Thursday, July 7, 2022

Cataca Resources Inc (OTCMKTS:CATQ) Flying on FlitWays Exposure

Cataca Resources Inc (OTCMKTS:CATQ) has been launching since it got started on the tape. We covered CATQ stock about a month ago and said we thought it looked like a potentially “monster opportunity”. The stock promptly doubled. The brand under analysis here is called “FlitWays”. It’s effectively Uber or Lyft, but with advanced ride scheduling as a priority feature. Given the extremely strong action, we thought it was time for another peek.

Last time around, we said we liked this one for a few reasons, but one of them was simply the fact that it’s not hypothetical. It’s there right now, in the app store, ready to download and use. You can use FlitWays to get the airport tomorrow morning if you want. The stock has seen some extra lift in the last couple days after being named by CNN as one of the “New Travel Start-ups Making Business Trips Less Stressful”. This is exposure, and exposure is everything for an app-based service play. The stock is up a little over 200% since it started trading with liquidity in early September.

Cataca Resources Inc (OTCMKTS:CATQ), therefore, now holds Flitways, providing pre-booked ground transportation, including ride share, taxis, black cars and airport shuttles. The Company has a fully operational mobile app for business and leisure travelers and a full API for B2B with travel suppliers.

FlitWays uses state of the art technology to bring ground travel booking into the travel industry by building strategic partnerships with major travel companies, travel networks, travel managements and hotels for travelers to make ground travel booking available at every travel point of sale. “Our solution allow travelers to pre-book ideal travel ride through FlitWays online booking engine or mobile app or through their preferred travel vendor.”

Flitways covers 110 major cities globally including North America, South America, Europe and Asia with access to over 15,000 vehicles.

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As noted above, the chart shows better than 200% in gains already in the last couple months of action. In addition, the company has seen an influx in interest of late, with dollar volume growing during the rally in marked fashion.

This should not be overlooked as a key dynamic. CATQ stock has a tight float (barely over 21M shares). When a stock with this type of float starts to see steadily ramping attention, it can often lead to a squeeze stemming from a simple share supply shortage. We have seen this take hold in a number of other OTC plays of late. The results tend to be somewhat jaw-dropping.

In this case, the type of headline to spur such a move would simply be more of the same press we’ve been seeing. Take the latest headline catalyst as an example: The company was named by CNN as one of the “New Travel Start-Ups Making Business Trips Less Stressful in 2016.” This comes following multiple awards and nominations for FlitWays, including being awarded as one of the “15 Best Startups at Collision.”

FlitWays Director of Growth, Zacky Hamraz, commented, “It is an honor for FlitWays to be recognized by a respected and global organization such as CNN. We strive to give travelers a true seamless experience when they use FlitWays. We understand business travelers’ needs and cater to them in an innovative and unique method. And that’s what fuels our success and growth.”

FlitWays has been featured in top media publications including Yahoo! Finance, CNN, FORTUNE, Fast Company, Reuters, New York Magazine, Skift, VentureBurn, Digital Journal, Travel Pulse, the Examiner, and many others.

As we said, an app service play is best served by exposure. It’s about brand penetration into daily life, and that process is dominated by network effects. There is no way for the company to protect itself against competition. But, that competition can be beaten from the start if awareness of this service spreads fast enough and saturates the marketplace. The recent news flow is certainly a step in the right direction. But they have a long, long ways to go.

At this time, carrying a capital value in the market of $49.5M, CATQ has a very limited financial profile following the merger into FlitWays, so it’s difficult to make any important determinations about the true level of executive managerial talent and discipline captaining this ship. All we can say, once again, is that this is a strong idea and an interesting opportunity. It is vulnerable to a change in strategy at Uber or Lyft, though, and that must be taken into consideration if things get ahead of themselves here. In any case, we will be sure to keep you posted. For continuing coverage on shares of CATQ stock, as well as our other hot stock picks, sign up for our free newsletter now and get our next hot stock pick!

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