WSGF - Vaycaychella Announces Goldman Small Cap Research RPT And $0.20 PPS TGT With Airbnb IPO Presented As Proxy And Comp

DALLAS, Dec. 8, 2020 /PRNewswire/ -- 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 with short term rentals like Airbnb, along with crowd-sourcing and P2P investing and lending platforms such as Indiegogo and LendingClub.

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
[email protected]
(800) 871-0376

SOURCE World Series of Golf, Inc.