|
Greetings,
Today we are going to be looking at a subbie play with bright green indicators and a technology that has the potential to take a bite out of one of the world’s largest industries. Recently we’ve looked at some “hot chart” plays that had already begun developing their attractive charts prior to our report…
… often a very wise method, yet sometimes it feels like something is being left on the table.
Today's new Mega Play is a bit different: PNOW has fallen recently but the short-term chart is starting to turn green. It used to be at significantly higher levels… and a bounce back to even a small percentage of those higher levels could translate to a gigantic percentage gain from where it is today.
Add PNOW to the top of your watchlist right away
So let’s start there, with the chart, by looking at that short-term, which is starting to heat up:
Barchart Short Term Indicators Average: Green
Short Term Indicators
7 Day Average Directional Indicator: Green
10 – 8 Day Moving Average Hilo Channel: Green
20 Day Moving Average vs Price: Green
Exponential Moving Average: Very Bullish
Moving Average Convergence/Divergence: Very Bullish
Fibonacci: Bullish
Medium Term Indicators
Exponential Moving Average: Bullish
Moving Average Convergence/Divergence: Very Bullish
Three Day Displaced Moving Average: Bullish
Trend Analysis: Bullish
As you can see, the short-term is looking as though it may be in the early stages of building something phenomenal.
But PNOW is a lot more than just a hot chart. In fact, the Company’s innovative technology could very well help PNOW gain a valuable foothold in a $157 Bln market… so let’s take a look at what’s going on with the Company:
Today's new play is Pure Hospitality Solutions (PNOW)
Quote
http://finance.yahoo.com/q?s=PNOW
Website
http://www.purenow.solutions/
http://www.oveedia.com/
Pure Hospitality just released its Annual Filing, and it is not what you’d expect from a Company that closed yesterday at .0029… just over ¼ of one cent.
As a matter of fact, the current and upcoming operations and activities discussed in the filing and in the disclosure statement seem very impressive.
According to the disclosure: As PNOW preps Oveedia for a soft launch (we’ll get into that technology in a moment), and as they expect to complete its arrangement with a new partner Sabre this month, the Company will have immediate access to an additional 125K hotels, 400 airlines, 16 cruise lines and over 25 car rental selections from which PNOW can begin generating immediate revenues.
This relationship with Sabre will afford PNOW the ability to begin mass marketing Oveedia; expanding its visibility to the broader global market, prior to launching the 2nd phase roll-out of its region specific online travel agency (OTA).
"We expect that by mid-August, Oveedia will be into its second phase of the roll out, with the third phase being completed sometime in December. Revenues from OTA operations can potentially begin to occur as early as June. And having already signed on properties to Oveedia, such as Tango Mar Beachfront Boutique Hotel & Villas, our OTA can hit the ground running; immediately featuring properties from within our Central American-Caribbean focus."
Now, as impressive as the upcoming developments are, they are only the beginning… take a look:
"As Pure files 2014 year end disclosures with OTC Markets, this Company is taking huge, progressive steps. Transforming like a caterpillar into a butterfly; which in no way is a pleasant metamorphosis, Pure is painstakingly making all of the necessary adjustments to emerge as a formative competitor in the $30 plus Bln Latin American online travel market."
OK, let’s talk about that statement, as it is immensely important:
This is a subbie we’re looking at, it closed yesterday at .0029. Normally there are good reasons for companies to be at these low levels; which is to say, rarely do you see a company at these levels that has their house in order, there are almost always skeletons in the closet… or sometimes skeletons that everyone knows about.
What PNOW is saying is that they’re cleaning house… in the Company’s own words they expect the “metamorphosis” to be a difficult one, but that they have the ability and the wherewithal to pull through and come out looking like a “butterfly.”
I could not think of a more honest internal assessment from a Company about their current state than what we just read.
But now take it one step further… they’re going on to say that they expect to “emerge as a formative competitor in the $30 plus Bln Latin American online travel market."
Well, now that’s not something you hear every day from a subbie. And that’s pretty much the bottom line… we could have a serious situation in our sights today.
As we discussed up top, PNOW has seen much higher levels in the not too distant past… if it were to bounce to even a fraction of those levels it could be huge.
Operations:
PNOW provides proprietary technology, marketing solutions and branding services to hotel operators and condominium owners. The Company’s vision is to build competitive operations in the areas of 1) online marketing and hotel internet booking engine services, 2) hotel branding, and 3) own, operate and in some instance develop, boutique hotels under the new “by PURE” brand.
The primary source of PNOW’s growth potential lies in its proprietary online booking engine technology solution, FROL (Friendly Reservations Online) (currently being rebranded as ‘Oveedia’). The system provides travelers with an online hospitality search engine which offers a wider range of options to choose from; including independent boutique properties, “by PURE” branded hotels and condominiums, as well as other hospitality venues.
Earlier this year, PNOW announced the Company’s newly re-tooled FROL online hotel booking engine, will be re-launched as Oveedia.
According to PNOW:
“The newly re-tooled FROL system, ‘Oveedia,’ will be more than an online hotel booking engine,” stated Melvin Pereira, President & CEO of Pure Hospitality Solutions. “Oveedia will ultimately become a full service online ‘hospitality’ booking engine. What’s even more exciting, is that Oveedia, will be to the Central American-Caribbean region, what Trivago was to Germany before Expedia’s $600+ Mln acquisition, or Thailand’s Agoda; purchased by Priceline.”
PNOW recently moved to engage the services of the Sabre Travel Network, potentially adding 125k base hotels to the Oveedia platform. Aside from PNOW’s Central American-Caribbean niche, Sabre brings an affiliate network of over 400 airlines, 16 cruise lines and more than 25 car rental selections.
As of late, the Company has been growing its operations through recent and major opportunities in Central America. Now the Company is in a position to acquire, own and operate its own properties - which would be marketed under the new brand with occupancies handled by Oveedia.
Their business model leverages four sources of revenue:
- Initial Membership fees charged to each new hotel and condominium properties joining the “by PURE” lodging brand;
- Monthly royalties from “by PURE” brand locations of no more than 8% of the total internet reservation sales revenue;
- Revenue generated from our corporate owned properties;
- E-Marketing Revenue.
Ultimately, Pure Hospitality Solutions intends to become a top-tier hotel brand operator, Internet booking and marketing service provider. The Company also intends to establish an invaluable international footprint with its online booking engine technology and marketing offerings; making that segment of its business a prime acquisition target for major online travel search and booking engine companies.
Operations are currently focused on Central America, an explosive market that has been receiving a TON of attention recently. In fact, there are several high profile investors and celebrities that have begun investing in Central America:
Leonardo DiCaprio seen the enormous potential this area holds
The Company has an enormous opportunity in front of them and could be perfectly aligned to take advantage of this explosive market:
- The travel market is valued at an estimated 157Bln Dlrs.
- The Central American tourism market is valued at approximately 6Bln Dlrs.
- Barclays Capital forecast that Latin America will lead all world regions in online travel sales growth through 2016, increasing by more than 30% on a yearly basis through 2013.
- eMarketer estimates that there will be more than 278Mln internet users across Latin America in 2013, eclipsing the number of internet users in both North America and Europe for the first time.
Again, it’s one of the world’s biggest industries… and it’s still growing and growing fast. The opportunities here are massive.
Conclusion:
Oveedia provides property owners with a client management system that functions both as an internal management system and as an online fulfillment site for travel agencies all for one low price.
Revenues are derived from booking commissions, advertising (Banners, Listing Sponsor Ads) and Digital Turn Key Solutions.
PNOW’s proprietary technology in tandem with the Company’s recent agreement with Sabre is something to get excited over… basically they are plugging into a massive network from which PNOW can generate revenue.
These are not what we normally see when we put a subbie under the microscope… it seems that PNOW is making the effort to straighten their ship and, perhaps a bit like Andy Dufresne (sorry couldn’t resist), come “out clean on the other side.”
Currently at just .0029 there could be an Enormous upside.
Considering the chart, the technology, the new partnerships, the development and growth, and the internal overhaul… and it’s a subbie… wow, we could have something exciting on our hands.
Remember, this is a subbie and it has shown considerable volatility in the past. Even a small move at these low levels could translate to enormous percentages.
So get started with your research on PNOW right away!
|
