Investview, an extremely rare penny stock opportunity – Published June 20, 2019
Investview, a direct marketer of alternative financial products and services in more than 100 countries is an extremely rare short term and long-term penny stock investment opportunity. After reaching a high of $0.037 earlier this year the share price on June 18 and 19, 2019 declined to below a penny on heavy volume. The cause of the recent volatility, which has provided an exceptional opportunity to purchase shares at ridiculous prices, is a hedge fund who is selling 100 million shares into an illiquid market.
What is exciting about Investview is that earlier this year the company entered the robo trading industry and launched Apex, a new investment product which yields 22% per annum. The company also entered into a joint venture to market and sell the Apex product.
The two new product categories will enable the company to continue to report record revenue and to be profitable in its current fiscal year ending March 31, 2020. Based on my analysis of the joint venture I believe that its possible for Investview’s recurring revenue to reach $40 million per month by 2021. The share price has the potential to exceed $0.10 by end of 2019 and $1.00 by sometime in 2020. My share price projections could prove to be conservative since its well positioned to be a major player in Big Data Analytics, which will become the premier technology industry in the next decade. Therefore, the price and sales multiples that analysts could potentially utilize to value the future share price could be very high.
Both of Investview’s two new product areas, Big Data and robo trading enable its 15,000 distributors to address a growing group of global millennials who prefer to manage their own investments. Additionally, the crypto currencies entering the world stage in 2017 created a new generation of individuals who inclined to trade. They now seek products and services to provide them with an edge to trade crypto and foreign currencies, stocks, options, commodities and futures. Investview’s robo trading products are Equity Pro Alerts and Wealth Builder. For more about the robo products see company February 13, 2019, press release “Because Life is Complicated Enough: Investview Enters Robo Trading Sector”. Apex which addresses the Big Data Analytics industry is the product that will be coveted by investors and it will drive Investview’s share price to new highs by the end of 2019.
The Big Data Analytics industry is projected to grow at a 29.7% compound growth rate to $40.6 billion by 2023, from $8.5 billion in 2017. In the new decade beginning 2020 most businesses will not be able to remain competitive unless they have the ability to quickly analyze large quantities of real time data. A good example of a business which uses big data analytics is Wal-Mart, who utilizes computers to determine inventory replenishment, pricing, and consumer behavior, etc. See Forbes, “How Walmart Is Using Machine Learning AI, IoT And Big Data To Boost Retail Performance”. Since big data analysis consumes significant computer power it requires that significant capital expenditures be made for specialty hardware by any business that intends to utilize big data analytics. See Infoworld, “Big data demands more than commodity hardware” and “Wal-Mart gaining on Amazon using big data a massive new server farms”, Enterprise 360.
Investview’s goal is to become a leading provider of big data analytics to small and medium size businesses. The company has deployed a unique dual wholly owned subsidiary strategy to capitalize. Its direct marketing subsidiary Kuvera LLC (“Kuvera”) markets and sells its APEX chip or processing cards to investors for $11,000 per card. Investview’s SAFETek LLC (“SAFETek”) subsidiary then enters into a 60-month lease with each investor at a rate of $500 per month which is equivalent to a 22% compounded annual return on investment. Since the investor purchases a piece of equipment with a serial number the investment can be depreciated by a US investor to increase his or her after-tax return. Since the investment is an equipment purchase the buyers of the equipment do not have to accredited investors and the distributors are not required to be licensed to sell investments. SAFETek is going to leverage the balance sheets of hundreds of thousands if not millions of individuals to enable it to have the equipment in place to become a leader in big data analytics.
Below are the key facts that I pulled from Investview’s March 18, 2019, “The Bull is Big Data” press release about the launch of APEX and its SAFETek subsidiary entering into a joint venture:
- SAFETek, under the joint venture agreement, is obligated to reinvest a majority of its profits from sales of the cards and the revenue from the cards it leases to purchase processing cards. Thus, based on my calculations, the cards which SAFETek owns will quickly outnumber the cards it leases.
- The projected monthly gross revenue for SAFETek per each Apex chip or processing card is $1,250.
- The break-even monthly revenue per card starts at $527 and based on the projections, which include SAFETek’s reinvestments, it will decline to $327 at the point at which the first profit threshold for the joint venture is met.
- Apex processing cards can be utilized to mine for Alt-coins which can be easily converted into Bitcoins.
- Proformas indicate that within 24 months SAFETek could have as many as 36,000 Apex units generating monthly revenue in excess of $38 million.
- SAFETek has the ability to scale rapidly to over 100,000 APEX units.
In my review of Kuvera’s marketing materials, I learned that a purchaser of an APEX processing card can opt to purchase a Lloyds of London insurance policy for $2,750 which guarantees the purchaser the full repayment of the principal and the insurance premium in the event that SAFETEK becomes unviable. The insurance makes it much easier for the Kuvera distributors to sell the Apex cards. Another factor to consider is that Kuvera’s distributors are experienced at selling crypto currency mining equipment. Its nine months ended December 31, 2018, reflect that $2.5 million of its revenue was from the sales of crypto currency mining equipment and services.
SafeTek is in a great position to have its cake and eat it too. The wholly owned subsidiary can utilize the cards to produce revenue from selling bitcoins until it grows its base of big data analytics clients. Obviously, investors have missed this since the price of its shares are closer to their 2019 low than high. Yet the price of a bitcoin has increased from $3,988 on March 18, 2019, the date of the press release to $9,059. The 127% increase for Bitcoin has significantly increased the revenue and profit margin for per processing card and profit margin of SafeTek’s leased and owned processing cards are producing. This will only accelerate the timetable for the joint venture to reach its $20 million in pre-tax income target.
For its nine months ended December 31, 2018, Investview reported net revenue of $23,342,603 and a loss from operations of $2,885,092 as compared to revenue of $10,529,005 and a loss from operations of $9,330,838 for its same comparable year earlier period. Due to adjustments to their distributor compensation plan and their new products, I am projecting record revenue for the company for its March 2020 fiscal year. Distributor compensation accounted for 74.1% of revenue for the nine months ended December 2018, as compared to 79.5% for the prior nine months. For its third quarter ended December 31, 2018, distributor compensation accounted for 65.7% of revenue as compared to 74.7% for the prior 2017 quarter. According to a document that the company filed with the SEC it is projecting that it will eventually be able to reduce its distributor compensation margin to 60%.
Investview’s share price has been under pressure since it entered into a transaction to raise a maximum of $1 million from Triton Funds. The price that Triton, a hedge fund will have to pay for the shares that it is now selling, will be determined at the close of the market on June 20, 2019. Since I believe that Triton will have sold most if not all of its shares by the close of June 20, 2019, I anticipate that the share price will quickly recover to above one penny by the end of June and two pennies by end of July.
Since Triton still has more than 50 million shares that it can sell, I recommend that limit orders be utilized on today, June 20th to purchase shares. My suggested limit order price is $0.005, which is a half a penny. Updates on changes to the price limit will be sent to Shiny Penny subscribers by text throughout today.