WSGF - Vaycaychella Announces Goldman Small Cap Research RPT And $0.20 PPS TGT With Airbnb IPO Presented As Proxy And Comp
December 08 2020 - 8:53AM
InvestorsHub NewsWire
Dallas, TX -- December 8, 2020 --
InvestorsHub NewsWire -- via goldmanresearch
-- World Series of Golf, Inc. (USOTC:
WSGF) (“WSGF”), through its new subsidiary Vaycaychella (parent
corporate name change pending), a sharing economy technology
business serving the short-term rental market, today announced that
Goldman Small Cap Research has published an initial analyst report
covering WSGF’s new Vaycaychella operation. Goldman plans to
provide ongoing coverage.
- The initial report includes a $0.20
six-month target share price
- First revenue expected to be reported in
Q4 2020
- 2021 to 2022 conservative revenue outlook
growing from $500K to $4M
- Major upside potential form current PPS
with Airbnb IPO as comp and proxy
- Business model combines Booking.com,
Airbnb, Indiegogo and LendingClub
- Analyst discloses intent to make potential
stock purchase in open market
See the full
report:
WSGF -
The Next Generation Sharing Economy Firm; Substantial Stock Gains
Ahead
Report
Highlights
Vaycaychella,
a wholly owned subsidiary of World Series of Golf,
Inc. (OTC
– WSGF), is poised to emerge as the next innovator in
the sharing economy industry, which is slated to reach $335 billion
in size by 2025, according to Brookings Institution. Tracing its
concept roots to three years ago, Vaycaychella had built a business
serving short-term vacation rental operators with financing to
acquire and renovate real estate properties as vacation
destinations. The current customer base
spans Caribbean vacation destination clients
from Mexico to Puerto Rico. Vaycaychella has
provided over $1.25 million in acquisition and renovation
financing secured by 10 premium beachfront houses and other
properties with a combined estimated value of
approximately $12 million. The Company has also added a
Caribbean-based boutique hotel and an historic building in Puerto
Rico.
Evolving from
the success with its original business model, Vaycaychella today is
an innovative, sharing economy technology enterprise serving the
short-term rental market. In our view, Vaycaychella has smartly
combined the best of sharing economy apps such
as Booking.com (NASDAQ
– BKNG) with short term rentals like Airbnb,
along with crowd-sourcing and P2P investing and lending platforms
such as Indiegogo and LendingClub (NASDAQ
– LC).
Through the
introduction of a P2P app currently in beta, Vaycaychella empowers
existing and would-be short-term rental property owners along with
providing investors with access to potential opportunities. Via
this automated platform, capital (investment or loans) for property
acquisitions and improvements can be financed outside the
conventional lending and investment market. As a critical mass of
users and properties are on-boarded, the pilot ecosystem model will
go live. In this second stage, complementary services and features
to investors, and owners/operators will be launched, thereby
maximizing revenue potential for the
Company.
Major Price
Appreciation Lies
Ahead
While
naysayers may believe that building a sharing economy technology
enterprise serving the short-term rental market during the COVID-19
health pandemic is an uphill battle, we believe timing could not be
better in the short term and well into 2021. For starters, sharing
economy apps are taking an increasing share of the $32
billion Caribbean vacation market. Later this week, one
of the hottest IPOs in years, and certainly the number one IPO of
the year, is slated to be priced. This event alone should favorably
impact trading activity and upside for Vaycaychella, and in turn
WSGF’s shares. Looking further into 2021, our six-month price
target is $0.20. While on the surface it could be considered
optimistic, we believe it is on point for the reasons
below.
Airbnb as
Proxy: Already the company has twice raised
the IPO price range and the appetite is strong. Interestingly, the
Company has fared well in this environment, especially for those
users seeking “near-home” vacation spots. Plus, its business
outside the US represents the largest percentage of business and
arguably the most important growth driver. As a fellow sharing
economy technology player focused on the short-term rental market,
Airbnb’s trading activity, direction, and valuation should serve as
a proxy for WSGF’s shares both in the near term and going forward.
Clearly, this bodes well for
investors.
Relative
Unknown: Until
recently, Vaycaychella has been a relatively quiet enterprise. With
the launch of the P2P app in beta, and with additional deals
planned ahead, we expect Vaycaychella, and in turn WSGF, to receive
a much higher profile, adding value to shareholders.
Hidden
Value: The
Company’s current loan portfolio is collateralized by $12M in
property, including homes and boutique hotels. Not only does this
limit downside risk but it illustrates potential underlying value
of the properties to the Company. In addition, this figure gives
investors a view into prospective loan servicing cash flow for the
current portfolio and the type of financeable properties going
forward. We expect more closings throughout 2021, increasing
the value of the overall enterprise. Separately, it doesn’t hurt
that the stock trades above its 50 and 200
DMAs.
Innovation: Based
on our due diligence, there is nothing like Vaycaychella operating
in the short-term rental property market today. While this may be
an intangible characteristic, it is a key cog in the Company’s
success.
Valuation: In
our view, valuation will be driven by news, development, and
onboarding milestones, as well as revenue generation. Over the next
few months, we expect new markets will be opened and additional
properties will come online for financing, loan servicing revenue
and potentially other streams as well. App development, the
onboarding of investors, owner/operators, properties, etc. will
serve as key milestones throughout the beta, as will the soft
launch or full launch, which should occur in about six months or
so. Interestingly, a cursory review of private P2P app companies
indicates that when apps evolve from Beta to Launch stage, a number
of private firms are in the Series B funding stage. With a median
$21M pre-money valuation for this stage, according to KPMG’s 3Q20
Venture Pulse report, our roughly $18M valuation projection is
affirmed.
Finally,
although some revenue will be booked in 4Q20, our focus is on 2021
and 20222. Thus, we preliminarily project 2021 revenue of around
$500,000. (It depends on property acquisition timing, app
onboarding, new services, etc.). We believe at least half of this
figure could come from Company-financed properties alone. For 2022,
we project $4M in revenue. Revenue source opportunities will be key
in getting a firm handle on this figure, as we expect new services
such as credit card processing or ecommerce product sales to be
offered sometime in 2H21. As illustrated in Table I in the
Valuation section, the current average Price/Revenue multiple for
the WSGF peer group on next year’s sales is 5.5x. By assigning a
20% discount to this multiple for our 2022 forecast, our six-month
target is again confirmed. Moreover, Price/Revenue multiple
expansion is in the cards next year as
well.
Analyst Buying
in Open Market: Since 1992,
the analyst has only twice bought shares in the open market of a
stock under coverage. However, the WSGF opportunity appears
to be extremely compelling. As a result, the analyst may purchase
shares in the open market once a 48-hour window has passed
following the release of the report. If shares are purchased, the
amount and price per share will be disclosed in future reports and
updates.
Our 6-month
price target of $0.20 and is based on a Price/Sales multiple
discount to WSGF’s peer group, among other
factors. We
expect a series of milestones, multiple revenue streams, and novel
innovation should drive WSGF’s stock markedly higher over the
coming months.
Goldman Small
Cap Research has recently published research analyst reports on
Solar Integrated Roofing (SIRC),
iQSTEL (IQST)
and Electro Medical Technologies (EMED) among other
companies. To learn more about Goldman Small Cap Research,
visit https://www.goldmanresearch.com/.
To learn more and keep up with the latest
updates at Vaycaychella, visit https://www.vaycaychella.com/.
At the company website, you will find a blog with frequent industry
publications on the short-term rental market in general, as well as
entries specific to Vaycaychella.
Disclaimer/Safe Harbor: This news release
contains forward-looking statements within the meaning of the
Securities Litigation Reform Act. The statements reflect the
Company's current views with respect to future events that involve
risks and uncertainties. Among others, these risks include the
expectation that any of the companies mentioned herein will achieve
significant sales, the failure to meet schedule or performance
requirements of the companies' contracts, the companies' liquidity
position, the companies' ability to obtain new contracts, the
emergence of competitors with greater financial resources and the
impact of competitive pricing. In the light of these uncertainties,
the forward-looking events referred to in this release might not
occur.
WSGF
Contact:
William “Bill” Justice
bill@vaycaychella.com
(800) 871-0376
SOURCE: goldmanresearch
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