AI
Saturday, April 17, 2010 4:21:02 PM
Greetings mrnj board...given that I recently decided to take a position in this ticker, thought I'd share some of my DD for anyone interested. I use both TI and traditional research for DD so there's a bit of both below. I was first turned on to this ticker by a trading buddy who was in it early in the year. My gut and my charts told me then to be wary of the trading action as the downtrend in the SP was undeniable. And finally, I believe it has now hit a bottom...all the way down from the post r/s highs of late May/early June 2009. Well, what can be said there? Pretty much like taking candy from a baby when you rev up to levels of .40+ and have no revenues at the time/are that nascent in the game. That's coming down no question, and down it came. So, now my interest is piqued to see what comes next. Hopefully anyone who might be still in from such higher levels and didn't understand the game here, has learned the valuable lesson in investing to ALWAYS check to see where the last r/s is in the timeline. Putting that together with the company development curve, will tell you what should be expected. Market downside players will jump on a prescription for making crazy profits by shorting the stock out like that in a heartbeat.
But that's the past, and the focus now is on the future imho...which is looking pretty decent to my eye. The company is in the great space of mobile content delivery (nothing hotter these days and in the foreseeable future), and from their bios that I read in the Annual Report posted 4/1/10, the management team seems to have a more than adequate track record of being connected in the right ways and at very least the right amount of experience-base to be successful LT in this endeavor. And the PR progression here seems to be confirming that already, not even a year into the game.
Well, enough about that. The following was what stood out to me through my DD...
First, I had already known from my aforementioned trading buddy, that there was an increase in shares that occurred within the last few months. And that's never a great thing for investors, as many will run away. But I will say this. When looking at the transactions for the shares in the Annual, things appear above board to my eye in that the shares were used properly to convert existing debt (which MANY companies do, large or small, Pinks or NASD or Big Board). The very fact that ostensibly all (or most) of the transactions are listed, detailed, and accounted for, mainly shows me the company's dedication to transparency. Which compliments their diligence to have a CI Tier ticker as well. This can only be a good thing in my view. Also, that creditors were willing to accept shares, says something else on its own. How many of those shares were sold in the market? Hard to say exactly, but surely some portion which has contributed to the declined SP. I would believe also though that a certain chunk of those shares will be held since it is a good bet that this company at some point will turn a major corner into bigger successes and therefore a much higher SP. So maybe some of both there. Then also some of the decline was also just purely retailers jumping off. I'd say the short agenda contingent (including MM's) has had to put out little effort of late...just enough to keep the price moving down to where it is now via using the right technical indicators (that I will go over briefly below). So my suspicion is whatever is currently still pent up short (which I believe is still substantial regardless of the Pinks reporting that there are currently NO shares short! Really??), is going to be getting close to wanting to lock up their profits of this entire move soon. What's noteworthy is the V on the first mini-profit taker event over Dec/Jan. It didn't take many shares (even relative to the lower O/S and the float at the time) to jump the price pretty high. But days right after, huge red V was seen to take the SP back down. So net/net that describes to me, whatever shares were used to cover were also sold right back into the equation and therefore would have impact on current cover potential levels as well...since from mid-Jan on, the bulk of the heavier V days have been red V not black.
But on the share increase issue, as another poster mentioned, I still see only ~260M shares out with a reported float lower than that. Given the current shareholder count recently updated EOMarch, what could the "effective" float be? I would say much lower as to what's actually available out there daily. ~260M shares out is actually a pittance in this game when compared to what most companies currently have out there (in the billions), and where their SP still has decent moving power. Given the lower share count here, this one has some real potential. AND. The key here for me, is the company was also responsible and only took the A/S to 300M and currently only have ~260M of that out. If I were a shareholder from previous levels waiting this out, that would be a plus. Most Pinks start-up companies would go right for the jugular and AT LEAST go up to 700M+ on the first raise if not 1B. Not so here, which impresses me. Shows me they did the math and were targeted/constructive about those needs. And now imho, as this bottoming settles out and though there are a few more now in the count, having still relatively so few shares out and in the float, bodes well for some very nice upside price action...and quickly.
Concerning future dilution worries I found the following snippets to be enlightening:
>>From the Business Outlook PR from 4/2/10:
Metatron will focus on raising private capital in order to take full advantage of the existing opportunity to purchase or license top-tier multi-media content for release as downloadable apps for numerous platforms including iPod, iPod Touch, iPad, Android, BlackBerry, and those that are yet to be released. Private capital funding will also allow i-Mobilize to aggressively expand its business model to accommodate the broad spectrum of sales venues and production of proprietary content for individual celebrities and corporations.
Many of our shareholders have been extremely vocal about the increases in our authorized stock and the number of shares issued and outstanding. We are philosophically opposed to diluting our shareholders' ownership positions but until recently the availability of investment capital has made it necessary for us to use our common stock to raise capital for the development of the company. We resisted increasing our number of shares until we had no choice but to access that method of funding. We will continue to resist authorizing more shares and will seek a value-add investor who can help increase our company's growth and revenue generating capabilities. <<
>>From the annual report dated 3/31/10:
Based on our current operating plan, we
have enough cash to meet our anticipated cash requirements for
approximately 12 months<<
Bolded passages in the above were done by me as what stood out as keys. It seems to me that the company is clearly focused now on securing other forms of funding other than through more debt-equity. I could be wrong, but that's what I'm getting from what they are saying in several places (PR's and the Annual). I'm getting that the funding and debt exchange conversions they just did early this year will be adequate for the time being. And as revenues continue to be gaining steam, and now with them having Victoria Duff on board (who seems very well-connected to this poster), the chances of securing non-dilutive funding in the future have increased substantially when it may be required or desired for growth.
If none have checked out Ms. Huff's bio on her Hive @ Huntington organization's website, it's worth a look. It's Flash-based so I grabbed a snap of it:
website: http://www.thehivehb.com/
From the mrnj PR of her new association with them, this stood out to me as well:
From the PR dated 3/24/10:
>>Ms. Duff will work under the direction of Metatron CEO, Joe Riehl, to provide strategic counsel and tailored services including corporate planning; business development; venture analysis; forecasting; funding facilitation, and investor management. <<
From what I see about her is impressive and I like the chances of her bringing in a solid contribution for shareholders. What is also impressive to me now that the dilutive actions have been taken, is the company responding publicly to shareholder concerns on the issue (as I'm sure there were a flood of emails on it). For me again, that's showing management is listening and PROVES through their communications directly to shareholders that they give a crap ABOUT them. I've seen plenty worse! Also as said, being a Current Info Tier ticker is also proof they care about their image and being a respected company. You do have to earn it in this game.
From what I'm getting here, the company seems poised for a continued track to short-term success. All companies at some point in their start-up phase, experience the dilution situation. If management is to be taken at their word, it appears that their pipe has got some very good potential in it for what can make more immediate impacts rather than say a year or years+ from now. These cumulatively all stand out to me as the right kind of progression:
>>From the PR dated 1/22/10:
"Since our inception in June, we have grown at an incredible rate, and we are really just getting started. There are an awful lot of deals in the pipeline, and we are at the table with some of the biggest names in our industry. Stay tuned!" <<
>>From the latest PR dated 4/16/10:
Metatron's i-Mobilize Scores Highest Weekly Revenue Gain Since Launch
Mobile App Distributor Continues to Score Double-Digit Weekly Revenue Gains; Last Week's Revenue Has Increased 33% Compared to the Same Week Last Month
i-Mobilize, providers of multi-platform digital content distribution and a division of Metatron, Inc. (PINKSHEETS: MRNJ), achieved its highest-ever increase in weekly sales revenue since the company's launch last year. i-Mobilize drove a 33% revenue increase during the week ending April 10, over the same period last month.
"We anticipate ongoing increases in revenue as well as volume as more consumers continue to adopt apps for their mobile devices," said Joe Riehl, CEO of i-Mobilize. "The recently-launched iPad device has prompted sales to an entirely new consumer base, and that is certainly helping to drive sales. However, we are also seeing increases across all devices and platform providers, which is a testament to on-going consumer adoption of our product."
Also contributing to i-Mobilize's bottom line is the company's capability to deliver a continual flow of new app content for consumer users of all major mobile device platforms.<<
So combined with my TI analysis, that's why I've chosen now as the time to get into this mix and see what unfolds in the next ST time period. Not saying my decisions or conclusions should be anyone elses, but just thought I'd share what I see with the board. Take it all as my humble opinion.
So lastly the charts.
First, the look at the 1yr, which shows how great of a candidate this stock was for what is now charted history:
Second, looking at things a bit closer up in the 6mo, much can be gleaned about both the takedown and what appears to be the turning point of the downtrend. For those who don't know much about charting, I'll give you a little tip. Always look at your 20SDMA (simple day moving average). MM's and short agenda's always use that MA as their guide both for uptrending a stock and downtrending. In a sustained uptrend situation, you want your stock to remain ABOVE the 20. If and when that happens, and it continues to hold, the trend will remain intact and more traders, investors (esp the smartest money) will stay with the story. On the other hand. When the trend is down and some agenda wants to keep it moving down, they will make it a point to never allow the SP to CLOSE OVER the 20. At times they will headfake retailers and let it over intraday, but never a CLOSE above. The idea for them is, by keeping it under, it scares away smart money who will only come in on uptrends confirmed via such TI. That's my tip of the day for anyone who cares. But even as recent as Friday's close, I will show you more on this in the 1mo chart. Overall, suffice it to say, the agenda against this stock had little trouble on this one as they have been watching their profits grow weekly and monthly.
Back to the 20 on the next chart, but several other indicators on the 6mo are further depicting the more bullish (or less bearish) change. The strings of down candle sequences are beginning to point towards a turn. And this last string currently in its 4th day Friday, shows an open and close differential of .0005. The most compact such 4 day swing in maybe forever during the down trend. Shows me this move as a whole is becoming gassed. I also see the last three candle sequences for the first time are rising in positioning rather than falling as in any other time in the overall move. Rising, with steepness flattening. Next the MFI (money flow) for the first time is showing positive sustained trending. This began in early March. Prior to this sequence it was nothing but ugly. Stochastics, finally reached a level above 35 for the first time since mid-January. And prior to that it was late Nov. Another tip. If you find other stocks you own in a similar plight on the Full Sto plotting, your stock is most likely in trouble for the foreseeable future. And so now we see this stock also has reached past the 50 level (again since January). We'd like to now continue to see higher Sto readings going forward but this is a great sign of change in the offing.
So lastly, I will present a 1mo chart for a few reasons. One to show the most recent trending towards a turnaround here, but also as previously mentioned to show why the stock closed at 95 Friday instead of 97. The 1mo shows a more precise reading of the 20. The 6mo or longer will round off. But here on the 1mo, it is seen that the 20 is reading .0096. And remember, I said that during a continued takedown, NO closes OVER the 20 are allowed after a certain point in the game. So of the last 2 trades of the last few minutes of Friday, one was a 97 and one, which became the last one, was the 95. And that keeps the stock under their control for the weekend at least. Just barely, but sometimes that's all that's required. You can also see the close Thursday @ 96, how it was just tucked under the 20 there and so on going back in time. In this move, pre mid-Nov, you will see a few sucker jumps over the 20, set as traps. Post Nov, except for during the planned mini-squeeze profit taker in late Dec/early Jan, you will find none because that's when it all got serious.
So where does that leave things currently? What can also now be seen in the 6 and 1mo charts is how the move is losing steam here imho. No surprise as the SP has already tested .008. For this stock, my take is that will hold because the company have current revenues, they're not a company that "hopes" to have revenues "someday". I think the down agenda on this play is hard-pressed to believe they can eek out more than .008 here unless something bizarre were to transpire suddenly to motivate it. But with more apps coming out weekly now, and more deals in the pipe that can hit, and the company beginning to prove their product is in demand in the marketplace, I believe what happens next is the second and final covering event to this last 9 month move to the bottom. Until, as the 20 begins to flatten, and little downside room remains daily now, we see esp in the 1mo chart the dilemma that is now presented. How much longer will they be able to hold the SP under the 20, is the question. The 20 is still sinking slightly but it appears it's about to bottom. As it does, there will be three choices for them. Either try to keep running away lower and build more bounce room below it, or say it's enough and let it run through a major event, or three, head fake it over the 20 for a bit only to have designs to bleed it it back down. At this point, imho, it's all in how they see the company which will determine the next course of action. Has the company proven to a large extent they are for real and will survive, or not? At this stage, it looks promising for the former. So far the chart and company news seem to be saying things are changing for the better. We'll see how it plays out.
One last thing about PR's. Don't forget, depending on the company, the product, etc.. PR wires will also be used as advertising...so in a double manner. In such cases a company can be accused of using "fluff" tactics just to move their stock. I believe the entire situation needs to be considered before a judgment is given. In the case of this company, who is releasing a large amount of apps for consumer consumption and in a frequent manner, using PRs to announce releases is perfectly acceptable imho. It helps get the word out while also informing the Street that their product is continually rolling out. So I think there in some cases needs to be a distinction. And I think this is one of those cases. I realize many companies abuse PRs for fluff attempts, but many of those companies are not releasing a volume of new titles each week. Meaning. In this case, if a PR comes out about an app release and the stock doesn't move, then so be it. That PR was mainly meant to advertise the release of the app so people who read the release will consider buying it and maybe spread the word (with the added benefit of showing the Street the company is releasing its wares), not necessarily that it was supposed make the stock go crazy higher. It's a win/win if taken correctly and not considered malicious or irresponsible (as in the latter I do not). Make sense? gl on all trades.
But that's the past, and the focus now is on the future imho...which is looking pretty decent to my eye. The company is in the great space of mobile content delivery (nothing hotter these days and in the foreseeable future), and from their bios that I read in the Annual Report posted 4/1/10, the management team seems to have a more than adequate track record of being connected in the right ways and at very least the right amount of experience-base to be successful LT in this endeavor. And the PR progression here seems to be confirming that already, not even a year into the game.
Well, enough about that. The following was what stood out to me through my DD...
First, I had already known from my aforementioned trading buddy, that there was an increase in shares that occurred within the last few months. And that's never a great thing for investors, as many will run away. But I will say this. When looking at the transactions for the shares in the Annual, things appear above board to my eye in that the shares were used properly to convert existing debt (which MANY companies do, large or small, Pinks or NASD or Big Board). The very fact that ostensibly all (or most) of the transactions are listed, detailed, and accounted for, mainly shows me the company's dedication to transparency. Which compliments their diligence to have a CI Tier ticker as well. This can only be a good thing in my view. Also, that creditors were willing to accept shares, says something else on its own. How many of those shares were sold in the market? Hard to say exactly, but surely some portion which has contributed to the declined SP. I would believe also though that a certain chunk of those shares will be held since it is a good bet that this company at some point will turn a major corner into bigger successes and therefore a much higher SP. So maybe some of both there. Then also some of the decline was also just purely retailers jumping off. I'd say the short agenda contingent (including MM's) has had to put out little effort of late...just enough to keep the price moving down to where it is now via using the right technical indicators (that I will go over briefly below). So my suspicion is whatever is currently still pent up short (which I believe is still substantial regardless of the Pinks reporting that there are currently NO shares short! Really??), is going to be getting close to wanting to lock up their profits of this entire move soon. What's noteworthy is the V on the first mini-profit taker event over Dec/Jan. It didn't take many shares (even relative to the lower O/S and the float at the time) to jump the price pretty high. But days right after, huge red V was seen to take the SP back down. So net/net that describes to me, whatever shares were used to cover were also sold right back into the equation and therefore would have impact on current cover potential levels as well...since from mid-Jan on, the bulk of the heavier V days have been red V not black.
But on the share increase issue, as another poster mentioned, I still see only ~260M shares out with a reported float lower than that. Given the current shareholder count recently updated EOMarch, what could the "effective" float be? I would say much lower as to what's actually available out there daily. ~260M shares out is actually a pittance in this game when compared to what most companies currently have out there (in the billions), and where their SP still has decent moving power. Given the lower share count here, this one has some real potential. AND. The key here for me, is the company was also responsible and only took the A/S to 300M and currently only have ~260M of that out. If I were a shareholder from previous levels waiting this out, that would be a plus. Most Pinks start-up companies would go right for the jugular and AT LEAST go up to 700M+ on the first raise if not 1B. Not so here, which impresses me. Shows me they did the math and were targeted/constructive about those needs. And now imho, as this bottoming settles out and though there are a few more now in the count, having still relatively so few shares out and in the float, bodes well for some very nice upside price action...and quickly.
Concerning future dilution worries I found the following snippets to be enlightening:
>>From the Business Outlook PR from 4/2/10:
Metatron will focus on raising private capital in order to take full advantage of the existing opportunity to purchase or license top-tier multi-media content for release as downloadable apps for numerous platforms including iPod, iPod Touch, iPad, Android, BlackBerry, and those that are yet to be released. Private capital funding will also allow i-Mobilize to aggressively expand its business model to accommodate the broad spectrum of sales venues and production of proprietary content for individual celebrities and corporations.
Many of our shareholders have been extremely vocal about the increases in our authorized stock and the number of shares issued and outstanding. We are philosophically opposed to diluting our shareholders' ownership positions but until recently the availability of investment capital has made it necessary for us to use our common stock to raise capital for the development of the company. We resisted increasing our number of shares until we had no choice but to access that method of funding. We will continue to resist authorizing more shares and will seek a value-add investor who can help increase our company's growth and revenue generating capabilities. <<
>>From the annual report dated 3/31/10:
Based on our current operating plan, we
have enough cash to meet our anticipated cash requirements for
approximately 12 months<<
Bolded passages in the above were done by me as what stood out as keys. It seems to me that the company is clearly focused now on securing other forms of funding other than through more debt-equity. I could be wrong, but that's what I'm getting from what they are saying in several places (PR's and the Annual). I'm getting that the funding and debt exchange conversions they just did early this year will be adequate for the time being. And as revenues continue to be gaining steam, and now with them having Victoria Duff on board (who seems very well-connected to this poster), the chances of securing non-dilutive funding in the future have increased substantially when it may be required or desired for growth.
If none have checked out Ms. Huff's bio on her Hive @ Huntington organization's website, it's worth a look. It's Flash-based so I grabbed a snap of it:
website: http://www.thehivehb.com/
From the mrnj PR of her new association with them, this stood out to me as well:
From the PR dated 3/24/10:
>>Ms. Duff will work under the direction of Metatron CEO, Joe Riehl, to provide strategic counsel and tailored services including corporate planning; business development; venture analysis; forecasting; funding facilitation, and investor management. <<
From what I see about her is impressive and I like the chances of her bringing in a solid contribution for shareholders. What is also impressive to me now that the dilutive actions have been taken, is the company responding publicly to shareholder concerns on the issue (as I'm sure there were a flood of emails on it). For me again, that's showing management is listening and PROVES through their communications directly to shareholders that they give a crap ABOUT them. I've seen plenty worse! Also as said, being a Current Info Tier ticker is also proof they care about their image and being a respected company. You do have to earn it in this game.
From what I'm getting here, the company seems poised for a continued track to short-term success. All companies at some point in their start-up phase, experience the dilution situation. If management is to be taken at their word, it appears that their pipe has got some very good potential in it for what can make more immediate impacts rather than say a year or years+ from now. These cumulatively all stand out to me as the right kind of progression:
>>From the PR dated 1/22/10:
"Since our inception in June, we have grown at an incredible rate, and we are really just getting started. There are an awful lot of deals in the pipeline, and we are at the table with some of the biggest names in our industry. Stay tuned!" <<
>>From the latest PR dated 4/16/10:
Metatron's i-Mobilize Scores Highest Weekly Revenue Gain Since Launch
Mobile App Distributor Continues to Score Double-Digit Weekly Revenue Gains; Last Week's Revenue Has Increased 33% Compared to the Same Week Last Month
i-Mobilize, providers of multi-platform digital content distribution and a division of Metatron, Inc. (PINKSHEETS: MRNJ), achieved its highest-ever increase in weekly sales revenue since the company's launch last year. i-Mobilize drove a 33% revenue increase during the week ending April 10, over the same period last month.
"We anticipate ongoing increases in revenue as well as volume as more consumers continue to adopt apps for their mobile devices," said Joe Riehl, CEO of i-Mobilize. "The recently-launched iPad device has prompted sales to an entirely new consumer base, and that is certainly helping to drive sales. However, we are also seeing increases across all devices and platform providers, which is a testament to on-going consumer adoption of our product."
Also contributing to i-Mobilize's bottom line is the company's capability to deliver a continual flow of new app content for consumer users of all major mobile device platforms.<<
So combined with my TI analysis, that's why I've chosen now as the time to get into this mix and see what unfolds in the next ST time period. Not saying my decisions or conclusions should be anyone elses, but just thought I'd share what I see with the board. Take it all as my humble opinion.
So lastly the charts.
First, the look at the 1yr, which shows how great of a candidate this stock was for what is now charted history:
Second, looking at things a bit closer up in the 6mo, much can be gleaned about both the takedown and what appears to be the turning point of the downtrend. For those who don't know much about charting, I'll give you a little tip. Always look at your 20SDMA (simple day moving average). MM's and short agenda's always use that MA as their guide both for uptrending a stock and downtrending. In a sustained uptrend situation, you want your stock to remain ABOVE the 20. If and when that happens, and it continues to hold, the trend will remain intact and more traders, investors (esp the smartest money) will stay with the story. On the other hand. When the trend is down and some agenda wants to keep it moving down, they will make it a point to never allow the SP to CLOSE OVER the 20. At times they will headfake retailers and let it over intraday, but never a CLOSE above. The idea for them is, by keeping it under, it scares away smart money who will only come in on uptrends confirmed via such TI. That's my tip of the day for anyone who cares. But even as recent as Friday's close, I will show you more on this in the 1mo chart. Overall, suffice it to say, the agenda against this stock had little trouble on this one as they have been watching their profits grow weekly and monthly.
Back to the 20 on the next chart, but several other indicators on the 6mo are further depicting the more bullish (or less bearish) change. The strings of down candle sequences are beginning to point towards a turn. And this last string currently in its 4th day Friday, shows an open and close differential of .0005. The most compact such 4 day swing in maybe forever during the down trend. Shows me this move as a whole is becoming gassed. I also see the last three candle sequences for the first time are rising in positioning rather than falling as in any other time in the overall move. Rising, with steepness flattening. Next the MFI (money flow) for the first time is showing positive sustained trending. This began in early March. Prior to this sequence it was nothing but ugly. Stochastics, finally reached a level above 35 for the first time since mid-January. And prior to that it was late Nov. Another tip. If you find other stocks you own in a similar plight on the Full Sto plotting, your stock is most likely in trouble for the foreseeable future. And so now we see this stock also has reached past the 50 level (again since January). We'd like to now continue to see higher Sto readings going forward but this is a great sign of change in the offing.
So lastly, I will present a 1mo chart for a few reasons. One to show the most recent trending towards a turnaround here, but also as previously mentioned to show why the stock closed at 95 Friday instead of 97. The 1mo shows a more precise reading of the 20. The 6mo or longer will round off. But here on the 1mo, it is seen that the 20 is reading .0096. And remember, I said that during a continued takedown, NO closes OVER the 20 are allowed after a certain point in the game. So of the last 2 trades of the last few minutes of Friday, one was a 97 and one, which became the last one, was the 95. And that keeps the stock under their control for the weekend at least. Just barely, but sometimes that's all that's required. You can also see the close Thursday @ 96, how it was just tucked under the 20 there and so on going back in time. In this move, pre mid-Nov, you will see a few sucker jumps over the 20, set as traps. Post Nov, except for during the planned mini-squeeze profit taker in late Dec/early Jan, you will find none because that's when it all got serious.
So where does that leave things currently? What can also now be seen in the 6 and 1mo charts is how the move is losing steam here imho. No surprise as the SP has already tested .008. For this stock, my take is that will hold because the company have current revenues, they're not a company that "hopes" to have revenues "someday". I think the down agenda on this play is hard-pressed to believe they can eek out more than .008 here unless something bizarre were to transpire suddenly to motivate it. But with more apps coming out weekly now, and more deals in the pipe that can hit, and the company beginning to prove their product is in demand in the marketplace, I believe what happens next is the second and final covering event to this last 9 month move to the bottom. Until, as the 20 begins to flatten, and little downside room remains daily now, we see esp in the 1mo chart the dilemma that is now presented. How much longer will they be able to hold the SP under the 20, is the question. The 20 is still sinking slightly but it appears it's about to bottom. As it does, there will be three choices for them. Either try to keep running away lower and build more bounce room below it, or say it's enough and let it run through a major event, or three, head fake it over the 20 for a bit only to have designs to bleed it it back down. At this point, imho, it's all in how they see the company which will determine the next course of action. Has the company proven to a large extent they are for real and will survive, or not? At this stage, it looks promising for the former. So far the chart and company news seem to be saying things are changing for the better. We'll see how it plays out.
One last thing about PR's. Don't forget, depending on the company, the product, etc.. PR wires will also be used as advertising...so in a double manner. In such cases a company can be accused of using "fluff" tactics just to move their stock. I believe the entire situation needs to be considered before a judgment is given. In the case of this company, who is releasing a large amount of apps for consumer consumption and in a frequent manner, using PRs to announce releases is perfectly acceptable imho. It helps get the word out while also informing the Street that their product is continually rolling out. So I think there in some cases needs to be a distinction. And I think this is one of those cases. I realize many companies abuse PRs for fluff attempts, but many of those companies are not releasing a volume of new titles each week. Meaning. In this case, if a PR comes out about an app release and the stock doesn't move, then so be it. That PR was mainly meant to advertise the release of the app so people who read the release will consider buying it and maybe spread the word (with the added benefit of showing the Street the company is releasing its wares), not necessarily that it was supposed make the stock go crazy higher. It's a win/win if taken correctly and not considered malicious or irresponsible (as in the latter I do not). Make sense? gl on all trades.
