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28 July 2021
19:22 hour

The Wise share price is up 20%. Am I a buyer?

The Motley Fool UK

21/07/2021 - 18:21

The Wise share price is up 20% from where it started trading. Is that a good reason to buy its shares? The post The Wise share price is up 20%. Am I a buyer? appeared first on The Motley Fool UK.


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  1. Your Queries – Loans: Can clear home loan online but collect original sale agreement (18/05/2021 - Financial Express)
    Once you have a buyer, you need to share the loan details with the buyer. The buyer will pay part of the purchase price to the loan account first to extinguish the loan.
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  2. What’s next for the Wise share price? (20/07/2021 - The Motley Fool UK)
    Wise (LSE:WISE) shares hit the London Stock Exchange almost two weeks ago with a direct listing. The Wise share price hit a high of 1,030p on the second day of trading but has declined to 950p since. That’s still a decent increase on the opening price of 890p. Indeed if I consider market capitalisation, Wise has grown from £9.8bn on the day it started trading to £13.2bn today.  The Wise listing has been successful, and early investors have done well. But I would like to know how the Wise share price might perform in the future. Perhaps today’s financial update might shed some light on the question. An update from fintech firm Wise Wise released a trading statement today. It covered the first quarter of the 2022 fiscal year. I believe the results will be good for the Wise share price, at least in the short term. Revenue came in at £123.5m for the quarter. That is 5.6% higher than the last quarter of 2021 and 43.1% higher than the first quarter of 2021. Cross-border transaction volumes have also increased, as have personal and business customers by 3% and 9%, respectively, quarter over quarter. Wise launched in India in the first quarter of the fiscal year 2022. All customers benefitted from 38% of transactions occurring instantly, the same as the last quarter of the prior fiscal year. Wise defines the take rate as revenues divided by cross-border transaction volume, and it fell from 0.81% to 0.75% year over year. Wise gets its revenues from fees on transactions. Part of the decline can be explained by higher-priced transactions falling back to long-term average levels. But also, Wise was founded on the principle of improving transparency and reducing costs for international money transfers. Wise reduced pricing from 0.69% to 0.67% in the first quarter of the 2022 fiscal year in keeping with that mission. The Wise share price is up 0.4% today. This does count as a positive reaction to the trading statement, although it is somewhat muted. That might be due to the general concerns around global economic growth at the moment. But, I would be getting worried about long-term revenue growth rates, especially considering the rich pricing of Wise shares. The Wise share price In my last article on Wise, I found that the company grew its annual revenues by 39% from 2020 to 2021. Although this was lower than the 2019 to 2020 revenue growth of 70%, it’s still brisk considering the company is a decade old. But, if I assume the 5.6% quarter on quarter revenue growth holds for the rest of the year, forecasted revenues for Wise will be £537m in the 2022 fiscal year. That would be a 27.6% growth in annual revenues, which is lower than the previous two years. Wise has about 1.39bn shares outstanding. Assuming that count, Wise will have 30.3p in revenue per share for 2022. Assuming a net income margin of 6% (the average of the last three financial years), I can forecast earnings per share to be 2.33p for 2022. That means Wise shares are trading at 25 times revenues and 409 times earnings. That’s pricy for a company with slowing revenue growth. Revenue growth could pick up with the Indian expansion. However, I still want to watch the Wise share price to see how this plays out. I think it could go either way, and for now, I am not a buyer. The post What’s next for the Wise share price? appeared first on The Motley Fool UK. Looking for the next potential big thing to hit the UK stock markets… Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Should I buy Wise shares? Should I buy Wise shares now? Why I plan to buy Wise shares Should I buy Wise shares? 3 reasons why I’m bullish on the Lloyds share price now James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  3. How does Actively Managed ETF get money to buy stocks? (28/02/2021 - Reddit Stocks)
    I'm having trouble comprehending how Actively Managed ETFs work, with regards to getting money to make investment decisions. Did some sleuthing on Google, but none of the resources I found adequately explain the process. Appreciate the help! Please correct my understanding if the following is out of touch with reality. ​ For a passively managed ETF, I believe the following is accurate. Let's say, for example, AWESOMEETF, a passive ETF. For simplicity, the fund currently only have 1 outstanding share, and holds the following securities: - AAPL $100 - 1 share - 50% weight - GOOG $10 - 10 shares - 50% weight Total Net Assets is $200 Net Asset Value of the fund found to be $200 / share Starting Market Price of Fund is $200 / share ​ Three scenarios: If there is a buyer wanting 1 share, and the seller is willing to sell it to him, then the shares just exchanges hands. There's no change in the fund holdings. ​ If there is a buyer wanting 1 share, and the seller is NOT willing to sell. That means the share would trade at a premium to the NAV, let's say $210. This is when the authorized participant (AP) steps in and creates a share by assembling a basket of AAPL/GOOG shares. He would purchase 1 share of AAPL, and 10 shares of GOOG, and deliver that to AWESOMEETF. AWESOMEETF in turn will issue 1 share of the fund. The AP spent $200 and sold the share to our buyer at $210. - AAPL $100 - 2 share - 50% weight - GOOG $10 - 20 shares - 50% weight Total Net Assets is $400 Net Asset Value of the fund is $200 / share ​ If our buyer had a change of heart and want to get rid of his 1 share, and we do not have any buyer willing to step in to take his share. That means the share would trade at a discount to the NAV, let's say $190. The AP would step in, buy the share from our paper handed person, redeem it against AWESOMEETF, and get 1 share of AAPL and 10 shares of GOOG. He can then sell at market price for $200, and make $10 from the transaction. - AAPL $100 - 1 share - 50% weight - GOOG $10 - 10 shares - 50% weight Total Net Assets is $200 Net Asset Value of the fund is $200 / share ​ I think I understand how fees are handled. Fees for the fund, such as management fee, trading costs, salary, and whatever, would be deducted from the Total Net Assets, and would thus reduce Market Price/share. This creates a discount of Market Price/share to NAV/share for the basket of stock. Thus, the trusty AP steps in again and redeem some fund shares for a basket of stock to bring Market the NAV / share back to Market Price/share. ​ *********** Now, let's say AWESOMEETF is now an Actively Managed ETF. What I do not grasp is how AWESOMEETF gets money to buy another stock. Since the AP only ever deliver and redeem shares, the portfolio manager never sees cash. Does that mean if the portfolio manager wants to buy some FB, then the only way to get the funds would be by selling a portion of AAPL or AME? ​ If let's say that is indeed the case. If the portfolio manager sells 5 shares of GOOG to buy 1 share of FB. Our fund breakdown would be: - AAPL $100 - 1 share - 50% weight - GOOG $10 - 5 shares - 25% weight - FB $20 - 1 share - 10% weight - cash $30 - 15% weight Ignoring transaction costs, the Total Net Assets is still $200 Net Asset Value of the fund is $200 / share ​ When the AP need to deliver a basket of shares for AWESOMEETF share creation, does he need to deliver cash as part of the basket? ​ Since Actively Managed ETFs are only required to disclose their transactions at the end of the day, how does AP know which stocks are part of the basket?   submitted by   /u/00cyte [link]   [comments]
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  4. What’s going on with the Wise share price? (14/07/2021 - The Motley Fool UK)
    FinTech Wise (LSE: WISE) has seen its share price rise by 10% since the foreign exchange specialist joined the London market on 7 July. At around 970p, Wise shares are now priced at a staggering 400 times last year’s earnings. Normally, I’d dismiss this as a crazy valuation that’s likely to disappoint. But I can see a lot to like in Wise. Here’s why I’m so keen on this fast-growing business. Can Wise keep growing? When I look at a newly-listed company, I start by asking if the business still has plenty of growth potential. With Wise, I’m fairly sure the answer is yes. Wise handled £54bn of international money transfers last year, an increase of 30% in one year. But although that’s a lot of money, it’s a drop in the ocean compared to the overall size of the market. According to Wise, £18trn is moved between countries each year. Wise is cheaper than traditional banks too. The company says it charges an average fee of 0.7%, compared to 3-7% at the big banks. One further attraction is that Wise offers a fast, easy-to-use online service. Customers can simply do what they need to do, with no hassle. In my view, this service has all the ingredients needed for long-term growth. I’m not surprised Wise’s share price has performed well during its first few days on the market. Strong financial performance During the year to 31 March, Wise’s revenue rose by 39% to £421m. Operating profit for the same period rose by 90% to £45m. This gives an operating margin of 10.7%, up from 7.8% the previous year. I’m pleased to see the company’s profitability improving as it expands. This tells me that Wise is benefiting from its larger scale. This could help to drive share price growth. Looking ahead, management expect revenue to rise by about 20% each year. Profitability is expected to be stable, as the company invests in growth and keeps its fees as low as possible. I’m confident that Wise should be able to deliver revenue and profit growth for many years to come. However, one possible concern is that the company’s presence in the business market is still pretty small. Globally, businesses account for nearly 90% of all international money transfers. But Wise’s business customers only generated 20% of its revenue last year, transferring an average of just £40,400. This tells me that most business customers are probably only small enterprises. Attracting larger business customers could boost growth. But I suspect further investment will be needed to achieve this.  Wise share price: too high already? Even the best investment in the world is only a good buy if the price is right. I’m not sure that’s true with Wise. The company’s stock market listing has valued the business at £13.3bn. Based on last year’s profit of £31m, that values the stock at 400 times earnings. That’s a bit high for me. Even if growth stays on track, I reckon it could take at least five years for Wise’s valuation to fall to a level where I’d consider buying. Right now, Wise shares just look too expensive to me. But I can see a lot to like about this business and will be watching with interest. Wise is certainly a company I’d like to own at the right price. The post What’s going on with the Wise share price? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Are Wise shares a good investment following its direct listing? My best shares to buy now! Don’t be unwise! The Wise share price is on the rise. Should I buy now? Are shares in fintech firm Wise a buy? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  5. Wise PLC … recommendation (08/07/2021 - Reddit Stocks)
    Hi - is anyone tracking the Wise PLC direct listing on the London stock exchange ? The prospectus seems to tell me that the company is a solid revenue growing company with its Cashflow covering debt. Any thoughts on this ? LSE:WISE   submitted by   /u/eulertheerudite [link]   [comments]
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  6. Who provides the profit for a short seller’s itm options? (26/06/2021 - Reddit Stocks)
    Hi! This is kind of meta, does anybody know who makes those big payouts for ppl who have highly profitable put options. I believe someone who buys call options gets the profit from the call writer agreeing to sell at a certain price even if the shares rise. Is this the same idea with short positions except reversed? That the put writer agrees to buy the shares at a set price and if the put buyer is right and the stocks tanks then the writer provides the shares at the higher price to the buyer Thank you!   submitted by   /u/gj98 [link]   [comments]
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  7. Should I buy Wise shares now? (19/07/2021 - The Motley Fool UK)
    Fintech firm Wise (LSE:WISE) is a recent addition to the London Stock Exchange (LSE). Since its direct listing nearly two weeks ago, the Wise share price is up approximately 7% as I write. Should I buy Wise shares for my portfolio? Let’s take a look. Products and services Wise offers international money transfer services. Rather than a traditional transfer via a bank or foreign exchange service, Wise offers a quicker and cheaper option. I transfer money abroad often, and these are the types of things I look at when looking to choose a service.  Wise has agreements with payment processors which process these transactions quickly and efficiently at a fraction of the cost. The ability to offer such a service has seen Wise gain more than 10m users to date. I believe these numbers will continue to rise if Wise continues to keep its offering consistent in terms of speed, cost, and service. IPO and performance Wise shares listed on the LSE as the largest ever public listing of a UK tech business, with a hefty valuation of £8.75bn at 880p per share. The Wise share price has increased approximately 7% since that listing which means its valuation has now increased further to close to £13.5bn. Many newer fintech firms are usually unprofitable for some time. They can be seen as a risky investment until profitable. Wise bucks that particular trend. Between March 2020 and 2021, it reported revenue of £421m and an operating income of £44.9m. The good news for potential investors is that Wise’s expenses seem to be fixed right now. This means as it gains new customers, revenue, income, and margin should increase if its business model remains the same. Should I buy Wise shares? Wise shares do have risks. Firstly, I am concerned by its rather large valuation at such an early stage in its journey. Although high, it is not uncommon for tech stocks to start out with such a large valuation. Personally, this is a red flag. Wise’s inability to operate without relationships with payment processors could present problems in the future. In simple terms, they are at the mercy of these partners and any relationship could collapse at any time, which could leave Wise in a dangerous predicament. Furthermore, this dependence on payment processors leaves Wise in a weak negotiating position in my opinion. This could hamper them when negotiating rates and so forth. If a partner relationship soured and customer numbers slowed, Wise shares may cheapen hugely as the share price could fall. At this time, I would not buy Wise shares. I must admit I am impressed by its offering and its journey to date and will probably try its service to send money abroad as a consumer. But I do have my concerns, so for now, I will keep a keen eye on developments. The post Should I buy Wise shares now? appeared first on The Motley Fool UK. Check out the FREE report below for a top growth share.. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I plan to buy Wise shares Should I buy Wise shares? 3 reasons why I’m bullish on the Lloyds share price now Is Wise a FinTech share to buy now? What’s going on with the Wise share price? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  8. The Wise share price beats the IPO curse. Time to buy? (08/07/2021 - The Motley Fool UK)
    On Wednesday, Wise (LSE: WISE) came to market on the London Stock Exchange. And in contrast to so many previous IPO flops, it got off to a cracking start. The listing opened at 800p, and ended the day at 880p. And as I write on Thursday morning, The Wise share price is up further, to 902p. Wise’s start to life as a listed company is a little different to most though. It took the form of a direct listing rather than an IPO. So what’s one of those? A traditional IPO is usually aimed at raising fresh capital, so a company issues new shares. The process is generally underwritten by investment bankers, which increases the costs. By contrast, in a direct listing, the current owners of the company offer some of their existing shares direct to the public. There’s no underwriting, and no underwriting fees. I think that fits Wise perfectly. Its founders, Kristo Käärmann and Taavet Hinrikus, pioneered a direct method for international currency transfers that eliminated opaque charges levied by traditional middlemen. Unlike many hopeful companies coming to market, Wise (previously known as Transferwise) is already comfortably profitable. That’s another reason a direct listing makes sense. The company doesn’t need a cash boost to get it onto a sustainable footing. I reckon the approach will have boosted confidence, and contributed to the Wise share price’s gains. A very big market As my Motley Fool colleague Harshil Patel has pointed out, Wise has 10 million customers transferring around £5bn every month. It also has its own share ownership programme, OwnWise, to make it easier for customers to invest and get bonus shares. So it’s a company that tries to make things easier, cheaper and more transparent, for its customers and for its investors. In contrast to the frequently murky obfuscation and hidden charges that characterise much of the finance world, that’s very much in line with The Motley Fool’s ethos. But on to the big question. Will I buy Wise shares? One thing that makes me hesitate, as Harshil explained, is the company’s dual share structure. It gives the founders’ shares more control, and I don’t like that. No, I prefer a level share structure, in which every share is equal. Wise share price volatility? I also wonder how Wise might cope with a financial crisis. I don’t mean anything as big as the banking crash, just a squeeze in the sector will do. Wise’s early years have been relatively calm ones in the financial world, so maybe it hasn’t yet faced the tests that will prove it as a winner? Saying that, I do see significant growth potential. International currency transfer is a multi-trillion dollar business annually. I don’t know whether the Wise share price valuation makes sense yet though. As with every new entrant to the market, it could take some time to settle, so we could see some early volatility. Still, I think Wise’s relative maturity does lower the short-term price risk. I won’t buy now, but Wise is definitely on my watch list. The post The Wise share price beats the IPO curse. Time to buy? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Is the easyJet share price about to soar? Here’s where I’d invest £10,000 right now Why Amazon’s share price is exploding higher 3 embarrassingly-cheap dividend stocks Tourism set for £6.2bn loss from international travellers this year Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  9. Is now a good time to buy UK shares? (26/07/2021 - The Motley Fool UK)
    With cautious predictions of an economic recovery, is now a good time to buy UK shares for my portfolio? If so, how do I go about it? Lets take a look. Is now a good time to buy stocks? There are some businesses that have a positive outlook and are tempting from an investment perspective. Others do not possess the same outlook and are ones I would avoid.  There are external factors I consider when purchasing stocks. These include the current state of the economy, the pandemic, political factors, and looking ahead. For example, I feel buoyed by the fact that successful vaccination across the country could result in increased movement, trade, and spending. In addition to this, previously closed industries such as travel and entertainment are beginning to reopen. Furthermore, new industries have thrived since the pandemic began. These include e-commerce and technology. The risk of investing in UK shares currently is that there is the threat of new strains of the coronavirus. Next, FTSE indices have already seen a rise since market-crash lows so I must consider if they are due a fall. Finally, I think the effects of Brexit will affect the economy and investment viability. How I invest in UK shares Firstly, context is important. For example, just because something is not cheap doesn’t make it unattractive. We are in for another period of near zero interest rates, low growth and low, or no, inflation. In this environment, businesses in growing markets will do well. So, something that is considered expensive now may look cheap in a few years time.  Research and due diligence are everything. I learnt this from Warren Buffett. I don’t have a complex formula or theory when I invest for my portfolio. Finally, I believe investing is for the long term. I understand shares can fall and rise and I need to ensure I understand the ups and downs of investing before I part with my hard-earned cash. Two picks I have considered recently One UK share I like is Avast (LSE:AVST). The burgeoning cyber security firm has grown massively in recent times. It is being courted by an American rival for a takeover and therefore its share price surged. The risk with Avast is that all the takeover news is speculation so far. Furthermore, Avast is a small fish in a big pond, which means it needs to work harder against bigger firms and will always be susceptible to being swallowed by a larger outfit. Next, money transfer services provider Wise (LSE:WISE) listed in the FTSE a few weeks ago to much fanfare. It was the largest ever public listing of a UK tech business, with a hefty valuation of £8.75bn at 880p per share. The Wise share price has increased over 9% since that listing. Wise’s ability to offer quick cheap transfer solutions have helped it amass millions of customers. The risk with Wise, however, is its reliance on payment partners such as Visa, to facilitate its offering. If such a partnership were to cease or stall, Wise could see its share price tumble. The post Is now a good time to buy UK shares? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Wise share price is up 20%. Am I a buyer? What’s next for the Wise share price? Should I buy Wise shares? Should I buy Wise shares now? The Avast share price jumped 22% last week! Here’s what I’m doing Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Avast Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  10. Can I buy shares in Wise? (26/06/2021 - The Motley Fool UK)
    Investing can be a great way to grow your wealth. If you’re in the UK or EU and interested in investing, you’ll soon be able to buy Wise shares. Let’s explore what Wise is, whether Wise shares are right for you and how to get started! [top_pitch] What is Wise? Wise, formerly TransferWise, is an online borderless bank account and money transfer service in 56 currencies. They’ve grown quickly since 2011. In the 2021 financial year, they facilitated $54 billion (£39 billion) worth of low-cost international transfers. Wise users can manage multiple currencies online, either through the app or in the browser. In 2020, Wise received a UK licence to offer investment products. They might move into this area in the future, so watch this space. Who can buy shares in Wise, and when? In June 2021, Wise announced their intention to float on the London Stock Exchange. If you can buy and sell UK shares, you’ll be able to buy Wise shares from 8am BST on the day they list. At the moment, that will probably be in early July 2021. What will Wise shares be worth? Rather than an initial public offering (IPO), Wise is going public via a direct listing. This means the market sets the initial share price, which can make the price more volatile. Sky News reported that insiders expect the initial value of Wise shares to be between £5 and £9 billion. [middle_pitch] What is OwnWise? If you’re in the UK or EU and you already use Wise for your banking and transfers, you might be eligible for OwnWise. While anyone can buy Wise shares, OwnWise is only for users. It’s a Wise program to encourage up to 100,000 of their users to become shareholders. To be eligible for OwnWise, you must be: an active Wise customer; in the UK or EU; not restricted by law from receiving and holding shares in Wise; able to receive OwnWise benefits without any special procedures; and not be a current or former employee of Wise or any Wise Group company. OwnWise members who buy their shares during the eligibility period and hold their shares for 12 months or more will receive bonus shares worth 5% of the initial value of their shares (to a maximum of £100). They’ll also get to join a private community, and they might even win a trip to the annual conference! If you’re eligible, you will have received an email from Wise in the last few weeks with instructions on how to register your interest. How can I buy Wise shares? Whether or not you qualify for OwnWise, once Wise shares are listed on the share market you can buy them through your normal brokers. If you don’t have a broker yet, you still have time to compare share dealing accounts or check out the list of brokers on the Wise investor site. If you want to buy Wise shares on the first day, don’t leave it until the last minute. It often takes a few days to get a new account set up. The exact process for buying shares depends on your broker or share dealing account, but on most platforms, it’s very similar to online shopping. Should you invest in Wise? That’s up to you, so do your research. Since 2019, Wise has had a healthy revenue compound annual growth rate (CAGR) of 54%, and 42% CAGR for volume. With 10 million customers worldwide, that’s a great result. But remember: past performance is not an indication of future results, and the value of shares can go down as well as up. If you’re just starting out, check out our guide on how to start investing for some handy hints before you dive in! The post Can I buy shares in Wise? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 Top FTSE dividend stock investments to buy now Warren Buffett is giving away billions 2 high-yield stocks paying more than 8% to buy now How I’d invest £10k today Why I’m planning to buy Saga shares
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  11. The Wise share price: here’s why I’m not keen (09/07/2021 - The Motley Fool UK)
    This week, another hotly anticipated public listing went live. Wise (LSE:WISE) is a leading fintech company, specialising in foreign exchange (FX) transactions and payments. It’s better known to most of us as TransferWise, but with a recent rebrand, it has dropped the first part of the name. The Wise share price has performed well during the opening days of trading, but ultimately I’m not convinced the shares are a good buy for my portfolio. A solid track record Wise operates a fairly simple business model at present. It charges a fee for converting money into different currencies. From 2019 to the latest financial year, this average spread has ranged from 0.65-0.77%. So if I decided to buy $10,000, Wise would generate revenue of around $70.  The business model relies on high volumes being transacted. So far, these volumes have been headed in the right direction, which is good for the Wise share price. In the year ending March 2021, volume for the year stood at £54.4bn. This came from a mix of retail customers and also some small businesses.  By dropping the word transfer from the name, Wise is clearly looking to expand the offering going forward. Given all of the financial data it has on clients, it would be relatively easy to move into offering cryptocurrency, stocks, ISAs and other financial products. This could give it a much larger potential revenue stream from existing clients alone. Wise is also different to some fintech firms in that it has been profitable for several years. This is a big tick in the box for traditional investors like me. I’d much rather invest in a company that has broken even or made money than having to invest on the hope of turning a profit several years down the line. Caution with the Wise share price That’s all goos. But for me there’s plenty to be cautious about regarding the stock. Firstly, the average margin made is easily less than 1%. So Wise needs to generate very large volumes in order to grow the business. If FX was a new industry or highly disruptive, then I think this could easily be doable. Yet FX is a competitive area and is only getting more so. All banks offer this service to clients, as well as plenty of brokers and other fintech companies. Companies like Revolut offer FX cheaper than Wise, and other challenger banks are looking to compete in this space as well. The likes of Starling Bank and others already have the full banking set-up. I feel these companies are only going to eat into the volumes of Wise, instead of the other way around. Wise could also be worth avoiding due to its dual share structure. My colleague Alan Oscroft mentioned this in an article yesterday. The share structure doesn’t give equal voting rights, meaning the founders have disproportionately large decision-making power. This is legal, but isn’t something I’m a big fan of. Overall, I’m not keen on the Wise share price at the moment. I acknowledge it’s a profitable and exciting company, but I think the competition in this area is too high for one company to dominate it. The post The Wise share price: here’s why I’m not keen appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading 3 sectors that historically fare well during high inflation periods 5 top penny stocks to buy 5 FTSE 100 dividend shares for a Stocks & Shares ISA The Lloyds share price continues to slide. Should I buy now? 2 top UK shares to buy right now jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  12. Are shares in fintech firm Wise a buy? (11/07/2021 - The Motley Fool UK)
    Fintech stock Wise (LSE:WISE) hit the London Stock Exchange in a direct listing at a value of £8.8bn on 7 July 2021. A year ago, the company was valued between £3.6bn and £3.9bn. The Wise share price is currently sitting at 982p. With 994,589,856 ordinary shares at last count, Wise has a market cap of around £9.8bn today. This has been a successful admission to the markets. And I can understand why: Wise is disrupting financial services, and unlike other tech stocks is not just bringing high revenue but also profits a decade after being founded. However, there are issues to address. What is Wise? Wise started in 2011 as TransferWise, offering low-cost international money transfers to everyday customers. Its goal was to make international money transfer cheaper, quicker, and more transparent than traditional banks. Wise is digitally native and does not offer cash services like, say, competitor Western Union, does. The technology Wise uses to provide for international payments is fairly simple to understand schematically. Traditional banking would have someone routing money from their bank through a host of correspondent banks to an account on the other side of the world. Wise has built itself as a middleman between local payment services in multiple countries. Source: Wise Prospectus Wise moves money by taking a client’s currency into its own account here and moving currency from its account to the client’s over there, at an agreed exchange rate. Removing the intermediaries and manual checking of correspondent banking is how Wise keeps costs and time down. I do think Wise has a good business model. Pandemic aside, the world is becoming more mobile. That speaks to an increased demand for moving money between countries. Digital money is becoming the norm, obviating the need for Wise to have high street shops. And people everywhere are moving online. That means shopping around for money services is easier, and so long as Wise can stick to its value proposition, it should continue to attract clients. Wise share price The typical early Wise user was a fairly affluent tech-savvy European. It has since expanded globally and moved onto business customers. If now offers more sophisticated banking services like international payments and multi-currency accounts. This has kept revenue growth high. Table 1: Wise condensed income statement 2019–2021   2019 2020 2021 Revenue £177.9m £302.6m £421.0m Gross profit £110.4m £188.1m £260.5m Operating profit £12.2m £23.6m £44.9m Profit for the year £10.3m £15.0m £30.9m Diluted EPS 0.56p 0.80p 1.58p Source: Wise Prospectus Wise grew its revenues by 39% and doubled its profits over the 2021 fiscal year. Revenue growth is below the 70% seen in 2020 but operating and net profit margins are improving. But Wise shares are seemingly trading at 621 times earnings per share. That’s extremely high for a company with slowing revenue growth and established competitors. Then there is the dual-class share structure, which gives the founders control but that kept Wise shares in the standard rather than premium, main market of the LSE. This locks Wise shares out of FTSE index inclusion and means losing long-term holders like index funds. However, a premium listing should be possible in five years, when the dual share class structure is due to expire. I do like Wise shares, but I think its share price might be too rich for me at present. I will watch from the sidelines to see if anything changes. The post Are shares in fintech firm Wise a buy? appeared first on The Motley Fool UK. Wise went for a direct listing rather than an IPO, but that does not mean that IPOs are dead… Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading If I had £2,000 to invest, I’d buy this top UK stock now Tesla shares: 1 reason to buy and 1 reason to sell Stock market investing: here’s where I’d invest £3,000 today Is the Deliveroo share price still a cheap buy? 2 top penny stocks to buy now James J. McCombie owns shares in Anglo American. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  13. The Wise share price is on the rise. Should I buy now? (12/07/2021 - The Motley Fool UK)
    The Wise (LSE:WISE) share price surged a solid 10% on its first trading day last week. The fintech company joined the London Stock Exchange via a direct listing at a valuation of £8.75bn.  This actually makes it the largest-ever public listing of a UK technology business. And today its market capitalisation is closer to £13.5bn. So, what does Wise do? And should I be considering this newly minted public company for my portfolio? Moving money worldwide Wise (or TransferWise as it was formerly known) provides international money transfer solutions for individuals. Typically, when performing such transactions through a bank or foreign exchange dealers, there comes an enormous processing fee. But with Wise, transfers are not only on average seven times cheaper but also significantly faster. According to the company, 83% of all transactions are completed within 24 hours and 38% instantly. As someone who often sends money abroad, that sounds quite impressive to me. So how does it work? Instead of transferring funds directly from one bank account to another, Wise uses a network of payment processors. These include Visa and Mastercard that process, authenticate, and approve transactions within seconds. Given this new transfer structure is significantly more efficient than an archaic wire transfer, I’m not surprised to see the company’s platform attract more than 10 million users. This, in turn, has enabled Wise to generate £421m in revenue between March 2020 and 2021. And not only that, unlike many young fintech companies in the space, this one is actually profitable. With an operating income of £44.9m, Wise works at a margin of around 11%. That’s certainly not fantastic. But it’s worth noting that it seems the majority of the firm’s expenses are fixed. Meaning as the number of users grow, margins should improve, pushing the share price even higher. At least, that’s what I would expect. The Wise share price has its risks As you may have already realised, a £13.5bn valuation for a company that just about makes £45m in underlying profits is quite a lofty figure. But that’s often the case with potentially high-flying tech stocks. It’s trying to revolutionise international transfers, after all. However, there are some risks related to the way it operates. Specifically, its complete dependence on third-party companies to process transactions. Given that the firm will struggle to function without these other businesses, it doesn’t have much bargaining power to negotiate fees. Not to mention, should a relationship turn sour, it could cause significant disruption to its products and services. This, in turn, would likely push users towards a competitor. Needless to say, if Wise’s user numbers fall at this early stage, it would probably send its share price plummeting. The bottom line Overall, I’m not entirely convinced by the investment case, at least not yet. Wise has a monumental amount of competition in this space. What’s more, most of its rivals operate with similar technologies. To me, that indicates the barriers to entry aren’t that high, and that fee pricing power is near non-existent. Its user base seems too small in my eyes to solidify its position within the fintech world. And so, for now, the company is staying on my watchlist until it can boost those numbers. The post The Wise share price is on the rise. Should I buy now? appeared first on The Motley Fool UK. But there is another IPO that caught my attention this week. And it looks far more promising… Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Are shares in fintech firm Wise a buy? Zaven Boyrazian owns shares of Mastercard. The Motley Fool UK owns shares of and has recommended Mastercard. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  14. Should I buy Wise shares? (16/07/2021 - The Motley Fool UK)
    On 7 July, Wise (LSE: WISE) went public through a direct listing. Wise shares initially opened at 800p but strong demand from investors has caused the share price to rise 22% to 974p at the time of writing. Will this trend continue and is this a good time to jump in? Positives One reason Wise has generated a positive reaction among investors is that the company is providing a great service to its customers. Wise facilitates cross-border currency transactions and its mission is to “build money without borders: instant, convenient, transparent and eventually free”. So far, it seems to be successfully working towards this goal. In the last financial year, Wise facilitated £54bn worth of transactions and helped its customers save £1bn. Some 38% of these transactions were also instantaneously processed and 83% were processed within a day. Wise has also performed well financially over the last three years. Last year, the company grew revenues by 39% to £421m after having achieved revenue growth of 71% the previous year. Unusually for a new listing, it is also profitable. Last year, the company managed to generate a profit of £31m, more than double the profit it generated the prior year. This profitability has no doubt been a key reason why Wise shares have done so well since going public. And it achieved this growth without taking on too much debt. Currently, the company’s total debt is worth £98m. This is a little over two times the company’s operating profit. To me this is a reasonable amount of debt for a profitable business growing as quickly as this one. Risks One of the main risks is competition. Currently, it has several competitors offering similar products. One such competitor is MoneyGram which facilitates transactions in 200 countries. This is 24 more countries than Wise. Furthermore, the company faces competition from the traditional banking sector. Wise is seeking to replace the ‘old’ and ‘outdated’ payments system that uses traditional banks. Personally, I can’t see banks simply letting Wise take away customers without doing anything. As such, I think it’s very possible that traditional banks will start to compete aggressively with the company in this space. Wise is also operating a low-margin business. This is partly due to the competition in the industry and partly due to the company’s commitment to lowering fees. Last year, it achieved a net profit margin of 7.3%. This does not leave much room for a downturn in the market or increased competition in the future. Another concern of mine is its valuation. Currently, it has a market capitalisation of £9.64bn. This puts Wise shares on a multiple of 311 times earnings. In order for such a multiple to be justified, it would have to grow revenues and earnings very quickly. Management has said it expects revenue growth to decline to around 20% in the medium term. Although this is very decent growth, I do not think it is enough to justify such a high valuation. For these reasons I have decided not to add Wise shares to my portfolio. However, I will be keeping my eye on the share price just in case it falls to an attractive level. The post Should I buy Wise shares? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 reasons why I’m bullish on the Lloyds share price now Is Wise a FinTech share to buy now? What’s going on with the Wise share price? Are Wise shares a good investment following its direct listing? My best shares to buy now! Don’t be unwise! Ollie Henry has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  15. Do first-time buyers pay stamp duty? (03/03/2021 - The Motley Fool UK)
    Stamp duty is a major cost to budget for when buying a home. But due to changes to this tax scheme over the years, there’s often confusion about how stamp duty is worked out and the amount you have to pay. This is particularly the case for first-time buyers, who often wonder whether they have to pay stamp duty. So, what exactly are your stamp duty obligations as a first-time buyer? Let’s find out. What is stamp duty? You pay Stamp Duty if you buy a property or land over a certain price in England and Northern Ireland. Up until 8 July 2020, most homebuyers in England and Northern Ireland had to pay stamp duty on properties priced above £125,000. This threshold was temporarily increased to £500,000 to inject life into the housing market during the coronavirus crisis. This stamp duty holiday has been a lifesaver for both first-time buyers and previous property owners. Many have been able to shave off significant costs on their home purchases. However, the stamp duty holiday is set to expire on 31 March 2021. As things stand, from 1 April 2021, the tax threshold will revert back to £125,000 for residential properties. Do first-time buyers pay stamp duty? Yes, first time buyers do pay stamp duty. The good news is that those buying properties below £500,000 are eligible for discounts that can mean less or no tax.   From 1 April 2021, after the current stamp duty holiday ends, as a first-time buyer, you won’t pay stamp duty if you buy a property priced below £300,000.   If you buy a property worth between £300,001 and £500,000, then you’ll pay stamp duty at a rate of 5% on the amount of the purchase price in excess of £300,000. So, for example, if you buy a property worth £350,000, you will pay a stamp duty of £2,500. This is calculated as follows: Nothing on the first £300,000 5% on the next £50,000 = £2,500 If the property is bought for more than £500,000, standard stamp duty rates will apply. On the bright side, the cost of most people’s first home tends to be below £300,000. So as a first-time buyer, there’s a likelihood that you won’t have to pay stamp duty anyway. Do you qualify as a first-time buyer? The government defines a first-time buyer as an individual who has never owned an interest in a residential property in the UK or anywhere else in the world and who intends to occupy the property as their main residence. It’s also worth noting that if you’re buying a house as part of a couple, you’ll only benefit from the first-time buyer rules if both you and your partner legally qualify as first-time buyers. What else is available to first-time buyers? In addition to the stamp duty relief and discounts, a few other benefits and incentives are available to help first-time buyers. These two, in particular, are worth checking out: Help to Buy: Equity Loan Scheme: This is for those who wish to buy a new-build home. Here, you’ll need a lower deposit than usual. The government will provide a loan that covers part of the property cost. However, you’ll still need a mortgage to cover the rest of the costs. Help to Buy Shared Ownership: This is a part-buy, part-rent scheme that allows aspiring homeowners to buy a share of a property (between 25% and 75%) and pay rent on the remaining share. You can then increase your share as you can afford to. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The easyJet share price is taking off. Is now the time to buy? What does it mean when the economy shrinks? Should I buy Tesla shares or the Scottish Mortgage Investment Trust? The Rolls-Royce share price is rising. Should I buy now? IAG’s share price is rising. Should I buy the stock now? The post Do first-time buyers pay stamp duty? appeared first on The Motley Fool UK.
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  16. Is Wise a FinTech share to buy now? (15/07/2021 - The Motley Fool UK)
    On 7 July, the London stock market got a new, directly-listed financial technology (FinTech) stock, Wise (LSE: WISE). And that’s something that doesn’t happen every day. Wise shares have been flying The initial market valuation was £8.8bn. And now its market capitalisation is around £13.5bn because the share price has gone up. Wise has proved to be a stock market success, so far. But can the stock go on from here to become a big success for investors? It’s possible. And the ‘story’ behind the underlying business is certainly an intriguing one. In essence, the directors have ambitions to disrupt and revolutionise the international money transfer market. And the company aims to do that by raising standards in the industry, trimming costs, simplifying the process and selling the product cheaper. It’s one of the well-used blueprints, for example, of successful entrepreneur Sir Richard Branson. These days, his Virgin Group is involved in more than 400 companies in various fields. And that suggests to me that Wise’s formula has the potential to succeed further. Despite the impressive size of the company’s market capitalisation, Wise is a young business. Kristo Käärmann and Taavet Hinrikus started the enterprise in January 2011. And with the execution of the stock market listing, these two Estonians are now quite comfortably off when it comes to their personal finances. Building a new infrastructure network However, Käärmann still heads the company as its chief executive. And he explained the business model and vision in a video on the firm’s website. In essence, Wise started as an international money transfer service a decade ago. But it’s since expanded to become a “global cross-border payments network.” And the Wise network “replaces” traditional international banking for around 10m personal and business customers. Käärmann reckons people use the service to send money across borders, get paid in 30 different countries and spend money in 176 countries around the world. And businesses use Wise to help them operate internationally. But, on top of that, banks and enterprises use the Wise Platform to pass on the benefits of the company’s “faster, cheaper” international transfer service to their own customers. The company said it “spent the last decade” developing its infrastructure to replace the world’s old and outdated system. But Wise’s system continues to evolve. Now, it’s an “ever-expanding” global network of direct and indirect integrations with local payment systems. Fast growth In 2021, Wise processed volume worth £54bn, which the firm claims saved its customers around £1bn in fees. And that volume generated £421m of revenue, up by almost 40% compared to 2020.   However, profits remain modest compared to its market capitisation. In the trading year to 31 March, Wise achieved a post-tax profit of almost £31m, up from £15m the prior year. That’s an impressive rate of profit growth. But with the share price near 974p, the figures imply an earnings multiple knocking on the door of 400. To justify a valuation like that, I reckon revenue needs to dump heaps of profit onto the bottom line in the immediate years ahead. And I’m watching from the side lines with interest for the time being. The post Is Wise a FinTech share to buy now? appeared first on The Motley Fool UK. I’m also keeping an eye on this opportunity… Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading What’s going on with the Wise share price? Are Wise shares a good investment following its direct listing? My best shares to buy now! Don’t be unwise! The Wise share price is on the rise. Should I buy now? Are shares in fintech firm Wise a buy? Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  17. Evaluating Companies and Finding Troughs (07/03/2021 - Reddit Stocks)
    I recently subscribed to the Motley Fool and have spent the last several months reading and studying what I can about the stock market. One thing I mentioned on their forums and am told "a wise investor would still buy!" while questioning their picks was the timing. For example, they recommended buying Amazon still at north of $3K/share this month. In 2002-2003, they recommended buying it and it was $17 and it also split 7 times since that point. How would a "wise investor" still unquestionably buy that? Yes, it exploded 18000% but realistically will it reach north of $500,000/share? I guess it could, but seems highly unlikely. To continue to push this seems off. It seems like the average (younger with more time to take risk) investor can comfortably buy 50-100 shares of several companies for the investment of one AMZN stock. Even modest returns on those seemingly will outperform buying ONE share of an already huge expensive beast stock. Are there any recommended resources or methods to better explore and learn about startups, emerging IPO's, etc. that might be better bets for beginning investors willing to take a larger risk? Looking at market histories even 5 years back, there are MANY companies today north of $500/share that just years ago had periods of time that might have been south of $20/share. With the Fool perspective, it would still be wise to buy the one share at $1K, instead of looking for the companies today that you could pick up 50+ shares for that much and potentially grow significantly. NOTE: This was originally posted on r/investingforbeginners but has not received any votes or comments. Maybe because I'm an idiot with the question, but it's asked genuinely even if not based on any established knowledge base. Disclaimer: I know jack shit in the grand scheme of investing and am just beginning   submitted by   /u/A_Postal_Worker [link]   [comments]
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  18. 3 reasons I’m excited about Wise shares (10/07/2021 - The Motley Fool UK)
    I think we can conclude that last week’s market debut from money transfer firm Wise (LSE: WISE) was a success. Despite wider market concerns about Covid-19 and inflation, shares breached the 1,000p mark on Friday — that’s already 20% up on its opening price of 800p. So, is this a fintech flash in the pan? I don’t think so. Here’s why. 1. It’s profitable One thing I like about Wise is that it’s actually making profits. In fact, it’s been doing so for the last four years. Last year, pre-tax profits doubled to £41m. As a potential investor, this is important to me. At a time when many tech-related stocks are pushing frothy valuations despite being a long way from making real money, Wise is bucking the trend. Contrast this with tech peer Deliveroo. The takeaway delivery firm is reluctant to even forecast when it expects to make a profit. Wise’s already-profitable business model could also provide some protection if global markets come off the boil. I’m not so sure Deliveroo offers the same protection. 2. No cash raise The direct listing of Wise shares is another attraction. The first tech stock to do so on the London Stock Exchange, this means it’s not looking for a fresh injection of cash from investors. Instead, it’s merely selling existing shares on the market. There was no need for investment banks to underwrite this (and charge high fees for doing so).  This move makes Wise similar to the US listing of music streaming service Spotify in 2018. Although operating in very different sectors, it’s worth noting that the latter’s share price is up over 70% since then.  The fact that Wise isn’t raising cash also reminds me of a quote from star UK fund manager Terry Smith: “Call us old-fashioned but when we’ve bought shares in a company, we like them to send us money after that, not the other way around. We think that’s how this relationship should work.” 3. Huge growth potential Fintech is all the rage right now and it’s not hard to see why.  Investment in this space hit $44bn last year. Sure, there are risks. One that immediately jumps out at me is the threat of cybercriminal attacks. Ongoing regulation could also prove a headwind. Nevertheless, let’s not overlook the fact that this is a huge market and Wise has the potential to continue disrupting a part of the economy which has hitherto been dominated by big banks and the likes of Western Union. According to the company, its customers already send £5bn across borders every month.  So, will I be buying? Not yet. Wise shares could climb higher but I’d be inclined to build a stake slowly. As Dr Martens has shown, traders can be quick to sell after the initial hype dies down. No share price rises in a straight line, regardless of its growth potential. The high number of companies coming to market right now also make me wary. This is nothing against Wise specifically, but it does imply that many founders now think they’ll get an optimum price for their shares. This could indicate markets are peaking. There’s something to be said for zigging when the majority are zagging. Over the long term, Wise shares could prove a very wise investment. For now, I’ll watch from the sidelines. The post 3 reasons I’m excited about Wise shares appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading This is what I’m doing about the easyJet share price! Best penny stocks to buy in 2021 2 UK stocks to buy before ‘Freedom Day’ London ranked 5th best city in the world to become a millionaire Can the Rolls-Royce share price return to 200p? Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Spotify Technology. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  19. Should I buy Wise shares? (19/07/2021 - The Motley Fool UK)
    British fintech firm Wise (LSE: WISE) made a successful direct listing on 7 July 2021. The Wise share price rose 10% on opening day to close at 880p. The shares continued their good run and are currently up around 20% from the opening price.  Here, I review the company to understand the pros and cons of investing in this company. Wise company’s overview The company was started by two Estonian friends, Kristo Käärmann and Taavet Hinrikus, in 2011. Frustrated by the high fees charged to transfer money overseas, they found a way to transfer money cheaply. Earlier this year, the company’s name was changed from TransferWise to Wise, primarily due to the extended services of the company.  The company used a direct listing instead of the usual initial public offering (IPO). A direct listing is cheaper due to the absence of intermediaries. This type of listing is more suitable for companies that are already very popular. In fact, this was the case of the Wise shares. Another key differentiator is that only the existing investors sell shares and no new shares are issued in this method. The company has two classes of shareholders. The company’s early investors include PayPal co-founder Peter Theil. The Class B shares will have an extra nine votes per share. They will not be listed and will cease to exist after five years of the listing of shares. Fundamentals The company has solid revenue growth. Revenue grew at a compound annual growth rate of 54% from the fiscal year 2019 to 2021. In the fiscal year 2021, revenue grew 39% to £421m. It also has a geographically diversified revenue base. Europe, excluding the UK, constituted 33% of 2021 revenue, the UK (23%), Asia-pacific (21%), North America (17%), and the rest of the world (6%). Another reason why I like Wise shares is that the company is profitable. Its net profits grew from £10.3m in 2019 to £30.9m in 2021. The free cash flow was £103.9m. The company has been able to grow its active customers rapidly. It grew from 3.3m in 2019 to 6.0m in the fiscal year 2021. Wise shares – risks to consider The company has a dual-class shareholding. It gives the founders and early investors the majority of the voting rights. It is good to have more control over the functioning of the company. On the other hand, retail investors will not be able to influence the company’s decisions.  Wise will face stiff competition from traditional banks and digital banks. Its close competitor, Revolut is also popular with similar services and is growing rapidly, which is a concern. Wise shares are currently trading at a price-to-sales ratio of 31. In my opinion, the valuation is a bit high for me to consider it as a value buy. Taking all things into consideration. I like the company’s products and its strong revenue growth. I will keep the stock on my watchlist and wait for a better entry point to add it to my portfolio. The post Should I buy Wise shares? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Wise shares now? Why I plan to buy Wise shares Should I buy Wise shares? 3 reasons why I’m bullish on the Lloyds share price now Is Wise a FinTech share to buy now? Royston Roche has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended PayPal Holdings. The Motley Fool UK has recommended the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  20. Free float of 0? (19/06/2021 - Reddit Stocks)
    What would happen if all of a company’s publicly available shares shrank to 0? Since a stock’s price movement is based on a buyer-seller ratio, would the stock’s price stagnate as trading volume reduced and shareholders hypothetically continued to hold?   submitted by   /u/KarensTwin [link]   [comments]
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  21. Why I plan to buy Wise shares (17/07/2021 - The Motley Fool UK)
    Several years ago, I heard about a product called TransferWise. As someone who’s always travelled a lot and moved currency around for business, the service seemed too good to be true. It charged low fees and was highly flexible. And ever since I started using the product, I’ve not looked back. This is the main reason why I plan to buy Wise (LSE: WISE) shares. Not only are the company’s fees lower than the rest of the industry, but I think it’s also easier to use.  And it seems that other users agree. Wise has grown rapidly over the past few years. Compared to peers like PayPal, the company offers a stripped-back offering. Nevertheless, its fees are significantly cheaper and, over the past few years, the group has introduced several new products which have only increased the appeal.  The appeal of Wise shares  The main reason why I plan to buy Wise shares is that I think the company offers a product that people want.  As more consumers have come on board, revenue has increased from £178m in 2019 to £421m for the 2021 financial year. The company generated this revenue on £54bn of currency transactions. To put this into perspective, the global foreign exchange market is worth around £4.7trn a day. A large percentage of this is trading and derivative activity. So, this figure isn’t an entirely accurate reflection of the market opportunity. Still, I think these figures show the scale of the opportunity on offer. If the group can capture just 5% of this global market, Wise shares appear cheap at current levels.  The firm is also profitable, a rare quality for high-growth tech stocks. Last year, the company generated £31m of profit after tax, up more than 100% year-on-year.  All too often, tech companies give away their products either with excessive marketing or with so-called freemium services. These initiatives help generate activity. But investors have to pay the losses at the end of the day.  Wise’s figures appear to show this company isn’t only avoiding these tactics, but customers are happy to pay its fees anyway.  Risks and challenges While I am incredibly optimistic about the outlook for Wise shares, I’m also aware the company faces some risks and challenges.  It has no competitive advantage. Therefore, there’s nothing to stop larger competitors from entering the market and snapping up consumers by offering lower fees.  At the same time, one of the main risks listed in the firm’s prospectus is that the group may fail to meet anti-money laundering regulations. If that happens, the company could be subject to significant fines or restrictions, which may inhibit its ability to operate as a going concern.  Despite these risks and challenges, I plan to buy Wise shares because I love its product and think it has enormous scope to grow in the years ahead. The post Why I plan to buy Wise shares appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Should I buy Wise shares? 3 reasons why I’m bullish on the Lloyds share price now Is Wise a FinTech share to buy now? What’s going on with the Wise share price? Are Wise shares a good investment following its direct listing? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended PayPal Holdings. The Motley Fool UK has recommended the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  22. Would someone mind explaining like I'm 5, how stock splits work and effect price? (12/03/2021 - Reddit Stocks)
    Let's say I own 100 shares of stock x. The company has decided to split, 1 for 8, what will that do to the stock price in the short and long term? Is someone wise to ride it out or sell before the split? I assume a drop in price before the split is investors cutting and running to save money, but I don't know for sure.   submitted by   /u/Greebous [link]   [comments]
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  23. Just trying to learn how calls work.. (10/03/2021 - Reddit Stock Market)
    Just been reading into it recently, wanting to understand them before I do anything stupid. Basically what I understand, by way of example (Again, I'm citing what I understand, and am asking for help where I'm wrong: James buys a call for 100 XYZ stock @ $10 each for $1k, and he sets the strike price to $20/share by next month. Three potential situations can follow: The stock price goes up to $20 each in just 3 days; James exercises the call out of fear it won't get any higher and drop to below $10, and receives 100 XYZ stock, now worth double his investment, for half the price. James wins. The stock price goes up to $25/share. James exercises, and gets $15/share extra value, receiving 100 XYZ worth 2500 for a $10/share price. The stock price reaches only $18/share (or dips to $5/share) before the expiration date, and since in either case the strike price is not reached, the option expires worthless. James has lost $1k, and receives no stock. Or does it go like this? XYZ is worth $10. James makes a call, buying the right to 100 XYZ at the assumption they will reach $20 by expiration. He pays $2k for this call. This has two possible outcomes: The price goes up to $25+/share, into the money. James exercises, and receives 100 shares for the $20 price tag, but receives an extra $5+/share value. The price does not meet the $20/share strike price. James loses the $2k and receives no stock. If one or neither of these is correct, I'd really appreciate guidance. Thank you!!   submitted by   /u/ninthtale [link]   [comments]
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  24. Should I buy Wise shares following its new listing? (07/07/2021 - The Motley Fool UK)
    Wise (LSE:WISE) shares opened at £8 a share at 11am on Wednesday, giving the currency transfer company a market capitalisation of £8bn. The London-based fintech firm decided to use a direct listing on the London Stock Exchange rather than a more common IPO. According to co-founder and CEO Kristo Käärman a direct listing allows for a “cheaper and more transparent way to broaden Wise’s ownership.” Previously known as Transferwise, the currency platform was founded with a mission to transparently and cheaply move money across the world. So it’s quite fitting that it has chosen a direct listing, bypassing the major banks to go directly to its customers and investors. Also consistent with its brand, it created a program called OwnWise that offers Wise users a chance to invest in the company and receive bonus shares. A wise investment? Unlike some fast-growing technology companies, Wise is a profitable business. I like that it’s been profitable since 2017. It has managed to steadily grow sales and profits. Given its growth and size, it’s certainly no longer a start-up. It now has 10m users, moving £5bn every month. The company reckons it saves customers over £1bn a year compared to transactions made with banks. More customers are joining every year, and currency transfers are getting cheaper and faster. Wise has demonstrated that it’s an innovative company with frequent new features. It’s also always working to reduce fees by becoming more efficient. The question I ask myself when looking at Wise shares is: what does the future look like? I reckon the future looks promising. Wise has a large global audience and a long runway of potential customers. According to consultancy firm McKinsey, it’s estimated that people and small-to-medium businesses transfer $10trn internationally. Risks Despite an encouraging outlook for the business, there are several risks to Wise shares that I’d consider. Wise operates in a highly regulated environment. It needs to ensure it meets compliance requirements in each of the many countries that it operates in. It also needs to work hard to minimise the risk of financial crimes across its products. Given its business of cross-border currency transfers, it’s exposed to fluctuations in foreign exchange rates. It needs to manage its liabilities carefully to ensure it can protect itself from significant currency moves.   Also, it’s worth noting that the company decided to list with a dual share structure. This gives founders more control and enhanced voting rights. It could be controversial and limit some interest from investors. Should I buy Wise shares? All things considered, I’ve decided not to buy Wise shares just yet. It certainly looks promising and I like its ethos, plan, and vision. However, I tend not to invest in new listings. The share price can be volatile and its price will somewhat depend on the level of hype it received in recent weeks and months. On this occasion, I’m happy to add Wise shares to my watchlist and observe over the coming months. The post Should I buy Wise shares following its new listing? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Is IAG stock a buy for me after its 16% drop? With £5,000, 3 top dividend stocks to buy now 4 ridiculously cheap dividend stocks Is robo-investing good? 2 top UK growth stocks to buy right now Harshil Patel has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  25. Wise shares: should I buy? (08/07/2021 - The Motley Fool UK)
    Yesterday, financial technology (FinTech) company Wise (LSE: WISE), which was formerly known as TransferWise, listed directly on the London Stock Exchange. The event represented London’s largest-ever tech listing.  I’m very bullish on the FinTech sector as a whole and I also think Wise offers a brilliant service. So, should I buy its shares? Let’s take a look at the investment case. Wise: the business Wise operates a global cross-border payments network that enables people to send money around the world quickly and cheaply. The company was founded in 2011 by two Estonian friends who, frustrated by high money transfer fees and poor exchange rates offered by banks, decided to create a more efficient, cost-effective way for people to transfer money. Today, Wise has over 10m customers who send more than £5bn every day across its platform (saving £3m in bank fees!). Individuals use the platform to send money across borders and spend money in different currencies while businesses use the platform to expand globally. Wise shares began trading at £8, valuing the company at £8bn. However, the share price has risen since the listing. Wise shares: the bull case There are a number of things I like about Wise from an investment point of view. For starters, the company offers a fantastic service. I’ve used its platform to send money internationally since its early days and I’ve always been very impressed. The platform is incredibly easy to use and payments are very fast. And I’m not the only one who likes it. On Trustpilot, Wise has a score of 4.6 out of 5 and a rating of ‘excellent’. Secondly, the company is generating impressive revenue growth. Between FY2019 and FY2021 (its financial year ends 31 March), revenue climbed from £178m to £421m. That represents annualised growth of 54%. Source: Wise Third, unlike many other young technology companies, Wise is profitable. Last year, it generated earnings of £30.9m. This reduces risk significantly. Finally, Baillie Gifford is a major shareholder and owns around 5% of the shares. This is encouraging. Baillie Gifford is one of the best in the business when it comes to investing in disruptive growth companies. Risks But there are risks to consider here. My main concern is competition. Are there big barriers to entry in this industry? I’m not sure. Could another FinTech company offer a similar service and capture market share? Possibly. In its prospectus, Wise said: “There may be other companies who create better products and services for our customers in the future.” Another concern is in relation to the direct listing. With this type of listing, insiders aren’t obliged to hold on to their stock for a certain period of time like they are with an Initial Public Offering (IPO). If insiders decide to dump a lot of stock, it could put pressure on the share price. There’s also the valuation. Currently, Wise sports a trailing price-to-sales ratio of a little over 19. That’s quite high. PayPal, which I consider to be the leader in the FinTech space, trades on 16. This high valuation also increases risk. Should I buy Wise shares? Weighing everything up, I’m going to keep Wise shares on my watchlist for now. The company certainly looks interesting. However, the valuation is a bit high for me at present. The post Wise shares: should I buy? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading 2 top growth stocks to buy now Argo Blockchain shares: should I buy now? The average monthly rent in the UK is now above £1k for the first time in history Best buys right now: 2 penny stocks I’d invest in 3 ways to beat inflation with stocks Edward Sheldon owns shares of PayPal Holdings and London Stock Exchange Group. The Motley Fool UK owns shares of and has recommended PayPal Holdings. The Motley Fool UK has recommended the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  26. Selling covered calls? (06/07/2021 - Reddit Stocks)
    Let’s say I own 1000 shares of a stock and sell 5 covered calls for a price way otm. Let’s say the before the expiration date I decide I’d rather keep the stocks in case they go higher than the strike price. Am I able to sell that contract and keep my shares? Or do I need to keep that contract and let the buyer exercise if strike price is met?   submitted by   /u/mambagoals [link]   [comments]
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  27. When to buy Ark ETF's? (18/02/2021 - Reddit Stocks)
    Hi all, I was just wondering when it is a good time to get into Ark ETF's? I got a cash position (about 30% of my total portfolio) that I want to divide across the Ark funds, but then again they are basically at ATH with a hell of a year. Do you reckon it's better to wait with my cash position for a possible crash/correction or go ahead and invest? What is a wise course of action here? Thanks for all the wise lessons this community teaches me!   submitted by   /u/Heisenbread [link]   [comments]
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  28. Just who is allowed to make "after hours" trades ? It seems quite unfair to the retail buyer. (22/07/2021 - Reddit Stocks)
    I know the market is one of the most vicious places on earth, but why cant the average person get in on some juicy after hours buying ? I recently bought Neuro Metrix after it rose in one day from about $3 to $10. I put in a market order for the opening at "market price'. That price was over $17 when it opened. I missed out on $7 or more of a rise in price just because I have no access to after hours trading. Why do you guys think about this ? Best of luck to all in their investments.   submitted by   /u/diecorporations [link]   [comments]
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  29. I’m not sure it’s very wise to sell “high” (23/07/2021 - Reddit Stocks)
    I guess the same thing could be said about buying “low”. The problem with selling high, is that you have no idea how much higher the stock may go. There are plenty of stocks that quintupled or more in just a few short years. Would it have been wise to sell them after making 50%, or even doubling your money in a few months? At that point in time it may have seemed very “high”. But it’s subsequent performance blew those gains out of the water. Moral of the story: Buying low and selling high means nothing in most cases, and only years after buying or selling will you truly know it the stock was “high” or “low”. The only exception is looking at a stocks price and being so smart, you actually know what it’s (very likely) going to do. But that requires an understanding of markets, economics, business and consumer trends, and statistics that only about .5% of the population has.   submitted by   /u/benjaminslivin [link]   [comments]
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  30. Wise (formerly TransferWise) is planning to release shares and go public. What are your initial thoughts on the topic? (07/07/2021 - Reddit Stocks)
    They are also planning on doing a reward program: “Hold your Wise shares for at least 12 months. We'll then reward you with an extra 5% bonus shares (up to £100) and other exclusive perks.” Could the company be worth investing into?   submitted by   /u/morfonz [link]   [comments]
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  31. 3 reasons why I’m bullish on the Lloyds share price now (15/07/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE:LLOY) share price has been on quite a journey so far this year. It’s up 28% over the past six months and 55% over one year. This is impressive, although the key level of 50p has been somewhat elusive. It traded at a high of 50.44p recently, but is currently back around 46p. Given the current outlook though, I’m bullish on the company going forward. Recent and upcoming news The first reason I think the Lloyds share price could offer value is due to potential dividend payments. In news earlier this week, the Bank of England announced a removal of caps on bank dividend payments. For those not aware, this restriction was put on the large UK banks in order to boost financial stability during the pandemic. Retaining cash within the business instead of paying it out as dividend income helped to protect against losses from bad debt. Historically, some investors bought Lloyds shares specifically for the income payments. This was negated during the pandemic, which is one factor that I think saw the share price drop last spring. Now it’s a different outlook. I’ll have to wait for upcoming half-year results to see what the dividend policy will be. Yet I think we could definitely see some positive news in this regard. As such, I think the Lloyds share price could rally as investors looking for income start to pile in again. The expected half-year report is another reason that I’m bullish on the Lloyds share price at the moment. The Q1 trading update spoke of a “solid financial performance”, which led to enhanced and upgraded guidance. For example, both customer deposits and loans grew in Q1. As a traditional bank, this will increase profitability in the long run. In fact, statutory profit after tax for the quarter was almost double that of the previous quarter! If this performance is carried through into the half-year announcement, I think the share price will head higher. Potential Lloyds share price rally, but risks remain The final reason that I’m bullish at the moment relates to the broader outlook for the UK economy. Lloyds is a very British institution and it often correlates to the overall state of the economy. When the UK is booming, the Lloyds share price is likely to be rising.  Over the past few months, it’s been clear that the UK economy is starting to get out of the woods. The unemployment rate is back below 5% and inflation is ticking above 2%. If GDP growth and consumer confidence improve over the summer, this could be a natural boost for Lloyds shares. There are some risks to my view. As a large mortgage lender, I am sceptical as to how long the property boom can continue. The end of the stamp duty holiday could negatively impact revenue for the bank from this arm. Another risk is increased competition from specialist firms. For example, the recent IPO of foreign exchange firm Wise is concerning for this revenue stream for Lloyds. Even with these risks, I’m still bullish overall on Lloyds and would consider buying shares. The post 3 reasons why I’m bullish on the Lloyds share price now appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Is Wise a FinTech share to buy now? What’s going on with the Wise share price? Are Wise shares a good investment following its direct listing? My best shares to buy now! Don’t be unwise! Could this dividend news boost Lloyds’ share price? jonathansmith1 has no position in any share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  32. Are Wise shares a good investment following its direct listing? (14/07/2021 - The Motley Fool UK)
    Wise (LSE: WISE) shares made their debut last week on the London stock market through a direct listing rather than the traditional Initial Public Offering (IPO). The company is one of the UK’s largest fintech firms and it opted out of raising new capital via an IPO. According to its website, Wise thinks that this was a “fairer, cheaper and more transparent way” for it to broaden its ownership. So would I buy Wise shares now? Well, the stock has been listed only a week and I tend to adopt a wait-and-see approach. This is to observe how the shares start trading and are received by the market. I’m going to stick with the strategy and place it on my watch list for now. An overview Wise was founded two Estonian friends, Taavet Hinrikus and Kristo Käärmann, in 2011. The firm was born out of frustration as they faced high fees when sending money between the UK and Estonia. The duo founded a company that allows customers to make cross-border money transfers at a cheaper rate and faster than the UK’s leading high-street banks could. The firm was previously known as TransferWise, but it rebranded to Wise in February 2021. It has grown at a staggering rate over the past decade. It claims it now helps over 10 million people and businesses move over £5bn across borders every month, saving customers more than £1bn in fees each year. Bull case What I really like about Wise is that it has come to market as a profitable company. That’s unlike some newly-listed firms that I’ve covered, such as Deliveroo, which have been loss-making. It may seem obvious that a firm should be making profits, but the recent trend has been that unprofitable companies like to go public. And this profitability isn’t a one-time-only thing. According to its lengthy prospectus, it has been making a profit since 2019. So that’s three financial years of profitability so far. It’s the only information in the document I’ve to go by yet and the profit margins aren’t huge, but it’s a start and encouraging to see from a newly-listed public firm. I think that Wise has an easy-to-use service and has built a strong reputation in its industry. Customers like transparency and this is one of the values that the company has been built on. Plus it has expanded it products and services, which should help fuel growth in the long term. Bear case Competition is fierce in the world of cross-border payments though. Wise has to contend with the likes of MoneyGram and Western Union, as well as PayPal. If it’s only going to compete on price then profitability could be hurt in the long term. As I said, profit margins are already small. So Wise needs to demonstrate that it’s offering value to customers if it’s going to survive the competition. Especially now that it’s a public company. Is it a good investment? I like what the company is doing and that it’s already profitable. But I don’t think Wise shares are a good investment just yet. I think there’s a lot of euphoria surrounding the stock. I normally wait for this to settle down and see what results it releases. But it’s definitely on my list to track closely. The post Are Wise shares a good investment following its direct listing? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading My best shares to buy now! Don’t be unwise! The Wise share price is on the rise. Should I buy now? Are shares in fintech firm Wise a buy? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended PayPal Holdings. The Motley Fool UK has recommended the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  33. Is there any reason not to dump a ton into MX? Because of buyout. (14/05/2021 - Reddit Stocks)
    For those that don’t know: https://www.google.com/amp/s/www.marketwatch.com/amp/story/magnachip-stock-soars-toward-a-record-after-14-billion-deal-to-be-acquired-by-wise-road-capital-2021-03-26 MX is being bought out and going private. Shareholders will receive 29/share. Current price is 22.xx. The board approved the buyout in march. All that is left is a shareholder vote and standard regulatory approvals. Supposed to occur in the latter half of 2021. I recently put 5k (35% of portfolio) into this with an average cost of 23.76. And now it’s dipped even lower to where returns are approaching 30% at the current price. I’m still fairly new so I’ve not seen this happen yet with stocks I’m I hold. How unlikely is this not to go through? I can’t imagine shareholders would vote against free money. Is it common such buyout is not approved by the SEC? It seems like this is a pretty good investment now.   submitted by   /u/HotMessMan [link]   [comments]
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  34. RailTel makes muted stock market listing; gains 11% over IPO price to trade at Rs 104.6 apiece (26/02/2021 - Financial Express)
    RailTel stocks were trading at a price of Rs 104.6 per share, up 11.28% from its issue price of Rs 93-94 per share.
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  35. Mindtree share price jumps 9% post quarterly results; analysts remain mixed on outlook (14/07/2021 - Financial Express)
    Mindtree’s share price soared 9.3% on Wednesday to trade at Rs 2,728 per share as investors reacted to the more than 61.2%  on-year jump in net profit of the IT company.
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  36. Nifty set to hit 16,100 in coming weeks, Bank Nifty may head to 36,200; Maruti, Axis Bank, Tata Steel in focus (12/07/2021 - Financial Express)
    The Nifty is approaching maturity of price/time wise correction, the shallow price correction along with prolonged time consolidation signifies strong base formation at 15500
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  37. Chng: Short Sales / Borrowed Stock (11/06/2021 - Reddit Stocks)
    Can someone explain to me how dividends get paid to stock that has been loaned / borrowed? Does the lender forfeit the dividend? What about so-called “synthetic”stocks, where borrowed stock has been sold to a legitimate buyer, and loaned out a second time and sold to another legitimate buyer. Surely the legitimate buyers are entitled to the dividend, but the company is only going to pay one dividend for each real share. Also, what happens if a company is sold and the short sellers can’t buy the stock to close their open positions, the purchaser is only going to pay for real shares, not the shares sold short or the “synthetic” shares, but the people who bought those shares are owed the proceeds of the sale, and the lenders are going to want their proceeds too.   submitted by   /u/Significant-Elk-4625 [link]   [comments]
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  38. My best shares to buy now! Don’t be unwise! (13/07/2021 - The Motley Fool UK)
    A blockbuster stock market debut may be great for Wise (LSE:WISE), but it’s not so good for investors. And the best shares to buy now, in my opinion, are a world away from the £9bn fintech. Asset managers like Scottish Mortgage Investment Trust, with enough cash and clout to get in early, have made a fortune. Their method? Buy Wise and flip the shares to the likes of small private investors like me. CityWire tells how the tech fund doubled its money when Wise arrived on London’s stock market. According to the FTSE 100 trust’s annual results to 31 March 2021, they made an absolutely killing. Wise made up 1% its £9.2bn NAV. Since then it has doubled to £18.1bn. Best shares to buy now An old boss of mine — now the CEO of an AIM-listed company — gave me some great advice back in the day. “If everyone else is in the trade,” he mused, “what new information do I have that is going to make me money? What edge do I have?” Can I snap up the best shares to buy now at a much lower price than everyone else? If the answer is no? Don’t invest. I couldn’t buy Wise shares a year ago when Scottish Mortgage did. At the time, Bailie Gifford’s flagship fund managed to buy Wise when it sold $319m of shares. Again — these were only available privately, to the rich and powerful.  Instead of focusing on the shares that everyone else is excited about, I buy mine at a discount. Then I simply wait for the rest of the market to realise they missed a bargain.  Building back better UK building companies are about to have a stellar year. That’s just one of the reasons why shares in Alumasc (LSE:ALU) are at the top of my list of best shares to buy now. I’ve covered Alumasc once before, in March 2021. I said this £100m micro-cap stock was a great buy for value and growth. In the months since, the building products supplier has grown from 170p to 275p, a tidy 61% profit. But there’s more to come, I think. A May trading update pointed out: “Following a record first half year performance that saw double digit revenue growth and also a double digit return on sales, it is pleasing to report that this momentum has continued into Alumasc’s last four months.” Upside/downside All of Alumasc’s divisions are reporting strong performance. That increased market share, along with “encouraging” export sales to grow overseas business makes the shares a compelling buy for me. Market conditions could fall off with the end of the stamp duty holiday. And cutting costs by £2.4m has improved margins, but these could fall if increased raw material and shipping costs become the norm. But anyone who has tried to get a builder to do any work will know that supplies are in massive demand.  If Scottish Mortgage had £1,800 to invest, rather than £18bn, I believe this is what they might do too. The less money we have as investors, the smarter we have to be. Because we have to beat the giants at their own stock-picking game. The post My best shares to buy now! Don’t be unwise! appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Wise share price is on the rise. Should I buy now? Are shares in fintech firm Wise a buy? Tom Rodgers has no position in the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  39. Covered Call - When does it actually exercise (19/02/2021 - Reddit Stocks)
    I sold a 2.5c 2/19 which ended the day with the stock price at $2.62. If the buyer chooses to purchase my shares, when does the transaction actually take place? When will I see the 100 shares disappear from my account and the money be deposited?   submitted by   /u/Shmua123 [link]   [comments]
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  40. How does M&A impact price? (09/07/2021 - Reddit Stocks)
    I want to go full on S and P Global (SPGI). However, SPGI and IHS Markit (INFO) are going under merger and expect to close Q4 this year. Would it be a wise decision to buy either of these companies? If so, which one?   submitted by   /u/ab4651 [link]   [comments]
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  41. Mat Ishbia called out in Feb Q4 earnings that he wanted to payback shareholders. May Q1 he delivered on the regular div and buyback. (13/05/2021 - Reddit Stocks)
    I have shared my thoughts on UWMC in past. The company announced Q1 earnings and while they look like they are below expectations it was explained by the CEO that because of the speed of their execution, their results are reflective of the higher rate environment already while competitors are lagged. During the Q4 2020 earnings call he had mused about options that would be on the stable, special dividend, buyback or raising the dividend. Feb Q4 Earnings Quote: The Board did approve a dividend, a $0.10 quarterly dividend to be paid on April 6 for all shareholders of record as of March 10. We expect this to be a regular quarterly dividend. And so you guys know how we're thinking about this. Our balance sheet is a fortress. And our current liquidity position is very strong, and we have access to the capital markets as well. The way we think about this going forward is we're producing a lot of cash. We're going to maybe be more profitable than some expected and be very successful in 2021. And if we have excess cash that I and the Board deem is too much, we will be delivering that back. And whether we have to change the dividend in the future, as in raise it or a special dividend, those things are definitely on the table or even buying back shares. May Q1 Earnings Quote: As you saw in our release, the Board approved our quarterly dividend of $0.10 to consistently deliver money back to our shareholders for a record date on June 10 and payable July 6. The Board and I always explored increasing the dividend actually or looking at a special dividend or a share buyback program. As you guys have seen, we concluded share buyback was the best use of our capital to reward shareholders. We announced the authorization of $300 million share buyback over the next 24 months. And quite honestly, with where the share price is, it's a great opportunity for us to continue to buy that. Then in answering a question from an analyst Doug Harter - Great. And then just in terms of capital return, you mentioned sort of the float. I guess just how are you thinking about kind of how much of the float you'd be willing to take out and pacing around share repurchase? Mat Ishbia - Yes, Doug. So I'm learning these rules as we go because at this stock price, I'm a buyer, right? And so we'll buy shares as soon as tomorrow, I think, as our legal teams say we're allowed to do. And so I don't know how many I can buy and what I can do, but I'm very conscientious of the float. If the float was not a concern, we'd be more aggressive. However, we have authorization from the Board to buy up to $300 million, and I'm going to take advantage of that opportunity while being conscientious of our partners in the float. TL/DR: UWMC and their board have been looking at ways to give back to shareholders. Instead of a short term cash out, they decided on a buyback that they are planning to exercise immediately on so that they can retire shares while the SP is low. They will NOT buy so much that it will ruin their float % for Russell. The CEO is aggressive, has approval to spend $300 and he's going to take FULL advantage. At current stock price levels the CEO has stated he is a BUYER! They are not waiting, it's being deployed now. Disclosure I am still in long position with 23K shares of UWMC   submitted by   /u/workinguntil65oridie [link]   [comments]
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  42. Market LIVE: Sensex, Nifty eye flat start; MTAR Tech IPO opens, RJio biggest buyer in India airwave auction (03/03/2021 - Financial Express)
    Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty were staring at a flat opening on Wednesday, as suggested by trends on SGX Nifty.
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  43. Wont let me sell a stock on TD Ameritrade. (15/05/2021 - Reddit Stocks)
    Just like the title says. I bought one share of BRZU etf, held it for a day, and then went to sell it for the ask price, but it doesn’t go through. Am I supposed to sell it at the bid price? It’s $113 but the bid price is $107. How long does it take to sell a share?   submitted by   /u/mikeskeezer31 [link]   [comments]
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  44. Zomato share price hits new all-time high, doubles from IPO price; UBS says ‘buy’, sees 12% rally (27/07/2021 - Financial Express)
    Zomato share price jumped nearly 5 per cent today, rising to a fresh record high of Rs 147.80 apiece intraday on NSE
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  45. Barbeque-Nation share price hits 20% upper circuit for 3rd straight day, up 68% from IPO price (09/04/2021 - Financial Express)
    Rakesh Jhunjhunwala-backed Barbeque-Nation Hospitality share price surged 20 per cent again on Friday to Rs 839 apiece.
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  46. IRCTC share price hits all-time high, surges three times from IPO price; stock may rally up to 40% (04/03/2021 - Financial Express)
    IRCTC share price hit a new record high of Rs 2,014 apiece, rising as much as 7 per cent in the intraday on BSE.
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  47. Why is a share price on the market higher than value of the company portion it represents? (03/04/2021 - Reddit Stocks)
    In a very basic sense, stock is purchased for the ownership of a company. It’s price grows on the market following supply and demand, and as such the price of a single share may rise as the value of a company rises and more people want to buy that share than those willing to sell. But why is the portion of a company granted by that share worth less than what it’s paid for? Suppose a company has a book value of $180M and has 100M shares outstanding on the market for $5. Its market cap, which encompasses its intangibles and growth potential is nearly 3x as much as its book value, signaling the market believes the company is and will continue doing well (in theory). Now since a share indicates owning a portion of the company, a single share in this company is worth 0.00000001%, or if the company liquidated its assets today, $1.8; so why would somebody want to buy a share of a company for more than what that share is worth? Is the delta between its intrinsic value and the market value the “mark up” for the current share holder to earn for giving their position away? This brings up the question, if you exclude capital appreciation from the equation, if the share price on the market is more than the intrinsic value it losses at purchase, the hope would be that over time the value of the company grows such that the shares intrinsic value eventually exceeds what you paid for it, right?   submitted by   /u/mahtats [link]   [comments]
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  48. Coronavirus state-wise cases today: From Maharashtra, Kerala to Punjab – full case count here (11/03/2021 - Financial Express)
    The share of the Covid-19 cases reported in Maharashtra on Wednesday alone is about 60 percent of the country's tally.
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  49. RIL share price falls for 2nd straight day after Q4 results; charts show it may fall more (04/05/2021 - Financial Express)
    RIL share price fell as much as 1.5 per cent to Rs 1,930 apiece on BSE in intraday deals on Tuesday.
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