Technical Comment: Stage one – basing chart pattern, positioned to move above its 50-day moving average. Appropriate for traders and accumulators of shares for a longer term position.
GLBE:
I like the story and positioning, The shares, down from $80, appears ready to bounce upwards above its 50-day moving average.
From what we have seen of Global-e so far, we like a lot for both a trading pop and as a long-term core position. Bear in mind the majority of market prognosticators believe we are heading into a recession as a result of inflation and governments raising interest rates and a likely recession to break the back of inflation.
I don’t really think government want to break the back of inflation. They (governments) would like more years of inflation to raise “asset values” to balance out the “ratio” of “assets to debt” – debt governments cannot pay for. So, the interest rate hikes will not likely be too restrictive unless something goes wrong.
Therefore, I am not too afraid of inflation / recession / high interest rates combo. There is certainly risk in that I am wrong. At this time, I am assuming we will muddle through the current mess. The major change I see is that we are shifting from 1981 to 2021 period if deflation and falling interest rates to Inflationary period with slightly rising interest rates. The Decade of Commodities. This period in time could easily last ten to twenty years.
Payment companies could be an excellent way to protect yourself to some degree from rising prices. You (your investment) participates in rising price cycle through the fees on goods purchased. We like the recurring revenue model of Payment companies. GLBE looks like a good one.
In related accounts we also own payment companies, StoneCo (STNE)*, PagSeguro (PAGS)* and Bakkt (BKKT)*
What does Global-e do?
GLBE: Offers international online shoppers a seamless localized experience tailored to their preferences and designed to increase conversion rates. Globale has teamed up with Shopify (SHOP) $684.86 to expand cross-border e-commerce.
Link to Finviz stats and news – Website: https://www.global-e.com/en/
LOTM has no position at this time but has a strong interest in trading opportunity and long term positing in the shares of GLBE.
Above is dated March 29, 2022.
LOTM has no position at this time but has a strong interest in trading opportunity and long term positing in the shares of GLBE.
From MarketWatch: Opinion: It’s time to buy the best beaten-down stocks in tech and elsewhere, and this winning fund manager shows you how – March 19, 2022
Global-E Online (GLBE), another example, helps companies launch their e-commerce efforts in foreign countries, no easy task to do on your own because of language and cultural differences.
- Global-E Online helps with everything from websites to delivery and customer support. Customers include LVMH, Moët, Hennessy, Louis Vuitton (LVMUY).
- Global-E Online helps partner Shopify (SHOP) expand its international reach. “The service they provide is differentiated and hard to replicate,”
Sent to Daily readers March 27, Price was $32.02. Revisions on March 29, 2022, by Tom Linzmeier, editor LOTM
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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