Borislav Tonev

Sharkreach Inc (OTCMKTS:SHRK) Chomps Through Another 52-Week High

by Borislav Tonev February 5, 2016

It took Sharkreach Inc (OTCMKTS:SHRK, SHRK message board) just two short sessions to transform itself from an illiquid penny stock that nobody cares about into one of the hottest OTC tickers out there. On Wednesday, SHRK made a colossal 203% jump and it reached $0.36 per share. Many people thought that the stock will take a break, but instead of doing that, it added another 72% yesterday and it stopped at $0.62. All of this thanks to an old interview.

On December 7, Murray Newlands, a contributor for Forbes, asked Steve Smith, SHRK's new CEO, some questions, and he was apparently quite impressed with the answers. In a short summary of the company's operations, Mr. Newlands even went as far as saying that SHRK is “poised to skyrocket”.

At first, nobody paid attention, but once SHRK promoted the interview through one of their own press releases on Wednesday (nearly two months after it was first published), it went absolutely viral. But does a simple interview really deserve so much attention?

Well, there are a few things that are niggling us. In the interview, Mr. Smith tells the readers, for example, that the internet campaign for the movie “Straight Outta Compton” has been the most successful in the company's history and he talks at some considerable length about what sort of approach was taken for it. The 8-K announcing the merger between Online Secretary, Inc, the public company that is currently traded under the SHRK ticker symbol and SharkReach Inc, the entity that was responsible for advertising “Straight Outta Compton” on the internet, states, however, that the proceeds from this particular campaign won't be transferred over to SHRK's financial statements. The proceeds, in case you're wondering, amount to “approximately $49,000”.

And while we're on the subject of the financial reports, we might as well mention a few more things that could leave you scratching your head. The latest 10-K, for example, doesn't say whether the results of SHRK's new subsidiary are included in the financial statement.

If they are, then we've got some bad news. Here's what the figures look like:

  • total assets: $414 in cash
  • total liabilities: $45,865
  • NO revenue
  • yearly net loss: $33,686

In 2013, when SHRK was still called Online Secretary, it sold a total of 240,000 shares for just $6,000. A few months before the acquisition of SharkReach, the public company did an 83-for-1 forward split which means that the 240,000 pre-split shares were transformed into 19,920,000 post-split ones.

There's nothing in the SEC filings to tell us whether these shares are still outstanding.

If they are, we might have worse news in the not-too-distant future.

Comments 1

1. Guest
February 06, 2016, 07:50AM

Quotes tomorrowsbluechips dot com SHRK coverage at .17

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