$VERB DD by u/joeskunk
This DD was originally posted on the subreddit r/pennystocks
I recommend people read the full prospectus for that this company offers, how it fits into the market, and the growth opportunity they respresent. For those unfamiliar they are a pure play tele-sales company. Their product combines features of video conferencing, in-app sales, and crm. It is a small company – 34m market cap. For reference, ZOOM is 74B. (Not implying this is will grow to ZOOM size at all. My point – a very, very small company with a LOT of room to grow in an emerging market). They are also releasing a online learning product.
Rather than provide a straight-forward rehash of there investor slides (again, please read) – I will focus on my own interpretation of how they fit an emerging market need based on my own observations. And secondary address the offering and common ‘pump and dump’ criticism that have seemingly spooked investors (and IMO caused solid DD on the company from being removed from this site).
The Emerging Market in Online Courses and Training
Instagram feeds are now filled with ads for free courses.
VerbLive fits this emerging need exactly. I.e. webinars with build in purchasing capability and CRM. I do not know of a product that fits this use case as well.
In app-purchases have been THE trend for games and apps. This may be the start of it for online courses and training – of which there are many.
The Emerging Market in Non-Traditional Online Learning (VerbLearn)
Little talked about is there upcoming product VerbLearn. I see this as being in demand for non-traditional learning programs. ESL, coding camps, countless online training courses, tutoring programs, after school programs. These do not have the same business models as colleges and primary schools, yet they need some kind of platform.
Robustness of Company (Addressing the Pump and Dump Criticism)
The $VERB offering occurred on 7/13. The document is clearly posted on their website along with other SEC filings: https://www.m2compliance.com/hosting/company/myverb/link_files/2020/07-15-2020/FormFWP(07-15-2020)Verb/FormFWP.pdf
There is nothing surprising about the offering – they declared it would happen. This was laid out prior to today’s earnings spike and there was not a lot of abnormal price action occurring at that point.
A raise in and of itself is not an issue. It is a red flag when raising and issuing PR seems to be the companies entire ‘business model’.
This is not the case here. User downloads up ~300% from a year ago. Recurring Saas up ~200%. They had a combined revenue of 2.6m the most recent quarter.
Where is the money going? This is a company expanding and building out a product. Check the staff associated with them on LinkedIn: https://www.linkedin.com/search/results/people/?facetCurrentCompany=%5B5223384%5D . 76 employees – a mix of developers, sales force, and management. This is no shell of a company
Likewise, it is not operating out of some PO box or strip mall as is a pattern with a lot of these vaporware companies. There offices. In Newport Beach, CA 92663.
Bottom Line: This Remains a Relatively Undiscovered CRM Pureplay
Compare IDEX (first chart) with VERB (second chart). With IDEX the number of Robinhood users was driven to 120K as this was promoted prior to crashing.
Now VERB (second chart) – where it appears a mere 3K Robinhood users invested based on the price action associated with an earning report with solid revenue growth. That’s your massive ‘pump and dump’ 3K choosing to invest based on earnings and buzz around that.
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