Robinhood - Gap Down - Epic Economics - FOMO PoofStay away from Ponzi Pogs & Dead Cats. There's plenty.
Technology
Is it too late too buy AMD?AMD has been rallying and with the chip shortage and increase market share by the company revenue continues to increase and debt levels for the company is dropping. $120-125 price range is foreseeable.
GoPro Max - 360 Videography is the Future - Content Creation #Metaverse Nobody makes better action cam stuff for "regular users" than GoPro. Love mine & highly recommend for a good time!!
MATTERPORT IPO DEBUT w/ some TA on the 15 minute chartToday Matterport previously GHVI changed its ticker to MTTR and had a decent open with about 1.5 million volume up until it was debuted on CNBC by the anchor Josh Brown. Then we saw a huge pump up from that area and about 3-4 million volume traded after he said he wants to buy after earnings happen. He is bullish on Matterport but also wanted to wait for earnings to add. We have a few stages of the DE-SPAC process to go through here that can help a long term investor DOLLAR COST AVERAGE down.
Pipe dump, Warrant Redemption, Insider Lockup periods, and whatever else in relation to that process.
This made for decent long and short momentum plays today. A lot of swings came in hot on the CNBC news and sold off on the momentum and a lot of puts and shorts came in on that momentum to take over as the double top was confirmed. We saw the bulls and bears fighting at close to hold $15 which is broke to $14.96 end of day.
Was quite exciting to watch it all go down!
BTC - what is it?//Let us have a discussion.Since we know what bitcoin is(read on the graph) we can talk about it.
I have concerns about bitcoin. Let us discuss them(but in a calm discussion).
1) The fundamental aspect of institutionless transactions(no trusted party)
"As such, the verification is reliable as long as honest nodes control the network" It means that we must trust everybody else (trusted party)? Isn't it better to trust a legal entity like a bank than bitcoin holders?
"if the attacker doesn't make a lucky lunge forward early on, his chances become vanishingly small as he falls further behind" What about people who saw the "potential" of bitcoin early when it was cheap?
What about the inventor? We don't know who he is? Maybe he has done something to be the attacker in the future? Is not he a trusted party?
2)The price of the bitcoin
Since the only purpose of bitcoin is to eliminate the transitions fees the max price for bitcoin is ~5000$/it means that bitcoin is a bubble(it may grow until the whole economy will cost less).
3)The jobs in the sector of transactions(640 million $ are there)
4)Legislation
Since there is almost none of it, bitcoin is used for criminal purposes.
5)Mt. Gox.
All of it is risk -> high risk means high profit or loss.
What do you think?
China Prepares To Roll Out The Digital YuanThe Evolution of the Global Financial Revolution
Which came first, the chicken or the egg? The question has its root in ancient Greece, where philosophers used it as an analogy to opine on cause and effect. Aristotle, writing in the fourth century BCE, addressed the question of origin versus first cause as an infinite sequence, with no actual source. The paradox may be one of the most studied and debated topics in history.
In the young world of cryptocurrencies, a modern-day chicken and egg question may only lie in the brain of Satoshi Nakamoto. The anonymous founder, who may exist in name only, is the only one who can answer which came first, Bitcoin or blockchain?
China’s digital yuan will be the first
China crackdown on cryptos to avoid competition
A bifurcation in the blockchain-based currencies on the horizon- Digital and stable coins versus cryptos
Carbon, security, custody, and control are the issues facing cryptos
A digital dollar and euro are on the horizon, but the government needs to “get it right.”
Nothing gets a bull market going like the potential for untold wealth. Anyone who purchased $10 worth of Bitcoin in 2010 at five cents and held the 200 tokens has a mark-to-market value of nearly $6.5 million as of July 25. The value was down from over $13.1 million on April 14, 2021, when Bitcoin reached the high of over $65,500 per token.
Bitcoin and the expanding cryptocurrency asset class that includes over 11,000 tokens as of the end of last week continues to provoke controversy. However, there is almost universal acceptance that blockchain technology is evolutionary for finance and other applications.
The growth of the asset class over the past decade has been nothing short of astonishing. However, at the $1.395 trillion level on July 25, the combined market cap remains well under Apple’s (AAPL). The world’s most valuable company had a value of over $2.479 trillion at $148.56 per share on July 23. While the cryptocurrency asset class market cap is nothing to sneeze at, it still pales compared to the stock market and many other asset classes.
Through Newtons’ First Law, physics teaches that a body in motion tends to remain in motion. The trends in cryptocurrencies remain higher despite the recent correction that cut many of the tokens’ values in half. Currencies that employ blockchain technology will continue to come to market over the coming days, weeks, months, and years. The next significant issuance will come not from the private sector but from China, the world’s second-leading economy that is nipping at the heels of the US, the world’s largest economy.
China’s digital yuan will be the first
It is not a question of if a country issues a digital version of its currency, but when it will occur. China is leading the race as it has been working on the digital yuan or 3-CNY since 2014, long before Bitcoin and the other cryptos really took off on the upside.
In mid-July, the Chinese government published a white paper in Chinese and English outlining that “Foreign residents temporarily traveling ion China can open an e-CNY wallet to meet daily payment needs without opening a domestic bank account.”
With the fanfare of the 2022 Winter Olympics in Beijing on the horizon, China is targeting the even as an opportunity to roll out the e-CNY product for visitors as the next step for its digital currency. A group of US Senators urged the Olympic Committee to forbid US athletes from using the digital yuan because of surveillance issues. China responded that “The US politicians should abide by the spirit in the Olympic Charter, stop making sports a political matter and stop making troubles out of the digital currency in China.”
As of the end of June, after a year of e-CNY tests across China, approximately 20.87 million personal wallets and over 3.5 million corporate wallets were opened. Transactions values are about 34.5 billion yuan or $5.4 billion, according to the paper.
China is well on the way to making its digital currency the mainstream means of exchange. The trials have expanded with programs producing a digital yuan insurance product for medical personnel exposed to coronavirus risks in Shenzhen, Guangdong Province.
China’s political and economic system may be better positioned to roll out digital currencies as an authoritarian approach allows the government to control the money supply and all aspects of life directly. In the US, the politicians may blame “surveillance” issues for objections to athletes using the e-CNY during the Olympics. Still, they are likely far more concerned with controlling the purse strings, which is crucial for maintaining power. Moreover, China’s political system allows the government to squash any competition to its digital currency. Simultaneously, blockchain technology will enable the Chinese government to track spending in real-time, increasing its power over 1.4 billion citizens. Cryptocurrencies became popular in China as they allow citizens to anonymously move funds offshore, which China defines as a nefarious use. Blockchains’ efficiency is a dream come true for the CCP.
China crackdown on cryptos to avoid competition
As China prepares to roll out the digital yuan fully, the central bank has been cracking down on cryptocurrency mining and trading. In May, the government banned Chinese financial institutions and payment companies from providing crypto-related series. Mass arrests following in June. People suspected of using cryptos in “nefarious” ways were rounded up. In July, the Beijing office of the People’s Bank of China shut down a company “suspected of providing software services for virtual currency transactions.”
Bitcoin, the leading cryptocurrency, reached a high of over $65,500 per token on April 14, the day of the Coinbase (COIN) listing on NASDAQ. The actions in China were a primary cause of the end of Bitcoin’s parabolic rally.
As the chart highlights, nearby Bitcoin futures fell from $65,520 in mid-April to a low of $28,800 in late June. At the most recent $32,480 level, the cryptocurrency remains a lot closer to the low than the high. The crypto asset class’s market cap dropped from over $2.4 to under $1.4 trillion over the period. China’s crackdown on cryptocurrencies has been the leading reason for the decline.
A bifurcation in the blockchain-based currencies on the horizon- Digital and stable coins versus cryptos
The Chinese political system allows its leaders to squash competition from other cryptocurrencies as it rolls out its new digital yuan. While the US, Europe, and other countries will roll out digital dollars, euros, and other e-currencies based on blockchain technology over the coming years, they will not have the same latitude to crush competition from cryptocurrencies. We are likely to see a flurry of regulatory moves in anticipation of western digital currencies, but it will be a slow process. China can act immediately, while differing political factions in the US and Europe will spend months, if not years, debating the regulatory framework.
I believe we will see a schism in the blockchain currency world that will separate cryptocurrencies from government-issued digital currencies and stable coins. A stable coin is a hybrid as it pegs its price to another crypto, fiat money, or exchange-traded commodities.
China would like to see cryptos disappear, which is the likely sentiment for all governments as power comes from controlling money. I believe the global regulatory framework will eventually favor digital government-issued currencies and stable coins over pure cryptocurrencies.
The ideological divide is vast. Cryptocurrency’s philosophical backbone is libertarian as they represent a rejection of the central bank and government’s control of money. As the asset class grows, the gap will widen. Chinese actions against cryptos could be the tip of the iceberg. While China and the US governments agree on little, they could be comrades-in-arms in a war against the cryptocurrency philosophy.
Carbon, security, custody, and control are the issues facing cryptos
Four of the problems facing cryptocurrencies have different ramifications for the asset class’s future.
Elon Musk highlighted the carbon footprint left by Bitcoin miners when Tesla (TSLA) decided to abandon plans to accept Bitcoin as payment for its EVs. Mining requires substantial energy, so the asset class will need to continue addressing net-zero carbon extraction methods.
The rising number of computer hacks poses a threat to computer wallets. Ironically, hackers have held systems hostage for ransom in Bitcoin and other cryptos like Monero. Security when it comes to wallets in cyberspace and regulations to track flows are issues the asset class. Security could be the governmental excuse, requiring transparency and strip away some of the anonymity.
Custody on a grand scale is another issue that has prevented the introduction of market-based products like ETF and ETN tools that would provide further acceptance of cryptocurrencies by investors and traders. Many market participants are reticent to hold the tokens in computer wallets. A custody system that ensures ownership and storage of cryptocurrencies will go a long way to pushing the asset class further into the mainstream.
Government control of the money supply is the most critical issue facing the asset class. Leaders are not likely to surrender the power of the purse string to a group of libertarian instruments. Those who control the money supply have the power. This ideological gulf will likely lead to the bifurcation between cryptos versus government-issued digital currencies. Stable coins will fall on the side of the fence depending on underlying forces. A stable coin based on crypto would be crypto, while one based on fiat currency or commodity values would likely find support as digital currencies.
A digital dollar and euro are on the horizon, but the government needs to “get it right.”
When questioned about the futures of a digital dollar, Fed Chairman Jerome Powell hit the nail on the head with his answer. The leader of the central bank is a master of deflection and unanswered questions. When asked about the period the Fed looks to for its “average of a 2% inflation rate,” his answer was it is “discretionary.” However, when it comes to a digital dollar, he said the most important thing is to “get it right.”
With so many conflicting vested interests in government and business in the US and Europe, the process will be laborious. A digital dollar, digital euro, and other cyber currencies based on blockchain technology are on the horizon. Under the current US administration, which has a far more globalist orientation, I expect coordination with G-7 and perhaps other friendly governments to challenge the emerging digital yuan, which will be the first digital currency to hit the market running. China has an advantage as the central planned political system puts regulation and other aspects in the hands of one leader with the final decision. The process in the US, Europe, and other countries will be far more challenging.
Digital currencies are the children of blockchain technology. The chicken or egg question between Bitcoin and blockchain is not essential as blockchain is the concept that propels the evolution of the financial revolution.
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Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility , inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
D&O - New HighD&O Continue the strong uptrend and break new high price and sustaining at current range. Continue to monitor during correction to make entry.
Malaysia Technology IndexMalaysia Technology Index Continue to go upper high after breaking the short term downtrend line.
BOE Released its Performance Forecast: Profits Might be IncreaseBOE expects to achieve a net profit of CNY 12.5 billion to CNY 12.7 billion in the first half of 2021, with a year-on-year growth of 1001% to 1018%.
On July 13, BOE Technology Group Co., Ltd. (BOE) released its 2021 semi-annual performance forecast. According to the announcement, the basic earnings per share are expected to be about CNY 0.355 to CNY 0.361, 13 times higher than that of CNY 0.026 apiece in the same period of 2020.
The announcement shows that BOE's good performance is attributed to the global semiconductor display industry's prosperity, with stronger demand and rising prices caused by the shortage of raw materials. Meanwhile, the company's mature production lines will maximize production and sales, maintaining a leading position in the LCD mainstream application market, improving profitability and the product mix.
According to BOE's 2020 financial report, the annual revenue was CNY 135.55 bn, with an increase of 16.80% year-on-year; the net profit was CNY 5.04 bn, reporting growth of 162.46%. Furthermore, the company achieved a net operating cash flow of about CNY 39.25 bn, with cash on hand of approximately CNY 73.69 bn. During the same period, BOE's overall display shipments ranked first globally, including five major application fields such as smartphones, tablets, laptops, monitors and TVs.
In addition, based on the forecast data of Sigmaintell, the firm will still rank first in the world in terms of display shipments in the five application areas of smartphones, tablets, laptops, monitors and TVs. And the market share of automotive display panels over 8 inches will also continue to remain the world's first.
Omdia, a technology research firm, predicted that BOE, TCL CSOT and HKC would become the top three global panel production capacities, accounting for 25.3%, 17.2% and 10.3% respectively.
Fib Levels On AEHR Going WAY BackHad to take the AEHR chart all the way back out to 2017 to find some levels to plot. Took the fib retracement and look what we found: high traffic area around the 236 level. Tested it for the first time since 2017 and failed to break & hold. After pulling back, AEHR came within testing distance of the 382 level. After such a huge extension it will be interesting to see if it ends up consolidating above this level or if it tests (or breaks below) it.
"If we consider that the market for computer chips is extremely in demand right now, we see just why AEHR is getting so much attention. While it is not a producer of these chips, it does work as an ancillary company in the industry. In the past six months, shares of AEHR stock have rocketed higher by around 31%. Over the past twelve months, that number shoots up to over 45%... Only recently, Aehr Test Systems won a $2.9 million follow-on order for its FOX-XP Wafer Level Test and Burn-in system as well as multiple WaferPak Contactors from its lead silicon carbide customers. While this alone is not a be-all-end-all deal, it is a big step for the commercialization of its products. Additionally, large orders tend to help with the notoriety of a product and can lead to more orders in the future... ...While many gains with penny stocks occur without news, AEHR made an exciting announcement in the early morning on Monday. The company stated that it received a $10.8 million order for its silicon carbide test and a burn-in customer regarding its FOX-XP systems its WaferPak product... "
Quote Sources:
7/12: 5 Top Penny Stocks on Robinhood That You Should Check Out in July
7/19: 3 Top Penny Stocks For Your Monday Morning Watchlist
MARKET ALPHA NEWS - ZMNASDAQ:ZM
Big news alert over the weekend where Zoom agrees to buy Five9 in an all stock deal valuing the company at 14.7b
Here is a chart to reference as market opens. We may see a big reaction either way. It's very difficult to predict how this market interprets news these days. It's best to just be prepared.
CIDM Showing Signs Of LifeI drew the fib retracement starting from March 2020 lows and sure enough, it pinpointed a few key levels, the 786 fib line being one of them and CIDM is testing that as we speak. Depending on the volume and if this news event has some legs, CIDM could be one of the penny stocks to watch this week. A lot will likely come down to how it will close the day on 7/15/2021.
"Only a few days ago, it announced that it was forgiven for a $2.2 million Paycheck Protection Program (PPP) loan. East-West Bank paid off not only the loan in full but the principal and interest of the PPP loan as well. This is a big deal and should reflect positively on the companies balance sheet moving forward."
Quote Source: 7 Top Penny Stocks to Watch That You Probably Haven’t Heard Of
Then today, the company reported preliminary fiscal Q4 results.It said consolidated revenue came in at $8.3 million, with streaming channel sales up 197% versus the prior-year quarter and 39% sequentially over last quarter, according to a regulatory filing. Streaming/digital revenue grew to 75% of group sales in the quarter versus 48% in the prior-year quarter. Also, CIDM announced a payoff of the remainder of its Prospect Digital Cinema loan in the amount of approximately $3.5 Million, effective July 9, 2021. Revenue from the sale of certain digital cinema equipment enabled the debt reduction and balance sheet improvement.
DPLS Playing out vs FibsDPLS has played out almost perfectly against the Fibonacci retracement so far. Considering that it was denied around $0.20, retraced the move back to the 786 fib line, which is also around 10/11 cents or about 0.005 shy of where DPLS got denied during the June rally is interesting. If you look at levels, around 4/5 cents in February was a resistance that couldn't be broken through until June. Then after DPLS was denied at nearly 10 cents, where did it pull back to and hold above? The 5 cent area. The volume will be something to pay attention to if DPLS is still on your watch list following the denial at the 618 fib and retracement back to the 786 in my opinion. Now the focus is where does DPLS find its new range? Based on the historical chart, which so far has come through, 13-15 cents was a previous area of traffic the last time DPLS was trading consistently above 10 cents. Will that become the interim pivot point in this latest move?
"Systems can quantify strains and stresses, adding to the safety profile of common industrial components. This includes monitoring structures such as pipelines, perimeters, aircraft components, and mining safety among others. Recently, the company announced the planned acquisition of TerraData Unmanned, PLC. This is a drone company that offers underwater inspection, 3D modeled mapping, and a variety of other services. 'As DarkPulse continues to build best in class technology service offerings to the critical infrastructure/key resources market we look for teams such as TerraData to bring experienced personnel and leading-edge equipment allowing the Company to operate AI-assisted inspection services in all mediums including land, sea, and air. TerraData’s ability to work in difficult marine environments with accuracy, efficiency, and expert results while eliminating risk to humans is a game-changer.' - DarkPulse CEO, Dennis O’Leary"
We'll have to see what happens next based on company news and technicals
Quote Source: 7 Top Penny Stocks to Watch That You Probably Haven’t Heard Of
Macro Perspective - TechnologyAn increasing level of concern is rising within the Bond, Equity and Real Estate Complexes or Markets.
I prefer Complex as each "Market" has a number of entities using their control mechanisms.
The Equity Complex has a number of headwinds approaching for Technology (NQ). Yields, specifically the 10Yr Treasury Note
has been a reliable Instrument for an Inverse or Negative Correlation. 10Yr Yields rose Friday 4.6%
In addition, we want to observe the Long End of the Yield Curve flattening - this is a warning sign, one which proceeds corrections.
Technically, the most recent reversal has seen poor breadth within NQ. The majority of the rise have been driven by the usual
narrow Big Cap, heaviest weighted Equities. AAPL, GOOG, AMZN, FB, MSFT - NVDA provided most of the gains for Index.
Unusual option activity has been on the rise as well, favoring large and often extreme positions for downside. One Trade amounted to $40Million in QQQ 340 Puts.
The NQ has repeatedly created a large squeeze prior to a reversal, the last thrust higher pushed up 500 points late in the day only to collapse the following day, giving up all of its gains.
IMHO, something is brewing which will be extremely bad for the NQ. There are a number of vectors for it see a large correction. Earnings will be led by share buy backs, Co2 Credits and a host of other accounting manifestations, but Gross Revenues should be less than optimal for a sustained uptrend.
The "Delta" variant may encourage some traders to position for increasing "growth" initially - this is not March of 2020.
Taiwan is at risk on a number of fronts. This would clearly be a large negative for Semiconductors. I do believe this will play out as there is an increasing number of large entities seeking to follow Apple's lead with their RISC Architecture and begin using their own Chipset Designs and Architecture. MSFT announced this some time ago. Google continues to reduce MSFT Office's market share with Google Docs. Windows 11 is a clear signal MSFT is changing their strategy after having announcing Win 10 was it.
The concentration of Chip/Chipset fabrication in Taiwan presents an imbalance globally and with it the attendant risks.
China is one, Water is another and there are a more. Japan has recently sworn to defend Taiwan as they are wholly dependent on Semiconductors for almost everything they manufacture.
The US has conducted multiple Naval exercises in the South China Sea for years. IS something brewing there? I do not know, but do believe there is an inherent risk well advanced with respect to Taiwan. There is little the US can do to prevent China taking back Taiwan IMHO.
I favor a Geopolitical Event inducing this correction, one that occurs after hours during GLOBEX and not RTH.
Europe is well advanced in declining Economic activity. The pace of Economic growth in China has slowed. The US reopening trade has been one of confusion, mistrust and one foot our the door.
If traders review Samsung in 2019 and their decline in Gross Revenues, we are witnessing the same event spreading once again.
Inflation changes purchasing decisions, substitution effects begin to take place.
There is much more, but I will condense this in now: I expect Tech to see a large correction later this month. I expect a number of Monthly Red Bars for a number of Indices.
I will discuss the ES YM RTY and Bonds in upcoming posts. I do believe the Russell 2000 and tech will lead the Indices down soon.
Perhaps August - November contracts will serve us well. Given the large ranges, using Micro Contracts for Inverse Ladders would be a wise choice.
The VXN should be monitored closely, it has worked well.
We will see how hard this can be pushed prior to a large reversal.
The VIX has not been as correlated to the NQ as the VXN and 10Yr Yields.
Good Trading Everyone - more to follow as we are approaching highs in everything, although the YM won't likely peak until August.
DPLS Overextension or next leg?It's been a LONG time since DPLS traded at these levels. Had to take the chart back out to 2018 to draw out these fib lines and wouldn't you know it, the 618 is a major level to keep watch of. Both May '18 and Sept. '18 the DPLS rallies were denied at or near this level. It managed to hold as support during the summer months. But again unable to sustain those levels. Now that DPLS is approaching this level again, it could be important to keep the 618 fib in mind. There haven't been any significant pullbacks on the chart so this could be a major over extension and big risk factor to also throw in the mix. Like most charts like this, volume is going to be the guide for what could come. Though it was higher on Friday compared to Thursday, both day's levels were much lower than the recent average daily volumes.
“'As DarkPulse continues to build best in class technology service offerings to the critical infrastructure/key resources market we look for teams such as TerraData to bring experienced personnel and leading-edge equipment allowing the Company to operate AI-assisted inspection services in all mediums including land, sea, and air. TerraData’s ability to work in difficult marine environments with accuracy, efficiency, and expert results while eliminating risk to humans is a game-changer,' said DarkPulse CEO, Dennis O’Leary. This is big news for the company and is more than likely the cause of the almost 100% gain witnessed with DPLS stock in the past five days. With this in mind, is DPLS worth keeping an eye on in July 2021?"
Quote Source: 7 Top Penny Stocks to Watch That You Probably Haven’t Heard Of
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.
Fo rthe full article with chart, please visit the original link
Is $AAPL headed to $150?*Before reading the information in this please understand the risks associated with both the stock market and investing as a whole. ALWAYS do your own research; invest with conviction, rather than emotion.*
*Please understand I am in no way a professional and offering investment advice, all ideas shared are simply opinion.*
*I work with a team of individuals that does research into potentially undervalued publicly traded companies. We use a mix of fundamental and trend analysis to formulate a trading plan for our securities.*
My team and I have always had a love affair with Apple ($AAPL) and their operations. It has recently been correcting on the charts from a $150 price point, and based on the the company's performance last week, we believe Apple has broken any bearish pattern that may have been apparent on the charts.
Apple is a notorious company with a brand equity that is currently unmatched in the electronics industry. Holding this company makes sense in any portfolio, this tech giant has showed time and time again it is the clear standard in consumer electronics sector. They have hold of a very large market by having a variety of products, these products all having some level of interconnectivity to one another. This interconnectivity has created a level of dependence for their consumers, meaning consumers do not want to buy non-Apple products simply because they already own many different Apple products. They are also able to sell older models of their devices at a discounted price, further increasing their market capitalization.
Regardless if you are chasing Apple to the $150 price point, securing yourself a good long entry for a long-term hold, or just riding Apple up on this bull run, buying at this price point certainly appears to be a good idea. Our price points are as follows:
ENTRY: $127
STOP LOSS: $120
TAKE PROFIT 1: $140
TAKE PROFIT 2: $145
TAKE PROFIT 3: $150
Check out my team over at @SimplyShowMeTheMoney
Members of our team are followed there.
$AAPL @ crucial price point*Before reading the information in this please understand the risks associated with both the stock market and investing as a whole. ALWAYS do your own research; invest with conviction, rather than emotion.*
*Please understand I am in no way a professional and offering investment advice, all ideas shared are simply opinion.*
*I work with a team of individuals that does research into potentially undervalued publicly traded companies. We use a mix of fundamental and trend analysis to formulate a trading plan for our securities.*
Apple ($AAPL) has caught fire in the past month, flying up a hot 18%. I've been following this tech giant since early June, and have been loving its activity in the last month. They are currently at a very crucial resistance point, a point set when a short term downtrend started in January of this year. Amazon ($AMZN) recently broke through a resistance; it appears that big tech might be seeing large growth across the board. Regardless if Amazon's breakout has any correlation to Apple's current price action, $AAPL appears to be reaching for the skies.
Updated price points for this trade is as follows:
ORIGINAL ENTRY: $127
STOP LOSS: $127
TAKE PROFIT 1: $160
Be sure to follow me @bigshotrob for future updates and posts.
Check out my team over at @SimplyShowMeTheMoney
Members of our team are followed there.
$GOOGL continuing bull run through end of year?*Before reading the information in this please understand the risks associated with both the stock market and investing as a whole. ALWAYS do your own research; invest with conviction, rather than emotion.*
*Please understand I am in no way a professional and offering investment advice, all ideas shared are simply opinion.*
*I work with a team of individuals that does research into potentially undervalued publicly traded companies. We use a mix of fundamental and trend analysis to formulate a trading plan for our securities.*
Google ($GOOGL) is a company I will *probably* be holding for at least the next five years. This global technology powerhouse has been on a rampage this year, going up nearly $1000 in share price since the beginning of 2021, when the company still held a mighty impressive $1600 share price. They currently appear to have two bullish trends active, one long term starting in March of 2020, as well as a bullish trend started in January of this year.
Google is a global phenomenon, touching every country in the world; that in itself is a powerful intangible asset. This paired with their ability to smash estimated earnings on a quarterly basis, Google is the benchmark for success in the industries they touch.
If entry is secured in this price range, someone could see Google run close to 25% by the end of the year. Our price points are as follows:
ENTRY: $2520
STOP LOSS: $2300
TAKE PROFIT 1: $2800
TAKE PROFIT 2: $3100
Be sure to follow me @bigshotrob for future updates and posts.
Check out my team over at @SimplyShowMeTheMoney
Members of our team are followed there.
$TSLA on the road back to $900?*Before reading the information in this please understand the risks associated with both the stock market and investing as a whole. ALWAYS do your own research; invest with conviction, rather than emotion.*
*Please understand I am in no way a professional and offering investment advice, all ideas shared are simply opinion.*
*I work with a team of individuals that does research into potentially undervalued publicly traded companies. We use a mix of fundamental and trend analysis to formulate a trading plan for our securities.*
My team and I undoubtedly agree that Tesla ($TSLA) has incredible potential and upside, both short and long term. Having someone as renowned as Elon Musk at the helm of operations adds a sort of "social equity." At its founding, Tesla took a large risk by attempting to cultivate and advance the electric vehicle scene. The company has ramped up operations in recent years, and appears to be ahead of its competitors in the electric vehicle space. This paired now with its current operations in the solar energy/energy alternative industry, Tesla is attempting to shift the market's normal consumer demands. These shifts are presently altering some trends that have been apparent for over one hundred years; i.e. the gas/oil automobile industry, as well as thermal energy powering many residential and commercial buildings in the United States.
Tesla has been going through a correction from a $900 price point hit earlier this January. Based on its chart, it appears that there is a support level at $550. Past that, there doesn't appear to be much structure on the charts, simply due to Tesla's huge run from $70 since March 2020 has not allowed for a clear trend and/or structure to emerge due to its huge value increase. The only trend that appears at Tesla's current price level is a bullish trend started in the middle of this past May. Tesla is at a resistance point on the charts currently, it has pushed to a $700 price point, and has bounced off of this resistance level 3 times. Regardless of this resistance, Tesla has clear bullish sentiment, and could break through this $700 price point in the next few weeks. Through its current pattern, this company has potential to hit a $1,000 price point. This price point will not be reached anytime soon, but the company could see itself in the $800-$900 per share price range before the end of 2021.
At its current price point under $700 per share, we believe this stock is undervalued. This price point could be a "golden-egg" entry for people wanting to hold Tesla for years to come. Whether attempting to hold $TSLA for the long, or wanting to turn some profit in the short, seeking an entry in $TSLA in its current state appears to make sense.
MY ENTRY: $610
STOP LOSS: $575
TAKE PROFIT 1: $775
TAKE PROFIT 2: $900
Check out my team over at @SimplyShowMeTheMoney
Members of our team are followed there.
