TheDirectory.com, Inc. (PINK:SEEK) Will Enter the Market Today Backed by Promotions
Yesterday's session was a typical one for TheDirectory.com, Inc. (PINK:SEEK, SEEK message board) stock with the share price moving within the established channel and the trading volume remaining below the average. Today may deliver surprises, however, as the stock got promoted and the company published another new press release yesterday evening. SEEK.png
It looks like SEEK share price has not been able to overcome the resistance levels in the past several sessions, although the company has been quite active in issuing press releases on a regular basis this month.
SEEK closed yesterday at $0.002 for a share with a 5.26% gain from the previous close and a trading volume of 9.1 Million shares.
Late in the evening yesterday, we have received promotional e-mails on SEEK, which may make a number of traders put the stock on their watch lists today. The promoter got a compensation of $2,500 for the alert. The chart looks positive with an MACD lines cross and RSI pointing up, and there is also a new PR coming out after market close yesterday.
The press release contains some preliminary results for the quarter ended August 31, 2011, like a 24% increase in revenue from the previous quarter, substantial total debt reduction and expectations for much higher growth in the future. Yet, even if expectations come true, the latest available complete financial report of SEEK does not seem that optimistic.TheDirectory.jpg
The company generates revenue by selling listings on its local search network, main clients being local professionals in the health, legal and finance sectors. For the first six months of this year, SEEK reports revenue increase of 172%, but still a net loss of over $130,000. In addition, as of end-May 2011 the total debt was $4.17 Million, $3.67 of that current, while SEEK had cash reserves of $1,415.
The PR from yesterday does not mention how the company has managed to reduce its debt, but the quarter report shows this has been done my the issuance of common stock in the past. There seems to be no guarantee that this will never happen again. At the end of this May, there were already almost 2.3 Billion outstanding shares, the largest part of which freely tradable.
Hotstocked.com has a complete research report available for SEEK stock. Download SEEK report.
