There is a big discussion happening on social media right now regarding cash and how it’s become a relic of the past. It might even be confiscated and replaced with crypto or computerized currency that can be tracked.
If this ends up being the case, that means no more bags sealed in plastic buried in the back yard…
No more paying the babysitter under the table…
It’s all going to be tracked.
But until that happens, there is still a place for companies like Diebold Nixdorf (NYSE: DBD). It’s a multinational financial and retail technology company that specializes in the manufacturing of ATMs, along with a host of other self-service transaction systems. And War Room members just closed out gains of more than 100% on it!
As you can see from the chart below, people thought that Diebold Nixdorf only made ATMs – which are important for sure. While some believe cash to be a relic, it’s actually the dominant form of payment in a big chunk of the world, especially for transactions of less than $50.
Investors were betting that Diebold Nixdorf would see its business dry up as people stopped going out and touching those dirty ATMs.
What they didn’t count on was how much extra cash was going to be pumped into the system.
Just counting extended unemployment benefits between March and the end of July, an extra $250 billion was injected into the economy.
Even though that cash made it to some ATMs, that was not where Diebold Nixdorf made its mark. You see, the company turned out to be a coronavirus play too. Diebold makes a lot of self-service checkout machines that you see at grocery stores and places like Home Depot.
One thing people don’t want to do right now is have contact with another human.
Diebold has a bright future, which definitely showed in its better-than-expected earnings and outlook.
In The War Room, we had LEAPS options on Diebold, and members really rang the register.
About Karim Rahemtulla
Karim began his trading career early… very early. While attending boarding school in England, he recognized the value of the homemade snacks his mom sent him every semester and sold them for a profit to his fellow classmates, who were trying to avoid the horrendous British food they were served.
He then graduated to stocks and options, becoming one of the youngest chief financial officers of a brokerage and trading firm that cleared through Bear Stearns in the late 1980s. There, he learned trading skills from veterans of the business. They had already made their mistakes, and he recognized the value of the strategies they were using late in their careers.
As co-founder and chief options strategist for the groundbreaking publication Wall Street Daily, Karim turned to long-term equity anticipation securities (LEAPS) and put-selling strategies to help members capture gains. After that, he honed his strategies for readers of Automatic Trading Millionaire, where he didn’t record a single realized loss on 37 recommendations over an 18-month period.
While even he admits that record is not the norm, it showcases the effectiveness of a sound trading strategy.
His focus is on “smart” trading. Using volatility and proprietary probability modeling as his guideposts, he makes investments where risk and reward are defined ahead of time.
Today, Karim is all about lowering risk while enhancing returns using strategies such as LEAPS trading, spread trading, put selling and, of course, small cap investing. His background as the head of The Supper Club gives him unique insight into low-market-cap companies, and he brings that experience into the daily chats of The War Room.
Karim has more than 30 years of experience in options trading and international markets, and he is the author of the bestselling book Where in the World Should I Invest?
