January 11th, 2022 | 13:13 CET
Deutsche Bank, CoinSmart, PayPal - New opportunities after the correction!
After bitcoin reached a new all-time high of around USD 69,000 in November, price targets of over USD 100,000 were already being passed around. But the reality looks different. In the wake of a sharp correction, the digital reserve currency is trading below USD 41,000. The altcoins have also been dragged down with it. Even if cryptocurrencies are not yet at the end of the current correction cycle, the ecosystem's development and infrastructure are still in their early stages. Thus, there are attractive countercyclical entry opportunities in this segment for selected securities, which should pay off in the long term.
time to read: 3 minutes
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Author:
Carsten Mainitz
ISIN:
DEUTSCHE BANK AG NA O.N. | DE0005140008 , Coinsmart Financial Inc. | CA19260N1042 , PAYPAL HDGS INC.DL-_0001 | US70450Y1038
Table of contents:
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
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PayPal - Is its own currency coming?
Not only have cryptocurrencies had to correct strongly in recent weeks. Shares with new, disruptive business models also suffered significantly. The online payment service PayPal was also affected. Since the high at the end of July last year, when the US company recorded a new all-time high of USD 310.16, it has fallen back to the breakout level of USD 187.60. The share seems to find support in the area around USD 180 so that a countermovement could start at any time, even as a result of the oversold situation.
In the past, the Company from California shone with innovations. It also had a pioneering role in introducing cryptocurrencies on the PayPal platform in 2021. Users from the USA and Great Britain can already pay with digital money. A source code analysis of the PayPal app has revealed that the US company is working on its own stablecoin. The coin is supposed to be backed by the US dollar, just like most stablecoins. The rumors have already been confirmed by Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, to Bloomberg News: "We are exploring a stablecoin. If and when we move forward, we will, of course, work closely with the relevant regulators."
CoinSmart - New records
The high volatility of cryptocurrencies and thus the increased trading activity of customers benefits trading platforms such as CoinSmart. In November, this led to a further increase in revenue and a significant record result. At CAD 1.94 million, the already strong month of October was topped by another 7%. The Canadian Company's assets under management rose to CAD 71 million. The platform is already active in over 40 countries and sees itself as a full-service provider for digital currencies. In addition to crypto trading, CoinSmart also plans to launch credit cards, tokenization of tangible assets and NFTs.
The debt-free and cash-flow-positive Company impressively continues its growth path. The number of customers increased from 26,500 in December 2020 to 158,600 by October 2021, showing a significant undervaluation compared to the peer group. While CoinSmart is currently valued at slightly more than double its revenue, investors pay ten times as much for Voyager and 14 times as much for Netcoins.
In addition, as of early 2022, CoinSmart has about CAD 18.3 million in cash and CAD 3.2 million parked in crypto assets, which equates to about CAD 0.36 per share. CoinSmart's market capitalization is around CAD 46 million, equivalent to EUR 32 million. CoinSmart is one of the few cryptocurrency trading platforms in Canada registered as a securities dealer and marketplace with the Ontario Securities Commission. Interested customers are more likely to choose a safe alternative than an unregulated competitor when the crypto market picks up again.
Deutsche Bank - Profiteer of the FED
The beneficiaries of potential interest rate hikes are banks and financial services companies. Since the publication of the FED minutes, in which it was announced that possible interest rate steps would be taken more quickly than expected, shares such as those of Deutsche Bank have gone steeply upwards. In contrast, shares of technology stocks have corrected sharply. Should the share also overcome the next prominent resistance at EUR 12.59, the next theoretical price target would be around EUR 18.
The publication of the figures on January 27 should be exciting for analysts and investors. The analysts of the Canadian bank RBC, who increased the price target of the Deutsche Bank share from EUR 12.50 to EUR 13, have already rushed ahead. The rating was confirmed as "Sector Perform". The year 2021 should have ended well for global investment banks, analyst Anke Reingen wrote. The expected better earnings in investment banking would justify the increased price target.
While papers of banks and financial services companies were able to profit after the Minutes of the US Federal Reserve, technology companies and the crypto sector in particular corrected. At Deutsche Bank, investors are eagerly awaiting the quarterly figures. CoinSmart could already report record figures and is favorably valued compared to the peer group. At PayPal, there is tension in the air as to whether and when the Company's own stablecoin will be realized.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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