INVESTMENT THESIS
A significant value creation opportunity for SRER shareholders comes from SearchCore’s now completed corporate pivot from technology provider to becoming a major independent...
NBT Equities Research: Initiating Coverage on SearchCore, Inc. (SRER) with 500% Upside
INVESTMENT THESIS
A significant value creation opportunity for SRER shareholders comes from SearchCore’s now completed corporate pivot from technology provider to becoming a major independent manufactured home retailer within the booming “Shale Energy Belt” within the Southwest United States.
NBT Research estimates .25-.30 value for SRER shares in next 12-18 months based on .03-.04 EPS in fiscal 2016. Current stock price is .06.
Key Point: Unless you live in Southwest/Southeast Texas, it’s hard to comprehend the magnitude and duration of the shale energy job creation boom and how much excess demand vs. supply for affordable singly family housing exists in the rural energy producing regions. Today’s amenity filled 1800-2200 sq.ft. manufactured home on a ¼ to 1/2 acre lot priced @$120,000 meets this extraordinary demand for the <$75,000 income households—i.e., where the vast majority of new jobs are going in the Shale Energy Belt and ground zero Texas.
With Texas leading the United States in the creation of jobs at all pay levels (source: Dallas Fed report) and payroll employment doubling for 2003-2013 in the energy sector (source: BLS employment statistics) with above-average wages for many oil and gas jobs that do not require a college degree, a significant supply/demand imbalance has been created for affordable single family housing within commuting distance to oil/gas field employment.
With the average well generating 62 new jobs and $4 million in economic activity (source: Texas Railroad commission), SRER’s growth strategy is very simple: Build 30 or more retail manufactured home centers in the with the “red dots” representing new jobs created from oil/nat gas/nat gas liquids extraction and energy related manufacturing.
In 2009, there were 824,000 producing oil and gas wells in the U.S. Today, there are nearly 1.2 million active wells. By 2020, there could be as many as 1.8 million wells according to Energy Global.
Click here to see our complete coverage on SearchCore, Inc. (SRER)
Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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