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Could this Satellite Company be a Better Play than Elon Musk’s Starlink?

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Banxa Holdings (TSXV: BNXA), an on/off ramp solutions provider for Web 3 digital assets is strengthening its US market pursuit with the introduction of new payment solutions and a US-based team located in Reno, Nevada

📲 This week, the company announced that US local acquiring is now activated, lowering the costs from foreign exchange fees and payments to intermediaries, and increasing conversion rates; customers also gained access to comprehensive payment coverage, including credit card and wire transfers.

💰 Additionally, Banxa recently appointed its US Chief Compliance Officer, US Chief Operating Officer, and US Chief Technology Officer, with a US Chief Financial Officer to be appointed imminently.

🤑 BANXA CEO Holger Arians had this to say about the news:

“I am as confident as ever in BANXA’s future and look forward to our continued growth-especially as we continue to build our presence in the United States.”

For more information on BANXA, check out our interview with Founder & Chairman Domenic Carosa.

A Quick Market Recap

Investors after finishing in the green for the week…

After three consecutive weeks of red across the board, it’s been another tumultuous month, but things appear to be looking up…

At least for this week anyway.

With central banks continuing to enforce aggressive monetary tightening, one would expect the markets to react differently, possibly continuing its downtrend.

But that is the beauty (or agony) of investing, you never know what you’re going to get.

Despite high inflation and rising interest rates, here is a small quip to lighten the mood:

“I’m normally not one to brag about my financial skills but my credit card company calls me almost every day to inform me my balance is outstanding!”

Here is how major indexes performed this week:

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Top News

Canada’s unemployment rate jumps for the first time in 7 months

The cracks of a slowing Canadian economy are finally starting to show with unemployment rates growing, and fewer job opportunities available.

While Canada itself is not “technically” in a recession since it achieved a GDP growth rate of 0.8% in both Q1 and Q2, it is clear that the global economy is starting to falter and the country itself is being affected.

👷‍♀️ In August, Canada lost 40,000 jobs, marking the third consecutive month of losses, and amounting to a total decline of 114,000 over that time.

📈 These numbers exceeded economists’ expectations as unemployment rose to 5.4%, compared to the 5% forecast for the period.

🎓 Job losses were mostly concentrated in the public sector, particularly education, which lost 50,000 jobs; construction was also affected with about 28,000 jobs shed.

💨 Desjardins’ head of macro strategy, Royce Mendes noted, “While revisions can always change the picture down the road, the deterioration in the job market appears to be occurring faster than anticipated.”

🤔 However, keep in mind that June unemployment fell below five percent, at 4.9%, which is the lowest rate on record.

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DocuSign (DOCU) shares jump following Q2 earnings beat

After being considered out for the count for most of the year, and falling over 77% since last September, the #1 e-signature company bounced back with solid results in Q2.

As expressed by DocuSign’s Interim CEO, Maggie Wilderotter, “These results reflect the focus and dedication of our team on execution during this transition period, with a stronger foundation in place to deliver in the second half of the year.”

🚀 Total revenue reached $622.2 million, an increase of 22% YoY, with Subscription revenue being $605.2 million (+23% YoY), and Professional services and other revenue being $17.0 million (-11% YoY).

🙌 GAAP gross margin was 78% for both periods, while DocuSign experienced a net loss per share of $0.22 on 201 million shares outstanding.

💸 The company obtained $105.5 million in free cash flow for the period, compared to $161.7 million in the same time last year.

⭐️ DocuSign also announced new product capabilities including DocuSign eSignature’s Shared Access feature, DocuSign eSignature App for Stripe, DocuSign CLM, and DocuSign Notary.

📊 $DOCU is trading at a market cap of $10.98 billion, and a Forward P/E of 33.44

Apple signs exclusive iPhone 14 deal with Globalstar (GSAT)

Make way for the new satellite firm in town, Globalstar (GSAT).

Despite Elon Musk’s Starlink making significant progress and even more headlines, the largest company in the world, Apple Inc., chose Starlink’s less-known competitor to carry out the iPhone 14’s satellite service provider solutions.

⛑ Apple is rolling out its Emergency SOS option on iPhone 14s which allows their owners to send a message for help when there is no cellular connectivity; in clear skies, the message is delivered in 15 seconds; when cloudy, it may take a couple of minutes.

🌕 To ink the deal, Globalstar had to “provide 85% of its current and future network capacity” to support the iPhone’s satellite feature, which goes live in November.

🛰 In exchange, Apple said it will help by financing 95% of the new satellites and the personnel needed to maintain its new Emergency SOS offer.

🛸 Globalstar now forecasts that in 2023, the company will achieve record revenues between $185 to $230 million, with it reaching $310 million in 2026; Globalstar’s revenue for 2021 was $124 million.

☄️ In a possible coup to undermine the deal, Globalstar shares sank upon the news when Elon Musk tweeted, “We’ve had some promising conversations with Apple about Starlink connectivity.”


Unemployment once reached 24.9% in the US (1933)

On the topic of unemployment, one of the strongest arguments against the US heading into a recession this year is that unemployment is near all-time lows sitting at just 3.7%.

Typically, a slowing or declining economy goes hand in hand with a poor job outlook, but with about 11.24 million job openings in July, and the number of unemployed people at 6.014 million, it is unclear whether the impending recession will be as harmful as others in the past.

Here are the five worst economic years (on record), based on the annual unemployment rate, GDP growth rate, and inflation rate; plus a significant event from that period:

🧑‍✈️ 1932: US Unemployment: 23.6%; Annual GDP Growth: -12.90%; Inflation: -10.30%; Event: Herbert Hoover’s Tax Hikes which raised top income tax from 25% to 63%.

🧑‍🎨 1946: US Unemployment: 3.90%; Annual GDP Growth: -11.60%; Inflation: 18.10%; Event: The Employment Act of 1946 mandated the goals of both full employment and low inflation through the Council of Economic Advisers.

👮 1930: US Unemployment: 8.70%; Annual GDP Growth: -8.50%; Inflation: -6.40%; Event: The Smoot-Hawley Tariff Act, meant to encourage domestic production by imposing tariffs on over 20,000 imported goods.

🧑‍🍳 1931: US Unemployment: 15.90%; Annual GDP Growth: -6.40%; Inflation: -9.30%; Event: Failing crops amidst a drought led to massive dust storms and eventually was dubbed the Dust Bowl.

🧑‍🌾 2020: US Unemployment: 6.70%; Annual GDP Growth: -3.40%; Inflation: 1.40%; Event: The Covid-19 Pandemic and Recession

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