EFactor Group Corp.
is the owner of a group of entrepreneur-focused service companies, as well as
EFactor.com, a niche social networking platform designed to provide content and
resources for entrepreneurs. Through EFactor.com, EFCT allows entrepreneurs to
interact with mentors, investors, peers and resources through the use of a
proprietary algorithm created to help them connect with the right people. In
addition, the company provides knowledge, facilitates funding preparation and
reduces business costs through a mix of online social networking and offline
domestic and international events. The company’s subsidiaries include EQMentor,
MCC International, HT Skills, Member Digital, GroupCard BV, ELEQT Limited and
Robson Dowry Ltd.
EFactor.com is
currently at the core of EFCT’s business plan. The site is designed to provide
end-to-end solutions for entrepreneurs with growing businesses through a unique
interaction platform. In November 2014, SeeThruEquity declared the company a
market leader in the niche for social networks for entrepreneurs whose members
are business owners in a network dedicated to their requirements.
EFCT is currently
pursuing an aggressive acquisition strategy. Following the purchase of two
companies in 2013, EFCT targeted the acquisition of eight companies in 2014
with five completed as of November 2014. The company’s primary acquisition
targets offer products and services for entrepreneurs and provide the potential
for substantial revenue growth, a strong history of profitability and healthy
product margins. SeeThruEquity predicts that the aggressive acquisition
strategy will lead to significant increases in revenue and earnings over the
next few years, as well as expansion and enhancement of current products and
services.
With a relatively
new and rapidly evolving niche market, EFCT has potentially enormous market
potential. The number of entrepreneurs around the world is currently estimated
to be near 470 million, which could lead to millions of new hires and
newly-created jobs in the coming years. This expansion provides companies
servicing entrepreneurial networks, such as EFCT, with enormous growth
potential in the near future. With the advantage of having the first and only
entrepreneurial network of its kind, EFCT is in prime position to capture a
large share of the rapidly expanding sector.
EFCT currently
generates revenue through a combination of membership fees, sponsorships,
advisory services, public relations and advertising. The company’s recent
acquisition of multiple profitable companies has certainly contributed to its
top line, and continued growth is expected as a result of the strong synergy
the new subsidiary companies share with EFCT’s primary business line,
EFactor.com. Analysts expect continued growth as a result of the recent surge
in the entrepreneurship market. With the company’s acquisitions providing
increased tools and services serving the entire gamut of business needs, demand
for EFCT’s services is expected to increase from 1.3 million subscribers at
present to 5 million subscribers by the end of 2016.
Utilizing discounted
cash flow analysis and peer group multiples, EFCT was given a fair market value
of $1.85 per share as of November 2014. Relative to its current price of $0.11,
this valuation represents an upside potential of 1600%. When evaluated on a
peer group valuation, EFCT was given a fair value range of $0.68 to $0.80 per
share. With the company’s recent acquisitions of profitable and related
businesses, EFCT is expected to significantly ramp up its revenue throughout
this year. SeeThruEquity has predicted significant improvement of the company’s
valuation multiples over the coming months.
EFCT operates in a
relatively new and unproven market, and, while the company may face headwinds
in developing a scalable technology infrastructure that can effectively handle
increased member usage, a lack of direct competition puts the company in a
strong position in the rapidly expanding entrepreneurial services market. With
a unique platform and aggressive expansion plans, EFCT is putting itself into a
firm position to deliver high operating margins as its revenues increase in the
coming years. With operating margins of 18% forecasted for this year and growth
to 52% expected by 2019, EFCT is placing itself firmly at the top end of its
market and positioning for a bright future.
For more
information, visit www.efactorgroup.com
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