Welcome back everybody to white board finance as you know by now. My name is Marko and I'm
here to help you master your money and build your wealth. Today we're talking about a very
hot topic. We're talking about the block chain baby. So block chain is kind of synonymous
with crypto currency and especially with bitcoin. So there's a lot of buzz around this technology
even though it's been around for a number of years now. I think it's finally starting
to come into the mainstream. So in this video we're going to go over the five best block
chain stocks for 2018.
Stay tuned. Number one is Broadridge Financial Solutions Broadridge is my first pick because
they've already worked with companies and other banks that are using block chain technology.
They've completed a successful pilot test of a block chain based technology in collaboration
with two other large European banks.
And this was in October so only about 3 4 months ago they've already started completing
transactions using their own block chain based technology. And I think that this is putting
them a step ahead everyone else. Their technology helps to automate operations enhance audit
ability and increase both efficiency and speed. So essentially they're taking these very complicated
financial transactions and making them very transparent and efficient for everyone to
see. So I think that's a good thing because it's giving them more credibility in terms
of being transparent and open with their customers and with their clients. This isn't Broadridge
his first rodeo into block chain either. The company partnered with J.P. Morgan in 2016
to successfully test this technology with shareholder proxy voting.
So for those of you that are familiar with annual reports and voting because you you're
a shareholder in a company this is essentially what that is. So their goal again is to make
this more transparent and easier. So considering Broadridge was already the largest U.S. provider
of proxy voting services it made sense for it to step into this market.
Let's take a look at the fundamentals Broadridge is growing its bottom line and a pretty solid
rate they have earnings coming in at three dollars and 13 cents a share in 2017 and it's
expected to increase to four dollars and 14 cents a share by 2019. Broadridge has two
factors working in its favor that justify its price and higher evaluations in the future.
The first is that they're a leader within their industry. So essentially they have 80
percent of outstanding shares for Investor Communications actually are processed by Broadridge.
Think about that for a second. 80 percent of every outstanding share of every stock
out there that communication is processed through Broadridge. That's essentially 80
percent of the U.S. market you guys. That is a huge chunk. Also all top 10 global banks
are its clients. Which again leads back to that first point that they are a leader in
their industry.
Second their client retention rate is at an astounding 98 percent. That's one of the most
difficult tasks you guys to be able to retain the clients that you spend so many marketing
dollars to get. So pretend that you're like AT&T and Verizon you market market market.
You spent all this money to get Marko as a client and he leaves after one month because
he's not happy with the service. You spent all that marketing dollars and all that time
and energy to acquire a client and then they leave. So at a 90 percent client retention
rate that is really good. And I see there being a huge part of their valuation for the
future.
Broadridge also offers a one point six percent dividend yield and they've actually raised
that year over year. So I know one point six percent isn't the highest dividend yield in
the world but I'm actually just looking at the big picture. If they're able to raise
this consistently that shows that either their money management is really good that there
are corporate management is really good or that overall that their cash is very strong.
So it's a combination of those three things. But any company that's consistently raises
dividends is pretty healthy in my opinion. Obviously the longer they've done that the
better and Broadridge has done that over the past few years their one year return has been
about thirty six point four eight percent and their five year return has been about
289 percent. So that means over the course of five years if you started investing in
Broadridge you've almost tripled your money you guys.
So those are incredible returns especially for a financial industry or financial sector
company. Broadridge easily checks out on fundamentals and future growth. So this is why I think
it's going to be a great block chain start in 2018 and beyond. Number
two MasterCard MasterCard announced that it's now opening up its block chain to potential
merchants and banks as an alternative and potentially more efficient method of paying
for goods and services. MasterCard is also targeting cross-border payments between businesses
as the purpose for its block chain which can only be used by invitation at this point.
MasterCard's block chain operates independently of a crypto currency and instead it accepts
payments in traditional local money which is seen by some as a positive.
For one. Businesses could cut costs by using the block chain to send cross-border payments
which usually pass through several foreign banks along the way which means they incur
fees at every stop. So MasterCard block chain however would cut out those middlemen and
connect to purchasers bank directly to that of the supplier. This would remit the payment
more efficiently and possibly faster. Let's take a look at their fundamentals or some
numbers over the past few years. Their one year return has been forty two point two percent
and their five year return has been about 187 percent which is great. The number of
major online retailers accepting payment in bitcoin dropped to just 3 in 2017 which I
think is kind of funny compared to 483 who accept MasterCard and Visa. So I don't really
see this as a threat to MasterCard just yet.
And I'm talking about crypto currency. That's something you should be aware of. But in the
long run I think that MasterCard will adopt a block chain and they will be a great player
in the space for years to come. Number three fan favorite Microsoft. So I'm just kidding
when I say fan favorite. I work for one of the biggest Microsoft resellers in the Midwest
so I'm not coming from a biased opinion. I just have a pretty deep knowledge and understanding
of Microsoft. Microsoft's business and how they operate. So Microsoft is committed to
bringing block chain to the enterprise and they're working with customers partners and
block chain community to continue advancing enterprise readiness through the cocoa framework.
So cocoa will be compatible by design with any ledger protocol and can operate in the
cloud and on premise. So take a look at this screenshot everybody.
I'm not going to sit here and read this verbatim but I do want you to take a look at this and
potentially pause the video and read this for yourselves. I'm going to go straight to
the bottom to the last two paragraphs because I think it's really important check these
out by providing these capabilities Coco offers a trusted foundation with which existing block
chain protocols can be integrated to deliver complete enterprise ready Leger's solutions.
Opening a broad high skill scenarios across industries and furthering block chains ability
to digital transform business. We have already begun exploring Koko's potential across a
variety of industries including retail supply chain and financial services boom that is
huge. So by design Coco is going to be open and compatible with any block chain protocol
and Microsoft has already begun integrating into the crypto currency called Ethereum.
So some of you may be. I'm pretty sure most of you are already familiar with Ethereum.
So Microsoft's intent is to distribute the source code to the development community in
early 18. And that's why I'm putting them on my top five block chain stocks to watch
for 2018. So let's take a look at Microsoft's one year is thirty seven point three percent.
The five year is 219 percent. And what I love about Microsoft is they have such a solid
dividend yield for being still what I consider somewhat of a growth company. It's at one
point nine six percent. So industry enthusiasm for block chain is growing. And while it will
still take time for block chain to achieve enterprise scale I think Microsoft is well
positioned to adopt it and take over in 2018. Number
four Visa Visa has rolled out the first pilot phase of its block chain based business to
business payment service. It's called B2B connect. So this is very similar to MasterCard.
Visa plans to use the platform to ease cross-border payments by Fassett to excuse me by facilitating
direct payments between institutions. So again just like MasterCard they're cutting out the
middleman in the industry which the whole entire financial sector relies on at this
point. So they're already working with US based Commerce Bank South Koreas Shin Han
bank the Union Bank of Philippines and the United overseas bank based in Singapore. So
Visa's global head of solutions Kevin Failon said that the banks are trialing live bank
to bank transactions over the platform which is a really good sign. So following this first
phase the project Phase II will set the project to move to a commercial launch or commercial
phase and is slated to occur in the middle of 2018 which is why visa is on this list
you guys. The one year for visa has been about forty two point two percent are Aui and the
five year has been about 183.
For those of you that remember I actually recommended visa as one of my bluechip stocks
for 2018. That was in my video call the stocks for beginners in 2018 and I think them getting
involved in blocking just helps the argument so that's why I put them on this list as well.
Number five Cisco Systems. So Cisco is looking for ways to move beyond its hardware and block
chain to give Cisco a viable path to that growth. Cisco is one of the 200 companies
that are part of the enterprise Ethereum alliance. So these are governments and companies from
all over the world and multiple industries testing out a version of Ethereum block chain.
So I think that this is pretty cool you guys especially for a company like Cisco who is
known to be somewhat conservative in their growth tactics.
What makes Ethereum block chain uniquely attractive to businesses is that incorporates smart contracts
that help verify facilitate or enforce the negotiation of a contract. So you can take
a look at this screenshot. Cisco is also working to craft its own block chain systems. In October
the company filed for the trademark of a block chain platform that can identify different
connected devices. Monitor the activity of those devices and evaluate how trustworthy
those devices are when connected to a network. It would also continually and automatically
assess new devices when added to the network. So in other words Cisco believes it has a
game changing block chain to track the Internet of Things Internet of Things is getting huge
from smart phones to smart printers to smart refrigerators. I think everything in the future
is eventually going to become quote unquote smart.
So this could be a huge play for Cisco. Let's take a look at their one year the one year
has been about 27 percent and their five year has been about 88 percent. These are really
good gains especially for a company that pays a solid and great dividend like Cisco does.
And I think that with this block chain play there's still some room for growth. And those
are my top five block chain stocks going into 2018. Now you may be saying what about a hive
block chain. What about X Y Z Block Chain company. For the most part those are mostly
just penny stocks at this point. And if you want to take on that risk and invest in those
who by all means go ahead. The reason I chose these five is because there are five reputable
companies that have shown consistent growth that are starting to delve into the block
chain technology.
They're not necessarily betting the whole house or their whole business on it. So if
you want to take on more risk take on take a look at hive block chain and there's a couple
other ones as well. All you have to do is a quick google search. So thank you so much
for watching. If you got any value out of this video whatsoever please hit the subscribe
button below. Like the video and also share it with your friends and family I would really
appreciate it especially being a new channel. Thank you so much everybody and have a prosperous
day.
A case where a play Pictionary here. What is this this thing right here. OK. Now let
me draw something else to her. We get into words here. OK. Can't say anything because
it's Pictionary.
OK. That'll be the question of the day. Let's see if you can guess.
What I'm trying to draw here.