Social Reality Inc (OTCMKTS:SCRI) Gets a Boost
There are some things about Social Reality Inc (OTCMKTS:SCRI) that might put you off. Surprisingly or not, they’re not related to the operations. In fact, in that aspect, at least, SCRI seems to be among the more stable OTC propositions.
The company entered the internet advertising business some time ago and after several years, it managed to build a significant client base. The only problem was, profitability was proving elusive. In Q4 of 2014, however, SCRI closed a couple of acquisitions and this, as it turns out, might just turn the tables around.
Last week, the company announced its Q2 financial results. SCRI absolutely obliterated its previous revenue record and it also recorded the first quarterly net income in quite a while. Here’s a summary of the most important figures in the 10-Q:
- cash: $1,515,726
- current assets: $10,784,710
- current liabilities: $17,045,848
- quarterly revenues: $10,784,710
- quarterly net income: $415,591
In the grand scheme of things and especially in light of the rather massive working capital deficit, the net income is not that big, but the fact that the company managed to finish the quarter in the green is a huge step forward. As for the revenues, if you want to get an idea of how significant the growth is, you might want to open SCRI‘s latest 10-K. If you do, you’ll see that the sales for Q2 of 2015 outweigh the annual ones for 2014 by a factor of two.
All in all, plenty of positive things are happening around the company’s operations. Unfortunately, the same can not be said about SCRI‘s stock.
The ticker has had some serious liquidity problems over the years. Despite the relatively solid business and the odd press release, investors simply didn’t pay any attention. On Friday, they did. The ticker registered a dollar volume of around $400 thousand during the last session of the week and it also reached a close of more than $2.20 for the first time in over sixteen months. Unfortunately, this was all due to a paid promotion.
A third party called Third Coast Media paid a total of $20,000 and in exchange, First Penny Picks, along with its sister newsletters sent out some emails which were apparently enough to push the ticker on a rare and exciting run. Wonder what’s bad about this?
Well, the people who are now saying that SCRI is a “hidden gem” were alerting their subscribers about Tanaris Power Hldgs Inc (OTCMKTS:TPHX) two and a half months ago. Back then, TPHX was sitting at around $0.20. Right now, it’s struggling to stay above the $0.05 mark.
The pumpers’ track record doesn’t suggest that SCRI‘s future is too bright, but some of you will probably disregard it and they’ll think that thanks to the impressive financial results, the ticker will be able to emerge on the other side of the pump unscathed. Of course, that might just happen.
Make sure you don’t forget, however, that a couple of years ago, when the stock was still fluctuating around the $1 mark, SCRI sold quite a lot of investment units at $0.50 apiece. Each unit consists of one share and one warrant and the people who bought the equity might not be willing to wait and see if SCRI can continue to be profitable in the long run.
