Media Analytics Corp (OTCBB:MEDA) Continues Its Hype-Induced Ascend
Until not that long ago, Media Analytics Corp (OTCBB:MEDA) went by the name Fansport Inc and it’s fair to say that things weren’t looking particularly bright back then. The filings tell us that a special sports-related social gaming application was in development but they also reveal that the company had only one employee, less than $2,500 in the bank and little to suggest that success is within reach.
Even when you check out their old headquarters on Google Maps, you’ll see that it’s nothing more than a nice residential house in the depth of the Californian countryside. All in all, it didn’t look like the perfect investment option. But what exactly has changed since then?
Well, obviously, the name is new and so is the ticker. The business focus now is on providing analytical data from a range of social networks to advertisers, publishers and marketers who want to improve brand recognition for their products and predictably, there’s a new management team.
Unfortunately, once again, it would appear that Mr. Stephen Wong, the new CEO, CFO, President and Treasurer, is going to be alone in his quest to turn MEDA into a successful company. On the bright side, the man knows a thing or two about social media, if the resumes around the Internet are to be believed.
In addition to taking care of everything related to MEDA, Mr. Wong is also the CEO of another social media analytics-related venture called Social Media Broadcasts Limited (SMB) and although the official filings are keeping quiet about any sort of relationship between the two companies, the press releases say that SMB have allowed MEDA to distribute the products related to the Klarity technology in the US and UK. That’s a massive plus since it means that the shareholders won’t be forced to endure several years of development of a technology that might never actually turn into a reality.
Before you go jumping in, however, you should bear in mind that we’ll be able to say for sure how successful Klarity is only when the official filings report some revenues and, preferably, a net income. Unfortunately, some time will pass until the 10-Q for the third quarter of 2013 comes out which means that, at the moment, all we can do is discuss the current risks involved in a potential MEDA investment.
There is one, rather big problem – the $3.8 million promotion. As we mentioned yesterday, a third party called New Level Media has splashed out the colossal amount of money in an attempt to give the price a boost and, not without the help of the landing page set up by newcomers Stock Report Baron, they are proving to be successful so far. Two green sessions in a row and a total of 20% added to the value sounds good, but the really important question is: “When will the ticker run out of steam?”.
Well, with pumps as big as this one, predicting any sort of movement in the near future is nigh on impossible. One thing is for sure, after yesterday’s close, MEDA‘s market cap is already standing above $150 million and that’s quite a lot for a company we know so little about.
So far, there’s been very little in terms of press releases but we’re pretty sure that, sooner or later, some exciting piece of news will hit the websites. The pumpers probably won’t limit the promotional activity to a single landing page either and, having in mind the huge budget, we won’t even be surprised if we see some hard mailer brochures flying around. Whether that’ll happen remains to be seen, but even if it does, it can’t guarantee any sort of prolonged performance.
If you check out the chart movement caused by another multi-million dollar pump, the one for Arch Therapeutics Inc (OTCBB:ARTH), you’ll see that while the artificial hype did manage to push the ticker to a height of $1.36, it was soon squashed by the pressure. Currently, it’s 72% below these values and it’s fair to say that there’s little to stop MEDA from following the same curve. Make sure you have this in mind while contemplating your next move.
