- Company pursuing main competitor Peloton
- Substantially high revenues expected, far beyond that of anyone in the industry.
- Companies Connection to China
- Company leveraging its Foot in China with E-Sports Market
- Companies directors/insiders have bought over 50% of the issued and outstanding shares of the company
- One of the main shareholders, holding over 17%, is the CEO of OTC:TRNF
- Consulting group that has contracts with MacDonald’s and others, now has acquired a 5% stake in TGHI.
One of the hottest markets right now, during the COVID-19 pandemic, is “at-home” fitness systems, and equipment. Undoubtedly the leaders in this sector is Peloton Interactive Inc, which is surging farther than most analysts expected. In fact, Peloton Interactive Inc. said it can’t keep up with surging demand for the company’s technology-focused exercise machines, reporting its first $1 billion sales quarter.
From this, analysts are once again looing for emerging companies which aims to challenge Peloton, but has yet to hit the high flying valuations that Peloton currently has. From looking at a number of high profile fitness influences, there appears to be one company that is making a legitimate attempt to pursue Peloton, and establish itself as one of the worlds premier at-home fitness systems.
Such influences as Lilly Ghalichi, Shiva Safai, Mike Shouhed, Harry Jowsey, Mariana Morais, and Stefanie Gurzannski all have recently mentioned and aligned themselves with the newest fitness app from Touchpoint Group Holdings, Inc. (TGHI), called Royal Personal Training (RPT), which has launched on all the major app stores, and already surpassing Peloton in terms of the positive ratings.
Touchpoint Group Holdings, Inc. (TGHI) is the parent company that owns RPT, and from diving a little deeper into the company, its becomming clear that TGHI is one of the highest potential small cap companies so far in 2021.
Below, we reveal some of the newest due diligence on the company, which most analysts agree with only a 3 million dollar market cap currently, the company is undervalued by a factor of 7.
1st: Substantially high revenues expected, far beyond that of anyone in the industry.
On July 28, 2020, Touchpoint Group Holdings Inc. (“Touchpoint”) published the app “RPT Live” on the Apple® App Store. Since then, it has amassed a almost 5 out of 5 rating on all the major app stores. The subscription is set at $19.99 per month and in addition, the app has a fully populated merchandize store. In both instances, Touchpoint will commence revenues as per the licensing Agreement shortly.
As previously disclosed in a OTC filing, on April 24, 2020, Touchpoint entered into a licensing agreement (the “Licensing Agreement”) with Royal Personal Training (“RPT”) pursuant to which RPT will utilize RPT Live app to live stream classes to RPT subscribers.
This is a substantial finding, as it means the share of subscriber and revenue fees to be paid to Touchpoint starts at 30% and decreases percentage wise as revenue increases until the revenue is in excess of $80 million. Yes, $80,000,000.00.
Part 2: The Company already has a large Connection to China
We looked at the filings for TGHI over the last 5 years, and it appears the company is expected to leverage its already established position in China, with its fitness app, and new venture into E-sports. In fact, the company already owns a number of companies that have been officially incorporated in China.
TGHI owns 100% of Chinese company, Horizon Network Technology Co. LTD, in addition to owning 100% of Love Media House Inc, 100% of Touchpoint Connect Limited, and 51% each of 123WISH inc and Browning Productions Inc.
However, the most significant connection to China appears to be in their most recent filing that shows TGHI owns Suzhou Aishuo Network Information Co LTD. The company further stated that the company controls the Chinese entity by various contractual arrangements.
Part 3: Company leveraging its Foot in China with E-Sports Market
Just recently, the company announced that it is launching an innovative, dedicated platform for E-Sports designed specifically to meet the evolving demands of gamers and their fans. The platform, built in consultation with gamers and fans, will allow for unprecedented customization and content sharing options while minimizing streaming lag-time allowing users a virtual, real-time experience of content.
This coincides with their recent advancement with their Personal Training app, and connections to the Chinese market. The company had the following to say regarding their soon-to-be launched E-sports platform.
By spending this time to really understand each of the most popular games and those who play them, we’ve also been able to create streaming tools to deliver game-specific content from the gamer’s or audiences’ perspective whether its Fortnite ‘building’ or acquiring ‘V-Bucks’ in Fortnite’s ‘Save the World’ module, doing ‘jobs’ to acquire ‘money’ in Grand Theft Auto, or quality ‘watch and learn” training or ‘how-to-win’ strategies across a variety of these top titles from the gamers to watch. All of us at Touchpoint are so excited to deliver for the gaming community.”
Part 4: Companies directors/insiders have bought over 50% of the issued and outstanding shares of the company
From the above, it’s no surprise that there has been a surge of insider transactions. In fact, the total amount of insider transactions has broke past the 50% mark, representing 53.4% of the issued and outstanding shares of the common stock of Touchpoint Group Holdings, Inc.
Part 5: One of the main shareholders, holding over 17%, is the CEO of OTC:TRNF
Interestingly, one of the main shareholders of TGHI, is the CEO of Taronis Fuels Inc (OTCLTRNF), which is currently trading at $3.50 per share, and is listed on OTCQB stock exchange.
Part 6: Consulting group that has contracts with MacDonald’s and others, now has acquired a 5% stake in TGHI.
Recently, BK Consulting Group, LCC purchased a 5% equity position in TGHI. This consulting group is one of the leaders in the world, with such names as MacDonald’s, A&W, PetSmart, Wendy’s and other.
Some of their clients can be found here: http://www.bkconsulting.ca/projects/corporate
From this, it’s easy to see how this small cap company, that is so widely connected and integrated in the Personal Training Apps and E-sports, with major connections spread across China with an army of high profile influencers, is so undervalued. Time will tell if the company can continue to execute on their current roadmap to challenging Peloton, and if they can also become a major