NEW YORK–(February 21, 2018)– RegAResearch, the only media platform dedicated exclusively to news and analysis of Regulation A+ (“Reg A+”) companies, today announced the publication of two company-specific reports identifying a thriving luxury theater-and-restaurant operator along with a high-risk startup focused on the cryptocurrency industry. The reports are available now at RegAResearch.com.
The first report investigates iPic Entertainment (ticker: IPIC) and finds the stock offers investors a differentiated growth story at a deeply-discounted price. iPic has pioneered the luxury theater-and-restaurant business, with real-estate developers eager to offer up prime locations as it expands. The company makes most of its revenue from food and beverage, leading to the potential for much-higher margins than theater peers like AMC Entertainment (ticker: AMC) or Cinemark (ticker: CNK). It also derives a large percentage of sales from members of its loyalty program, a strategy that has helped drive growth for Starbucks (ticker: SBUX) and other leading consumer companies. There’s more to come: iPic investors should look out for new partnership announcements in addition to its current deal with Netflix (ticker: NFLX) and the possibility of expansion deals overseas.
The second report pinoints the flaws in the business model of Bitzumi, which has filed for a Reg A+ IPO of up to $10 million that would value the company at $288 million, despite being less than a year old and having no revenue. The company, co-founded by self-proclaimed Bitcoin genius James Altucher, says it plans to launch a cryptocurrency exchange. Its listing would follow the recent success of fintech company Longfin (LFIN), whose shares have risen sixfold since its Reg A+ IPO in December amid demand for cryptocurrency plays. But a deep dive into Bitzumi’s plans show that it may pour as much as 40% of its IPO proceeds on marketing and advertising, leaving the complex undertaking of launching an exchange as a second priority. Investors are better off avoiding this crypto-gamble.
RegAResearch is the first and only media platform dedicated exclusively to news and analysis of Reg A+ companies. We are committed to objective journalism as a means to deliver the clearest and most accurate picture of the microcap industry. In an era when misinformation is rampant, we aspire to distinguish between truth and falsehood, along with opportunity and risk. In particular, we aim to identify Reg A+ companies that are supported by robust business models. We will also endeavor to inform investors about companies that they should beware. RegAResearch uses publicly-available information, company interviews, and input from investors to formulate our views.
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