Peter Epstein Blog | Is CUV Ventures On The Verge Of Greatness? | Talkmarkets
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Is CUV Ventures On The Verge Of Greatness?

Date: Friday, January 4, 2019 9:52 AM EST

How many times have you heard of a company that’s in the midst of a paradigm shift?  A sea change?  A leader in a disruptive industry?  Those companies are quite rare and when the rubber hits the road (for instance the achievement of meaningful revenues & profitability), most touted companies fail to reach sky-high expectations.  

We are currently seeing this unfold in the cannabis/hemp (and closely related) sectors.  There are over 300 names in these sectors and that’s just stocks listed in Canada and the U.S.  Expectations are running rampant, but of the 300 companies, how many will be good investments in 2019/2020?  I’m talking about investment here, not day trading…. How many will be great investments?  My guess is that most will not be good or great! 

Is CUV Ventures on the Verge of Greatness?

One company that sailed through 2018, albeit with a lot of volatility, is entering 2019 in a very promising position. That company is CUV Ventures (TSX-v: CUV).  Led by Steve Marshall and a wide range of experienced executives and advisors, the Company could be on the verge of greatness, on the verge of harnessing technology to disrupt banking and several online industries.  It has not made it yet, but recent events suggest that the Company is on the right track.  Note:  {embedded links in blue are also found at the end of the article}

Most recently the news that its deal with Expedia & Booking Holdings has begun to bear fruit in the form of revenues. Approximately 3 million small hotel establishments, bed & breakfasts and private accommodations currently feature on Expedia, Booking Holdings branded websites.  To be clear, this is not CUV taking business away from Expedia & Booking Holdings, CUV is simply taking over the payment mechanism through which these B&Bs are paid and earning a lucrative 3% fee.  

Through CUV Ventures, property owners or their agents are able to instantly convert Virtual Credit Card (“VCC“) funds into RevoluPAY® e-Wallet funds and transfer the balance to their bank accounts worldwide.  This is important because property owners’ alternative is often a wire transfer which can take up to 30 days and comes with a fee attached.  

“In 2017, Booking Holdings reported revenue of USD $12.7 billion (brands include Booking.com, Priceline.com, Kayak.com, Agoda.com) and Expedia reported USD $10.6 billion (brands include Expedia.com, Hotels.com, Hotwire.com, Trivago.com, Venere.com, Travelocity.com, Orbitz.com and HomeAway.com).”

CUV’s Deal With Expedia & Booking Holdings Looks Promising 

RevoluPAY® processed its first US$25,000 of VCC Cards on the very first day the system was live, receiving a 3% fee = US$750.  Is this what all the excitement is about, US$750???  Even if one annualizes it — US$750 x 365 = US$273,750 — that’s nothing to write home about.  But, it’s early days, this was day 1 of launch, with over 3 million B&Bs worldwide that could use CUVs RevoluPAY®, so the numbers can grow quickly. AND… the profit margin embedded in the 3% fee is stellar.   

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