Posted on December 18, 2017 | by iwallstreet
On Thursday, GHHC shares raced the chart and closed up 106% at $1.37, after hitting a high of $1.87 during the day. According to Yahoo Finance, the volume was 481,488, which is massive compared to just 21,134 on Wednesday, and 23,388 on December 6th (the previous highest for GHHC).

What’s driving the stock up?
Talking of the reason for this rally, well there is nothing that can be pin pointed. The company came up with no announcement, and there was no big analyst report as well. So, clearly it was not an impulsive surge, rather it was backed by the recent developments surrounding GHHC.

Last month, the company announced that it is “actively” exploring the “concept of utilizing blockchain capabilities as part of its core offering.” Backing it up, the company earlier this month, announced that “its online payment service subsidiary, ClickDirectPay (CDP) clickdirectpay.com, will be beta launching their Bitcoin and alternative coin payment processing service as early as January of 2018.”



Source: Yahoo Finance

In my last article (GHHC: EXPLORING WAYS TO JOIN CRYPTOCURRENCY WAVE), I have already discussed the potential that cryptocurrency (especially Bitcoin) holds for GHHC. And, with GHHC announcing to beta launch its ‘Bitcoin and alternative coin payment processing service’ next month, investors are clearly starting to see massive upside potential in the stock.

Some even termed GHHC as the PayPal of cryptocurrencies. Dylan Law, a Former Hedge Fund Manager, sees immense potential in the stock, and gave it a price target of $3.30. “$GHHC next PayPal for #Cryptocurrencies and #Bitcoin target $3.30,” Law tweeted on Thursday.

Is GHHC – the next PayPal
Saying GHHC to be the PayPal for cryptocurrencies is a bit ambitious for now as the company is only starting to explore the potential in the cryptocurrency, but it is certainly possible. CDP, who charges a very competitive processing fee, has already shown that it can compete with names like PayPal of Paypal Holdings Inc (NASDAQ:PYPL).

In addition, GHHC has an infrastructure in place, upon which it can smoothly develop its Bitcoin operations. Further, the company has a noticeable presence in the U.S. and Europe, plus it has collaboration with Allied Wallet, an online payment provision aggregator, which is present in about 200 markets. GHHC also holds a significant stake in VMoney, a company that develops, operates, and markets payment processing solutions. VMoney already has a Bitcoin-related product, called BitCard.

Bitcoin is surely the world’s newest currency and investor’s best friend nowadays. This cryptocurrency is a secure and quick method to transfer funds globally, and investors use it as a store of value as well. With Bitcoin, making cross border payment has become extremely easy and cost-efficient. On Thursday, Bitcoin’s value was over $16,500 (according to CoinDesk), compared to around $600 in December 2013.

Owing to such benefits, this cryptocurrency is being actively used by big brands for transactions. Some of the big names that accept Bitcoin as a means of payment are Tesla Inc (NASDAQ:TSLA), Shopify Inc (US) (NYSE:SHOP), Microsoft Corporation (NASDAQ:MSFT), Zynga Inc (NASDAQ:ZNGA), Subway, Reddit, Expedia.com (NASDAQ:EXPE) and many more.

Rising acceptance of Bitcoin can be gathered from the fact that a Japanese company recently decided to start paying salaries to its employees in Bitcoin. GMO Internet, the company which operates in various web related businesses such as online advertising and internet infrastructures, would pay 100,000 yen monthly by Bitcoin to its employees from February next year.

Talking about the potential that this new digital currency holds, Mr. Wolfgang Ruecker, CEO of GH Capital (GHHC) told iWallStreetPro, “Whether few people like it or not, Bitcoin is established. It’s here and the shift in payment choice has already started, especially with our target audience (so called high risk merchants from the adult industry, as an example) who are heavily considering alternative payment methods….. If you take a look at the current Blockchain market and all ICOs, I think 2017 is only an appetizer compared to what we will see in 2018.”

Ruecker also revealed plans to make ‘CDP a one stop solution’ to assist merchants accept cryptocurrencies in real-time. This strategy, according to Ruecker, will “generate significant revenue for GHHC in the next few years.” This, I believe is surely possible, provided plans are executed well.

Potential threats
This is something I talked in my last article as well. One big threat to GHHC is the uncertainty over Bitcoin. Though most of the world has approved this virtual currency, some still doubt its authenticity. On one hand, where Fundstrat’s Tom Lee and value investor Bill Miller are in favor of Bitcoin, on the other, “Oracle of Omaha” Warren Buffett and billionaire entrepreneur Mark Cuban are against investing in this virtual currency.

Well, Warren Buffett was wrong on tech stocks, so he could be wrong this time also. On several occasions, Buffett has acknowledged that he avoided tech stocks in the past as he did not clearly understand their business model. Speaking on CNBC’s “Squawk Box” a few months back, he confessed that he was wrong on Google and Amazon.

Another threat to GHHC is the competition. GHHC is a smaller player for now, when compared to the like of Square Inc (NYSE:SQ) or PayPal. So, it will be difficult for GHHC to capture the market. However, as I have talked before, GHHC has challenged big names before also by charging a competitive processing fee. And, there are no reasons it can’t do that again in the cryptocurrency space.

Also, GHHC’s CEO appears very confident, when it comes to the competition. When iWallStreetPro talked about competitors such PayPal and Square, Ruecker was quick to reply, “We never follow or look into competitors. They have to look to us, I guess!!”

Our take
As discussed before, GHHC has all the right ingredients to succeed in the cryptocurrency payment-related market, be it experience, infrastructure, a known product and known partners. Above all, it is going with the Bitcoin trend, the strongest ever on several counts.

GHHC is surely on a right path, and the company, which I previously referred to as the ‘Dark Horse In The Global Digital Payment Industry’ has now started to come forward.
 

Disclosure: We don’t have positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours.

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