Today we will examine GH CAP INC (OTCMKTS: GHHC) which is attracting a strong interest on Wall Street, in the wake of the company announcing plans to reduce payment costs for merchants. The stock is the subject of greater volatility and trading volume as the company moves to explore the use of blockchain capabilities as part of its main offering.
Increasing investor confidence in the company's growth prospects helped trigger the buying spree. Over the last month, GH Capital has gained over 70% of market value, continuing to trade in a strong uptrend.
However, the stock has shrunk from record highs of $ 1.70 and is currently trading at $ 1.05. We believe that the withdrawal is a minor correction that presents a unique buy opportunity for investors wishing to enter a long position in the stock.
On the upside, GH Capital faces immediate resistance at $ 1.30 above which it could push for a maximum of 52 weeks of $ 1.70. On the downside, key support is $ 0.50, below which the stock could fall to 52 weeks lows of $ 0.10.
Overview of business activities
GH Capital is a FinTech holding company that develops online payment gateways for transaction processing. Formerly known as Global Humax Capital Management Inc., the company operates a ClickDirectPayment (CDP) for online payments that allows companies to increase profits while reducing existing processing costs.
The stock is in the spotlight as investors take note that cryptocurrencies could revolutionize the financial sector, particularly on online payments. The company is exploring ways to use emerging technology to provide a financial platform that is universally accessible regardless of country or currency.
With the consumer's appetite for growing secure and cost-effective payment solutions, GH Capital believes it has found a way to take advantage of the emerging opportunity. Digital payments are moving towards cryptocurrency, given the synergies that blockchain technology promises when it comes to ensuring fast and secure transactions.
Through its wholly-owned subsidiary, ClickDirectPayment, the company plans to launch a bitcoin and payment processing service for alternative currencies at the start of next year. The announcement has thrilled investors as it will extend the efficiency of GH Capital on a global scale through blockchain and cryptocurrency.
The start of a bitcoin processing service should allow the company access to one of the newest and fastest growing currencies in the world, which continues to conquer the financial sector. The new service will be launched slowly to select consumers and traders, while GH Capital will move to pursue opportunities in the cryptocurrency space.
Wolfgang Ruecker, Chief Executive Officer of GH Capital, commented: "Allowing traders to accept Bitcoin and other cryptocurrencies as a payment method offers huge savings, especially those with an international customer base, and is the next step in our goal to open up new markets ".
According to the CEO, the growing niche market for cryptocurrency could generate significant returns for GHHC as demand for alternative payment methods continues to grow. A shift in the choice of payments, in particular with high risk traders from the adult industry, justifies the whole transfer of the company's attention to the cryptocurrency payment service.
While ClickDirectPayment is currently available in some countries in Europe, efforts have been made to find a unified solution that simplifies payments with access to online merchants and customers worldwide. The main goal of the last push is to create a simple, fast and fast onboarding system for global online merchants, no matter where they are.
ClickDirectPayment which is starting to adopt cryptocurrency is what GH Capital needs now that the market capitalization for cryptocurrencies continues to grow.
Speaking that GH Capital could be an acquisition target seems to have attracted investors' attention. What makes the company an acquisition goal is the fact that the number of traders who use its offers has grown steadily.
GH Capital supports more than 350 merchants with plans to reach the target of 10,000 next year. Large companies are known to do everything to protect their profit margins, with the common practice of acquiring small companies that have the potential to be disruptive.
GH Capital has been negotiating with some of the largest retailers in Germany to integrate its CDP solution with their payment systems. If the company were to sign such an agreement, it could increase its trade exposure that could force large competitors to bid for the company as a way to protect their interest in space.
An acquisition will be a great victory for investors as the public purchase bids for OTC companies are usually above market prices.
GH Capital is at a critical point in its growth trajectory. The expansion in the cryptocurrency space affirms the case of accelerated growth, given the boom in the sector. With consumers and businesses constantly looking for alternative payment solutions that can guarantee fast and secure transactions, the company should be able to generate significant profits from its solutions.
Towards the start of the new year, GH Capital should continue to negotiate higher while investors seek investment opportunities around blockchain technology.
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Disclosure: we have no position in GHHC and we have not been compensated for this item.