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Posted

concerned about the competition? what's paypal's moat?

as far as valuation is concerned looks like it's a 20 sth PE stock next year w/ some growth so it's not bad

 

 

what attracted you into this?

 

PYPL

 

Growth, good margins, decent valuation.

Posted

Shouldn't competition be concerned about Paypal as well? :) I am not worried about Square or Google, I don't think they are that impressive. As for moat, I don't know yet, I'm still working on the name, but it looks promising.

Posted

I am concerned with whatever pay Facebook will provide...

 

Shouldn't competition be concerned about Paypal as well? :) I am not worried about Square or Google, I don't think they are that impressive. As for moat, I don't know yet, I'm still working on the name, but it looks promising.

Posted

Shouldn't competition be concerned about Paypal as well? :) I am not worried about Square or Google, I don't think they are that impressive. As for moat, I don't know yet, I'm still working on the name, but it looks promising.

 

Stripe is awesome. It's not a 100% similar comp, but as a developer, I'd rather use Stripe than anything else by a mile

Guest Schwab711
Posted

Stripe is a payment processor, not a network though. This isn't necessarily bad but it is more expensive, though easier to use, relative to PYPL. Paypal is unique in that it is one of the few true networks in the payments space (it's p2p as opposed to b2b). You may be concerned about the sustainability of p2p payment networks due to new processing services like those provided by Stripe or Square which can partially mimic it. However, S&S will always have to pay a "royalty" to Visa/Mastercard so PYPL has a huge cost advantage (which can be seen by PYPL making p2p payments free recently).  I don't know how S&S can survive in the long-run if PYPL competes. We really only need 4 networks: V/MA to have some competition for businesses and PYPL for p2p value-added services. V/MA are hoping S&S-like companies catch-on because it erodes PYPLs niche. Amex is another animal.

 

http://www.investopedia.com/articles/personal-finance/021715/square-vs-stripe.asp

https://memberful.com/blog/stripe-vs-paypal/

 

Stripe v. PYPL article doesn't consider the advantage PYPL has that allows you to pay your employees through their own PYPL accts for free. Pretty big advantage. PYPL's biggest problem seems to be the lack of recognition of their own advantages before competitors (due to V/MA pressure).

Posted

Sold VALE 11/20/15 PUTS @ 4 for $0.25

Doubled my SPY short today. Also sold FCAU 11/20/15 PUTS @12 for $0.60.

Sold BBRY 11/20/15 PUTS @ $7 for $0.67.

sold WFM 11/20/15 CALLS @ 35 for $0.45

 

Sold ACI 11/20/15 PUTS @ 2 for $0.30

Last set of puts worked out pretty well. Sold 10/16 puts @ 4 for $1.00 when it was at $6+. Incredible that the stock can fall 50% and you still make 25% in a month by selling puts.

 

Bankruptcy is a real risk here but selling puts is more attractive to outright equity exposure which is what my passive P/B strategy would have me doing. I think the puts are a better option for exposure at this point until the bankruptcy/debt swap issues are worked out and then I'll probably roll the exposure into equity.

Posted

I've built a position in WTW over the last couple of weeks.  Sure the debt is high but expect them to work it out and maybe refinance some of it.  Less concerned about 2016 then 2021.

 

Good call

Posted

I added to my VRX position by 29%. 

 

VRX in moderation, no heart attack  ;)

 

If today is the low, new position for me so my cost basis is very low. I think the business model is broken, growth will moderate but the stock is cheap, the Enron allegation is BS IMO, I am playing for a quick rebound, probably getting out between $140-160. Remind me of HLF.

Posted

I added to my VRX position by 29%. 

 

VRX in moderation, no heart attack  ;)

 

If today is the low, new position for me so my cost basis is very low. I think the business model is broken, growth will moderate but the stock is cheap, the Enron allegation is BS IMO, I am playing for a quick rebound, probably getting out between $140-160. Remind me of HLF.

 

I got in for a 5% position after sitting out the last 3 months...

I don't think the business model is broken, just slowed down ...

Current Fraud thesis is BS

Valuation is now attractive ( got my original cost basis back )

 

I think they will delever and buyback stock. This could again double in couple of years absent any regulatory hurdles

Posted

Canadian Rate Reset Preferreds.

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/interest-rates-provide-answers-about-plunging-preferred-shares/article24013205/

 

Gotten worse in September...

 

Preferred shares suffered their third consecutive month of significant price declines, returning -3.82% in August. The market action last month strongly resembled that of the summer of 2013, when the Taper Tantrum caused preferred shares to selloff and then recover sharply in the autumn of that year. With price declines occurring on low volumes and selling indiscriminately spreading from low reset spread issues to all types of preferred shares, the decline of the market during August appeared to be capitulation by some retail investors giving up on the asset class.

 

Curious, any specific names you  find compelling? TIA!

 

Here you are...

 

Another Way To Play Dundee Corp.

 

http://canadianvalueinvesting.com/?p=133

 

And Transalta...

 

Another I like - TA.PR.J  - Take a look. 10% yield until reset in Sep 2019. Marginable. TA has its flaws but I don't think the Prefs will be worthless.

 

http://canadianvalueinvesting.com/?p=130

 

Couple of recent pref videos...

 

http://tdwealthmedia.com/videos/investment-opportunity-cdn-pref-shares-worth-a-second-look/

 

Wed, Oct 7, 2015 - 10:50 AM

 

The TSX preferred share index is down more than 20% in the past year as is the Horizon Active Preferred Shares ETF (HPR). What's wrong? And does this weakness (and almost 5% yield) provide an opportunity? We'll find out.

 

http://www.bnn.ca/Video/player.aspx?vid=722047

 

A buyout of Transalta would most likely result in the preferreds being bought out at par ($25) or being the responsibility of a financially stronger entity which would see them rerate higher as well....

 

The Globe and Mail reports in its Thursday edition that unnamed sources say TransAlta ($6.79) has held talks with more than one potential suitor in the past several months. A Bloomberg dispatch to The Globe reports that sources say TransAlta was near a sale last week before that deal fell through. TransAlta had a market capitalization of about $1.8-billion as of Tuesday's close, after the stock plunged 44 per cent since the end of April amid price-fixing charges, rising carbon costs and lower power prices in Alberta, and as it struggles with $4.2-billion of debt. National Bank analyst Patrick Kenny says, "Fundamentals have changed here in Alberta and that creates an opportunity for a buyer who might take a more constructive view." Private-equity investors could be drawn to TransAlta's high cash flow, relative to its beaten down share price, says Mr. Kenny. TransAlta's free cash flow yield is now about 20 per cent, he says. Last month, TransAlta reached a tentative deal to pay $56-million in fines to settle market-manipulation charges, after Alberta regulators said the company engaged in "anti-competitive conduct" by shutting plants in 2010 and 2011 during periods of high demand.

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