TheDirectory.com, Inc (OTCMKTS:SEEK) Draws More Attention
While we were preparing yesterday’s article on TheDirectory.com, Inc (OTCMKTS:SEEK), the management team came up with an announcement of their own. It was published at exactly 5:00 AM EDT and it informed us that SEEK plan to launch a national marketing campaign that will help them build the brand. It will start during Q1 of 2014, it will be done through multiple channels and while this is, without a shadow of a doubt, a brilliant piece of news, the effects it had on the stock were still quite surprising.
The ticker opened the session at $0.0027, ran to a staggering intraday high of $0.0044 and closed the day at $0.0037, 48% above Wednesday’s value. A total of 436 million shares worth more than $1.46 million changed hands and at the current level, the market cap exceeds $10 million. We mentioned yesterday that this is a bit steep and, looking at early trading today, we might just be seeing proof of this. Just an hour after the opening bell, the ticker stands around 24% below yesterday’s close.
Of course, there’s still quite a long way to go until the end of the day and anything can happen. Furthermore, SEEK has been on a winning spree for the last couple of session, so a correction (as long as it’s not too severe) seems somewhat natural. The big question is: “What about the long run?”.
Well, the announcement of the marketing campaign has clearly got quite a lot of people excited. An email alert (no compensation has been disclosed) from Stock Analyzer also drew some attention, but, as we mentioned yesterday, a more level-headed investor will probably wait for some official financial information before putting his money on the line.
In terms of filings, SEEK have been quite sloppy over the years. There was a period between September 2011 and July 2013 during which they filed absolutely no documents. Then they quickly put together a couple of quarterly statements and, as we noted in our previous articles, while the bottom line was positive, there was also some not quite as exciting news (for example, the huge working capital deficit).
Right now, the most recent information is still almost five months old and, if the press releases are to be believed, Mr. Scott Gallagher, SEEK‘s founder and CEO, along with some financial experts are working hard on preparing the proper 10-Q’s and 10-K’s which will pull the company out of the Pink Sheets and make it a fully reporting venture. That’s no easy task by any means and the fact that, already, quite a few deadlines have been missed can act as proof. Easy or not, however, they need to finally set the paperwork straight, otherwise they risk scaring quite a lot of investors away.
The thing is, the more the days go by and the more we dig around the company, the more we start to doubt that they’ll ever going to do it. Mr. Gallagher is no stranger to public enterprises. Before running SEEK, he was at the helm of another OTC venture called FTS Group, Inc. (OTCMKTS:FLIP) and if you are wondering why we’re using past tense, we should tell you that it’s not because Mr. Gallagher decided to resign from his position. FLIP‘s stock actually got suspended by the SEC because of… delinquency in the periodic filings. Is this a coincidence? Will the same thing happen to SEEK? Only time will tell, but having all the facts in mind is, we reckon, absolutely crucial before making your next move.
In the meantime, the advertising campaign for TheDirectory.com will hopefully change the mind of some people who have uploaded a couple of less than pleasant entries on RippOffReport.com. Apparently, they’re not big fans of Mr. Gallagher.
