Block Inc (SQ)

He likes it. He is inclined to keep it. It is still considered a small to mid-cap stock. They loan money to business. He thinks this is an amazing buy for Apple (AAPL-Q) and they have the capital. Actually, they have $244 billion of cash on hand which is more than the market cap of 97% of the companies in the S&P 500.

He follows this, but does not own it. In Fin-Tech he prefers PayPal and Visa where there is better Price Earnings to Growth value.

Knows little about this stock. It looks pricey on the surface with a high multiple, but has a lot of growth ahead. The market likes it. It's not a value stock, but rather a growth/momentum one. Revenues are growing at 45%. This may make money next year.

It is expensive. The digital payments world is very crowded; however it is more interesting than PayPal. It has had a phenomenal run. He is worried about very well capitalized competitors in the banks. Long term it will be overwhelmed.

For him, this was an indirect way to buy cryptocurrencies (Square accepts crypto payments). Square is heavily used in the States, more so than Canada. He continues to buy this.

These (Square, PayPal) are good, growing companies that attract a lot of initial company, going public with a splash. But make sure there's still a rising trajectory of sales before you buy their stock. He prefers the more concserative Visa which is established, yet still growing rapidly.

He invest in this space (digital payments), like Shopify and Visa. SQ fits here. Stock has been doing well, stronger than 98% of S&P 500 with a solid growth rate. Equity markets are getting better which is a tailwind. There's still room to run.

He sees a nice up trend still in effect. He could see a potential pull-back towards $32, where trend line support is. With a general weakness in the tech sector overall it could see a pull-back.

They've done a great job getting their app into small businesses. Has huge potential. If you own, then average up, but wait for pullbacks.

Made good profits, what do I do now? He probably wouldn't hold this himself, but would recommend you seek out personal financial advice. Has avoided this, because of their very high fees.

(A Top Pick May 4/17. Up 14%.) This was called away on October 19.

Sell or Hold? One of the clear themes in this market has been Fintech and companies around payments. Digital payments are growing very, very rapidly and are going to continue to do so. This company is very effective in the midsize and small size companies providing the ability to transact, doing analytics, managing receipts, etc. It has recently pulled back from $49 into the 50-day moving average, and has done this type of pullback probably 10 times in the last 2 years. Each time has been an opportunity to Buy. There is very strong sales revenue growth, and is in a sector that is very attractive. In the near term there has been money rotating from technology to other sectors, but he thinks technology and Fintech are sectors that are going to perform well in the next year. He would buy this.

In the world of structural themes, digital payments are one of the most important ones, and we are still relatively in early stages. This sells software and devices for point of sale. It’s a quickly growing market. They are also getting involved in some ancillary businesses, being able to transfer money back and forth. He really likes this company. Has a very low volatility chart. A little extended, but is a leader in this space.

A Top Pick in May, selling a September Covered Call. The stock rose sharply. How did you manage the covered call? Originally he sold $24 calls, and then rolled them for $26 and then up to $28. The September calls will expire worthless, and will probably write another. Premiums are in the top quartile of all US stocks in terms of high option premiums. He likes the stock.

(A Top Pick May 10/16. Up 47%.) Sell: Square Sept 24 calls at $10.Sell: Square Sept 24 puts at $10. This was a Covered Straddle. He was trying to show what a straddle looks like. He was basically agreeing to sell the stock at $10 and buy more shares at $10. The stock was about $10, so the Put option expired. The Call would’ve been exercised and he would have been called away with a return of 47%.