TimeShare Industry

Investors Load Up On Time-Share Industry Growth; Strategic Global Investments, Inc. (OTCMKTS:STBV), Wyndham Worldwide Corporation (NYSE:WYN), Marriott International Inc (NASDAQ:MAR)

It would not be a surprise to see economic growth be of benefit to the real estate industry throughout the United States over the next few years. The Urban Land Institute discovered that in its semi-annual real estate forecast, projections for growth in some areas of the industry are doing much better.  Here’s a look at what William Maher, director of North American strategy for LaSalle Investment Management, had to say:

“Almost all U.S. real estate participants would be very pleased if the future unfolded as predicted by the ULI consensus forecast. The forecast represents almost the perfect combination of strong economic and property market fundamentals, combined with an orderly wind-down of monetary stimulus.”

The forecast highlighted that commercial property transaction volume is expected to grow through 2016 before adjusting off to $500 billion in 2017. Also, commercial real estate prices are estimated to increase about 7.6% per year through 2017. The growth rate is expected to become an average of 5.3% after 2017. Another real estate indicator predicts that the issuance of commercial mortgage-backed securities should grow from $115 billion in 2015 to $150 billion in 2017. This is all thanks to other economic fundamentals that are expected to impact the real estate markets. For instance, net job growth is predicted to reach around 3 million per year as the GDP rises 3% in 2016.

Strategic Global Investments, Inc. (OTCMKTS:STBV) makes most of its income through investments. At the moment, the company owns a 10 acre property in Los Cabos, Baja that has created a significant asset base and income in the future. Strategic Global now has all of the permits, environmental approvals, and government approvals needed to begin constructions planned. The company has a subsidiary dedicated to real estate development, which focused on environmentally friendly, luxury real-estate.

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According to the newly published AIF Next Generation Study: Shared Vacation Ownership 2015 Edition, the next generation of timeshare owners represent the greatest advocates for the timeshare product.  This may seem like a bold statement, but in 2015, it is evident among Millennials—the largest consumer group in the United States—who account for approximately 80 million people and spend more than $200 billion in goods and services annually .

With more than eight out of ten Millennial owners (23-33 years old) having a positive perception of the timeshare industry, they are stronger advocates for the product when compared to the next two older age groups: the younger Generation X segment (34-44 years old, 78%), and the older Generation X segment (45-54 years old, 64%). Non-owners have a more neutral impression.

In October, the company released a corporate update noting all milestones for future development. Here are just a few of them: first and foremost, Strategic Global Investments, Inc. (OTCMKTS:STBV) has completed a necessary stock split. Second, STBV has entered the multi-billion dollar Resort Time-Share space. Next, the company developed a financing component to capture additional revenue in the process. Most importantly, Strategic Global has begun building 30 small luxury resort homes, called Small Luxury Villas “on a fractional ownership basis.”

“We are pleased to put the past behind us and provide this update showing our shift to a positive business model. We’ve now put all the necessary pieces in place for us to execute our new business plan. Our initial project should progress quite rapidly.”

Andrew Fellner, President of Strategic Global Investments, Inc.

Over the last ninety days, STBV has seen lows of $0.0151 and highs of $0.09 representing a potential upside of more than 490%. With the real estate market growing and projected to continue growing well into the next decade, it would be prudent for investors to keep STBV in mind for a small piece of their overall portfolio, should they see potential in this multi-billion dollar time-share space.

 

 

Important Disclaimer Information

The writer of this opinion is affiliated with a company (Midam) which is publicly disseminating information about (STBV) including on the Website and other media including Facebook and Twitter. Midam  owns 1,666,667 shares of Strategic Global, Inc. which may be sold at any time in the open market which were earned for consulting services. We plan to sell the shares of (STBV) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (STBV) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. For full disclaimer please view the full disclaimer here.

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