The stock market mania of the late 1990’s was a misadventure in finance, rivaled only by the roaring 1920’s. But the 1920’s had more staying power, ramping for years and years in a wild boom. The 1990’s were beset by one big problem: by the time the internet stocks were taking flight, the internet already existed. And yet, most of the leading players were still selling its promise.
The next-stage promise of the internet was still many years away, and in between, there was a little thing called earnings to produce. That didn’t happen. Worse still, the bubble was inflated on the backs of mom-and-pop investors, so there was no stopping the herding dynamic, both in and out.
Now, however, we arguably have the next version of a roaring retail-investor-fueled bull market.
However, this time around, the potential for a much longer-lasting dynamic is in play due to a wider range of big disruptive innovations converging simultaneously, and the seemingly endless support of policymakers, including the Fed and the new fiscal policy pathway, which has already created over $20 trillion in new stimulus around the world during the past year.
This has fueled twin bull manias in stocks and cryptocurrencies as retail money pours into the equation and individual investors seek to magnify their personal financial outcomes by taking control of their financial future.
One stock that is very well situated to take advantage of this context over the coming period is FDC Tech Inc (OTCMKTS:FDCT), which provides innovative and cost-efficient financial technology and business solutions to OTC Online Brokerages and cryptocurrency businesses.
Shares of FDCT have been climbing rapidly up the charts of late as the company powers ahead with new catalysts, ramping from under a blanket of vulnerable short interest.
New Catalysts Mount
FDC Tech Inc (OTCMKTS:FDCT) recently announced that it has entered into a non-binding letter of intent to acquire hundred percent equity interest in Genesis Financial, Inc., a diversified financial services company with a focus on fintech-powered Wealth Management and Direct-to-Consumer (D2C) Lending Platform.
According to the terms of the LOI, the Company will acquire 100% of the issued and outstanding securities of Genesis for a stock-for-stock transaction, where Genesis shareholders shall receive restricted shares as consideration. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate. Upon the consummation of the Acquisition, Genesis will become a wholly owned subsidiary of the Company.
Genesis operates its business mainly through two Australian regulated entities in the wealth management and tax and accounting advisory services. The consolidated revenue and EBITDA in U.S. dollars for the 2020 fiscal year are $15.6 million and $1.2 million, respectively.
The Australian Wealth Management ecosystem has approximately 25,000+ financial advisors managing 2.2 million investors. The annual fees generated by the Australian Wealth Management industry is close to $3.9 billion or over $5 billion denominated in Australian Dollars. According to Aite (2020), at least 10 million adults are underserved or not served at all by the Australian Financial Advisors. Adding FDC’s software development resources, Genesis has firmly positioned itself to acquire and consolidate to expand in Australia’s fragmented Independent Dealer Group business sector.
Genesis’ CEO, Russell Cameron, said, “FDC has built an impressive system that is very synergistic with our established Wealth Management team. We expect the coming together of these two companies will enable Genesis to create a competitive advantage in response to technological change and increasingly sophisticated consumer expectations to compete with other legacy Wealth Management platforms successfully. We believe the combination of our two companies will be advantages for both parties and enhance future growth.”
FDC’s Chief Executive Officer, Mitchell M. Eaglstein, stated, “We look forward to closing the transaction with Genesis. The Acquisition will allow us to advance our proprietary fintech capabilities to Genesis. Coupled with our distinct competencies in developing globally compliant multi-asset trading platform and a comprehensive back-office solution will give the Company a strong competitive advantage to expand Genesis’ growth strategy in Australia and other Asia Pacific Region.”
That acquisition follows news that FDC added PayPal – the leading payment gateway – to its Condor FX Pro Trading Platform. Consequently, FX/Crypto traders can fund their trading account with small to large payments instantly and securely while keeping transaction fees lower and following all regulatory policies, and adhering to strict international Anti-Money Laundering laws.
According to the release, FX/Crypto brokers widely offer PayPal to fund trading accounts. PayPal connects the trader’s forex account with their bank card or bank account. PayPal is used in over two hundred countries and has 346 million active accounts worldwide. PayPal’s announcement in October 2020 to allow customers by early 2021 to buy, sell and hold bitcoin and other virtual coins using the digital payments company’s online wallets may enable Cryptocurrency as a funding source for funding FX/Crypto trading accounts worldwide. The trend appears positive for FX/Crypto brokers as Cryptocurrencies tend to be volatile, making them attractive to speculators and margin traders.