🚀 Robin Rocket

2021-09-29 16:59:01 The boom in installment services - how to make money in a growing market?

Platforms that allow consumers to make purchases on a buy now - pay later basis are gaining popularity. This was largely due to the pandemic. Consider the prospects and key players in this area.

Growth factors:

• During the COVID-19 pandemic, many people faced financial hardship due to job loss or pay cuts. Buyers began to avoid large one-time purchases for fear of overburdening the budget.

• The flexibility of payments provided by installment services attracts a large number of buyers. Currently, about 56% of Americans have used this service at least once.

• The income of the providers of hire purchase directly depends on the number of transactions, and, probably, many consumers, given the choice, will give preference to large and well-known services with a large list of seller-partners.

Key ideas in the sector:

Affirm $AFRM
Target price from Mizuho - $150, upside potential +21%
Affirm is one of the largest installment services in the US and has partnered with companies such as Amazon $AMZN, Apple $AAPL, and Shopify $SHOP to create their own installment services.

PayPal $PYPL
Target price from Morgan Stanley - $340, upside potential +22%

Square $SQ
Target price from JPMorgan - $320, upside potential +22%

In addition, small Australian installment plan providers may have growth potential due to their relatively low valuation and possible absorption by large players, as happened with Afterpay:

Sezzle $SZL
Zip $Z1P

Not an investment recommendation. Open / Comment

2021-09-29 15:49:01 Good morning!
#investor_morning

Chinese banks are buying back their shares, which have fallen in price amid the Evergrande crisis - SCMP. At least six banks, including Ping An Bank and Bank of Shanghai, have announced plans to buy back their own shares this month. A wave of share buybacks could instill some confidence in China's underprivileged banking stocks.

BofA predicts the oil price will rise to $100 by September 2022, or faster if the winter is harsh.

$MA
Mastercard has launched an installment plan program. The service is available to customers in the US, UK and Australia.

The status of the dollar as a reserve currency will be jeopardized if the public debt ceiling is not raised - Yellen.

$JPM
JPMORGAN STARTED PREPARATIONS FOR POTENTIAL LOAN DEFAULT IN THE US AS DEBT LIMITS NEGOTIATE HARD - DIRECTOR GENERAL JAMIE DIMON.

$AAPL
iPhone 13 delivery time increases due to vietnam supply chain issues - Nikkei.

Evergrande sells $1.5bn stake in Chinese bank Shengjing Bank ahead of next coupon payment on bonds.

$AMZN $MSFT
Amazon and Epic Games will add their apps to the Microsoft app store within a few months.

$AMZN $AAPL $PTON
Amazon launches fitness service Halo to compete with Peloton and Apple.

UK uses fleet to deliver gasoline to refueling station - Quarteng, UK secretary of State for Enterprise, Energy and Industrial Strategy Open / Comment

2021-09-28 22:16:01 Fintech startup SoFi goes public. What are the prospects?

Jefferies analysts reviewed SoFi's fintech and identified several growth drivers.

SoFi Technologies $SOFI is a fintech company providing consumer loans.
Target price from Jefferies - $25, upside potential +41%

Theses in favor of the company's growth:

• Flywheel model. The SoFi business model is built on the flywheel principle. With the flywheel, the company leverages the momentum of satisfied customers for referral and repeat sales. In fact, the company's business revolves in an endless cycle of customer acquisition.

Analysts believe that using the flywheel, the company will attract more customers, enhance the introduction of new products to the market, and increase sales margins.

• Acquisition of Galileo. Analysts point out that the acquisition of Galileo will be a key factor in the company's development. SoFi and Galileo form a unique synergy that goes far beyond traditional vertical integration.

The union of the two companies increases marketing efficiency, which leads to the possibility of cross-selling between the client bases of both companies. Since the acquisition of Galileo, SoFi has a unique position in the market as it can provide not only B2C but also B2B services.

• Jefferies Predictions. Analysts note that the company is at the beginning of its development cycle. Jefferies is forecasting double-digit annual sales growth for various categories of SoFi services through 2025, including home and consumer loans.

Fundamental indicators:

• Market cap = $14.1 billion
• P / S = 17.5x
• P / S sector = 1.5x

Not an investment recommendation. Open / Comment

2021-09-28 20:41:01 Many of you don't realize that behind the $STLA ticker is the world's 4th largest auto giant in terms of car production!

The trick is that the company was formed only this year.

Stellantis NV, $STLA

Current price: $19.88
Target price: $23-25

The result of the merger of the Italian-American FCA (Fiat Chrysler Automobiles) and the French Groupe PSA (Peugeot Société Anonyme) in 2021, the concern received the name Stellantis, which means "shining with the stars", and became the fourth largest automaker in the world in terms of production. Only Toyota, Renault-Nissan-Mitsubishi and Volkswagen are larger than it.

The company owns 14 brands: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks and Vauxhall.

The shares continue to trade at an unreasonably large discount to peers, despite the company's significant upside potential.

Not an investment recommendation. Open / Comment

2021-09-28 19:02:01 Here's ROCKET in the truest sense! One of the promising players in the space industry, including Space X, Virgin Galactic and Blue Origin:

Rocket Lab USA, $RKLB

Current price: $15.02
Target price: $17-18

Rocket Lab is a key player in the space industry with excellent long-term growth potential. Much of this potential will be driven by future space exploration, satellite communications for technological advancement on Earth, and tourism, analysts say.

The company was founded in 2006 and over the years has grown into a dynamically developing space company.

They focus on cost-effective, customer-tailored reusable launches using the only reusable small launch vehicle, Electron.

Rocket Labs has made tremendous strides by already monitoring reusable small launch vehicles and LEO spacecraft niches for specific missions.

Continuous business expansion with the launch of the Neutron rocket due in 2024 and the Sinclair acquisition by Interplanetary gives them the opportunity to achieve excellent growth.

Not an investment recommendation. Open / Comment

2021-09-28 17:07:01 I know you like interesting papers that can give +20-30%

This is especially true if we are talking about biopharm in the medium and long term. Catch one of the ideas:

Arena Pharmaceuticals, $ARNA

Current price: $61.22
Target price: $75-79

Arena Pharmaceuticals, Inc. is an American biopharmaceutical company from California that develops low molecular weight drugs for clinical use in various therapeutic areas. The company was founded in 1997.

Arena technology is the result of two decades of GCPR research.

The company went public in 2000, raising about $73 million to develop a drug development platform called CART (Constitutively Activated Receptor Technology), which resulted in the approval and launch of Belviq, the first weight loss drug approved in the United States in 13 years.

The Arena analyst consensus is between $92 and $105.

Not an investment recommendation. Open / Comment

2021-09-28 15:48:01 Good morning!
#investor_morning

Low water level in the Parana river forces Brazil's hydropower plants to rely on gas.

There is a shortage of gasoline in England. People line up for gas stations, taxi drivers fight for fuel, and logistics are completely stopped.

$TCOM
Domestic travel demand in China will recover soon - Trip.com CEO.

$LLY
Eli Lilly reduces the price of insulin lispro injections.

$F
Ford and SK Innovation announced a $11.4 billion investment in the production of electric vehicles in the United States. The company will build two large auto and battery factories in Kentucky and Tennessee. Ford will invest $7 billion, SK - $4.4 billion.

$RACE
Ferrari hires former Apple chief designer ahead of EV production.

$BA
Boeing signed a contract for the supply of VC-25B spare parts for $158 million. Work will be carried out at the Andrews, Maryland joint base and is expected to be completed by January 15, 2025.

$LMT
Lockheed Martin wins a $1.1 billion contract to supply 16 F-35s: 10 for the Air Force and 6 for the Marines.

$CMCSA
Comcast will invest $26 million over two years to expand its network in Greater Philadelphia, New Jersey. The company said the expansion will directly impact 4K enterprises and benefit thousands of others by making the network more accessible.

$WFC
US MINISTRY OF JUST SUE WELLS FARGO FOR FOREX SERVICES. The bank will pay $37 million.

Reporting today:
- IHS Market $INFO
- Micron $MU Open / Comment

2021-09-27 22:20:06 KeyCorp is one of the largest financial services holding companies in the United States.

KeyCorp, $KEY

Entry point #1 - High risk:
Buy at current, for breakdown

Entry point #2 - Conservative strategy (safe): $21.31. Waiting for a breakdown and consolidation above the level, since it is assumed that both some sideways and a decline to the "red levels".

STOP = $20.3

Take profit: $23.74, $25.9, $28.26

KeyCorp provides a wide range of retail and commercial banking, commercial leasing, investment management, consumer finance, student loan refinancing, commercial mortgage services and special services, and investment banking products and services for individuals, companies and institutional clients, as well as offer services, personal and institutional custody, securities lending, personal financial and planning services, access to mutual funds, treasury services, international banking services, securities underwriting, brokerage and investment banking services.

Not an investment recommendation. Open / Comment

2021-09-27 19:58:01 5G - New growth driver for Verizon

Recently introduced operator Verizon spoke at the Goldman Sachs conference, where they shared their plans for the further development of the company.

Verizon $VZ is the largest US cellular operator in terms of subscribers.
Target price from JPMorgan $65, +20% upside.

Theses for growth:

• Development of tariffs for 5G.
Verizon only provides 5G access to users with unlimited or premium plans, which cost an order of magnitude more than standard plans.

With the rise of 5G, demand for more expensive tariffs is expected to rise, which will have a positive impact on the company's revenue.

• Collaboration with streaming platforms. Verizon has a multi-million dollar customer base, which makes it an attractive partner to collaborate with. When connecting premium and unlimited packages, free subscriptions for a period of 6 to 12 months to streaming services Disney+, Discovery+, as well as to the music service Apple Music.

The details of the agreements were not disclosed, but comments from company representatives indicate that Verizon makes a profit from every customer it attracts. This package, combined with 5G exclusivity, is expected to be the main drivers of the company's revenue growth.

• Strategy for the future.
When allocating capital, the company pays most attention to its own development. $VZ pays dividends and focuses on reducing debt burden. After 4-5 years, Verizon will start the share buyback program again.

• Dividend yield.
In addition to the above, the company has an attractive dividend yield: 4.71%

Fundamental indicators:

• Market cap = $225 billion
• fwd P / E = 10x
• front P / E sector = 24x
• Fwd PEG = 3.5x

Not an investment recommendation. Open / Comment

2021-09-27 18:29:01 An underestimated construction company in the medium term, which can bring 12% -17% profit

PulteGroup, Inc., $PHM

Current price: $47.28
Target price: $53-55

PulteGroup is a leading player in the residential housing market with strong earnings growth, leading gross margins and some of the strongest balance sheets in the industry.

The United States is now experiencing a record housing shortage.

Many analysts estimate the country has a shortage of more than 1 million units, while others argue that the shortage is much greater.

It will take many years of construction by companies like Pulte and their industry colleagues to solve the vacancy problem.

Therefore, the long-term high demand and stable profits of construction companies are simply obvious!

Not an investment recommendation. Open / Comment