PayPal Holdings Inc. (PYPL)

Chart shows a long upward move in 2017, but starting to get volatile. This year the market might do some chop (see comments under "Market"), and the stock is already seeing some chop. You have to be careful. It’s not necessarily bearish, because it could break out. If it took out the old high, that would be bullish. If it goes into a choppy period and then breaks down through the support of about $67-$68, he would probably make for the exit. Let it play out to see if it can break its old high.

Making money hand over fist in a big way, because everybody has basically gone to digital payment. The issue he thinks about is that there are no barriers to entry. This is how Visa (V-N) is trying to get into China right now.

This has been in an upward trend, but struggled a little recently, and has been underperforming the market. It's in a trading range of between $67.50 and $80. If you own this, you should probably continue to hold it. If it breaks below its support level of around $67.50, that would complete a double top pattern. If it moves above its previous high, of about $78, that would be quite encouraging.

A beautiful, beautiful stock. Went from about 190 million accounts to 220 billion accounts, with 70% of them active. A lot of those active accounts, are doing 30 transactions a year, whereas 2 years ago they were doing 20 transactions. All the metrics are pointing in the right direction.

There are lots of options in the market for mobile pay. Lots of things are coming to market that are merging technology with the convenience of our money. With all these choices, we have to look at the business plan. Using PayPal is a very convenient method. However, it is a very, very expensive stock. Trades well over 40X earnings.

Prefers Visa (V-N) and MasterCard (MC-N). The biggest difference is that PayPal is not in stores. It has a pretty significant market share of mobile payments and online payments. They have some agreements with merchants that will hopefully allow them to walk into stores and use “near field communications” on their mobile device. Looking at the valuation, you are better off with Visa and MasterCard. What binds all these companies together is that 85% of global transactions are still conducted in cash.

Thin tech is a massive part of the service industry. It is a growth sector. He bought in April. He is reluctant to buy today given the big jump. It is still 90% cash in the emerging markets world. This is a pure play in the on-line space.

(A Top Pick March 15/16. Up 9%.) Financial technology is a group he has been invested in for 3-4 years. Payment technology is really attractive because volumes are growing really dramatically. He is now more focused in Visa (V-N) than he is in this company, but it is a great company and a great space.

He loves it. but you want to buy it on the dips. His model price is $26.31, indicating 8% downside. He would be interested in buying it at the model price.

There was a lot of concern because of V-N and MA-N and their one click check out. But PYPL-Q came to agreements with them. Even with Apple pay you are seeing a slower ramp up than they had hoped for. It is fairly valued. It should do better as the world slowly turns over to a digital economy.

Spun off from Ebay. They recently announced deals with Visa to integrate platforms. They are trying to become best in breed. They are at the crossroads where they will either be necessary or completely unnecessary. He will want to see the fundamentals continuing to grow. He would like to see them acquired by a credit card company.

Anyone doing Internet business appreciates this. She is worried about a single click strategy for paying for things.

It has gone sideways for the last year and there was a lot of speculation that it was potentially a takeover target recently. He is looking at it.

He focuses on secular or long-term themes. There is probably no bigger theme than e-commerce and online transactions. Some estimate that by 2023 there will be $50 trillion transactions online. This is one of the big leaders in the group, and have a number of different pieces of their business that are attractive. Their total payment volume in the 1^st quarter this year is likely to be up 32% year-over-year. One of their pieces of business is Venmo, which is peer-to-peer transactions, where money can be sent from person-to-person. It will get a transaction fee on the way through. Also, has a business called Zoom which allows customers to very inexpensively send money from one country to another. These are all businesses that are upsetting existing industries. This company has $6 billion in cash and are growing very, very rapidly.

This has a narrow focus and a short operating history as a public company. With consumers increasingly going towards a mobile payment system, and with Google and Apple having pretty rigorous technologies and teaming up with the banks, he can see companies like this struggling.