3 High-Flying Stocks To Sell Before A Bear Market

Forbes | January 04, 2019

3 High-Flying Stocks To Sell Before A Bear Market
Recently featured three safe stocks to get you through a bear market. This week I'm going in the opposite direction and picking three stocks that performed well in 2018 but look overvalued as the market grows more volatile.Advanced Micro Devices (AMD), TripAdvisor (TRIP), and Advance Auto Parts (AAP) are this week’s Danger Zone picks. Price Increase Leads to Overvaluation It should come as no surprise that many of the top-performing S&P 500 stocks for 2018 now earn an unattractive-or-worse rating. Anytime a stock nearly doubles in one year, there’s a good chance it will become overvalued. Figure 1 shows the 2018 performance and the price to economic book value (PEBV) for the top three performing stocks in the S&P 500. Economic book value represents the zero-growth value of a company’s cash flows, so all three companies have a valuation at least four times higher than their zero-growth value. For comparison, the weighted-average PEBV for the S&P 500 is 2.6. Advanced Micro Devices is a global semiconductor company. The company is one of the smaller players in most of its product lines, except for graphics processing units (GPU’s), where it operates in a virtual duopoly with Nvidia (NVDA).AMD drastically outperformed the market this year as it took GPU market share away from NVDA and analysts perceived opportunities for the company to capitalize on struggles at Intel (INTC). Reported earnings growth also helped drive the stock increase, as GAAP EPS increased 546% TTM to $0.32/share.However, GAAP earnings growth is overstated due to a $19 million one-time gain from tax reform (5% of GAAP net income) and understated earnings in the previous TTM period. Net operating profit after tax (NOPAT) grew by 36% TTM, still impressive, but not as big an improvement as GAAP EPS.

Spotlight

Small business survey infographic from small business loan provider Balboa Capital features highlights from the company's mid-2015 survey of business owners in the US. The online survey was sent to 35,000 business owners to gauge their confidence about the nation’s economy, and to find out where they are planning to invest during the final months of 2015.

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FINTECH

Whitepaper From Broadridge Confirms New Fintech Delivery Model Is Transforming Financial Services Through Mutualized Services

Broadridge | May 12, 2021

According to a recent whitepaper published today by global Fintech pioneer Broadridge Financial Solutions, Inc., as the financial services industry faces the new challenges of a post-pandemic world, many companies are starting to turn toward mutualization frameworks for their technologies and operations (NYSE:BR). Mutualization is a process in which members achieve faster access to emerging technology, scalability, and resiliency by saving time, resources, and expense by sharing the advantages of an industry solution offered by a dependable, trustworthy, and neutral third party. Broadridge's Chief Transformation Officer, Michael Tae, said "Implementation of a mutualized model allows firms to increase operational productivity, resiliency and efficiency that are the hallmarks of a modern, modular approach to service delivery." He also adds, “We developed this report after many conversations with clients who shared their interest in mutualization but felt uncertain about where to begin updating their technology functions. This whitepaper serves as both a useful guide to those interested in expansion and an informational tool to firms that are just beginning their technology journey." The recent whitepaper acts as a road map for financial services companies interested in establishing a mutualized service delivery model. The following are some of the paper's highlights: • Mutualization is being driven by four forces: margin and cost constraints, regulatory reform, digitization, and infrastructure shocks. • Long-term mutualization advantages include cost savings, regulatory enforcement, organisational efficiency, and scalability and creativity. • The elements required to create a new mutualized service delivery model. • The core questions that any executive in the financial services industry can consider when they embark on the road to mutualized service delivery. About Broadridge Broadridge Financial Solutions, a global Fintech leader with over $4.5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. We deliver technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge's technology and operations platforms underpin the daily trading of on average more than U.S. $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is a part of the S&P 500® Index, employing over 12,000 associates in 17 countries.

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PAYMENTS

Voyager Token Integrated Into Coinify's Global Crypto Payment Platform

Voyager | November 09, 2021

Voyager Digital Ltd., one of the fastest-growing, publicly traded cryptocurrency platforms in the United States, today announced the integration of the Voyager token (VGX) into Coinify's cryptocurrency payment platform, a wholly-owned Voyager subsidiary that provides merchant payment services in over 150 countries. The integration of VGX into Coinify's crypto payment platform expands the functionality of the Voyager token well beyond the Voyager ecosystem. Our acquisition of Coinify earlier this year added a global crypto payments infrastructure to the Voyager ecosystem, and we will continue to implement additional ways to maximize this infrastructure to grow crypto adoption internationally." Steve Ehrlich, CEO and Co-founder of Voyager. Coinify's payment system allows businesses to accept cryptocurrency online and in retail stores, and is integrated through payment service providers with over 30,000 merchants globally. VGX joins over 15 other leading cryptocurrencies — including Bitcoin, Ethereum, and Cardano — that can be accepted by participating Coinify merchants. Voyager also previously announced that Usio, its payment provider, is integrating Coinify's payment offering. Usio already has an established pipeline of merchants and PSPs ready to accept crypto as payment. VGX supports the Voyager Loyalty Program, commonly known as VLP, which allows customers to earn rewards for activities done on the platform. The VLP rewards customers with crypto-back on trades, boosted holding rewards, and more. The program has been successful as the number of participants continues to grow. In August 2021, Voyager acquired Coinify, accelerating Voyager's international expansion and the Company's payment capabilities, with plans to enable customers to make payments directly from their digital asset accounts and fast-track Voyager into the business-to-business payment space. About Voyager Digital Ltd. Voyager Digital Ltd. is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 60 different crypto assets using its easy-to-use mobile application, and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe.

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FINTECH

Alviere Teams Up with Currencycloud to give its Clients Multi-Currency Cross Border Embedded Finance Solution

Alviere, Currencycloud | April 30, 2021

Alviere, a New York-based embedded finance platform provider, announced today a partnership with Currencycloud, a leading provider of B2B cross-border solutions, to provide multi-currency e-wallet features to its enterprise clients with individual IBANs, enabling customers to pay, store, convert, and receive up to 38 currencies at once. Alviere will be able to give its large corporate clients the opportunity to integrate financial services into their companies and deliver a full range of financial services to their customers using its Hive modular API technology. The technologies that both companies uses, combined with the speed of integration and the partnerships gives new business opportunity to Alviere. These business opportunities come in the form of serving real growth to its clients if they seem to stretch worldwide. While announcing the partnership, Alviere’s Chief of Staff, Steven Scofelia commented, “It’s a real demand out there in our clients for cross-border functionality and it’s advantage for growth.” He also adds, “We are very excited to launch our partnership with Currencycloud to provide a combined solution to existing and new clients of Alviere.” Currencycloud’s Vice president of sales and general manager of North America at Currencycloud, Mr David Heitzman, said, “There was immediate bonding between Currencycloud and Alviere. Their customer obsession approach replicates our customer-centric methods to deliver, and we felt the partnership is perfect for both of us. We see embedded finance as the next big thing for business and we are thrilled to support Alviere in delivering embedded finance to its executive clients.” Alviere's Hive solution also includes the Currencycloud Spark solution, which is available to both current and new customers.

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Spotlight

Small business survey infographic from small business loan provider Balboa Capital features highlights from the company's mid-2015 survey of business owners in the US. The online survey was sent to 35,000 business owners to gauge their confidence about the nation’s economy, and to find out where they are planning to invest during the final months of 2015.