When Will It Be Safe to Buy Ethereum?

When Will It Be Safe to Buy Ethereum?

TipRanks

Some investors achieve legendary status, rising far above their peers on a combination of luck and success. Perhaps no one exemplifies this more than George Soros, the Holocaust survivor who, after the war, earned a doctorate from the London School of Economics and went into the banking industry to make his mark. He was wildly successful. The hedge fund he founded, Soros Fund Management, earned an average annualized return of 33% from 1970 to 2020, making it the most successful hedge fund in history. Soros’s biggest single success came on September 16, 1992, when he ‘broke the Bank of England.’ He had taken a short position on the pound sterling, leveraged to $10 billion, and when the pound fell in response to changing politics, he personally made $1 billion in a single day. Soros hasn’t always been right in his financial calls, but he’s right more often than he’s wrong. He’s also well-known for his bon mots when it comes to talking about trading. “It’s not whether you’re right or wrong,” Soros has been quoted saying, “but how much money you make when you’re right and how much you lose when you’re wrong.” Bearing this in mind, we decided to look at Soros Fund Management’s recent activity for inspiration. Running three stocks the fund picked up during Q1 through TipRanks’ database, we found out that the analyst community is also on board, as each sports a “Strong Buy” consensus rating. Farfetch, Ltd. (FTCH) We’ll start with an online retail stock, Farfetch, a company specializing in the sale of luxury goods and brands. Farfetch is a truly international company, founded in Portugal, headquartered in London, and boasting offices in New York and LA, Tokyo and Shanghai, and Brazil. Like many tech-oriented companies, Farfetch has been running at a loss – but in Q1 of this year, the company made an abrupt turnaround to profitability. The 1Q21 earnings report showed an after-tax profit of $516.7 million, compared to a year-ago quarterly loss of $79.2 million. The company disclosed that this gross profit included a one-time $660 million non-cash benefit “arising from lower share price impact on items held at fair value and remeasurements.” Total revenues from operations was reported at $485 million, up 46% year-over-year, and higher than the $457 million analysts had expected. One key metric, the gross merchandise value of orders processed over the company’s platform, rose 49% year-over-year, to $915.6 million. Farfetch’s success grows from a strong user base. The company boasts more than 3 million active customers, and operations in 190 countries. Sellers on the platform have made available over 1,300 luxury brands. Even after a pullback in share value during the first half of 2021, the stock is still up an impressive 234% in the last 12 months. Among FTCH’s fans is Soros. In his most recent disclosure, Soros revealed that his fund purchased 125,000 shares of FTCH, a holding now valued more than $5.5 million. Turning to the analyst community, Credit Suisse’s 5-star analyst Stephen Ju rates FTCH an Outperform (i.e. Buy) along with a $78 price target. Investors stand to pocket ~88% gain should the analyst’s thesis play out. (To watch Ju’s track record, click here) “We have a favorable view toward the company maintaining the adjusted EBITDA guidance as Farfetch will reinvest the higher top line contributions toward customer acquisition – supporting long term adoption rates. We model ~700k new customers for 2021, ~600k for 2022 and beginning in 2023 our expectations are also unchanged at ~1.2 million to 1.5 million,” Ju opined. The analyst summed up, “Our investment thesis points remain: 1) large $300 billion addressable market remains fragmented and underpenetrated, 2) relative protection from competition from larger cap online competitors, 3) exposure to rising adoption of luxury goods in APAC as well as emerging markets.” Most analysts back Ju’s confident take on the online fashion firm, as TipRanks analytics showcase FTCH as a Strong Buy. Based on 8 analysts polled in the last 3 months, 6 rate the stock a Buy, while 2 give it a Hold. The 12-month average price target stands at $60.63, marking ~37% upside from current levels. (See FTCH stock analysis on TipRanks) Coursera (COUR) The next stock we’re looking at, Coursera, is a MOOC company – a massive open online course provider. This niche leverages the size and reach of the internet to make a wide range of top-line university courses available to the masses. Coursera is a leader in the field, and since its founding in 2012 it has made available more than 4,000 courses from over 200 universities, in more than 30 degree programs, and at lower cost than in-person classes. Through Coursera, students can take classes at such top-level schools as Imperial College London, University of Illinois Urbana-Champaign, University of Michigan, and Johns Hopkins. The company boasts that over 77 million students have used its services. While the company is 9 years old, it is new to the public markets; Coursera held its IPO at the end of March this year. It made 15.73 million shares available on the NYSE, at an opening price of $33. This was the high end of the initial pricing range, which has been set between $30 and $33. Overall, the IPO raised $519 million, before expenses. At the beginning of May, Coursera released its first quarterly report since going public. The report showed $88.4 million in total revenue, a 64% gain year-over-year. The company’s gross profit, at $49.5 million, was up 71% from the year-ago quarter. George Soros saw an opportunity in this IPO, and his fund picked up 105,000 shares of the company. This new position is valued at ~$4 million at current share prices. Among the bulls is 5-star analyst Ryan MacDonald, of Needham, who lays out a clear, upbeat case for Coursera shares. “Given the increasing role of automation, the widening skills gap, and the shift to online learning, we believe Coursera’s comprehensive platform will help it gain share in a large TAM that we size between $47B-$50.6B. While the COVID-driven tailwind to registered learner growth in FY20 creates a difficult consumer segment comp in FY21, we believe Coursera’s efficient GTM motion and shift towards higher value enterprise and degrees offerings can drive durable 25%+ growth and gross margin expansion,” MacDonald noted. To this end, MacDonald rates COUR shares a Buy and his $56 price target indicates confidence in a 47% upside over the next 12 months. (To watch MacDonald’s track record, click here) In its short time on the stock exchange, COUR has picked up 14 analyst reviews, with a breakdown of 12 Buys to 2 Holds to back the Strong Buy consensus rating. Shares are trading for $38 and their $54.67 average price target implies a one-year upside of 44%. (See COUR stock analysis on TipRanks) Sotera Health (SHC) Last up on our list of new positions from George Soros is Sotera Health, a holding company whose subsidiaries offer a range of advisory services, lab testing, and sterilization services in the healthcare industry. Sotera’s businesses cate to more than 5,800 health industry customers in over 50 countries. The company boasts 13 labs capable of carrying out more than 800 tests, and 50 sterilization facilities. Sotera’s customer base includes 75 of the top 100 medical device makers and 8 of the top 10 pharmaceutical companies. SHC shares went public on November 24 of last year, in an IPO that sold 53.6 million shares and raised $1.2 billion. The capital raised was used to pay down existing debt. The company has been working assiduously to bring down debt levels, and in the 1Q21 report stated that it had a total debt of $1.87 billion and available cash of $108 million. Net revenue in Q1 was $212 million, up 13% from the year before. Net income showed a strong gain, turning around from a 1-cent per share loss a year ago to a 4 cent EPS profit. In Q1, Soros took a new position in Sotera, buying 179,274 shares in the stock. At current share prices, this holding is worth over $4.3 million. Tycho Peterson, 5-star analyst with JPMorgan, likes SHC, and rates the stock an Overweight (i.e. Buy). His price target of $35 suggests an upside of 45% from current trading levels. (To watch Peterson’s track record, click here) Backing his stance, Peterson writes, “1Q results were generally strong, and although guidance remains unchanged, it should provide a pathway to upside for the balance of 2021, as we continue to be fans of the company’s diversified operating platform, sticky multi-year contracts, an efficient pricing strategy and high regulatory oversight, altogether supporting its wide competitive moat, with FCF to support de-leveraging…” Overall, the Street in unanimous in its outlook on Sotera shares; the stock has 8 recent positive reviews supporting its Strong Buy analyst consensus rating. The shares are trading for $24.06 and their average price target of $31.75 implies a one-year upside of ~32%. (See SHC stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Saxo Bank to Enable MENA Crypto Investors to Trade in Bitcoin, Ethereum and Litecoin

Saxo Bank, an online trading and investment specialist, is launching a new cryptocurrency offering enabling clients from the MENA region to trade Bitcoin, Ethereum and Litecoin against EUR, USD, and JPY from a single margin account.

The new Crypto FX offering complements Saxo Bank’s existing range of over 40 different cryptocurrency trackers and ETNs, which so far this year have seen trading volumes exceed the entire turnover for the whole of 2020 – a year in which volumes surged 130%.

Clients in selected markets can trade Crypto FX pairs during the usual FX trading hours from Sunday evening to Friday evening. Clients can trade and hedge both long and short exposure in the three major cryptocurrencies, which will be in the form of derivatives and not physical coins. Due to the volatile nature of the instruments, retail clients can trade with 2:1 leverage and professional clients with 3:1 leverage.

Kay Van-Petersen, Global Macro Strategist at Saxo Bank, said: “Saxo Bank has developed a unique proposition which gives our clients access to the growing crypto space in a flexible, secure and hassle-free manner from a single fully-licensed account without the need to use wallets or cold storage solutions. The offering sits at the intersection of traditional finance and crypto, which is where we see the market evolving as it draws the attention of retail traders and financial institutions.

“We set out to deliver a product which offers the security and ease of use associated with more mature asset classes, coupled with the volatility and dynamics of Bitcoin, Ethereum, and Litecoin – giving clients the opportunity to trade both long and short in the thriving crypto market. Crypto FX achieves this by building on 30 years’ experience as a leading firm in trading and investing combining the traditional qualities of a currency pair alongside the exciting possibilities of a cryptocurrency.”

Governments in the MENA region, including the UAE, Saudi Arabia and Bahrain, have introduced strategies, developed regulatory frameworks and invested in crypto-related startups in a bid to drive and regulate blockchain technology and cryptocurrency.

The UAE government has been working towards its own UAE Blockchain Strategy 2021, to better enable the adoption of the technology within the country, and in 2019, the UAE and Saudi Arabia signed an agreement to test out cryptocurrency and blockchain for transactions which could revolutionise cross-border payments between the two countries.

Saxo Bank’s new crypto offering will be available soon for customers in the MENA region.

Bitcoin (BTC), Ethereum (ETH), Alt-Coins - Beware of Weekend Volatility

Bitcoin (BTC/USD), Ethereum (ETH/USD), and Alt-Coin Analysis and Charts:

Bitcoin (BTC/ USD ), Ethereum (ETH/USD) struggle to break higher.

Lower volume over the weekend may spark a volatility breakout.

The cryptocurrency market is on the back foot ahead of a long weekend in a raft of countries, including the UK and the US, and with volatility levels still high, whippy price action over the coming days cannot be discounted. The current market capitalization is around $1.6 trillion and is nearly 40% off its all-time peak, highlighting that the recent heavy losses have not been pulled back to any great extent. Traders need to be aware that low volume and high volatility markets are ripe for large swings, and with sentiment in the cryptocurrency market still dented, further losses cannot be ruled out.

JOMO is the New FOMO: Trade with the Joy of Missing Out

Bitcoin continues to struggle and any rally will have to overcome the 200-day simple moving average which is currently capping BTC/USD. Bitcoin has not been below the 200-dsma for over a year, so the recent breakdown remains worrying. The 200-day sma currently sits around $40,700. Volatility levels are off their recent extremes but remain high at $4,650 compared to a spot price of $37,000

Bitcoin (BTC), Ethereum (ETH), Alt-Coins – Recovery Remains Fragile, Volatility Stuck at Near-Extremes

Bitcoin (BTC/USD) Daily Price Chart

The Ethereum chart looks a little more positive than Bitcoins and highlights the positive performance of the ETH/BTC spread this year. ETH remains above its 200-day sma by a large margin, although the recent slip below the 50-dsma is a short-term negative. If this can be regained, then $3,000 should be achieved relatively quickly. Again, volatility is high at $443 against a spot price of $2,600.

Ethereum(ETH/USD) Daily Price Chart

The alt-coin market remains depressed with any move higher being sold into. It looks like the hot-money crowd has veered away from the alt-coin space and moved back into meme stocks. AMC Entertainment has more than doubled in the last week, alongside massive option volume, while another meme favorite GameStop is up by nearly 50%. It will need Bitcoin, and increasingly Ethereum, to steady and then push ahead to draw the fast money crown back to the alt-coin space.

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What are your views on Bitcoin (BTC),Ethereum (ETH) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.