Good Morning!
How do we wrap a firecracker week? Let your hair down a little and let’s see what SharkReach Inc. (SHRK) can do for the team!
SHRK has a new system for gauging the effectiveness of social media. They focus on Instagram and other “new” networks right now.
They might graduate soon to the kind of advertisers that hang around big plays like Facebook, Twitter and so on, but that’s long-term stuff.
After all, SHRK only became an active trade back in JANUARY! This start-up is as FRESH as it gets and the ground floor is moving fast!
In its short trading life, SHRK has delivered a healthy handful of 10% to 220% swings, which makes me think the action is actually BUILDING.
Soak up a little of the temptation on this “consolidation” chart before we get to work today:
SHRK basically started its life as an active trade raising that mighty flagpole from $0.10 to $0.85, ramping up a cool 750% in the process.
After a debut like that, it takes a little time to go back and fill in the gaps! Even a FRACTION of that “back fill” action is enough to make traders smile.
Over the last 48 trading days, SHRK has leapt an average of 26% off the opening bell a little more than half the time.
That’s not a bad “average” hop to anticipate, is it? And remember, the biggest moves cleared 50%, sometimes with over 150 points to spare!
Then you have some dip-and-recover action, generally generating similar upside before the typical move runs out of steam.
Why so volatile? Part of the story revolves around how new SHRK is and how much buzz its technology has started earning.
With any chart that’s barely 2 months old, you’re going to have controversy over where it “should” trade! With SHRK, the controversy is 85 cents wide.
There’s no long trend lines here yet to guide the action! It’s free to swing where it wants, and traders are free to push it around a little.
At this point, there’s “only” 20% between the intraday top and bottom, so a typical swing will break OUT of the consolidation triangle.
When that happens, SHRK will be able to reach for the top of the flagpole, which is a LONG and lucrative way away from us down here around $0.20.
Then there’s the story. SHRK is all about buzz. Remember, their business weighs buzz to make sure advertisers get the biggest bang.
It’s a baby “FANG” stock, leaning toward the F for Facebook or the G for mighty Google. Ground floor but revenue is ramping up fast!
Market media is going nuts. SHRK is getting mention after mention after mention -- from Forbes on down!
And as the story spreads, SHRK is scoring talent from places like Instagram and IBM. You can hear the CEO make his pitch HERE.
Meanwhile in twitter land proper, SHRK is scoring the big clients. No Kardashians yet, but Real Housewives and rap stars are lining up.
Long term, we could be watching a social EMPIRE forming here. And as a trade for today, it ain’t exactly a bad chart, is it?
Look at the volatility those candlesticks represent. They look small up there but the percentages are like we like. Make a wish! Let’s go!
Sincerely,
Michael Reef
yourstockguy@gmail.com
