Fintech Select, symbol FTEC.V trading on the Toronto junior exchange, is one of those many blockchain stocks that become a multi-bagger once they announced they would be doing ‘something’ with blockchain technology.
The company has always focused on payment processing and hardware (terminals as well as debit cards. Now they decided to enable their infrastructure to allow cryptocurrency payments.
They managed to get +3M of funding to invest in cryptocurrency and blockchain infrastructure.
Fintech Select, at the moment of writing, has a market cap of $23M. It is a nano cap stock, and they come with huge risks of course. Given they are in business for almost two decades they have a positive EPS of 0.044 and there is +1M of cash on their bank account.
Why do we like their story? Because of what we consider a competitive advantage in their offering: their cryptocurrency facilities are much stronger than others in the market as evidenced by below comparative table. However, that in and on its own is not a reason to buy this stock, there is much more to it, continue reading.
Is Fintech Select a blockchain stock worth buying?
That is the million dollar question. As many blockchain stocks are rising like crazy the question is how to capture the ‘good ones’. If anything an investor wants to buy a stock that will rise over time, not one that rises only to fall back sharply.
We believe there are two indicators to watch for Fintech Select, and both combined will provide the insight whether this stock is worth buying:
- From a chart perspective, the recent breakout must hold. If not, it would be a false breakout. The breakout level is $0.35, smart investors watch that closely.
- From a fundamenatal perspective, their competitive advantage (outlined above) can ONLY work if their reach is large enough. In other words, if the number of payment terminals is large than today, and continues to increase. If that were to happen it would be the ultimate fundamental GO for this stock. Note that we tried to look for this figure (current state) but did not find any after researching their website (including the most recent financial statement).
InvestingHaven’s research team is certainly seduced by their product offering and value proposition, but not convinced yet that this stock is a buy. We want both two indicators outlined above to flash green before we go ‘all in’.
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