Fintech on Fire!!!Stockhouse ran a column on who is taking benefit of fintech? Prior to what is going on now i was extremely hawkish on CIBC and actually pushed my Dad to buy a decent position. He gave me 10,000 to invest and stupidly i had a cc debt still do and used 1000 to pay some off leaving 9000. With 1000 i put it into the max contribution in my credit unions best rate. With the other 8000 i went to my Dads wealth planner who suggested to put it into two divie stocks that paid excellent divie but sucked on share appreciation i was losing overall. While he did not like me requesting to put 100 percent into CIBC he did. I was yapping at my Dad to grab as many under $60 at the time. I entered in at $58.08 at the time with a divie that got raised from .87 to .90 per share on a quarterly. CIBC foward split in 2022 on a two to one basis making it among the cheapeat if not cheapest of the 5 big Canadian Banks. The one thing people slammed it on was being over exposed to the housing market relative to its size but it waa not anywhere as exposed as others in regards to US dealings. I was looking at the graph the movement and was extremely hawkish so i ended up with 127 shares.
In all the quarters i held the shares it beat expectations and despite going up to $64 and my saying it should hold $62 people screwed around and it fell to $47. If my Dad would listen i would have told him to add more as he has a good chunk of cash on hand. There was price targets of $67 and again a really good quarter it made it to $69 plus and i said it should hold $64 but again people were screwing around and it fell to below. I said to my Dads planner if it goes less than $62 as a matter of trying to follow strict targets to limit losses to my unrealized profit and taking the gains i said sell but because the financials were close he said why dont you wait which i did. The stock again beat expectations traded back around $67 with a target now from $67 to high of $73. Yet again people screwed around and it fell to $64 before hitting $67 where i sold 57 shares and bought fideloty global fund $32.56 and it has hit around $38 it is between $36 and $38 which was doing quite decent but no divie.
So i asked my Dads planner and he suggested a BMO US Bank Cover Call with a .145 monthly divie and the shares went from $15 plus to where i bought initially $20.64 164 shares. Initially, i didnt like US banking because of it not being as conservative as Canadian banks and i almost wrote it off as mentioned i did buy in. The historic high was around $37 plus and given there was is no cheap tech stock that pays a real good divie and that i wanted to counter balance my CIBC just in case it falters i said go ahead and buy in hardly 3 months ago. It is on fire it hit $22.85 or higher before pulling back and CiBC hit above $70.
Now i calculated what i wanted. I want my 8000 to hit over 10000 this year. If i held all my CIBC shares 127 leaving aside the quarterly dividend CIBC would need to go up to a little under $79 per share. I believe it can hit $80 this year possible but i will say not likely. I think it will end around $75 or $76.
So having only 50 shares left of CIBC now 184 BMO Covered Call and whatever i will have in Fidelity Global along with a decent cash on hand i do strongly believe that my move will best having all 127 CIBC shares even though i remain extremely hawkish on it.
Now one last thing before the point. Bank of Montreal blew up with Donald Trump and more so after him surviving the assassination attempt. My read is that as before there is a Trump effect with stocks coupled by an anticipated rate cut at least 1 in the US this year is extremely likely.
The whole point is this crypto is money and fintech but where it is being dragged down is in Mt Gox Germany dumping possibly Japan as well as high interest rates yet the banks have surged and this is due to bank portfolios seen as tied to real tangible assets. The problem with crypto they are not and the reason why companies also invest in other tangible assets and why as my Dads planner said to me that crypto companies dont give divies while other asset backed tech companies give small divie compared to the high stock costs due to the amount of monies needed to fund research and development. Having said this there are companies that offer fairly high yielding mutual funds but that also dont give divies so they are best dollar cost averaged.
Given this ongoing notion of crypro not being asset backed where they are as i said making money is on the amount of transactions taking place on perceived value where the real value is in the block chain tech which are usually platforms that handles currencies and provides safety of the currency, speed of transfer, bigger parcel of information, accomodating as many currencies as possible etc. The issue is always security speed and acceptance meaning more and more busineses accepting crypto as legitimate tender and this still has to have wider spread adoption from businesses to banks to government etc.
With what this company is doing it is great where it makes transactions faster, more secure, and person to person not having third parties involved. This is an extremely powerful and useful tech as well as company in this regards and can be huge when it hooks up to the banks and broader businesses..so far it looks more like individual to individual so it is still in the infancy stage and with the rate of growth more interest beyond person to person meaning banks and businesses get involved that is when the magic will happen this may still be a few years out but what is extremely important is gettimg people extremely hyped talking about this and yes as wounded you said consolidate uplist and get the eyes of the financial institutions not just as underwriters but as shareholders. I think it is quite possible 2026.
Lets see how this continues to grow through the rest of this year and in the coming one. I would be eying a 2026 possible uplisting. This sounds aggressive but doable. Now like my last post this part is an opinion as was what i said about my understanding with crypto and it not still linked to any real tangibility other than if the blockchain platforn delivers and things become more than just person to person or the lesser but growing amounts of businesses that accept crypto...banks and governments are key and companies there are tons of them have to have something of value to offer so far this looks extremely promising. These low values they can only go for so long like i said i am picking my points and i am overall extremely hawkish here but still way more risk than the blue chips i talked about even so still worth rolling the dice on and the company looks financially sound and as i said i suspect stronger and stronger balance sheet moving forward. More upside than down.
Ironically, i am not a crypto guy at all but looking at the reality it will continue to play a large part in our lives for quite some time and solid companies are definitely a must in anyones portfolio just like the darn Ai which almost anything and everything is lol. I held nxo for quite some time complete bust sadly. I held one where there was a platform that would trade crypto automatically making those who have a paid subscriptuon 25 to 33 percent better performance than people who would trade them that company fell flat forgot the name but it was quite decent just got buried.
Well this is my two cents. There are those things i was extremely hawkish on that i did not put money into or pulled it out too soon like pyr exro hpq and a few others even on their recent lows i would be more than 3 times up. Then there were those that i held and went belly up mrs nxo is close and quite a few more and as explained in a past post as well as in this post my strategic trading in which my blue chip moves have mostly paid off now to do that with the pennies...short medium long make money in most companies by prudent share management and not taking stupid chances with those that will likely bust. I put a whopping $75 in indiva it went belly up so far...grrrr every penny counts!!!
Good luck all my whole post is all about my being extremely hawkish but again i did well on some not others however i will look to actively strategically trade. As i said for this one .105 or less i will likely keep buying up .11 or more nope hold what i have wait for no less than .16 ideally at this point North of .25 however time will tell whether my gut feeling will be on or off and by how much. For all the reasons i gave last post and this one seeing when more businesses not just individuals get involved that is where you will see huge spikes but for now stronger balance sheets more individuals signing up North of .25 is quite viable and that is my guess with a pull back settling .25 on the year contingent on growth balance sheet rate cut consolidation and traction of btc which again i call it ilusory.