Beverly Hills Group Inc. (OTC:BHGI): Penetrating The Mexican Market

Apr. 28, 2016 4:42 PM ETBHGI
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Summary

  • A short article on BHGI, a holding company that is tapping the Mexico/Latin America Markets.
  • Using an American Public Company (BHGI) to allow Mexican Businesses to go Public.
  • The huge Mexican Market is virtually untapped by Public Companies.

Tapping into the Mexican Market has to date been minimal, which is unfortunate given their economic growth. One entity that is giving it a go is Beverly Hills Group Inc (BHGI), a holding company, that recently completed the acquisition of a Mexican company.

On April 18, 2016, BHGI acquired Operadora de Servicios GRM which is a part of Grupo Richard. Grupo Richard is a conglomerate involved in retail sales, real estate, construction and banking/finance.

The company has stated it will acquire 4 more businesses from Grupo Richard, with the next one being in the final stages.

One could make the argument that all of Grupo Richard is going public through BHGI, since they now own 26% of the company.

BHGI has spent the last 2 years cleaning house and getting its affairs in order. The latest milestone was releasing 2013 and 2014 audited financials, done by WWC, P.C. Certified Public Accountants.

The company has also started filing 8K's as they progress.

The share structure (verified with the Transfer Agent on April 19, 2016), is attractive at 300M Authorized, 118M Outstanding and 91M restricted, leaving a 26M Float.

While still at the 'Current' Tier Level at OTC Markets, the company has indicated they are working towards OTCQB Tier Level, and eventually uplist to a higher exchange.

BHGI has hired Sichenzia Ross Friedman Ference LLP as their Legal Team, and Acorn Managemen Partners as their Investor Relations Firm. Both of these have an impressive reputation.

One interesting factoid is that the head of Grupo Richard owns a Polo Team.

Projection:

Short term: At current price of .10 this could be a nice mover.

Long term: If they succeed this could go to multiple $.

Risk Reward Ratio.

Given the high quality teams that BHGI has hired, and at a current share price of .10, and a 26M float, the risk seems minimal. And if they pull it off and bring all of Grupo Richard into the company, the rewards could be significant.

Any new endeavor is like climbing a mountain, so maybe BHGI is the Little Company that could.

Disclosure: I am Long BHGI.

Analyst's Disclosure: I am/we are long BHGI.

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