech firm for possible merger. - Estimated 2021 revenues will likely more than double from 2020 (stated by management), and 2021 will be the first year of profitability. - Plans to expand into technology hub cities like Guangzhou, into Canada by end 2021, and into U.S. shortly after. - Plans to commercialize the accumulated data (new and significant stream of revenue for the company - data is extremely valuable! ) - Huge demand of public offering which led to being oversubscribed. - 3 -year revenue guidance would likely be coming shortly from date of this post. DISCLAIMER: I am not a financial advisor and this is just my personal sharing. The content is not exhaustive so please do your own research.
CSE:PKKLong
by TraderMozo
2
Visa Has Pulled BackCredit-card giant Visa is an interesting stock. Officially, it’s a member of Technology. But it’s also cyclical because of its obvious connection to spending and the financial sector. Not surprisingly, V broke out to new highs in late April as the economy moved closer to reopening. Quarterly results beat consensus and business trends for the current period were strong. V peaked at $237.50 following the news. It then ran out energy and dove back toward $220. That’s an interesting level because it’s near a peak from the end of last year. Two other patterns stand out. First is a trend line running along the lows of late January and late March. Second is the 50-day simple moving average (SMA). Third, notice how stochastics have dipped back to an oversold level. It’s a pretty recognizable setup overall with trend, levels and macro conditions all potentially lining up for the bulls. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:VLong
by TradeStation
1
9 Month Accumulation Ends in a WeekThe highest volume happened at around the $3.2 mark. We could go there again before the fib time zones show us a big move is imminent in the next week. Trend based Fib from the first mega candle from $5 to $30 to the lows at $0.30 shows that the golden pocket is around the start of the double digits. Get ready, 9 month accumulations on a coin that has a higher TVL than Uniswap now but is still 20x from the same Market Cap/TVL Ratio as Uniswap will most likely have a crazy violent breakout. Viewer Discretion is Advised, the following material is for Mature audiences Only
Long
by Danimal69
6
A Trend to the Upside for this FinTech?This is building from my original idea published for ABXXF, listed here in the US on the OTC; However, you can't really glean too much from it's chart. You can see the original ideas linked under 'Related Ideas". I'm expecting the cup and handle formation to continue with it reaching resistance around CAD$4.40-$4.45 (US$4.20). > The 4-Hour Charts for ABXX & ABXXF, both, currently on a green '2' candle. I'm expecting a full 9 candle trend to the upside to continue. A green number '2' candle sitting on top of a green number '1' candle is very bullish. If all goes to plan, the green '1' candles on the daily-charts for both ABXX & ABXXF could give us the same trend I just mentioned above. Regardless of these technicals, I really like this company and believe in what they are trying to achieve. The Company: Abaxx is a blockchain and ESG company focused on commodities like LNG (Liquified Natural Gas ) and Gold! Abaxx Tech came to the market through a RTO (Reverse Take-Over) of New Millennium Iron (NML & NWLNF). The serially successful mining and media billionaire mogul, Robert Friedland, was one of Abaxx's first angel investors. Abaxx Technologies has multiple subsidiaries. One of the subsidiaries is the Abaxx Exchange where Abaxx Tech receives a royalty for the commodities listed on the exchange. See more info about the company on its websites: Abaxx.Tech & Abaxx.Exchange **Keep in mind I'm an amateur investor nothing I say should be seen as financial advise. I am a small shareholder in this company because I believe in their mission and what they are trying to achieve. I've been a shareholder since the company was called New Millennium Iron when I learned that Robert Friedland was an angel investor in a young entrepreneur and ex-Goldman Sachs exec named Josh Crumb, founder of GoldMoney. I listen to 'Smarter Markerts', an Abaxx-sponsored podcast to learn more about the titans behind the Abaxx in the world of Mining, Blockchain, Finance and ESG. At least listen to the first episode where Robert Friedland lays out his vision behind a greener future. He discusses the importance of ESG, blockchain, batteries, copper, and more. You'll understand more as to why I'm so interested in what Abaxx is doing. I am long ABXX.
NEO:ABXXLong
by the13thalien
1
Paysafe Falling WedgePaysafe is relatively new to the public market after being SPAC'd public end of March. This company has been around for a while now as a private company and at one point was a public firm. I like this stock, has a few big names as clients: $COIN, $RBLX, $DKNG I think it'll be a slow burn, so I hold shares. Falling Wedge pattern with earnings report May 11th. You could wait until after earnings to see how it is, but I think we'll see a breakout of this pattern due to earnings. By the way, if you have information about $PSFE, feel free to comment.
NYSE:PSFELong
by Urameshi_Trades
3
Paysafe Payout Round 2! 🤑BFT was a big winner last time we played a breakout on the January 27th write up and we were able to capitalize on a 26% move. BFT has spent the last month in a bearish downfall from $18 —> $12 when the market was selling off with uncertainty. Looking at BFT’s chart we sold off to $12.51 this past Friday but managed to rally with the market and close at $14.93. After hours trading saw price action close at $15.09 Friday afternoon so we will have to see where BFT opens at this Monday morning 3/8. Paysafe’s merger with BFT has the vote scheduled for March 23rd so we can see some bigger volume coming into BFT these next few weeks. I have been holding July calls since the end of January including averaging down this week and adding of shares. I will be looking to add April $15 or $17.5 calls for a momentum play. Chart: HVN & Fib ext: BFT has a HVN in the area highlighted from $14.50 to $15.88. This also coincides with the 38.2% & 23.6% fib extensions outlined in white. BFT over $16.32 can confirm a breakout back to the highs. EMA’s : The Daily EMA clouds are all converging at the $15.40-$15.88 lvls which will serve as a strong resistance area. Price action closing over $16.32 lvl can trigger a bigger run. Plan : $16.32 lvl break with volume accumulation, enter April calls. I expect $17.50 to serve as a resistance lvl and I will watch to see how it behaves there. *Big believer in the Fintech sector and I think Paysafe has the opportunity to easily break the $20 price range. Ultimately this momentum play in the short term will be affected by the overall market sentiment. Tech has been very weak the past two weeks and although futures and market sentiment has been a little more bullish due to Friday’s closing I am still hesitant and will be playing smaller. If the tech sector gets hot again watch out for BFT to run into its merger as it gains more attention.
BLong
by DOpeTrades
6