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Investview Looks Bad Under The Hood

Apr. 09, 2021 1:25 PM ETInvestview, Inc. (INVU)BTC-USD36 Comments


  • This Bitcoin miner posted a net profit of $1.7 million in Q4 2020, but the good result is due to a debt extinguishment gain.
  • Investview’s working capital and shareholders’ equity positions were negative as of December.
  • I think the business isn't worth much in its current state and that the company is a sell.
  • Even if Investview somehow manages to reach a hash rate of 1,250 PH/s, it still looks expensive compared to competitors.

Investment thesis

Investview (OTCQB:INVU) is a small fintech company that recently shifted its focus to Bitcoin (BTC-USD) mining through a subsidiary named SAFETek. At first glance, this seems to have been a prudent move as Investview managed to swing to a net profit of $1.7 million in Q4 2020 from a net loss of $3.8 million a year earlier.

However, the reason behind this profit was a one-off gain from the extinguishment of debt and the operating profit margin was negative. Also, the company had negative working capital as of December.

Investview is valued at $1.78 billion as of the time of writing but I think the business could be close to worthless in its current state. Even if the company manages to accomplish its growth objectives, its still seems overvalued compared to competitors. This one looks like a sell.

Overview of the business

In its own words, Investview aims to provide financial education tools, content, research, and management of digital asset technology that mines cryptocurrencies, with a focus on Bitcoin mining and the generation of digital assets.

So, what does this mean? Well, the company currently has two main subsidiaries - iGenius and SAFETek. The former was previously known as Kuvera and is an e-learning firm focused on the cryptocurrency, equity, and forex markets.

(Source: iGenius)

However, Investview's subscription revenues have been dropping in FY21 and the company now generates the majority of its revenues from cryptocurrency mining. This is where SAFETek comes into the picture. Investview used to sell high-powered data processing equipment through a subsidiary named APEX Tex and then the customers leased that equipment back to SAFETek. This was pretty much the same as the sale and leaseback transactions that are common in the real estate sector.

(Source: Investview)

The APEX program was launched in August

This article was written by

Gold Panda profile picture

Gold Panda has been working as an M&A analyst for over 11 years. He's been investing since 2007. Preferring value to growth, he tends to take a relatively conservative approach in his investing. His focus is on small and micro-cap stocks, which he believes is the area which offers the greatest opportunity to exploit market mis-pricings.

Gold Panda is part of the team that runs the investing group Microcap Review. He provides a real-time portfolio to the group. Microcap Review focuses on three areas of opportunity in the micro-cap space: arbitrage and special situations, net-nets and undervalued stocks. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (36)

An interesting take.

However, the reason behind this profit was a one-off gain from the extinguishment of debt and the operating profit margin was negative. Also, the company had negative working capital as of December.

Investview is down more than 50% since April. Bitcoin down comparably but seems to be stabilizing now while INVU is continuing down. Anybody have insights or comments? Thanks.
Palindrome44 profile picture
Okay 👌🏼 folks !! Its bottomed out at .200 !! Now , get ready for lift off !! Their coin “NDAU” ( pronounced “ N-DOW “ ) . If you guys do not know ?? Remember these words !! This company will go extremely far in the near future, due to the “NDAU COIN “ and their awesome team managing it all !! I’ll explain!! Its literally the only of its kind out of the 7,000 plus coins !! Its a stable coin , but we all know stable coins never go up in value !! Well , “NDAU” was built to be a stable coin but with all the growth opportunities as other coins , long story short !! As of today on a Wednesday, 19th MAY 2021!! The coin is up 42% today , right after Bitcoin and every other coin in the top 100 is in the RED , dropping a staggering 20% -30% and some more than that !! It’s on Bittrex , and two more know name sites as of yet to purchase and then move over to your NDAU WALLET you need to download on the Apple App Store !! DO NOT GET BLUFFED OUT BY THE HARSH REVIEWS RECENTLY REGARDING INVESTVIEW !! ABE READY !!....
pbppbp profile picture
Peter Reznicek Disagrees.
Gold Panda profile picture
Well, this escalated quickly
Dr. Piz profile picture
Gold Panda profile picture
@Dr. Piz dropping like a rock
Dr. Piz profile picture
@Gold Panda it’s all good Mr Panda! I’m in at $0.10 and consider it as my spec play in my portfolio of 25 stocks
Gold Panda profile picture
@Dr. Piz live long and prosper
Platypussy profile picture
This looks like a fine short but one has to consider the cost of borrowing is about double the advertised rate. While a fee of 24% can be tolerable in the short term one needs to consider that this is effectively a 50% fee after the broker has done their magic.

First, they round up to the next highest numeral which in this case means 50c becomes 1.00. Then they multiply the # of shares x $1.00 x 1.02 (2% for extra broker profits).

This is a significant, but overlooked, consideration particularly with penny stocks, ie- < 5.00. It's especially true the closer they trade to the round number below them. For example two stocks charging 25% interest, one trading at 1.10 and the other at 1.90, will both be rounded up to 2.00 for purposes of assigning a dollar value being charged interest.

Put another way, if short a stock at 1.00 it doubles the difference whether it closes at 1.00 or 1.01 . . . . particularly Fridays!
Gold Panda profile picture
@Platypussy That doesn't sound right. Is it the same with major brokers like Interactive?
Platypussy profile picture
@Gold Panda I've seen the exact same formula applied by IB, AMTD and Fidelity which leads me to conclude that it's standard practice.

But don't just take it from me-


The additional 2% is nothing but the rounding up is a major factor to consider particularly with stock 5.00 and below.
Any comment on today's announced results? lol.
Gold Panda profile picture
@hamvestor Yeah, all talk about revenue and no mention of profit.
Harris L. Berenholz, CFA profile picture
I think that your “look under the hood” is deficient in that it focuses solely on the past and not the present and future. I am an owner of INVU shares and I strongly disagree with your conclusions that “the business is close to worthless in its current state…Investview is significantly overvalued”

You fail to discuss and evaluate the new direction of the company. You make no mention of the enormous earnings potential for the following new income streams currently underway, above and beyond the Bitcoin promise (about which you appear to feel somewhat lukewarm):

• Exclusive marketing distribution rights to NDAU, the world’s first adaptive digital currency which has the potential to become the next generation Bitcoin. “ NDAU is a decentralized digital asset, with a trusted ecosystem where NDAU holders digitally self-govern and where NDAU has the freedom to rise with increasing demand while mitigating downside volatility…world’s first adaptive digital currency optimized for a long-term store of value with attractive staking rewards for holders…specifically designed to be less volatile when held over the course of many years.”

NDAU’s market cap already is over $100 million. Investview directly purchased $1 million of NDAU.

• Acquisitions of SSA Technologies broker dealer and MPower Trading, owner of Prodigio, a proprietary software-based trading platform with applications for the brokerage industry. Prodigio is an extremely popular trading platform whose licensing agreement with TD Ameritrade ended recently and now will be available only on the SSA Technologies broker-dealer.

Harris L. Berenholz, C.F.A.
Gold Panda profile picture
@Harris L. Berenholz, CFA I think all the points you listed are inconsequential. Feel free to write a bullish article
pbppbp profile picture
@Gold Panda snark snark lol what a nice way to brush off a well written response. Inconsequential? Lol. New income streams are not “inconsequential”...
Gold Panda profile picture
@pbppbp Sure they are. How can you avoid cringing at statements like "the world’s first adaptive digital currency"?
loganshippy profile picture
This article is very 1 sided...

When judging InvestView you have to look at past revenue, current revenue, and potential revenue over the next few years.

I am extremely bullish on InvestView.

The CEO Joseph Cammarata has had tremendous success in the past. Building and exiting companies for hundreds of millions. It's smart to bet on winners... because winners find a way to win.

SafeTek mining revenue has been significantly increasing month after month. Over $3.1mm worth of bitcoin in March...the company is holding the bitcoin, and not selling it. If bitcoin hits $300k+ per coin like a lot of crypto analysts are predicting... then share price will likely increase by A LOT.

iGenius has tens of thousands of sales reps around the world.. and yes it sells "monthly subscriptions." But now iGenius is pushing sales for NDAU. The worlds first adaptive crypto currency. The agreement between Investview / iGenius / NDAU is powerful to say the least.

Investview is holding over $1mm worth of NDAU crypto currency right now, and NDAU is designed to steadily increase in price while mitigating downside volatility. NDAU has the potential to reach thousands of dollars per coin...

Additionally, InvestView just acquired a Stock / Crypto broker called "Level X."
Imagine if Robinhood and Coinbase had a baby. That's what we are looking at...

If you know anything about brokers, they can be very very profitable.

InvestView is NOT just a bitcoin mining company...

Get ready for a wild ride 🚀 #bullish
Gold Panda profile picture
@loganshippy pffffff

"tens of thousands of sales reps around the world."
Palindrome44 profile picture
@loganshippy ....does level X have a ticker sign yet ?? InvestView off to the moon rocket 🚀 🌚 soon 🔜!!..
Platypussy profile picture
@loganshippy I should think that if BTC hits your target of '$300K+' there are plenty of better vehicles to ride than this burro.
Pump n dump. Thank you hope
People listen
bazooooka profile picture
Fintwit bros can spike this one but I'd avoid as an investment. Fun for traders though.
You should do a 2020 review of your bearish calls. Most of them are correct or will wind up being correct.

People get mad but your honestly just removing all the gloss off of everything they have been fed, I've been in a few of them & knew I was only there for quick cash ins on hype.

I feel more than telling people to short, your just saying be careful/get out.

Always looking forward to your articles, Can we get a piece on segi?
Gold Panda profile picture
@michael filly I was thinking of doing that around June, but on the 2021 articles. On the OTC ones at the moment I'm correct for 12 out of 14. Peter Lynch would be proud :)

About segi, the share price is very low, would be almost impossible to get through the editing process. I'm open to covering anything above $0.20 per share, but preferably over $0.50
Gold Panda profile picture
@michael filly So, maybe BTCS and KSHB are worth writing about at the moment. I'm open to suggestions
i hold investview - ok size position. so this popped up on my IBKR news feed.
i looked through your posts...and nearly all of them were bearish on every company you wrote about. so may be its just your inner bearish-ness. :)
@ephi144 but this guy is 12 of 14 on bearish calls...that is pretty good.
blahhhhhhhhh profile picture
@ephi144 yea this company is kind of hard to research, but it really is a shady multi-level marketing scheme. That's not to say it won't still go up... I can't tell if they have a lot of bots writing comments or an actual cult following (same applies to "ndau... the world's *first* adaptive cryptocurrency")... I will agree in general that writers who are ONLY looking for bullish or bearish opportunities often have a self-defeating bias. but if anything, this article takes investview TOO seriously.
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