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Author: Gule Rukhsar

  • Crypto Market Update — NFTs, All Time High Coins, and Ruling Fear

    Crypto Market Update — NFTs, All Time High Coins, and Ruling Fear

    The broader market is consumed by fear and the threat of a possible recession along with crypto volatility has investors grappling. In the face of multiple bad news — read another rate hike, deepening US-China tension, and the biggest crypto wallets hack — crypto market started the new month on a low note and continued crashing down. However, Nancy Pelosi’s (U.S. House of Representatives Speaker) visit to Taiwan created some buzz. Ultimately, investors showed some optimism with a more risk-on approach. But caution still prevails as the larger market situation hasn’t improved at all.

    Well, whatever the market situation is, there’s always some kind of development taking place. Continue reading this article to get a better picture of what’s going on in the market — ups and down along with cool takeaways.

    Crypto Market – Highlights of the Week

    • Bitcoin (BTC) is currently trading at a price of $22,872.54 with a loss of 1.92% in the past 24 hours after a short bear market rally. This accumulates to the past week’s decline of 0.10%.
    • Ethereum (ETH) on the other hand has plunged by 0.19% in the past 24 hours and is now priced at $1,622.88. The past week’s gains are at 0.52% for the queen. Given the problems with its upcoming merge and key derivatives, the $1,600 ETH support seems to lack strength.
    • Victorian police in Australia under the new bill will be entitled to greater power for seizing crypto assets from criminals. The new bill is also expected to have crypto exchanges hand over necessary information for assisting police in criminal investigations.
    • The much-expected Digital Commodities Consumer Protection Act bill was finally passed on Wednesday. The new bill includes BTC and ETH and confirms the growing consensus for CFTC regulation.
    • This week, the fourth largest hack in history took place draining nearly $200 million worth of crypto assets. The Nomad token bridge hack was reportedly due to a security vulnerability that Nomad ignored.
    • The recent hack of Solana-based wallets is deemed to be due to the Web3 wallet provider Slope. An investigation of the Solana ecosystem mayhem led to data pointing at Slope being responsible for the exploit.
    • Jeff Garzik, a Bitcoin pioneer announced the launch of NextCypher Productions, a Web3 production company. This company will tell stories from the intersection of Web3 and science fiction.

    Ruling Sentiment & Fear

    The global crypto market capitalization has continued plunging down with deteriorating economical and geopolitical conditions. Currently standing at $1.07 trillion with an increase of 1.63% in the past 24 hours, the global crypto market cap saw a brief fall to $1.00 trillion on Wednesday night. Atrocious hacking events in the market combined with the wider disarray have been responsible for fear in the market.

    Furthermore, the crypto fear & greed index has been quavering between extreme fear and fear only. The crypto fear & greed index combines various indicators of the overall crypto market sentiment into a single number — that is used to gauge the sentiment of the market. The smaller the number, the higher the fear, and vice versa.

    At the moment, the index stands at 30 with continued fear and a further decrease from yesterday’s value of 34. However, the fear sentiment is still better than last month’s prevalent extreme fear — with the figure reaching 19.

    Top Movers in the past 24 Hours

    Even at times when the market is bearish and the sentiment is down, there are still outliers making some upward streaks. Hence, even while the top cryptos like BTC and ETH are in the red, there are still some gainers that have defied the market sentiment. Let’s have a look at the top outliers in the past 24 hours:

    Buddy DAO (BDY)

    Aiming to be the first guarantor-based DeFi lending protocol, BDY is part of the mission to build a Decentral bank — to help anyone get a loan within seconds. Currently trading at a price of $0.044, it has shot up by a huge 236.59% in the past 24 hours. Its 24-hour trading volume also saw a nice uptick of nearly 185%.

    ZEON

    Claiming to be a decentralized platform for financial services, ZEON Network strives to offer instant access to cash without selling. Its wallet is an ETH and BTC wallet that is compatible with multiple software. Presently, ZEON is trading at $0.0115 and has added 144.58% in the past 24 hours.

    Saudi Shiba Inu (SAUDISHIB)

    As DeFi token on the Binance Smart Chain, this decentralized token has an NFT Platform as well as NFT collections to its name. It also has an auto-staking feature that serves well for its holders. In the past 24 hours, SAUDISHIB has gained a nice 132.59%, and its trading at a price of $0.00000000206 right now.

    ClinTex CTi (CTI)

    Another outlier in the past 24 hours has been CTI with gains of over 114.53%. The token is currently priced at $0.01393 and ranks 1279 on CoinMarketCap. Clinical Trails Intelligence (CTi) is a transformative blockchain platform designed for clinical trials — applying predictive analytics, machine learning, smart contracts, and blockchain tech.

    OnX Finance (ONX)

    And the final top gainer in our list is OnX Finance (ONX) — which surged up by 97.40% in the past 24 hours. The latest price of the token is $0.121. OnX is a DeFi Hub focused on building platforms and contracts — for swapping, lending, borrowing, yield farming, etc. It specializes in collateralized token products.

    All-Time High Coins

    While the market sentiment is anything but good, and the situation even further from better, some coins are still breaking high. Amidst the raging fear, there are a number of coins going for their all-time highs. Here are some of our top picks that just might end up presenting high-yield opportunities:

    Beau Cat (BUC) is a blockchain-based beauty platform that achieved its all-time high today at $120.02. The token is still hovering around the ATH with a gain of 0.44% in the past 24 hours. The platform provides information on beauty and related products based on user participation.

    Hop Protocol (HOP) is another token that hit its all-time high today. The ATH value of the HOP was $0.1935, however, it is currently down by 2.26% from its ATH at $1.1884. The 24-hour change in its value is positive 4.36%. Hop is a multichain bridge that connects Ethereum to Layer-2 networks — through which users can send tokens directly across networks in an instant.

    Hello Art (HTT), a metaverse for artists and fans also synced with the real world, also established a new all-time high today. It is currently down by 10.36% from its ATH of $0.03214, trading at $0.02888. Hello Art (HTT) makes sure to provide an experience that goes beyond the current limits of art.

    CyberDragon Gold (GOLD) recorded its all-time high a day ago on August 3, at $0.02796. However, its current price of $0.02726 has fallen down by 3.17% from the ATH. CyberDragon is a play-to-earn game based on Binance Smart Chain — where CyberDragon Golds are earned.

    Last but not the least, XX Network (XX) also registered a new ATH in the past 24 hours shortly after it plunged to a new all-time low. Currently trading at $0.3686, XX is down by 5.50% from its ATH of $0.3801. XX network brings together a native scalable, quantum-ready layer 1 blockchain with the most private communications network out there. Its coins are traded on the MEXC exchange.

    NFTs: Developments

    With the boom of cryptocurrency in recent years, non-fungible tokens (NFTs) also gained traction — due to their irrevocable ownership nature. Numerous developments are continuously taking place in these cryptographic blockchain-based tokens. Let’s have a look at the trending developments in the NFTs market in the past week:

    • LinkedIn founder Reid Hoffman launched a series of Solana-based NFT collections named “Untranslatable Words”. Created via DALL-E 2 AI software, the NFTs are being sold on Magic Eden — the largest Solana NFT marketplace.
    • To celebrate the 25th game anniversary of Final Fantasy VII, Square Enix has partnered with Enjin (software platform) to launch its first NFT project. Inspired by the video game, the NFT collection will be launched in 2023.
    • K-pop agency Fantagio and digital asset platform Crypto.com has entered into a joint NFT venture. The collaboration to pursue NFT projects was announced in an MOU on Wednesday.
    • TrufflezNFT — a combined project of cannabis company Trufflez and web3 enabler dropLabs — is to launch the first-ever NFT membership cannabis consumption lounge in New York.

    NFTs to Watch

    While the crypto market has become extremely volatile and prices are taking a hit from all directions, the NFT segment still remains the most profitable one. Although NFT collections have also seen a decrease in price due to the ongoing frenzy, it is only another opportunity to capitalize on. Here are some of the top NFT collections to look into:

    CryptoPunks

    Launched in 2017, CryptoPunks is one of the originals and the very firsts, and rightly so. The fixed set of 10,000 items regained some traction this week thanks to Tiffany’s launch. The iconic jewelry brand came out with an exclusive offer of handcrafted custom CryptoPunk pendants for 30 ETH ($50,000) each. The NFT collection saw a huge uplift of over 2,200% in its trading volume following the launch announcement. The price per item of the collection has surged by 537.25% in the past 24 hours.

    Rare Apepe YC

    Rare Apepe YC is one of a kind collection. It is essentially a derivative of two of the top NFT collections in the market – Bored Apes YC and Rare Pepes – hence why it should be on the list of every crypto investor. The collection consists of 10k items, with the price having climbed up by more than 70% during the past twenty-four hours.

    Mirage Gallery Curated

    Mirage Gallery Curated has completely exploded during the day with a whopping gain of 400,000%. This collection of 2.8k unique items has garnered staggering attention amongst NFT enthusiasts, making it one of our top collections for this week. Mirage Gallery’s popularity stems from its aim to take art beyond humanistic abilities through AI.

    Otherdeed for Otherside

    Otherdeed for Otherside is another one of the top collections for this week. This NFT is an essential part of the metaverse of Otherside, making its value pegged to the Otherside. Through the NFT, users can acquire land in Otherside. The collection has 100k items and should be added to your list if you plan on delving into the metaverse of the Otherside.

    Mutant Ape Yacht Club

    Mutant Ape Yacht Club is of course one of the originals and rightfully deserves the place on our weekly list. The collection has had a daily gain of 45% in its value. The current hype may be linked to the recent announcement of Gucci accepting Bored Ape Yacht Club’s cryptocurrency.

  • Latest ICOs/IDOs & Airdrops in the Crypto Market to Delve into

    Latest ICOs/IDOs & Airdrops in the Crypto Market to Delve into

    Investment is all about returns and to ensure a maximum return in the crypto market, ICOs are one of the best channels. But with high return also comes higher risk, hence, it is crucial to tread with care in this arena. Here are some of the active ICOs in the market:

    ICOs/IDOs to Watch Out for

    Aura Network, a scalable, agile, and effortless Layer-1 blockchain, commenced token sale on the 9th of June. The IDO happening on Impossible Finance is set to end today, July 27. So far, it has raised $2,500,000 while the fundraising goal was $750,000.

    inSHAPE is a lifestyle app on the BSC ecosystem which rewards your workouts. This Ultimate Move to Earn app commenced token sale on July 26 which will end on August 7. Its IDO will happen on TrustFi on August 3. It has accumulated $120,000 so far while the fundraising goal is 45,000,000 tokens.

    Metacloud is a blockchain-based VR Metaverse that held its ICO on April 5 and the sale is set to end in 13 days. With its 15% tokens available for sale, it has managed to receive $780,000 so far.  

    One should always invest time before investing money — better research and analyze projects before investing in them. Here are some upcoming projects to watch out for: 

    Wombat, the Web 3 gaming platform will commence token sale today, July 27. The IDO will take place on Polkastarter but the closing date has not been announced yet. Wombat has managed to raise $8,500,000 until now.

    BovineVerse is another Web 3.0 gaming platform but it’s not just that, it is a genesis Fi+ metaverse platform. Its IDO will happen on August 11 on Poolz but there is no ending date as of yet. BioneVerse expects to raise $175,000.  

    Here’s a list of some ICOs that have ended recently:

    Fusotao is a verification protocol for an orderbook-based matching system. Fusotao’s IDO ended on 26th. The project surpassed its fundraising goal of $200,000 with the total raised funds being $2,600,000.

    Amazy, a web3 app platform, held their IGO on July 13 on Seedify. The token sales ended on July 19 and raised $2,600,000 against their goal of $550,00.

    Cantina Royale is a tactical arcade shooter which uses the Metaverse Experience Framework. Its token sale ended on July 19 which collected $6,000,000 in funds.

    Land of Conquest is an MMOSLG blockchain in the ruins of a post-apocalyptic wasteland. It raised 100% of its target funds in the IGO that ended on July 19.

    Airdrops not to miss out on

    Here are some of the hottest airdrops in the market for you to get your hands on:

    PunkPanda Giveaway 

    •         Go to PunkPanda giveaway page.
    •         Enter your details and sign up
    •         Earn entries through simple tasks
    •         20 random participants will end up winning up to 6,000 PPM

     OWNR Wallet Airdrop 

    •         Head to OWNR Wallet giveaway page
    •         Sign up and enter your information
    •         Earn entries through simple tasks and referrals
    •         10 participants will win up to 10 USDT each
    •         Top 3 referrers will win 100 USDT each
    •         Winners declaration will be on August 4, 2022

     LI.FI Airdrop 

    •         Go to LI.FI bridge
    •         Connect your wallet & select source chain as well as coin
    •         Complete the swap by selecting the destination chain
    •         The bridge would possibly make you eligible for an airdrop if LI.FI launches its own coin
    •         Using the bridge, you might also become eligible for Arbitum speculative retroactive airdrop

     Overline Airdrop 

    •         Head to Overline airdrop page
    •         Signup by submitting your details
    •         Verify your email
    •         Get a free ōLand NFT
    •         Earn more ōLand NFTs through referrals

     D/Bond’s Airdrop 

    •         Go to D/Bond’s airdrop page
    •         Sign up by submitting your information
    •         Earn up to 35 DBIT through social media tasks
    •         Extra tasks mean extra DBit tokens
    •         50 users will also get to win D/NFTs
  • A Snap of the Top Up & Down Movers of Past Week in the Crypto World

    A Snap of the Top Up & Down Movers of Past Week in the Crypto World

    The crypto world is bleeding red — investors are in a frenzy — the Kind and Queen are both in a downtrend. But even at times when fear is looming overhead and investors are treading low and slow, there are still coins/tokens making some good gains. Here are the top five gainers of the past seven days to watch out for:

    BarnBridge (BOND)

    Launched in 2020, BarnBridge (BOND) is a protocol for tokenizing risks. This altcoin from the DeFi sector has outperformed the market in the past seven days, as it gears up for its next phase, the anticipated release of version two (V2). Trading at $19.44 at the present, BarnBridge (BOND) has declined by 5.28% in the past 24 hours. This comes after a gain of 109.27% in the past seven days.

    Neoteric (NTRC)

    A soft fork of the RFI and Liquid on ERC-20, Neoteric (NTRC) has the combination token-mechanics of RFI and LIQ. The frictionless Yield Generation (Hold and Earn) and Perpetual liquidity meta-market-making mechanism of which grows liquidity with the execution of trades. In the past seven days, NTRC gained 134.88% while it has added 70.43% in the past 24 hours. Neoteric (NTRC) is currently trading at $0.004666.

    Saudi Shiba Inu (SAUDISHIB)

    A decentralized Finance (DeFi) token on the Binance Smart Chain (BSC), Saudi Shib Inu (SAUDISHIB) has an NFT platform and owns NFT collections. Moreover, the auto staking feature of the token imparts benefits to the holders from the reflections on every transaction. Currently, Saudi Shib Inu (SAUDISHIB) is hovering at $0.000000001063 with a decline of 42.13% in the past 24 hours. The token went up by 47.84% in the past seven days.

    Grove (GVR)

    Built for the future of our planet, Grove (GVR) is a decentralized, secure green token. Grove (GVR) promises a healthier and wealthier future in an environmentally conscious way. In the past seven days, Grove (GVR) shot up by 17.98%. The token is present in the red with a decline of 27.86% at a price of $0.00000000143.

    SpaceMine (MINE)

    SpaceMine (MINE) makes a solar planet metaverse where users mine minerals on planets. The minerals are then swapped with its tokens (MINE), which in turn are cashed in listed exchanges. SpaceMine (MINE) has continued trading in the green with seven-day gains at 140.39% and the past 24-hours gain at 6.18%. Currently, the token is trading at a price of $0.4106. Before this, the token managed to amass 12.12%% in the past seven days.

    Given the market situation and the wider bearish sentiment, there is no shortage of losers in the crypto world. Let’s have a look at the top five losers in the past seven days:

    Arweave (AR)

    Arweave is a decentralized storage network that hosts “the permaweb” — a decentralized web that has numerous community-driven applications and platforms. Arweave is focused on managing world-archived data to ensure zero tampering. Arweave (AR) spent the past seven days in the red with losses of over 16.83%. The token has added 1.25% in the past 24 hours at the current price of $12.47.

    Solana (SOL)

    Providing DeFi solutions, Solana (SOL) banks on blockchain technology’s permissionless nature. This highly functional open-source project has an innovative hybrid consensus model. Many experts anticipate the token to go big in the upcoming years despite the current bearishness. Solana (SOL) suffered quite a bit in the past seven days as it shed over 16.18%. The token is currently trading at $36.77, adding 2.47% in the past 24 hours.

    Aave (AAVE)

    Aave (AAVE), a decentralized finance protocol, allows users to lend and borrow cryptocurrencies. The token had been making some moves as DeFi recoveries gave a flicker of hope to crypto. But alas, the uptick could only last so long as the token then succumbed to corrections. AAve (AAVE) hence lost a value of 14.91% in the past seven days and is now trading at $82.22. This suggests an uptrend of 1.27% in the past 24 hours.

    Quant (QNT)

    Launched in June 2018, Quant (QNT) is the first project that solved the interoperability problem. It did so by creating the first blockchain operating system. With the aim of bridging the gap between different blockchains, Quant (QNT) is built as an operating system distributed ledger technology — and Overledger Network.  In the past seven days, Quant (QNT) has declined by 9.57%. The token is now trading at $95.02 with a gain of 14.48% in the past 24 hours.

    TerraClassicUSD (USTC)

    A decentralized, algorithmic stablecoin of the Terra blockchain, TerraUSD (USTC) is a scalable, yield-bearing coin. Value-pegged to the U.S. Dollar, TerraUSD (USTC) promises a higher level of scalability, interest rate accuracy as well as interchain usage. Having plunged by 9.93% in the past seven days, USTC is now trading at $0.03736. This marks an increase of 12.01% in the past 24 hours.

  • A Quick Peak into the Cryptocurrency Market & Highlights of the Week

    A Quick Peak into the Cryptocurrency Market & Highlights of the Week

    The global cryptocurrency market has not stopped treading in the red as economies around the world continue to suffer. With a further 75-basis-point hike by the Fed looming overhead, investors have dived deeper into their protective shells. Thus, the plunge in all cryptocurrency prices has pushed the global crypto market cap to $965.97 billion. The global market cap registered a decline of 5.25% in the past 24 hours.

    However, despite the recent disruption, developments have continued as opportunities for growth in the market have upheld a flicker of hope. Let’s have a quick look at some of the top developments that occurred in the past week:

    Bitcoin (BTC) is currently trading at a price of $21.1K after losing 3.48% in the past 24 hours. The king of the market registered a loss of 4.21% in the past seven days. Moreover, despite a huge sell-off of 75% of its Bitcoin (BTC) totaling $963 million, Tesla still owns $222 million worth of digital assets.

    On the other hand, the queen of the market, Ethereum (ETH) is hovering around $1,425.14 with a drop of 6.33% in the past 24 hours. While Ethereum (ETH) has lost 7.17% in the past seven days, certain researchers are very optimistic regarding its upcoming transition to a proof-of-stake (PoS) system. They even see a chance for Ethereum to take over Bitcoin (BTC).

    In the broader market, investors have entered into a frenzy over the upcoming Fed meeting. The upcoming two-day Federal Reserve meeting is expected to see a 75-basis-point rate hike. This increase in the benchmark interest rate would be the largest hike in almost three decades. Hence, it is only plausible for the plunge in cryptocurrencies.

    Unhappy with Bloomberg Businessweek, Binance CEO CZ sues for defamation in Hong Kong. The case involves three defamatory statements that were published earlier in July.

    Coinbase Global Inc. is facing a U.S. probe regarding improper digital assets trading. The U.S. SEC’s scrutiny over the matter has increased since the uptick in the number of tokens offered by Coinbase.

    Barclays Plc is to buy a stake in Copper, a cryptocurrency company that claims to have Philip Hammond (former Chancellor) among its advisors.

    Titanium Blockchain Infrastructure Services Inc. (TBIS)’s CEO pleaded guilty to a $21 million cryptocurrency fraud scheme. The said scheme involved TBIS’s initial coin offering (ICO) that lured investors to purchase its coin “BARs”.

    To stronghold its foothold in the cutthroat global crypto market, DIFX has partnered with Crypto Oasis. DIFX, the blockchain-based cross-asset trading platform has joined hands with Crypto Oasis as an Ecosystem Partner.

    Klaytn Lending Application (KLAP) which is the first-ever DeFi protocol on Klaytn (KLAY) blockchain, is launching its native crypto token.

    In short, like always the crypto world if full of many ups and downs with the good and bad all combined making the market twist and turn.

  • VICI Properties Inc. (VICI): A REIT to Hedge Against Inflation with, Now Joins S&P 500

    Markets today are full of warning signs for investors as the world sinks deep into chaos ensued by numerous factors. Covid-19 pandemic played its part and threw the world into a dark phase, the light had just started peeing through, that new problems rose. Russia invaded Ukraine, which fueled the already toughening economic conditions. Inflation is soaring, interest rates even more so, China is still in lockdown mode and there’s another outbreak; the monkey pox. Supplies of oil, energy products, food, and manufactured goods are short and the supply chain is tangled. The wider geopolitical and economic situation had caused investors to spark a huge sell-off in the stock market. Equities are falling down as the threat of a recession continues to loom overhead.

    The investment environment such as the present calls out for defensive plays as risks become too high to deal with. In such a tough situation, the best hedge against inflation are stocks that pay regular and increasing dividends. As any other investment would bring just more risk but dividend-yielding ones would at least ensure some return. Thus, the first to come to mind is real estate investment trusts (REITs) which are long known for being the leaders among the market’s dividend payers. REITs have a predictable income and are required to distribute at least 90% of their profits to shareholders as dividends. Another major plus for owning REIT stock is that periods of higher inflation ensure continued profits as real estate and rents tend to go up. The higher rents and prices mean more money for REIT shareholders at times when most stocks are faltering. Among the most impressive REITS to own right now is a huge player on the Strip VICI Properties Inc. (VICI).

    VICI’s Position

    Following the acquisition of the Venetian and its associated Expo and Convention Center in 2021, VICI recently completed the $17.2 billion takeover of MGM Growth Properties. This has made the company the largest casino landlord on the Las Vegas Strip with the addition of 15 Las Vegas and regional casinos as well as roughly 41,000 hotel rooms and 1.2 million sqft. gaming space. Its portfolio now has names like Caesars Palace, Harrah’s, Excalibur, Luxor, Mandalay Bay, MGM Grand, Park MGM, and many others.

    Source: Company Investor Presentation

    The company has now made its place in the S&P 500 and will flaunt the position on Wednesday, June 8, when the market opens. This news is the reason behind the latest uptick of the stock which had it rise by 6.91% in the after-hours on June 3. Currently, the stock is trading at a price of $33.81 after it gained a further 7.71% in the premarket today, at the last check.

    Resilience & Dividend Growth

    Over the last few years, VICI has proved its resiliency despite the pandemic bringing economies to a halt. The company collected 100% of its rent throughout the pandemic due to its operating excellence and liquidity of tenants. 80% of the company’s rent roll is on the S&P 500. The company has also continued growth in its annualized dividend per share as seen in the company charts below:

    Source: Q1 Presentation

    If the company was able to collect all its rent during the pandemic and in a timely manner it only suggests that in any further downturn VICI will continue to do so as well.

    The latest dividend of $0.36 was paid in early April, at an annualized rate of $1.44 this results in a yield of 4.9%. This is 2.5x the average yield for S&P-listed companies.

    The Business Model

    The company has a triple net leasing model which is very efficient given the fact that VICI does not have to pay for any property upkeep expenses. In the triple net leasing model, tenants rent entire commercial buildings and pay for all of the property expenses. Moreover, its lease term is very long compared to its peers with an average term of 43.2 years while rents can be increased by an average of 1.8%.

    VICI’s Financial Overview

    In the first quarter of 2022, the company’s revenues grew by 11.3% YOY to $416.6 million. This surpassed the consensus estimate by 1.42%.

    Furthermore, the net income and FFO (funds from operations) were $240.4 million. Thus, the adjusted FFO per share of 44 cents was just in line with analysts’ expectations for the quarter.

    At the end of the March quarter, VICI had cash and cash equivalents of $568.7 million, $5.4 billion in debt, and $3.5 billion in liquidity. Availability under its Revolving Credit Facility and Delayed Draw Facility was $1.9 billion and $1.0 billion respectively.

    Future Outlook

    VICI now expects an adjusted FFO of $1,660.0-$1,690.0 million for the full year against the previous $1,317-$1,347 million. The adjusted FFO per share is now pegged at $1.89-$1.92 against $1.80-$1.84. Analysts, on the other hand, have their FFO per share placed at $1.96 for the full year.

    Conclusion

    Amid the current market situation, VICI comes to be a great dividend stock to hedge against inflation and uncertainty. Its strong financial profile, continued dividend growth, business expansion, and resilient business model are some of its strong points. Some notable names like Steve Cohen, Eduardo Abush, and George Soros, have recently bought a stake in the company as a long-term inflation hedge. The stock also holds an overweight (Buy) rating from JP Morgan with a bullish outlook and price target of $35. Thus, VICI is a good stock to have in one’s portfolio in the current uncertain times.

  • Keurig Dr Pepper Inc. (KDP) gets Consensus Buy Rating Amid Numerous Industry Headwinds

    In the beverages/soft drinks industry with numerous headwinds and certain tailwinds, one of the leaders, Keurig Dr. Pepper Inc. (KDP) has received a consensus buy rating. Three equities covering the company have recommended a hold and the other three are a buy for the stock with a one-year price objective of $39.67.

    Following the merger between Dr. Pepper Snapple and Keurig Green Mountain in 2018, KDP emerged as the first company to bring hot and cold beverages together at scale. With roughly 27,000 employees and annual revenue approaching $13 billion, the company is now set to join S&P 500 after the close of business on Friday, June 17, 2022. KDP will be replacing Under Armour Inc. in the Index. It also entered a long-term, exclusive sales agreement with Tractor Beverage Company in the foodservice channel. Tractor claims to be the first and only Certified Organic Non-GMO full line beverage solution for food service operators.

    Source: Corporate Finance Institute

    The hot and cold beverages company is continuously devising efficient marketing and product innovation strategies. Investments in boosting distribution platforms and e-commerce operations are expected to further increase household penetration and market share growth.

    At the time of writing, the stock was trading at a price of $37.41 per share in the premarket on June 6, 2022. The stock gained 7.10% in the session after a decline of 1.10% in the prior.

    KDP’s Financial Overview

    In its latest earnings report for the first quarter of 2022, KDP came out with net sales of $3.08 billion. Coming above the consensus estimate of $3.02 billion, sales grew by 6.1% YOY due to strong growth of its Packaged Beverages, Beverage Concentrates, and Latin America Beverages. However, as per the company’s expectations, the Coffee Systems did see some decline. The in-market performance in Liquid Refreshment Beverages was sturdy with retail dollar consumption growing 9.9%. And, KDP gained market share in 87% of its cold beverages portfolio. A large strength was seen in CSDs3, coconut water, seltzers, teas, apple juice, and fruit drinks.

    The bottom line advanced by 0.8% to $474 million in net income for Q1 2022 while EPS of 33 cents was flat YOY and in line with the consensus estimate. The supply chain hurdles and inflationary pressure had the adjusted operating income dip by 1.2%. This also caused a decline in adjusted gross margin by 280 basis points to 52.7% in the quarter.

    At the end of the quarter, the company has cash and cash equivalents of $592 million while long-term obligations were $11,584 million. Its solid free cash flow of $632 million helped it reduce its total financial obligations by $350 million in the quarter.

    Additionally, the company recently declared a regular quarterly cash dividend of $0.1875 per share on its common stock. The dividend will be paid to shareholders of record on July 1, on July 15, 2022.

    Beverages Industry Trends & Highlights

    The beverages/soft drinks industry has been having a tough time due to higher supply-chain costs like transportation and commodity costs, particularly steel and aluminum. These supply chain hurdles stem from the global supply chain constraints that rose during the pandemic and are now fueled by geopolitical instability along with China’s lockdowns. A further contributor is spiking inflation amid the vast economic turmoil that 2022 has been witnessing. Fuel prices are rising, and interest rates are even more so. Economies are falling as a recession looms overhead. Furthermore, the industry in concern is seeing huge spending on marketing and advertising as players are trying to capture a share in the recovering markets. Thus, the elevated operating and related costs are expected to continue straining margins in the near term.

    On the other hand, industry dynamics are changing and trends are evolving with increased at-home consumption. Health consciousness and personal well-being have been gaining popularity recently as consumers focus more on themselves. Thus, a change in consumption patterns has arisen with increased spending on food and beverages that have more natural and organic ingredients. Soft drinks with less to no preservatives, added colors, low sugar content, and no artificial flavors, and sweeteners are gaining popularity. Hence, this brings forth a vast opportunity for companies to capitalize on. Moreover, a further boost is seen in the industry with the increased at-home consumption trend. While the away-from-home channel is also gaining, the at-home consumption is rising even after the pandemic lockdowns are now long gone. The at-home consumption is expected to have a continued share in the overall sales of the industry.

    Conclusion

    While there are a number of headwinds to the industry growth, KDP has been gaining traction due to the increasing trend of in-home consumption. Additionally, the increased focus on personal wellbeing also helped it boost sales and capture further market share in the healthy options, as seen in the Q1 report. Thus, despite the headwinds, analysts are bullish on the stock and have suggested a consensus buy as the company is expected to capitalize on the changing trends n the industry.

  • Asana Inc. (ASAN)’s Investors are not Happy Despite its Upbeat Quarterly Results. Problems?

    Late on June 2, 2022, the work management platform developer, Asana Inc. (ASAN) posted earnings for the first quarter of fiscal 2023. The earnings were better than expected with nice growth across most metrics. On top of earnings and revenue surpassing estimates, customer growth kept a good momentum with over a 120% overall net retention rate. Despite this, investors were not happy with the company’s losses and investments. The company’s financials revealed that its main focus is customer growth rather than profitability. While customer growth indirectly does lead to an increase in revenue, the wider losses and no focus on them at times like these is something investors do not like.

    Broader Environment & ASAN

    The world is in chaos in 2022, and the stock market is even more so. Equities have had a harsh fall this year as the geopolitical and economic situation unfolds further. Russia-Ukraine conflict, China lockdowns, supply chain problems, soaring inflation, and the consequent interest rate hikes are taking a toll on economies as well as stock markets around the world. The U.S. inflation and interest rates have crossed 40-year levels and the economy is on the verge of a recession. The threat of a recession in the near term is becoming inevitable as the economic environment continues to deteriorate further.

    ASAN has joined in on the broader downfall of equities and suffered even more severely as the tech sell-off has been even worse. Down nearly 70% just this year, the stock’s battered price while suggests a nice entry point, the company’s loss and cash burn have investors worried. Hence, in spite of the best results, the stock has only continued to plunge further. Following the results, ASAN declined by 12.1% in premarket trading, 6.64% in regular, and another 0.89% in the pre-market. The stock was then trading at a price of $22.66 per share at the end of the day.

    ASAN’s Financial Situation

    For the first quarter of fiscal 2023, ASAN posted revenues of $120.6 million which grew by 57% YOY. The revenues not only surpassed the company’s own expectations of $115 million but also the consensus estimate by 4.83%. However, investors and analysts were not really excited about the growth as it came against the prior quarter’s 64%.

    The bottom line while coming above the expectations disappointed because the net loss was much wider than the comparable. Net loss for the quarter was $57.4 million against the year-ago $33.8 million. But the adjusted loss of 30 cents per share was narrower than the consensus estimate of 35 cents per share for the quarter. The main concern was management’s lack of attention to the net loss, as it is focused on customer growth. The company spent 80% of its revenue on sales and marketing in the quarter which resulted in a huge operating loss.

    However, the focus on customers did results in an increase in totally paying customers to 126,000 from 119,000 at the end of the previous quarter. Customers spending $5000 or more on annualized basis rose by 48% YOY to 16,689 with revenues from them surging by 73%. The Dollar-based net retention rate for these customers was over 130%. Moreover, customers spending $50,000 or above increased by 102% YOY. And their net retention rate was more than 145% in the quarter against 125% in the previous.

    Future Outlook

    For the Q2 fiscal 2023, the company said it is expecting a loss of 38-39 cents per share on revenues of $127.0-$128.0 million. The adjusted operating loss is pegged at $74-$72 million. The consensus estimate of loss per share for the quarter is at 37 cents, the midpoint of the company’s guidance.

    Given the upbeat results for the first quarter, ASAN upgraded its full-year revenue guidance to $536-$540 million. This represents a YOY increase of 42-43%. Analysts were expecting growth of around 40% for this year and the next year’s revenue growth is expected to be 33.9%.

    Therefore, another factor in the lesser interest of investors in ASAN is its growth deceleration as it grew revenues by 67% in the previous year. While the 30-40% YOY growth is still very good, it seems less in front of nearly 70%. But it is only plausible that the company would enter a more normalized growth rate and the wider economic situation only warrant a decline in the near term.

    Given the wide adoption of its services and above 120% retention rate, ASAN’s tools are vital for all sized businesses including enterprises. In fact, the platform is being adopted much faster by enterprises as the hybrid/remote works trend is here to stay. So, the long-term growth prospects are bullish.

    ASAN Stock Ratings

    Following the latest earnings, a number of analysts cut their price target of the company. Oppenheimer’s target price for ASAN is now $40 against $60, JMP $43 against $68, and Baird $31 against $65. Piper Sandler’s new price target for the stock is $35 while the earlier one was $55.

    Given the continued downfall of the stock, it seems most likely that a near-term bottom would occur. In such a case, the stock suggests being a speculative buy while the new price targets still have a certain upside to the current. However, Chase Coleman’s flagship fund Tiger Global disposed of his take in the company entirely in the first quarter after losing up to 44% in 2022. 8 other hedge funds also discarded the stock from their portfolios with ASAN now being held in 23 funds.

    Conclusion

    The tech sell-off amid the wider downfall of equities this year has ensured a steep decline of ASAN as well. The stock has continued its plunge down as the latest earnings report prompted investors to sell their shares. The quarterly earnings weren’t bad but the lack of focus on the wider losses of the company has investors worried. While they are selling shares of the company, and the stock is being downgraded, ASAN still has much potential in the long run. With hybrid and remote work the new norm, companies, and enterprises are adopting platforms like the company’s to better manage their business. Therefore, with a long-term bullish outlook, ASAN seems to be a speculative buy but for aggressive investors who can overlook the near-term haze.

  • Athersys Inc. (ATHX) Announces Restructuring and Lay-offs, What’s Going on with the company?

    The challenging year that 2022 has been so far, has caused equities a great hurt with the stock market nearing bear territory. The threat of a recession is imminent as Russia continues its war on Ukraine, inflation and interest rates cross 40-year highs, and the global supply chain is constrained. The macroeconomic situation has been deteriorating fast with geopolitical crises further fueling it. However, the wider downturn in the market has been much harsher on biotechnology companies still working on their pipeline to produce a viable drug/treatment. Many such biotechs have resorted to restructuring this year to help reserve some capital and find a means to survive. Some have come out victorious while others have closed doors for good after failing to find an alternative. Joining in on the restructuring spree is also the Cleveland-based biotechnology firm, Athersys Inc. (ATHX).

    Athersys Inc. (ATHX) Overview

    ATHX stock has been severely beaten down with over 86% decline in the past twelve months and 75% this year. The losses have been much more severe in the past month with a return of over 64%. Currently, the stock is trading at a price of just 22 cents a share as per the premarket on June 3, 2022.

    In addition to the gloomy market situation, factors contributing to its downfall include a failing study, concerns over another, dwindling cash reserves, and the latest restructuring and layoffs. This comes at a time when the company is already struggling with keeping its share price above $1.00 to be compliant with listing requirements.

    Restructuring Plan

    Source: Fotolia

    Following a number of concerning events in the company’s timeline, the regenerative medicine company has finally resorted to restructuring. In order to reduce costs and work on its lead programs, the company has decided to lay off up to 70% of its workforce. Expected to be completed by the end of this month, the lay-offs are only the first step in ATHX’s cost reduction plan. The company said yesterday that it is trying to become more attractive to financial and strategic partners.

    Moreover, at the end of May, president and Chief Operating Officer William (B.J.) Lehmann left the company which was also said to be a part of the restructuring. Additionally, Executive VP & Chief Scientific Officer Dr. John Harrington as well as Chief Financial Officer Ivor Macleod would be leaving the company by the end of this month.

    Following the huge layoffs and other steps to curb costs during the restructuring, ATHX would still be short on capital for the continuation of its trials. Thus, even after the restructuring, the company would require to raise additional funds to carry out its study programs.

    Disappointing Study Results

    The company’s lead platform product is MultiStem cell therapy which is an allogeneic stem cell product. ATHX has collaboration and license agreements with Healios K.K. for developing the MultiStem therapy for ischemic stroke, ARDS (acute respiratory distress syndrome), and other indications in Japan. In the last week of May, Healios shared the top-line data from the phase II/II TREASURE study of MutiStem in ischemic stroke patients in Japan. The study failed to achieve its primary endpoint which sent the shares of the company tumbling down by over 65% in just one session. The MultiStem therapy was in the most advanced stage of study in the ischemic stroke indication which disappointed big time.

    In the restructuring announcement, the company said it is planning a conference call regarding the data and interpretations with a highly regarded independent neurologist.

    Given the failure of the study, it is now more likely that the phase III MASTER-2 study will also disappoint. The MASTERS-2 study is evaluating MultiStem in the U.S., Europe, and Asia-Pacific, in the same patient group while the TREASURE study had relatively older patients. However, the company is confident that the results of the MASTER-2 study would be much better as age was a factor that played role in the TREASURE study.

    Financial Position

    The company’s latest quarterly results reported a net loss of $22.2 million with an increase in R&D expenses and a decrease in G&A expenses. Revenues for the quarter came at $2.9 million.

    Net cash used in operating activities increased to $20.2 million while cash reserves at the end of the quarter were just $21.8 million.

    Conclusion

    Before the company shared the disappointing trial results, ATHX had been getting upgrades as approval for MultiStem in Japan was expected to help the company tap into additional non-dilutive financial options. However, disappointing big time on the Japan study, shares were downgraded to Underperform from Neutral by Bank of America.

    While the company did say that it will continue the partnership with Healios and work on developing MultiStem therapy, there are now many concerns regarding it. Even after the restructuring, the company would still need more capital to continue the R&D programs. Thus, at the present, things are looking very bleak for the company. Only time will tell if the company will share the fate of those who shut doors for good or emerge victorious.

  • What’s Kohl’s Corp. (KSS)’s Status Amid Takeover Bids & Declining Earnings?

    2022 has so far brought about a huge downfall of equities as the world suffers blows from the geopolitical and economic crises. The Russian invasion of Ukraine, China’s lockdowns, global supply chain disruptions, soaring inflation, and rising interest rate are taking a toll on the economies as well as stock markets. Despite the rising instability, Kohl’s Corp. (KSS) stock had a good time in early 2022. Reports of multiple suitors being interested in buying the company at a substantial premium had the stock soaring.

    However, lately, things have taken a gloomy turn. The spiking inflation and rising interest rates have taken a toll on the company’s sales and profitability. This has not only plunged the stock into new lows but also to the loss of interest of some bidders in the company. What’s more that the remaining bidders have lowered their offers, as reported by Reuters. Hence, given the decline of KSS share price due to all the combined elements, is it a good time to buy the stock? And what’s the situation with the underlying business? Let’s have a look:

    Kohl’s Corp. (KSS)

    Down over 16% year to date, KSS stock has lost over 30% in the past three months. Contributing to this downfall has been the company’s latest earnings, which showed a bleak picture. Currently, the stock trades at a price of $43.36 per share, as of the close of trading on June 2, 2022.

    KSS’s Declining Sales & Profitability

    In the previous quarterly earnings, the company said that its sales rose by 5.8% YOY as it continued to recover from the pandemic. Unfortunately, in the latest report, sales took a harsh hit as inflationary pressure impacted discretionary spending. Resultantly, net sales of the department store chain plunged by 5.2% YOY in Q1 2022. Total revenues for the quarter came it $3,715 million, which missed the consensus estimate of $3,854 million.

    The earnings also took a sharp fall in the quarter with a decline of 90% from the year-ago period. Quarterly earnings came at a mere 11 cents per share against the comparable $1.05. Thus, the bottom line also missed the consensus expectations of 75 cents per share for the quarter.

    Furthermore, KSS’ gross margin contracted to 38.2% while SH&A expenses went up by 10.5%. The reported operating income of $82 million was also way below the comparable $273 million.

    The company ended the quarter with cash and cash equivalents of $646 million and long-term debt of $164 million.

    A Bleak Outlook

    Expecting a further hit from the soaring inflation throughout the year, management guided for a net sale growth of just 0-1% for fiscal 2022. The company also slashed its EPS guidance for the year from $7.00-$7.50 to $6.45-$6.85. Analysts had their estimate for earnings pegged at $7.14 per share for the fiscal year.

    Additionally, KSS now expects an operating margin between 7.0% and 7.2% for the full year.

    Insights into the Business

    Given the sharp drop in profitability and the guidance cut, it seems investors have bought into the narrative that the company is in deep trouble. Most importantly, Macellum Advisors (activist investors) are urging the company to sell itself as it underperforms its peers Dillard’s, Macy’s, and Nordstrom. The activist investors further said to the company to slash investments until it consummates a deal, be it at any price. Moreover, the remaining interested parties, Sycamore Partners and Franchise Group Inc. are said to have lowered their bid for the company by at least 10-15%. However, a deeper look into the company suggests no need for such panic as the business is on track for much growth and improvement.

    Growth & Developments

    Source: Forbes

    KSS has been committed to its store growth strategy and remains on track with its long-term strategy. The company has been updating its store experience with Sephora at its shops. Its 200 stores with Sephora boutiques dramatically outperformed the rest of the chain. The company is now working on the rollout of an additional 400 Sephora stores in the second half of 2022, which would be a big sales catalyst. Sephora’s presence in Kohl’s is expected to have reached 850 doors by 2023. The demand for beauty products is soaring as mask restrictions are being lifted and more people are returning to offices.

    The company recently shared its plan for increasing investments in-store strategies with 100 new smaller outlets in new markets over the next four years. In order to further add to its stores’ experience, KSS is also introducing dedicated discovery zones for customers seeking newness and inspiration. The reinvention plan of its stores also includes services like In-Store Pick Up, Drive-Up, Self-Pick Up and Amazon Returns. By the end of this year, the company will have rolled out self-serve buy online, and pick up in-store in all of its stores as its continues investments on the technological front.

    Conclusion

    In the coming days, the company’s board is expected to discuss and review the takeover bids from Sycamore and Franchise. There is no surety of the outcome, but KSS staying public seems more likely. The ride up ahead might prove to be bumpy as the wider economic conditions continue to deteriorate, but for the long term, the company has positioned itself well. As the Sephora rollout continues and demand stabilizes over the next few years, sales and earnings will most probably reach new highs. Therefore, despite the current downfall and curious as well as concerning situation, KSS is up for big gains in the long term.

  • LendingClub Corp. (LC) stock Might be Beaten Down but the Business is Thriving

    2022, so far, has been a year marked by downturns and challenges of all kinds. Economies were still recovering from the impact of the pandemic and Russia invaded Ukraine. The invasion further escalated the already existing supply chain bottlenecks and inflationary pressure. China’s zero Covid policy has been doing its own damage to the situation. And in order to curb the rising inflation, the Fed has rolled up its sleeves for a stricter monetary policy. The resulting soaring interest rates are only making things more difficult. What’s more, even a new outbreak is on the line as monkeypox cases continue to grow across the globe in areas where the virus is non-endemic. Concerns for another pandemic are rising while the World Health Organization did say chances are low and risk moderate.

    The vastly deteriorating macroeconomic conditions have forced investors to be wary of any kind of risk, thus sparking a huge and prolonged sell-off. The stock market has taken a severe hit with the tech-heavy Nasdaq dealing in the bear market and S&P 500 nearing it. The wider downfall of equities has even impacted stocks of companies that are doing really well and are poised to grow big time. However, this also provides great opportunities for long-term investors who can withstand the near-term economics. One such company which is thriving but has its stock beaten down this year is fintech sector company LendingClub Corp. (LC)

    LendingClub Corp. (LC)

    The San Francisco-based company’s stock is down over 33% year to date and nearly 70% from its 52-week high set in last November. Currently, LC stock is trading at a price of $16.10 per share as per the after-hours data of June 2, 2022. While the vast downtrend might compel some to think that the business is not doing well but the truth is much farther from it. The fintech’s business is thriving and has huge potential for much growth in the longer run.

    The company was founded as a peer-to-peer lender, but after it went public in 2014; it faced too much scrutiny over its lending practices. The scandal led to the stepping down of its then CEO and a complete change in its business model. The now personal lending digital marketplace bank’s business is highly efficient and doing better than it ever has. Let’s have a look at the company:

    LC’s Efficient Business Model

    Mostly, fintech companies sell all or most of their loan originations to third-party investors like hedge funds, insurance companies, asset managers, etc. This is because holding all loans on their balance sheets is not possible for them. Some other’s partner with banks with their own deposit bases for funding the loans and putting them on their balance sheets. However, in 2021, LC became one of the first fintechs to obtain a bank charter after it purchased Radius Bank. This acquisition has been transformative for the company. It not only allowed the company to take its own deposits and lower funding costs but also to hold loans on its own balance sheet. The company now plans to hold 20-25% of its loans and sell the remainder to investors through its marketplace. This will result in monthly recurring interest income, making holding the loan way more profitable than just selling it. In Q1 2022, LC took roughly $100 million in net interest income compared to just $18.5 million in last year’s Q1 and $83.1 million in Q4.

    Ability to Withstand Economic Downturns

    Moreover, this hybrid model also gives it the opportunity to make the most of the economic downturns. When economies aren’t doing well, loan demand usually lowers or dries up, which is not good for fintech. But in the case of LC, its hybrid model gives it flexibility even if loan demand slows for a period. Its broad funding model and less dependency on capital markets bring the edge it needs to survive difficult market conditions. Even more so, in times like these, when interest rates are hiking, LC will only make higher profits from the high-interest rates. Higher interest rates for the company mean higher net interest income and net interest margin. With the Fed planning on a further rise in interest rates, this could prove an added tailwind for the company as it holds more loans on its books.

    Additionally, the company recently added client-to-client sales to its platform, which allows clients to sell loans directly to each other. This enhances the liquidity of its asset class.

    Strong Fundamentals

    Both of the company’s earnings reports were a beat on earnings as well as revenues that it delivered recently. In the latest report for the first quarter of 2022, the company not only beat its guidance handily but raised the full-year guidance as well.

    Source: Q1 Presentation

    LC’s quarterly revenue of $289.5 million surged by a huge 174% YOY and outpaced originations growth of 117%. The quarterly revenue surpassed the consensus estimate by a nice 10.40% while also beating its own guidance.

    Furthermore, the company generated a record net income of nearly $41 million in the quarter, which was an improvement of 40% sequentially and $87.9 million YOY. Thus, the earnings per share of 39 cents beat the expectations of 25 cents while coming against a loss of 49 cents per share in Q1 2021.

    LC’s Future Outlook

    For the ongoing quarter, the company expects a net income of $40-$45 million on revenue of $295-$305 million. And for the full year, management sees a profit of $145-$165 million on revenues of $1.15-$1.25 billion. This shows an increase of $50 million in revenue and $15 million in profit from the company’s previous FY22 guidance. LC also raised its origination target for the year to $13.5 billion from the previous $13 billion.

    The quarterly and full-year guidance came well above the Wall Street expectations of $283.18 million and $1.16 billion in revenues, respectively.

    Conclusion

    Given its hybrid business model with better funding, less dependence on the capital market, and a huge competitive edge, LC is poised to sustain the intense rising-rate environment. Not only this, but the company’s strong fundamentals and profile have placed it perfectly well to capitalize on the growing market opportunity and expand its business further.

    The global fintech market is expected to register a CAGR of 13.9% from 2022 to 2023 and reach $16652680 million by the period’s end. Therefore, the enormous market combined with the strong company dynamics has LC poised for much growth and profits in the future even if the near term brings some instability.