- MKGI just announced $3 Million private placement
- Insiders took down over 20 percent of the offering
- Insider actions are a valuable barometer of future valuations
- MKGI changing trajectory of booming alternative lodging rentals (ALR) market
Tips for beating the market come and go, but one indicator has consistently held up. If insiders such as executives, directors or others with familiarity of a public company are buying or selling shares, investors should consider doing the same thing. Analytical research has repeatedly shown that insider trading activity is a valuable barometer of future stock valuation and market sentiment.
Monaker Group (OTCQB: MKGI), a technology-driven travel company, just announced its entry into definitive documentation relating to a private placement of equity financing totaling in excess of $3.0 million in gross proceeds (http://dtn.fm/B3j1d). The real eye opener in this announcement is that “Certain insiders and board members participated in the offering, representing $635,000 or approximately 21 percent of the transaction.” It’s not only a vote of confidence by the insiders but also time for astute investors to take notice when “certain insiders and board members” take down over 20 percent of a private placement financing.
A closer look at Monaker gives some indication of insider predilections. Monaker Group is a technology-driven travel company focused on delivering innovation to the alternative lodging rentals (ALR) market. The Monaker Booking Engine can instantly book any of more than 1.4 million vacation rental homes, villas, chalets, apartments, condos, resort residences and castles. The key to MKGI’s strategy is to move ALR into the mainstream travel industry, offering instant confirmation, something relatively new to ALR. Then, by combining instant-confirmation options with all other traditional travel options, MKGI will be able to offer a true all-in-one online booking site and alter the course of the booming alternative lodging rentals market.
As Bill Kerby, CEO of Monaker, stated in a recent press release, “Since the introduction of our proprietary booking engine last year, we’ve received growing interest by both product suppliers and potential distribution partners. This interest has been buoyed by strengthening consumer demand for instantly-bookable ALRs.”
With decades of travel industry experience and relationships, Monaker targets volume travel booking entities. The company expects large B2B white label use of the Monaker Booking Engine into mainstream travel channels such as airlines, travel agent platforms and cruise organizations. Monaker believes white label use (other companies branding and using the engine as their own) will ultimately generate over 90 percent of the company’s future growth.
The enticement for travel agencies and large travel bookers is that the Monaker Booking Engine provides a customizable instant booking platform for ALR. By developing instant booking confirmation and integrating everything necessary to offer traditional hotels, travel, cruises, car rental and entertainment then combining it all with ALR into one full-service site for consumers, Monaker intends to change the trajectory of the ALR travel industry.
Monaker is on a path that may well disrupt the status quo of the fastest growing segment of the nearly $700 billion travel market. Company insiders increased their own positions and purchased 20 percent of the private placement for a reason, astute investors should take notice.
For more information about the company, visit www.MonakerGroup.com