Everybody remembers the movie pretty woman right? Richie Gere travels to Los Angeles for a business trip focused on buying a ship building company with intentions on tearing it apart and selling off the pieces. That's the business he's in, buying companies, breaking them down and then selling off the parts. Along the way he meets an East Hollywood Street walking hooker and falls in love. So he falls in love and inevitably screws up the deal by growing a business-related conscience. He decides that he's not going to tear the ship company apart and by leaving the company intact lives happily ever after with the hooker.
So that brings me to the comparison of how pretty woman is or isn't like the story of Innovest Global Inc. (OTC:OTCPK:IVST), actually I'm pretty sure it's not in fact I'm going to go with the complete opposite!
Innovest Global Inc. (Stock Symbol: OTCPK:IVST) is headed by one of Cleveland's favorite sons, Daniel Martin. Danny has come up with a game plan by networking business owners in the Ohio and specifically the Cleveland area, with the focus on consolidating as many complementary businesses as possible under one umbrella or holding company if you prefer. So this story starts off with Daniel Martin who stays in his own City, meeting business owners who are leaping at chance to jump into his car, as opposed to Julia Roberts, who needed to be paid in order to get into the car and be part of this growing HoCo (Holding Company).
Now that I have your attention and we formally decided that this is the complete mirror opposite of the Pretty Woman story we can talk about Dan Martin’s acquisition base model. A model which has taken his small publicly traded company from a previous valuation, back in November 2017, of only $3,000,000 to the impressive current valuation, April 4th 2018, of $30,000,000. They are publicly traded on the OTC exchange and if you were curious about the stock price that's essentially going from $0.02 to $0.26 or increases of more than a thousand percent. So Richard Gere travels to LA to buy companies and break them down while Daniel Martin stays at home and buys companies to build them up. Now that I come to think about it, I guess the story of Dan Martin is much closer to Voltron then it is Pretty Woman, but I couldn't help myself to compare the two because they're both great guys and everybody likes a love story!
The Point is that Dan Martin is an incredibly crafty businessman who has added 27 million dollars in value to his company with an acquisition based model in a little less than 6 months. So why aren't acquisition based companies as highly prevalent on the OTC as they are on some of the bigger boards? Is IVST the only real deal holding company to be found with this kind of growth (1200%)? I mean this is the reverse pretty woman and a story where the good guys actually keep companies together or even better, build one giant company. The argument could be made; IVST is one of the most legitimate companies of its kind and can be thoughtfully verified by some of the most recent developments and price increases in the stock.
Without digressing to some of the more recent IVST accomplishments, I’d like to stick with the structure of this Cleveland Deal machine by outlining holding companies in general. I mean off the top of your head can you think of any other holding company right now the trades in a public Exchange that's not Berkshire Hathaway? I'll help you and drop a few names and they all have a couple of things in common: Hertz Global Holdings (NYSE:HTZ), Berkshire Hathaway (NYSE:BRK.A), Humana Inc. (NYSE:HUM), WellPoint, Inc. (NYSE: WLP), Citigroup (NYSE:C) one thing they all have in common is that they adhere to a business model which at its core holds the concept of central management overseeing several or even hundreds of individual business entities. That's the definition of a holding company, which by all accounts, can add value without additional liability. But what makes a holding company successful? Can a CEO like Daniel Corbett with Citigroup simply go out and buy as many entities as possible hoping to add shareholder value? Or is there a more strategic play that makes sense for each of these above listed companies which gives them a competitive advantage? The answer to that is quite simple: complementary businesses coupled with systematic placements of diversity have allowed the largest and certainly most well-known holding companies to become successful. But what about our reverse pretty woman from Cleveland?
If the increase in stock price and market capitalization of Innovest Global in such a short of time any type of indication then I think Dan Martin is done a phenomenal job of doing exactly creating complimentary diversity if that makes sense. He's purchasing phone rooms, biotech companies, and energy Focus Commercial Lighting outfits. So how do any of those things complement each other? Well imagine if you will that as the biotech division partners with Cedar Sinai Hospital and continue its development of brain related illnesses such as tumors that the phone room is actively generating business for their commercial lighting division. I honestly don't think it's going to take long for this not so pretty woman like story to catch really big attention and the love story will be of course investors who buy in low and sell after an anticipated up list, creating their own rags to riches story or in this case could be Julia Roberts. These are just a couple of examples of the type of synergies created by Cleveland's best networker so I urge all of you to do your homework and certainly contact your financial Institution regarding Innovest Global Inc (Stock Symbol: IVST) before they up-list and join some of the actual Pretty Woman comparative candidates listed above.
So in conclusion we love this company and it's nothing like the story of Pretty Woman (although I'll have to check and see if Dan Martin has bought himself a Lotus yet like our boy Richard Gere in the movie), but it has been a love story and it is of course about business. In fact, IVST is creating its own story which I'm happy to have witnessed from back when and it's a story that I'm going to continue watching, just like Pretty Woman.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.