Category: Finance

Square Inc. – [SQ]

Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions.

Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website.

Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.

PE Ratio

The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price.

V – Visa Inc.

Visa to buy Plaid for $5.3B

The acquisition will enable Visa to work more closely with fintechs through all stages of their development and drive growth in Visa’s core business, Visa said.

Visa Inc. (Visa) is a payments technology company that connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments. The Company operates through payment services segment. The Company enables global commerce through the transfer of value and information among the participants.

1. Visa — 323M Cardholders

Visa logo

Visa is a monolith in the credit card world, widely accepted by over 8 million merchants. From traditional benefits to premium rewards, Visa personal credit cards offer a wide range of benefits for cardholders around the world. Mobile cardholders can save themselves time and shop online using Visa Checkout.

2. MasterCard — 191M Cardholders

MasterCard logo

The second most major credit card network in the United States, MasterCard offers perks like easy bill pay and personal information protection using chip technology. MasterCard processes transactions in over 210 countries and in more than 150 currencies.


Fintech – Financial Technology

Fintech refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers. It primarily works by unbundling offerings by such firms and creating new markets for them.

Fintech startups received $17.4 billion in funding in 2016 and were on pace to surpass that sum as of late 2017, according to CB Insights, which counted 26 fintech unicorns globally valued at $83.8 billion. The same firm reported that there were 39 VC-backed fintech unicorns worth $147.37 billion by the end of 2018.

NYCB – New York Community Bancorp

NYCB – New York Community Bancorp, Inc. stock

New York Community Bancorp has started to grow its portfolio and has completed the bulk of planned share repurchases. With recessionary fears at the forefront, the bank’s quality standards has allowed it to outperform its peers.

We examine this from a valuation standpoint and give our take on this regional bank.When we last covered New York Community Bancorp (NYCB) we were modestly positive on the regional bank in spite of headwinds from the yield curve.

BAML favorite Q4 picks

Bank of America Merrill Lynch releases its top 10 U.S. ideas for Q4. The high-conviction list includes 7 Buy-rated stocks and 3 Underperform-rated stocks.

Top BAML Buy-rated ideas: Aramark (NYSE:ARMK), Salesforce.com (NYSE:CRM), Disney (NYSE:DIS), Dover (NYSE:DOV), New York Community Bank (NYSE:NYCB), Raytheon (NYSE:RTN) and Target (NYSE:TGT).

Top BAML Underperform-rated ideas: Floor and Decor (NYSE:FND), Gap (NYSE:GPS) and Terex Corp. (NYSE:TEX).

V ~ Visa Inc.

Cash to plastic conversion remains strong, with approximately 0.65-0.9% annual rate supporting the secular growth story. Visa may have a near-term pricing advantage against its chief rival, Mastercard. More buyback authorization may be on the horizon.

Visa, Inc. (V) is a network that facilitates electronic fund transfers via branded credit, debit, and gift cards. On an annual basis, it processes more than 110 billion transactions, with the total payments volume exceeding $8 trillion. Visa has one of the world’s best-recognized brands, operating across nearly all countries around the world and commanding more than 60% of the global payments volume share together with its main rival, Mastercard (MA). In 2018, the company generated $20.6 billion in revenue, with its current market cap approaching $400 billion.

Arbor Realty Trust, Inc. (ABR) ~ Qty 100

Arbor Realty Trust, Inc.. Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. Its segments include Structured Business and Agency Business. In addition, the Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities.

It focuses on investment types, such as Bridge Financing, Mezzanine Financing, Junior Participation Financing and Preferred Equity Investments. It offers bridge financing products to borrowers, typically seeking short-term capital to use in an acquisition of property. It offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction.

Bank of America Corporation



Bank of America is one of the largest financial institutions in the United States, with more than $2.3 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America’s consumer-facing lines of business include its network of branches and deposit-gathering operations, home mortgage lending, vehicle lending, credit and debit cards, and small-business services.

The company’s Merrill Lynch operations provide brokerage and wealth management services, as does U.S. Trust private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries.

The Bank of America Corporation is an American multinational investment bank and financial services company based in Charlotte, North Carolina, with central hubs in New York City, London, Hong Kong, Minneapolis, and Toronto. Bank of America was formed through NationsBank’s acquisition of BankAmerica in 1998

Qudian Inc.



Having access to Alipay was not final, losing it was not fatal.

Re-focusing on micro-lending after winding down the loss-making auto business helps improve profitability.

The new open-platform initiative has started bearing fruit.

Qudian (NYSE:QD) is a leading provider of online small consumer credit in China. The company uses technology to make cash credit products accessible to young consumers in China, who are under-served by traditional

Square, Inc. ~ (SQ)

“Bulls argue that the growth runway is huge for Square. While payment processing is the firm’s bread and butter right now, that won’t always be the case. SQ has gone from being simply a payment processor for small businesses to becoming a one-stop shop for merchants. Square has been tacking on extra offerings for years now, from inventory management and shipping to payroll and lending. Those extra services differentiate SQ from its peers, and make switching costs for merchants much higher because they already rely on Square’s ecosystem in order to run their businesses efficiently. “

By Laura Hoy, InvestorPlace ContributorMay 29, 2019, 2:49 pm EDT