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I am sure they have a patent protection on there design. Not all worrried because no one has even come close to getting a COPPA certification except OINK. It is very difficult not only to design the software, but to go thru all the FTC requirements is arduous.
Here is some recent news about the Discover partnership and the growth in user sign up. This is all good news!
Virtual Piggy
Expansion into in-store payments
Virtual Piggy (VPIG) has announced a partnership with Discover Financial Services, which will enable users to make in-store purchases at merchants within the Discover Network. This will provide users with more opportunity to spend their money via Virtual Piggy’s service and has the potential to drive incremental in-store transaction volumes on top of existing online transactions. This could also accelerate user sign-ups above the recently achieved one million target.
Year end Revenue ($000s) PST* ($000s) EPS*
($) DPS
($) PIE (x) Yield
(%)
12/09 0 (907) (0.02) 0 N/A N/A
12/10 0 (1,347) (0.03) 0 N/A N/A
12/11 4 (2,486) (0.04) 0 N/A N/A
12/12 1 (7,492) (0.09) 0 N/A N/A
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Discover Network deal
Virtual Piggy has announced that users should soon be able to access in-store payment capabilities via the Discover Network using pre-paid cards. The card will be linked to the Virtual Piggy user account giving parents control over spending limits and locations and enabling the user and parents to track spending online and in store. This will give Virtual Piggy the opportunity to support users across multiple channels, and hence gain a larger share of wallet, potentially driving higher transaction volumes.
From Virtual Piggy to Oink
In anticipation of the move to in-store payments and a more mobile-focused strategy, the company rebranded the name of the service from Virtual Piggy to Oink in December. Registered user numbers have grown from the 250,000 reported in June 2013 to more than one million by the end of January 2014, with gaming users key drivers of transaction volumes. The company continues to sign up new merchants to the service and to integrate with key e-commerce platform providers.
In the early stages of commercialisation
Virtual Piggy is in the early stages of commercialisation and has not yet generated material revenues, as the push to sign up end users only started in earnest in March. At the end of Q313, Virtual Piggy had net cash of $4.6m and during Q114 raised $7.6m from the issue of new preference shares and the conversion of warrants. Milestones to track that should demonstrate progress towards break-even and profitability include user sign-ups, value of transactions processed and partnerships with larger players including merchants, payment processors and online communities.
Business update
Since we last published in July, Virtual Piggy (VPIG) has continued to grow its registered user numbers, has expanded the number of merchants accepting payment via Virtual Piggy, has expanded its partnership with WorldPay to include the US, has rebranded, and has signed an agreement with a credit card network to expand usage of the service into physical stores.
Name change: Virtual Piggy becomes Oink
In December, the company announced that it had changed the name of the service from Virtual Piggy to Oink, and had rebranded the service with a new logo. The rebrand was partly in anticipation of the company’s move into physical stores but also has the advantage for mobile users of being a shorter name. The company continues to be called Virtual Piggy.
Growth in user sign ups
At the end of January, VPIG announced that it had beaten its one million registered user target. Exhibit 1 shows the pace of user sign ups through 2013. A registered user is defined as a registered account that has accessed the Oink product in the last 12 months. Until FY13 results are available (likely in mid-March), we do not have any data on the revenues generated by the growing number of users in Q413. The company has noted that gaming users tend to generate a higher volume of transactions as they tend to visit gaming sites frequently, whereas users purchasing physical items from online retailers tend to transact online less frequently.
Exhibit 1: Growth in registered users (April 2013 to January 2014)
1,200,000 1,000,000 800,000 600,000 400,000 200,000
0
29/04/2013 29/06/2013 29/08/2013 29/10/2013 29/12/2013
Source: Virtual Piggy
Contract signed with Discover Network
On 12 February, VPIG announced that users would soon be able to access in-store payment capabilities via the Discover Network.
Background on the Discover Network
Discover Financial Services runs the Discover Network, the fourth largest credit card company in the US. It is accepted at 25 million locations globally, including 9.6 million in North America and 2.5 million in EMEA. Discover owns Diners Club International, which is accepted in 185 countries, and is partnered with JCB in Japan and with China Union Pay.
How it will work
We understand that Oink will be able to issue pre-paid Discover cards to users aged 13 and over, with a parent’s permission. These will be loaded up via the Oink service online or via the Oink
mobile app, and can then be used to make purchases in stores that are part of the Discover Network. Parents will still be able to apply spending restrictions to the card, so that the child can only make purchases in stores that the parent has approved. Discover does not currently have a card programme for teens, unlike Visa, MasterCard and American Express, which all offer pre-paid card schemes for children aged 13 and over.
We would expect Discover to pay a proportion of the merchant fees levied to Oink. In addition, Oink may impose fees on the card user, although this is yet to be decided.
Broadening the addressable market
Although teens spend a large proportion of their money online, in particular when gaming, by offering an in-store payment mechanism, Oink can access the whole of a teen’s wallet, rather than just the online portion. Even if Oink will earn a lower percentage of merchant fees when payment is made via the Discover Network, this should be outweighed by the potential for a significantly higher volume of transactions. We note the trend for online payment processors to seek partners for in-store payments; in 2012 PayPal partnered with Discover to enable users to pay in-store with their PayPal accounts using a PayPal Access card.
Financial update
Since we last wrote in July, VPIG has raised funds through the issue of preference shares and the exercise of warrants. We estimate below the amounts raised from the end of Q213 to date, totalling c $7.6m.
• Preferred shares: 50,450 series A preference shares worth $100 each were issued in January 2014, raising gross proceeds of $5,045,000. Each preference share is convertible into 100 shares at a value of $1.00/share. We note that the preference shares are entitled to an 8% cumulative dividend per annum.
• Warrants exercised: on 7 February, 5,042,287 warrants were exercised raising gross proceeds of $2,521,143 and resulting in the issue of 5,042,287 shares. In July/August 2013, 34,500 warrants were exercised at $0.50 per share resulting in the issue of 34,500 shares and gross proceeds of $17,250.
The company had a net cash position of $4.6m at the end of Q313, after paying $3.7m in cash operating expenses and $0.1m in capex in Q3. We will have a clearer picture of ongoing cash operating costs when the company reports FY13 results in mid-March.
Now that the subscribers are flooding in, it's only a matter of time until analysts get a hold of this thing and it will be off to the races. Nice being the only COPPA compliant technology.
WI-FI you are so wrong! Clearly you don't know what your talking about. You say SCAM. If this was a Scam, then why would major branded retailers, i.e., Body Glove, Claire's, Journey's to name a few partner with VPIG. Why would a SCAM be the ONLY "COPPA" compliant payment technology platform in the world. Why would a SCAM win about every award nationally when it comes to online consumer payment technology. Why would a SCAM appoint Sebastian Motte to lead business development in the gaming sector for VPIG. Oh by the way, Mr. Motto was formally with Microsoft and Xbox. You might want to look that up. They a venturing all over the world now on the Gaming end, and have had great responses form the retailers. This is no pump as you say. These are facts. Pump & Dumps are merely based on proformas and supposed potential. Vpig is accomplished. Why don't present facts instead of making yourself look incompetent.
You have no idea what your talking about. VPIG and the gaming industry is doing great. It is still the only platform on the market. The future is bright for "Oink".
VPIG is getting cutting edge with commerce technology. It's only a matter of time before analysts get hold of this.
http://finance.yahoo.com/news/virtual-piggy-joins-demandware-accelerate-120000301.html
Fact is, when PR comes out soon, analyst will get a hold of this company and it's off to the races. They have proven earnings.
Virtual Piggy Video with Sela Ward
Stock manipulation is going to happen at this stage of the game. You have to have a belief in the product. The potential has already been realized. Remember, this is an extraordinarily good team with smart minds. The platform they have established is unmatched, AND is being signed up by big website product vendors on a weekly basis. Patience.
At the pace they are at, there should be no problem achieving that amount. Dr. Webber had predicted said amount about a year ago. Once they hit the 2 million mark, the valuation will be off the charts!
VPIG continues to add quality merchants:
http://finance.yahoo.com/news/virtual-piggy-mwrc-unite-offer-120000681.html
You're so false! Not sure where you get your info. Very misleading!!!!!!!!!!!!!!!
GO KAT!!
Very well said dd!
Grahamber very well said. I am with you on this.....have not sold a share.
This thing is about to take off!!!
Gump you must be bored, or angry.
Thanks Rickne1.
I am totally with you on that point.....it absolutely makes no sense.
Spot on....thanks Biochemist!!!
I disagree!
Keep the faith partner. I'm a real investor, and in no hurry. Look they just completed the drill samples and are now waiting on them to be assayed. KAT anticipates receiving final assays on the two holes over the next few weeks, so why have you lost faith. Again, Ken and crew know what they are doing. They have cornered the eastern portion province with hundreds of square miles of properties that are untapped.
Here is a direct qutoe from Gump: "No .. I won't be a buyer of this stock and I do not own any and I am not short in the stock and I don't work for anybody or get paid by anyone to post like I do. Nor do I have any Agenda." Hmmmmmmm????
Very well said Rick!
YAWN....whatever BB. To many good things happening with KAT.
He is trying to, but people have caught on to his act. These properties that KAT has are awesome. Sorry Gump.
I stocked up at 0.67. It's on!!!
YES, YES & YES!
Attention: Investors....Longs....shorts....whoever. Don't listen to the bashers, especially Mr. G...90. KAT is doing everything by the book to make this mining venture go to plan. I am certainly not in a hurry. These properties are going to be VERY GOOD. There is defintely motivation in G...90's mind to be neagtive. Much of the spin you have been reading from you know who, is just pessimistic myopic opinions.
I understand your pessimism, as you know this business very well. My feeling is KAT is not going to PR every tiny bit of news at this stage of the game. If it takes three weeks to complete boring, given no delays, then add another two weeks after the drilling program for results. I think it is smart not to cloud anything with small news, given the risk of violating regs.
I did as well :)
Very true and wise statement. This company is going to be the real deal.
I think gump likes hearing himself talk.
"Either way they are going to be viewed as unfaithful"
Based on...........?????
Nice!
No doubt about it's tied up, which is a good thing. Ever part about this process will be done right. I am in no hurry. I would hope all legal conformance is maticulously done, as this thing is going to be grandiose. Buy now because it may not go down.
You don't make sense!
Rick,
Excellent DD.....IMO, very accurate.
Thanks!