 Hope everyone is doing well. Today in this video we've got a new penny stock which I think could be the next explosive penny stock in terms of its future potential and the industries that it's actually involved in will go through this information in this video. I've got to say I'm not a financial advisor, I'm a business teacher in my daily life but I'm by no means an expert on the stock market and what I'm going to do is I'll get right into it to respect your time. I'll get direct right into the information for you so we'll get right up everybody as a brilliant weekend or whenever you're watching this video but let's get into the information for you. So the stock that we're talking about today is called Weta okay and who are they? So they've got this particular app which can there's got two apps, two products. One that can be used as a takeaway service and you can order through the app various restaurants but also one way you can actually pay via actually dining in and then pay via that way as well. We'll go into this in more detail but essentially the unique selling point for this particular app is it's trying to produce a more convenient way to eat. Now this area as we all know doesn't come without its competition and this is not exactly something that's 100% you in the sense of what industry it's in but there is some unique features on the app that kind of make it stand out but in addition to that they are seeming to be growing the revenue and also growing other other areas in terms of actually getting more downloads becoming more well known and scaling the business up in that sense. So there's a lot of good stuff about this stock there's also some negatives. One of the negatives is how much cash the burning through in terms of different costs in terms of the operational costs but we'll go into that but also there's many benefits as well so what I'm going to do is I'll give you a realistic direct approach into what I think about this stock and then towards the end I'm going to give you my suggestion what you know what I'm doing with the stock and what you know it's up to you what you do with say I'm not a financial advisor you can maybe look into some further some research onto this as well. So it's a more convenient way to eat let's go into further in the information. One of the interesting features on the app is that when you're actually in a group say you've got a group of friends around they can actually split up the actual delivery based upon who is ordering what so you can keep track of actually who's ordering what and who's paying for what and that kind of helps it out in terms of actually you know paying for stuff when it's a group sort of meal right and you're in a group as a group order right from a takeaway so that's really good and you also have that in terms of the dining so it's an interesting concept there and I think it's quite good okay before I move on to the research I've got for you today I'm just going to say a huge thank you for everybody who's really supporting the channel I just can't believe how much this channel's just continuing to grow and everybody who's actually supporting it liking the videos subscribing to the channel and even just watching the videos and getting those views up on the channel really does help out so thank you everybody for anybody who's doing that it really I really do appreciate the fact that this channel's almost at 10 000 is unbelievable to me and and I never thought I'd have a youtube channel that actually reaches this to this level so thank you for all the support I really do appreciate that now some of the benefits of actually using this app here and and why it's benefiting for the restaurants to actually go with this particular app number one is safety in terms of obviously what's happening at the moment but also just in general there's a a change in shopping habits to use these apps for deliveries of food so it's so there's a change in shopping habits with that but safety the next one is optimized staffing which is staff can now reprioritize task to cater to new contactless services so it makes it easier for them to actually process payments and then reprioritize what they want to do there's got fast turnaround some restaurants have seen a 20 increase in sales due to fast turnover with dining which is interesting isn't it because if you think about it that means that there's just more of an efficient process and a 20 increase in sales in dining experience is incredible amount of extra revenue for that restaurant there so this is some of the benefits for this app for them to be using this app from a business to business standpoint you obviously got the benefits for the customers as well improved dining experience as well whether it's in line or at the table diners no longer have to wait for service they save time and you make money okay so you can actually order when you want so you don't have to wait for somebody to come over and order and do that so you can just order from the app and then the the food will come to your your table but but in addition to that that's the dining experience they've actually got the takeaway experience as well so there's they've got two areas here so as we come back to normality and more restaurants are you know getting more customers back in right I think that the dining actually side of things could actually increase in terms of the revenue from that particular app and I think that the even the takeaway app is going to still do good because of that changing in shopping habits of you know shopping through these digital apps rather than phoning up and ordering right and then you got contactless payments as well you know you could say in terms of it's involved in the fintech industry in that sense and there is a shift towards more contactless payments okay and less menu handle as well handling as well give diners the option to order and pay for from their phones while cutting costs and time so that's it's really useful for for the diners as well as the customers as well as the business so moving on to this so some of the finances let's go through some of the finances this is it's important isn't it to look at the finances but it's also important to look at the brand and the overall company itself alongside that as well you know it's about having that balanced approach between the finances and the other aspects of the business that you take into consideration so just just some of the recent information so the third quarter of 2020 had a revenue of 52.7 million compared to 49.2 million in the third quarter of 2019 so that's seen a 7 percent increase in this particular third quarter and you got some of the other figures here and what did the CEO say about on waiter so he says we achieved that second consecutive quarter of continued profitability and operating cash flow which we believe is the result of our fundamental strategic initiatives and focus on operating a profitable business we believe continued hard work of our team members diversified selection of restaurant partners and increased driver base strengthens our position in the market and that's what it's all about really isn't it the more they can scale this up the more drivers they can get for the takeaway side of the business the more restaurants they can get on board on the actual app then the more revenue they're going to get this is just a this is just a race of scalability in terms of scaling this just business up to two at higher levels and yes I you know do bear in mind I know what maybe people are thinking is about the the idea that there is competition out there but there's also demand out there for this sort of app as well right and we'll go into the sorts of reviews and stuff that the app's been getting and how many downloads and and what is the process for this so some of our restaurant partners has recently faced additional hardships arising from the macroeconomic challenges yep so in terms of that it's a diversified its product offering but beyond food delivery and have recently introduced its tableside service technology so they've got these two versions of a product now in the sense that they've got the takeaway and now the dining version which is integrated payments solution that helps restaurants actually do that the the payments that now again looking into this this is on market watch you can notice that the revenue I mean it's 22 million revenue in 2017 overall a 23 million so it's 69 million in 2018 191 million in 2019 now the only aspect that I'm sort of concerned with is is some of the costs here some likes you know the particular costs operating expenses and all the rest of it and so that there is a lot of that going on and but again it's a sort of start up company in the sense of this waiter app and you know initially these sorts of companies don't necessarily have a huge amount of profitability to begin with because of all these expenses to begin with but as they scale this up and as the revenue increases that's going to overtake any of the overall expenses and eventually they're going to be in a really good strong profitable position and you have to reflect those the that with the fact of the current price of the of the actual stock which will go into my price targets okay so you've got to kind of bear in mind from like all different angles right so dining capabilities to platform this was actually originally introduced on october 8th 2020 so for a product this is actually relatively new and they've released it obviously at a time when we're in here not not a great situation at the minute and maybe there's not as many people going to restaurants as they as they should be right particularly with this in the US and and many other countries so as we go back to normality as more people go back to restaurants you know that this is one of these products that might do really well okay so so bear that bear that in mind the next point here is the corporate profile so just to go through a bit of the information and you can see the price here $3.74 at the minute I do think that this has got a lot of potential to run up a lot higher than $3.74 and to me this is a medium to long-term hold and I'll go into my time skills on that in a moment very specifically so the corporate profile founded in 2013 based in Louisiana apologize if I butchered that waiter is a leader in on-demand food ordering and delivery waiter along the recently acquired food delivery company bite squad connects local restaurants to hungry hungry diners in underserved us markets that's interesting underserved us markets so think about that there's so yes there is a lot of competition in this area you know with all these different apps that do something fairly similar but it seems to me that they're trying to actually build their app in areas where there's less competition so they're having a very like targeted approach that's what that kind of indicates to me together they have a convenient way to do to discover order and receive great food from local restaurants and national chains and some interesting statistics here as well one of the areas here is the 75 increase in visibility you know some of these local restaurants and local takeaway services they they the way they're going to actually grow is actually if they become more visible and if they can use this waiter app to just become have more visibility and be known more because people are searching through this app and like oh they spot a new takeaway or whatever and they may try it out so that visibility factor that they can leverage waiters brand for their you know restaurant is great as well so it's fantastic so that visibility factor thing is really important yeah 35 increased average ticket price 60 profit on incremental sales so you know it's really help helping businesses out in that sense also the food reviews as well so in terms of of if you look on the app store sometimes I like to do this just certainly like a side note it's not like it's a massive part of it right but if you think about it I like to see do customers actually enjoy using the app right our people using the app constantly and you can tell that the reviews are almost at five stars overall so that tells me that the app is very functional that tells me that the majority of people are having a good experience with the app and the better the experience a customer has with an app then the more they're going to use it and the more potential revenue off that obviously off that off that customer yeah now the negatives again on this channel I like to have a realistic approach okay so I do like to really talk about some of the negatives as well and you know we'd be doing it at this service if I didn't do that if I didn't have any sort of concerns maybe negatives is the wrong word maybe concerns of the product my first one is what I've mentioned throughout is the competitive industry you've got some big players in this industry okay so there there is that to bear in mind in terms of the competition competitiveness of that so they've got to find a way to either scale the product up as fast as they can which they are seeming to be doing or find ways that they can make themselves stand out even more from the competition the second point is the finances could be better but I think you've got to also bear that in mind with the stock price and also future growth potential but also the fact that you know it is this sort of company you know it is does have a lot of costs to begin with so that's why the finances are the way that they are and but they could improve but that will improve as they scale the business up further and further so those are my only two concerns though it's not exactly fantastic finances and a competitive industry as well can be a potential issue it depends now the benefits of this stock is that you've got two products the first products that you've got is the dining experience okay so we talked about that in terms of you can actually dine in order from the app you know you don't have to do the the traditional way of doing it and it's just a more of a convenient more accessible way of doing the the ordering of that and I think that that's going to be a you know continue to happen and it also allows staff in the restaurant to then focus on other areas of what they're doing there as well so and that's that's good and you know they can serve more people as well and they can also do it more efficiently and get that turnover and turn around of customers going in the restaurant and coming out the restaurant faster because it's a much faster process meaning they've got more people dining in and then they've got more profits so I do see the business case for that and then the takeaway delivery service as well in terms of what we've covered that the other point is that it's scalable particularly like it mentioned in underserved markets so if they can scale this up a lot what does that mean it means getting more restaurants on board I believe they have got five guys you know the the the chain there one of the fast food chain five guys I believe they was working with McDonald's at one point I'm not too sure if they still are but it's about scaling up with the well-known maybe fast food chains as well and continuing with that and that could be a bit of a cow list but also actually scaling up with the local restaurants as well which is really important so scaling scaling that up but also the drivers they need drivers to to offer the service particularly for the takeaway version of it and then you've got the revenue growing so it is growing year on year you saw like the sort of revenue sales sort of grow year on year which is good okay it's a good sign at least it's not decreasing right in that sense and I mean that you know it's been a rocky year for a lot of businesses particularly this year right it's been a bit of a challenging one and then there's a changing in shopping habits as well so there is just this habit to to use these apps for financial transactions we're just seeing more financial digital transactions and I think that there's just this changing habits and I think this is one of the reasons why the business could do quite well and also as we pointed out it's got great reviews which which just has that extra impact on the business okay now the current price point at this is $3.70 and I'll let you know what I'm doing I'll be totally transparent I own this stock I own this stock I've got I've got shares in this stock I think that it's going to do well in the long term I'm not going to say that I'm not going to be realistic here I'm not going to say that it's not going to come with like a rocky road there may be some because it's a penny stock it may be like this and I'm fully expecting at some point to to be down I actually only just recently bought this stock okay and I fully expect to potentially be down 10 20 30 percent at one point in the time that I'm holding this stock which is fine because I will just average down I think that this stock is a long term hold what do I mean by that medium to long term hold let's say that so at least one to two years in terms of medium you know it's kind of six to 18 months maybe actually for medium or long term in terms of three to five years so this is one of these holds for me that I am I feel quite confident about the stock and I do think it's got a lot of potential here I mean you've got to be careful about share dilution and some of the other areas maybe that's a concern but but overall this stock's going to do really well as it scales up its business and it's a good business it's a solid business with solid foundations a solid concept that we already know works and yeah there's those concerns but it's got a it's got a good chance of succeeding so I will be averaging down if it does go down and that's that's that's the realisticness of it and that's what you separate investors from day traders right you know some of the stocks that I've mentioned before which I say I'm holding medium you know they've said though it's gone it's gone down 10 percent today I'm just calm down don't worry if you're holding it medium to long like me then you're not too concerned if it goes down 10 percent today because in a couple of weeks three four weeks time it will be up 20 percent or wherever wherever it's going to go right but um you consider this stock I think it's a really really good one for a long-term hold and I really do think it's got a lot of potential in in the stock market here and yeah so in terms of price target I mean if you can get this anything around I mean it kind of had a bit of a run up and today it's then it's gone down a little bit you know if you can get this anywhere around that three dollars to three dollars 60 range start to buy it you know I've actually bought a few and let's say I will just average it down if I get an opportunity to do so so I do like it so thanks for watching this video if you found this useful I'm sorry that this video is incredibly in-depth I've in the sense that I've spent 20 minutes actually talking about one stock it's not something I do often usually it's about 10 15 minutes but I think you can tell that I do really like this stock and I've got to say if you've watched towards the end here well done you've got an incredible attention span so thank you very much and if you're new to the channel don't forget to leave the video a like subscribe to the channel we cover many stocks many penny stocks we're trying to reach 10 000 subscribers and thanks to everyone for all the support on the channel I'll see you later