World Series of Golf (OTC: WSGF) is consolidating after a sharp rally last week that took shares higher by more than 560%. Volume remains high, and the stock is trading at roughly $0.03 a share at publication time, holding its bullish trend with shares gaining approximately 200% since the start of the month.
Investors took interest after a Goldman Small Cap Research report set a 12-month price target suggesting a more than 800% increase for the stock. Their thesis is built on an acquisition and development strategy already in place at WSGF that is expected to send revenues sharply higher during the next few quarters. In fact, WSGF announced on December 15, 2020, that its subsidiary, Vaycaychella, experienced a robust response to its recent beta-testing of its innovative sharing app that unites investment opportunities and property owners looking to acquire, operate, and manage short-term vacation property rentals.
Early stats from the performance were said to be impressive. They were reportedly strong enough during beta-testing to cause management to project that the app can help generate more than $100 million in revenue during the first twelve months following the full market launch of the peer-to-peer (P2P) application. Its design is key to its success.
The app will fully automate the connection of short-term vacation property buyers with investors. More importantly, the design helps expedite investment and development opportunities and eliminate the logistical hurdles associated with conventional short-term financing.
Moreover, the timing for WSGF may be right. The Airbnb IPO (NASDAQ: ABNB) was an enormous success, and the 64% gain in Bookings Holdings (NASDAQ: BKNG) stock price since April shows that the sector is not only red-hot, but also ripe for exponential growth for the companies that understand the space. Vaycaychella does.
Recent Acquisition Of Vaycaychella
Moving quickly, the company completed the first of many planned acquisitions. World Series of Golf, Inc. already announced its acquisition of Vaycaychella, a three-year-old business focused on financing short-term vacation rental properties outside of conventional financing channels. The deal will leverage a state-of-the-art sharing app, which they think can be a better option than Airbnb, Booking.com, and Vrbo, to seamlessly connect investment-minded entrepreneurs with compelling opportunities in the short-term vacation property rental business. In simpler terms, it connects buyers, sellers, and investors, and more importantly, puts the investment vehicle in place that allows all parties to monetize their interests.
Additional value-creating services are also in development. The first is its global payment solutions service that will provide property hosts a comprehensive ability to receive and make payments associated with operating one or more short-term vacation properties. Its function will help eliminate the complexities of managing multiple properties and facilitate seamless transaction functionality, especially for owners that operate international properties. That convenience is especially important.
Addressing that point, Forbes published an article that exposed the challenges of inefficient global payment systems used for short-term vacation property owners and operators. They especially alluded to the likelihood of weak payment platforms having the ability to interfere with an expected spike in global business and leisure travel in 2021.
They also noted that while an effective rollout of the Covid vaccine may cause a surge in travel, it can unintentionally exacerbate the existing challenges facing short-term vacation property operators by exposing their dependency on outdated and inefficient global payment systems.
They also highlight other shortcomings of current payment platforms, including the complexity of banking in emerging markets, the risk to payment systems from organized hacker attacks, and the expenses associated with multiple currency exchanges.
Vaycaychella's strategy is to meet and defeat those challenges head-on.
Plans To Launch Visa Card Solution
One approach is to capitalize on the inefficiency of many international rental markets. Targeting that weakness, Vaycaychella is planning to launch a global Visa Card solution that goes beyond managing receivables. The card will have comprehensive features and is expected to be a valuable tool that allows each hosting account to manage expenses for each short-term rental operation.
On December 17, 2020, the company noted that the Visa Card solution for hosts is only the first of several planned global payment system solutions being designed to specifically support what they call "rentrepreneurs."
They also brought attention to additional projects already underway to provide revolving credit services to help operators manage cash flow. A Vaycaychella pre-paid Visa Card is also in the works, with its goal of allowing hosts to offer over-the-top services by assisting renters in managing currency exchange transactions.
The overall plan is comprehensive, and WSGF and its subsidiary Vaycaychella, are putting the pieces in place to emerge as a strong niche player in the sector. The ambition, though, is to grow from niche status to a competitive leader.
Taking On A Massive Market
Emerging companies take small steps to become significant players. WSGF is taking that approach. They recently announced a capital transaction that will reduce balance sheet debt by $1.25 million in a deal expected to be completed by the end of the month. Other changes are happening, as well.
The company is also making a corporate name change in conjunction with its new Vaycaychella business focus. The new branding will reflect its direction and better associate its available short-term financing alternatives for vacation rental property owners and investors.
Vaycaychella's mission is ambitious, but they are targeting a market that expects nothing less. WSGF management believes in their path and thinks their comprehensive sharing-app technology will empower entrepreneurs to get into the short-term vacation property rental business.
The stock may be off its highs this week, but holding on to its more than 200% gain shows that investors like the plan. Now, it's a matter of execution and taking advantage of a multi-billion dollar market opportunity.
Disclaimers: Hawk Point Media, a subsidiary of Soulstring Media Group, is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Hawk Point Media has been compensated by a third party in the amount of three-thousand-five hundred dollars to produce and syndicate this content. The author of this content is LONG World Series of Golf, Inc. (WSGF) stock but will not sell shares 5 days before or after the publication and syndication of this article. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Mediastrongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company Name:Blue Hawk Media, LLC
Contact Person: Kenny Feigeles
Email:editorial@hawkpointmedia.com
Country: United States
Website: https://www.soulstringmedia.com
