As you may recall, not all that long ago I was frantically chasing down details behind a hot stock tip that unfortunately got filed away in my spam folder. Never one to pass up a potential investment, I researched down rabbit holes with little luck finding evidence to support this once-in-a-lifetime buying opportunity.
I had nearly forgot how excited I was to receive such a promising lead until I woke up to a mysterious voicemail on my phone this morning…
The contents of the voicemail were as follows:
“Gawk Incorporated, ticker symbol GAWKD, announced they have exceeded 2017 projections with over 2.4 billion minutes for the year. To read to full press release, got to OTCmarkets.com and type in ticker symbol GAWKD, thats GAWKD – George Alpha Whiskey Kilo Delta. Again, to read to full press release, got to OTCmarkets.com and type in ticker symbol GAWKD.”
No hyper exaggerated claims of 100 fold increases in stock price. No dramatic promises of life altering explosions in business performance. Not even a sense of urgency created.
Now, you may be thinking, “This is just boring spam via another channel”. But I am not you. And all I can think is “Who the hell still uses voicemail?” And also, “These guys are clearly trying to fly under the radar and subtly let me know I have just stumbled upon a generational buying possibility.”
You all can look your gift horses in the mouth, but I’m once again ready to take action. After a little due diligence, of course!
Who the hell is GAWK Incorporated?
Always a good first place to start. It took a little digging, but apparently they recently changed their ticker from GAWK to GAWKD. With that knowledge in hand, you can check out their old Yahoo! Finance profile and learn they are a budding Internet Services Provider of 11 employees. Getting in on the ground floor sounds good!
A 1-for-2,500 reverse stock split. That’s usually a good sign, right? We’ll get back to that a little more later.
In completing background research, it would also be prudent to really understand what this 11 person ISP company really does. You can head on over the GAWK website, which appears to have been expertly handcrafted in a middle school art class. Seriously, could you not pay for your theme? I’m getting mixed messages when my provider of services on the internet does really seem to know how to internet properly.
Sorry, I digressed. According to their hastily cobbled together web pages,
“Gawk, Inc. offers a suite of cloud communications, cloud connectivity, cloud computing, and managed cloud-based applications solutions to small, medium, and large businesses.”
But really though, I am supposed to buy advanced cloud solutions from what looks like an out-of-the box Shopify website?
And who is the leadership team behind this enterprise?
This cast of characters that looks like they are all ready to put me in a used Cadillac and sell me the extra undercoating treatment package. If they created a direct-to-VHS remake of Ocean’s Eleven, this is what the team would look like.
I can overlook these and be less condescending in my analysis if you show me the money.
You can check out the full financial statements on your own, but I’ll just leave you with annual net income (in $000s) for 2017, 2016, and 2015 respectively.
What’s this Press Release all about?
So we have a sketchy website, sketchy team, vague cloud solutions, and mediocre financials, but what about that press release from the sketchy voicemail? Perhaps that will shed some light onto why I should be ready to dump my life savings into GAWKD and give true understanding to the very nature of this hot stock tip.
You can read the full release here. But it’s not much more than the below:
Gawk Exceeds 2017 Projections, Sells 2.4 Billion Minutes for the Year
LOS ANGELES, CA – (NewMediaWire) – April 24, 2018 – GAWK, Inc. (OTC PINK: GAWKD) a cloud-based infrastructure-as-a-service company, today announced it has sold 2.4 billion minutes to its business-to-business customers, rocketing ahead of its year-end 2017 projections that it would book 2.3 billion minutes.
Scott Kettle, CEO of Gawk, said, “Our continued innovation and implementation of Gawk’s digital media applications predictably leads to increased demand for our services. Our business plan includes fueling our cloud connectively into a “single pane of glass”, creating an effortless environment for our customers, whether it’s a targeted “Trickle Touch” engagement or an extensive outreach campaign. Our clients have different needs, and Gawk’s cloud-based infrastructure and content delivery targets the segmented audience for each.”
Um… what? I don’t want anyone from GAWK trying to “Trickle Touch” me, thank you very much. That is really beside the point. Where was the intrigue? The drama? The actionable press release information?
Also, the “rocketing ahead” of projections is a bit much. You beat it by 4%. Here’s a cookie.
Are we just done here?
And that Stock Split?
Oh right… There is a press release about that too. Apparently it actually is a good thing; at least according to Chairman, CEO, and likely payday loan shark, Scott Kettle.
“The reverse split is good for Gawk, and new financing will allow for more acquisitions and new services to be launched, which means accelerated growth for the Company.”
It did take the stock price from $0.0001 to $0.25 per share over night. Although it has since fallen to about $0.19 at the time of this writing. Not sure exactly how this will allow for “new financing” to fuel further acquisitions, but you do you GAWK.
I’ve learned my lesson chasing questionably sourced stock tips with unbridled enthusiasm. My expectations of this tip were greatly tempered, and therefore I was not disappointed. Removing emotion from the investing equation is the right thing to do.
Why some mystery caller from California wanted me to read a press release (and how they got my phone number) are beyond me. As always, I thought it was definitely worth a deeper investigation. The final verdict: HARD PASS.