Home » VectorVest » Buy FairFX Group (FFX.L) says VectorVest. This innovative financial challenger brand offers a compelling investment opportunity right now.

Buy FairFX Group (FFX.L) says VectorVest. This innovative financial challenger brand offers a compelling investment opportunity right now.

FairFX Group Plc (FFX.L) is a leading challenger brand in banking and payments that disintermediates the incumbent banks with a superior user experience and low cost operating model. This enables personal and business customers to make easy, low-cost multi-currency payments in a broad range of currencies and across a range of FX products all via one integrated system. Banking and payment services to both personal and business customers are made through four channels: Currency Cards, Physical Currency, International Payments and Bank Accounts. The FairFX platform facilitates payments either direct to Bank Accounts or at 30 million merchants and over 1 million ATM’s in a broad range of countries globally via Mobile apps, the Internet, SMS, wire transfer and MasterCard/VISA debit cards.

Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here

On July 6th2018, FFX published a trading statement for the six-month period ended 30thJune 2018. The Company reported a strong first half of trading, with substantial growth and new products launched. Against this background, strong margins have been maintained and rationalisation of the supply chain is delivering results. Including contributions from newly acquired Cardone Banking and City Forex, FFX reported a 146% increase in turnover for the year on year period to £1.1bn (2017: £434.1 million), in line with management’s expectations. The strong first half gives the Board confidence that the Company will achieve market expectations for the full financial year. CEO Ian Strafford-Taylor said the fact that the substantial growth in turnover has been achieved without reduced margins “gives us great confidence for the prospects for 2018 and beyond.”

The impressive progress by FFX since Feb 2018 did not go unnoticed by VectorVest. A Relative Value flag (RV is an indicator of long-term price appreciation) had originally alerted members back as far as Sept 2017, as the level moved above 1. The FFX RV has remained well above 1 since that time, and today logs the stock at 1.71, which is both exceptional and excellent on a scale of 0.0 – 2.0. Other leading metrics on the VectorVest stock and portfolio management system include a GRT (Earnings Growth Rate) of 48%, again both exceptional and excellent, along with a good RS (Relative Safety) rating of 1.12, also on a scale of 0.0 – 2.0. Even so, trading today at 138p, FFX is still some way below the current VectorVest valuation of 183p.

The chart of FFX is shown above in my normal format. The green line study above the price is the VectorVest valuation while Earnings per share is reflected by the blue line study in the window below the price. Technically the share is trending higher but currently “coiling” within a symmetrical triangle. A breakout of the upper trendline defining the triangle should lead to a strong move upwards.

Summary: FFX already dominates what is a highly competitive space with its secure low cost, multi-currency payment solutions. Eagle eyed VectorVest members who spotted this opportunity back in September last year will already have seen their investment double in value, but as the fundamentals and charting configuration indicate today, there is a great deal more growth to come. FFX stated that H2 is about extracting efficiencies via scale, evolving banking products for SME’s and continuing to identify and maximise cross-selling opportunities. On the evidence presented today, this innovative financial services challenger brand will continue to deliver growth with this strategy, and in the opinion of VectorVest, offers a compelling investment opportunity right now. Buy.

Dr David Paul

September 26th 2018

Readers can examine trading opportunities on this and a host of other similar stocks for a single payment of £5.95. This gives access to the VectorVest Risk Free 30-day trial, where members enjoy unlimited access to VectorVest UK & U.S., plus VectorVest University for on-demand strategies and training. Link here to view.

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On VectorVest a simple search using the Unisearch tool will quickly find shares that are undervalued with good fundamentals that have just issued a Buy recommendation. This will give the active trader a short list of many high probability trading opportunities each week. Traders now have the opportunity to spend five weeks discovering VectorVest’s unique simplicity, automation and independent guidance. Just £5.95 buys a 30-day trial to enable deep exploration, or how the system can assist in smarter trading in as little as 10 minutes a day. Powerful tools. Proven strategies. Unique Perspectives.

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European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com

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