Paypal – Earnings Review

Posted on | by Leon Hinde

Q4’21: Solid finish to another strong year
Total Payment Volume (TPV) of $339.5 billion, growing 23% on a spot and FX-neutral basis (FXN); net revenues of $6.9 billion, growing 13% on a spot and FXN basis.

FY’22: Expect TPV to reach $1.5 trillion and revenue to surpass $29 billion
• TPV is expected to grow 19%-22% at current spot rates.
• Revenue expected to grow 15%-17% on a spot basis; excluding eBay, revenue is expected to grow 19%-21%

• 15 to 20 million NNAs expected to be added to PayPal’s platform in FY’22.

We see long-term value in Paypal for the patient investor and anticipate that the company will make attractive bolt-on acquisitions, supported by low company debt and free cash flow, which will help support the growth story.

Short term, traders may wish to position a trade around the highlighted setup below, with a stop loss below the recent pivot low.

HACK – ETF Buy Signal

Posted on | by Leon Hinde

Betashares Global Cybersecurity is under Algo Engine buy conditions and is a current holding in our All ASX ETF model portfolio.

We see support building at $7.00 and expect 5 to 10% upside in the next 6 weeks.

7/4/22 HACK Update: Since writing the above post, HACK has rallied to a new higher low formation at $9.76. Buy HACK at market and run a stop-loss below $9.76.

25/2/22 update: Buy HACK ETF.

CIMIC Takeover Offer $22

Posted on | by Leon Hinde

HOCHTIEF ANNOUNCES UNCONDITIONAL AND FINAL ALL-CASH $22.00 PER SHARE
TAKEOVER OFFER FOR ALL REMAINING SHARES IN CIMIC.

We’ve been bullish on CIMIC for two reasons, firstly the inflection point in earnings and an improving balance sheet, second, the prospect of their parent company making a full takeover. As it turns out, just as the inflection point in earnings was reached in the 1H22 results and the company guided towards growth in the second half, the takeover bid has been announced. It will be interesting to see if this is enough to get the deal done.

CIMIC was among our top 5 holdings in the high conviction portfolio and in our Class A equities fund. We’ll look to take profit and reallocate the funds elsewhere and take advantage of the value on offer in other names.

Here is the snippet from our blog post on 2 Feb 2022…

CIMIC Takeover Offer $22

Posted on | by Leon Hinde

HOCHTIEF ANNOUNCES UNCONDITIONAL AND FINAL ALL-CASH $22.00 PER SHARE
TAKEOVER OFFER FOR ALL REMAINING SHARES IN CIMIC.

We’ve been bullish on CIMIC for two reasons, firstly the inflection point in earnings and an improving balance sheet, second, the prospect of their parent company making a full takeover. As it turns out, just as the inflection point in earnings was reached in the 1H22 results and the company guided towards growth in the second half, the takeover bid has been announced. It will be interesting to see if this is enough to get the deal done.

CIMIC was among our top 5 holdings in the high conviction portfolio and in our Class A equities fund. We’ll look to take profit and reallocate the funds elsewhere and take advantage of the value on offer in other names.

Here is the snippet from our blog post on 2 Feb 2022…