Hello fellow investors / traders,

 

A volume breakout alert hit my radar over the past couple of days, and where there is volume there is a potential winner. As the old Wall Street mantra goes, volume precedes price.

And SHRK has shown consecutive days of major volume. So we think there could be come major price appreciation to follow.

SHRK has some major long term support at around $0.13, just below its current price, while its 6 month high is more than double where it is now.

We believe SHRK could be a great risk versus reward trade.

SharkReach, Inc. (SHRK) is a disruptive millennial media company that combines the strength of an influencer owned network with proprietary technology for creating, posting, managing and monitoring branded shareable content. 

SharkReach as one of the first companies in this space is the established leader in Influencer Marketing. It presently has the largest footprint, and plans to further enlarge its market share through an aggressive acquisition campaign to grow the Company at a faster rate than merely through organic growth.

What sets SharkReach apart from other companies in the marketplace is that its influencers (both grass roots individuals and celebrities) are also its shareholders… and that its network has a larger market reach than the top 5 television networks combined!

Historically, and in this order, television, radio, magazine and newspaper advertising were the ways to reach clients. To reach more clients and to increase sales, Celebrity endorsements were added to brands to increase the effectiveness of these traditional media outlets.

In a recent report of the most effective marketing ratings, Influencer Marketing beat out all of the above. But why?

Millennials demand exacting standards in the products and services that are essential to satisfying their social conscience and personal needs. They are the first of several generations to come that will veer away from traditional media. They do NOT watch television, and they do not trust brands and commercials. Their purchasing decisions are impacted by the individuals, friends, and celebrities that they follow on Social Media and YouTube.

Amazing Brand Associations

Per their website, SHRK influencers have worked with an impressive list of companies and brands, including Bravo, Warner Bros, Wendy's, Fox, Best Buy, Ford, Bing, Verizon, Walgreens, PlayStation, Microsoft, Samsung and many more Fortune 500 companies.

You can learn more about SHRK on their website http://www.sharkreach.com/ 


Just last month SHRK announced it had entered into a definitive agreement to acquire 100% of the 30+ year old advertising and marketing agency, Mastermind Involvement Marketing, LLC ("MIM").

The total purchase price for 100% of MIM is approximately $16 million in cash and stock of the Company, including all earn outs, spread out over a two and a half year period at the then current trading price of the stock at the time of issuance. Among other closing conditions, the transaction is subject to the Company entering into definitive employment agreements, Lock Up agreements and related agreements with MIM's principals and the completion of an audit of MIM.

Put simply, this is major news for the growth and expansion potential of SHRK. 

 
SHRK has a lot of positives to consider, and the chart looks ready to breakout from its long term holding pattern. And with a roughly (small) $6m market cap, we think there could significant upside ahead.

Be ready to trade at the opening bell tomorrow.