Opinions
The Panic-Proof Portfolio (Stockchase Research)
StoneCo Ltd.
STNE-Q
TOP PICK
Aug 13, 2020
$48.850
Stock price when the opinion was issued
Financial Services
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TOP PICK
Provides fintech solutions for end-to-end cloud-based technology to conduct e-commerce for in stores, online, and mobile. 12B market cap. Tapping into an underserved market. Outstanding growth. Buy a third here around $60, another at $50, another at $40. No divided. (Analysts’ price target is $50.57)
Financial Services
PAST TOP PICK
(A Top Pick Aug 13/20, Up 51.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with STNE has achieved $74 and we are recommending to cover 50% of the position. We are also recommending to trail the stop up to $56, which should all but guarantee a 33% gain on the overall position.
Financial Services
PAST TOP PICK
(A Top Pick Aug 13/20, Up 14.6%)Stockchase Research Editor: Michael O'Reilly STNE has triggered its stop at $56. We recommend covering the balance of the position at this time. Combined with the previous recommendation to cover 50%, this will result in a net return on investment of 33%.
Financial Services
TOP PICK
The Brazilian Paypal. In digital payments. In Brazil, they are still cash based but are making the transition. Their stock price retreated following covid cases flaring up and affecting business in Brazil. As Brazil emerges from covid, it should do well. (Analysts’ price target is $87.00)
Financial Services
PAST TOP PICK
(A Top Pick Oct 22/20, Down 34%) Significant selloff, which accelerated amid disappointing results. Sold at $90 in February and hasn't waded back in. It grew 68%, so it's still a strong company, but has headwinds. Massive potential in the geographic area where they play. Massive support at $31, so don't let it break that. Price target of $56.
Financial Services
WATCH
It's one part bank, one part Shopify in Brazil, but it's been hammered 90% because of Covid in South America. Question: Did they issue loans they shouldn't have? Will their shopping component be as robust as expected? Revenue growth looks solid. Take a close look at it and follow its fundamentals for a few quarters. It's a trade now, but otherwise it's too early as an investment in the Brazilian economy.
Financial Services
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Stockchase Research Editor: Michael O'Reilly STNE is a fintech company providing e-commerce serves in Brazil, where 85% of all transactions are still conducted with cash. The company currently accounts for 51% of the countries current e-commerce business. Warren Buffet's Berkshire Hathaway owns a sizable piece of the company. The company just recently made a $1.1 billion acquisition of a retail management software company that can help extend its reach. We like the entry here, which is a retracement off the $55 highs. Annual sales growth is over 30%, with over 500,000 clients (up 74%). The recent share pullback might well be associated to a follow-on offering of 27 million shares at $47.50. We would trade this with a stop-loss at $45 -- an area of significant technical resistance that should now act as support. Yield 0%