Hey Lou,
Could you tell me if Keek Inc. is going any higher?
Ron
Hey Ron,
Thanks for the assignment.
Keek Inc. (KEK) owns and operates a social networking platform. It allows users to create and watch videos using a variety of hand held devices including smart phones, tablets and laptops. In addition participants can share the content through e-mail, and social media. Enthusiast can also follow, subscribe, and respond to videos through text comments and video replies. The projected growth in the online video advertising industry is the target that KEK intends to strike.
Alex Cameron joined the company in April of 2014 as the CEO with the intent of creating a $1-billion enterprise. Cameron has assembled a new team to drive KEK to that objective. The company currently has a market capitalization of $41.24-million which would translate management's goal to an increase in the stock price to the $3.00 range. Clearly a serious profit generator if it can be accomplished.
A scout of the charts will help identify if KEK has upside to spare.
The three-year chart isn't what I would call exciting from a long perspective. The tale of the tape for 2014 has been all about declining shareholder value. Trading in the stock has produced an established downtrend and a death cross that surfaced in September of this year. Also worth noting is the resistance that KEK has struggled with over the last two and a half months along the 50-day moving average.
The six-month chart provides a close up of the death cross that formed in September and the sell signals generated by the MACD and the RSI in late July. The shares hit a 52-week low of $0.075 in late September where the MACD and the RSI both signalled a buy. KEK ran to $0.12 in five trading days.
What needs to be examined with this case is that the company does not generate revenue as of yet and needs to raise capital via debt or equity offerings to sustain its development. Given the combination of technical and fundamental evidence uncovered in the research you would have to put KEK into the high-risk portion of your portfolio. The established downtrend, death cross, and resistance on the chart are not indicating a breakout at this time.
Make it a profitable day and happy capitalism!
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