World Wide Auctioneers is Coming To America
April 28th, 2009 at 9:30 pm Posted by The Dean
A historic news release hit the wires today at 2:31 PM , one that few investors looked at closely enough to truly understand. WWAG announced that its wholly owned subsidiary World Wide Auctioneers (which subscribers probably know by now is one of my favorite long penny stocks) will host its first construction equipment auction ever in North America this year, and in a prime location.
The event will take place on June 9th-10th in Tempe, AZ and I invite all students to come join the festivities. Even if you can’t fly out for the auction… you can still watch it in real-time courtesy of WWA Bidlive™.
The auctioneer business is one of the last true monopolies on Earth and it’s held by Ritchie Bros. (RBA). They conduct well over 90% of the world’s physical auctions for used construction equipment and dominate every single market in the world… except for one.
Ritchie Bros. (RBA) is being outperformed by World Wide Auctioneers in the city of Dubai, UAE. It’s an important hub for global trade, and RBA is being beaten by little ol’$5 million market cap WWAG. In fact, WWAG has been outperforming RBA year after year and currently holds 65% of the market share in Dubai.
WWAG is able to outperform RBA in Dubai because they undercut Ritchie Bros. (RBA) in consignor fees. While RBA charges an average 15-20% commission to consignors for selling their equipment…. WWAG charges consignors an 8-12% commission on average.
Until now, WWAG has only conducted auctions in Dubai and they’ve been the market leader in that city for years. But this summer WWAG will start hosting auctions in the United States and by using the same low-cost business model I expect them to take away plenty of business from RBA.
The stars are shining, palms swaying and a lovely coastal wind is churning about. WWAG is coming to America and Ritchie Bros. (RBA) had better look out!
If you don’t know by now, you can only get all my latest stock picks in real-time, and the real scoop on why I love WWAG when you get on The Dean’s List
How much business does RBA do in the United States and what % of that biz do you think WWAG can potentially take away?
Do you think RBA will buy out WWAG? I would think the government would consider this a monopoly, am I right? Also, if they do buy them out, what do you think the premium will be?