INVESTMENT THESIS
A significant value creation opportunity for SRER shareholders comes from SearchCore’s now completed corporate pivot from technology provider to becoming a major independent...
NBT Equities Research: Initiating Coverage on SearchCore, Inc. (SRER) with 500% Upside
Searchcore…via its Wisdom Home of America subsidiary…has a big audacious mission: to become the largest independent manufactured home retailer in the U.S. by opening 30 retail centers in Texas and surrounding states over the next 60 months.
The game plan is simple: meeting the significant growing demand for quality, affordable residential housing in their respective markets with unique home/lot packages affordable across the income and credit quality spectrum.
2014 updates include:
· Brent Nelms, a 30-year manufacturing home retail sector veteran joined Wisdom Homes to oversee our retail growth. Brent has successfully overseen the operations of 33 retail centers generating greater than $100 million in annual revenue.
- Opened 4 Manufactured Home Retail Centers in Texas.
- Generated quarterly revenues of $50,000 and $350,000 in Q2 and Q3 respectively and anticipate exceeding $700,000 in Q4.
· Secured a $500,000 inventory credit facility in April that was increased to $1.2 million in June and increased again to $2 million in October.
- Purchased 15 residential lots near our Tyler location and have begun marketing the lots to our clients.
- Increased model home inventory to 22.
- Established a $200,000 Special Purpose Fund to provide customers access to short-term bridge financing,
- Created non-traditional and alternative mortgage programs and "In-house" financing options.
- Established a $200,000 Spec Home Fund providing home owners with a land/home packages
"In 2014 we built the foundation for our model retail centers which is based on quality, affordable housing for just about anyone interested in owning the American Dream. And we plan on continuing our growth throughout 2015 and beyond," stated Jim Pakulis, CEO of Wisdom Homes of America.
Here is our full SRER research report and .30 cent price target.
Plus our exclusive interview with the CEO of Searchcore.
Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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