Borislav Tonev

Sharkreach Inc (OTCMKTS:SHRK) is Sinking Fast

by Borislav Tonev February 11, 2016

Sharkreach Inc (OTCMKTS:SHRK, SHRK message board) as we know it today came to be after SharkReach Inc, a private internet marketing company, merged into Online Secretary Inc, an OTC-listed enterprise. After a few eerily quiet months, SHRK told everyone about a Forbes interview with Steve Smith, the company's freshly appointed CEO, which was garnished with a few optimistic projections about the future.

Since then, there's been a torrent of good news coming out of the company's headquarters. On Tuesday, it was announced that Eric Pilkington, who has worked with giants like Apple, Google, HP, IBM etc. has joined SHRK's Board of Directors and earlier today, an even more optimistic-sounding press release came out. SHRK proudly announced that it has reached an agreement to acquire a company called The Mobile Media Lab LLC which is projected to generate more than $1.5 million in revenues in 2016.

When people heard about the Forbes interview, they flocked to the stock and sent it on an absolutely incredible run which saw it go from $0.12 all the way to nearly $0.80 in a matter of just a few short days. Since then, however, the performance has been rather appalling. Three consecutive sessions of double digit losses wiped out more than half of the market cap and pushed the ticker to a close of just under $0.37 per share. What could be the reason for the terrifying drop?

It might have something to do with the fact that there are still a lot of unknowns around SHRK. The SEC filings aren't entirely clear on whether the figures in them (which, as we mentioned in some of our previous articles, are absolutely appalling) belong to the surviving entity after the merger or whether they concern the operations of Online Secretary Inc.

It could also have something to do with the fact that the campaign for Universal Pictures' “Straight Outta Compton”, described by Mr. Smith as the biggest one SharkReach has ever undertaken, generated proceeds of “approximately $49,000”. Those proceeds, in case you're wondering, were received prior to the merger and they won't be transferred over to SHRK's balance sheet.

Basically, some of the investors are keeping a safe distance because they don't know a whole lot about SHRK. They don't know how well the company was doing when it was private and they don't have much information on its current state of affairs. Last but by no means least, they don't know whether the 19.9 million shares (as adjusted for the 83-for-1 forward split) originally sold for $6 thousand are still outstanding and waiting to be unleashed on the open market.

Despite this, thanks to the press release from earlier today, SHRK is bouncing hard and about five minutes into the session, it's already at $0.51 per share, a whopping 40% in the green.

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