Returning to trading action on Wednesday, Media Sentiment, Inc. (PINKSHEETS: MSEZ) has volume reach staggering heights, posting days of 103 million and 269 million heading into Friday. Shares of MSEZ, which owns and operates an online news media analysis research service, actually climbed to a 52-week high of 0.0017 before closing the day at 0.0010 but on Friday the company once again hit the 0.0017 mark and currently trading around the 0.0010 level.
Of course for anyone who has followed MSEZ they know that information from the company isn’t the easiest thing to access, this despite the seemingly ironic fact that the company’s business revolves around information. Looking up MSEZ on OTCMarket.com will get you a STOP warning, something issued when companies are “not able or willing to provide disclosure to the public markets – either to a regulator, an exchange or OTC Markets Group. Companies in this category do not make Current Information available via the OTC Disclosure and News Service, or if they do, the available information is older than six months.”
So essentially what investors are being forced to do is take a stab in the dark with MSEZ. Now on Thursday they revealed their “strategic plan and direction of the company,” if investors were hoping to get some kind of concrete idea as to what MSEZ had planned then they were probably left disappointed; statements like “We intend to continue to work hard to enhance and protect our intellectual property assets as much as we can and through any means as we believe that they are at the core of our strategy going forward” really don’t carry much weight.
What MSEZ did say was that they “intend to two more tools to the media sentiment set of tools. These new tools are based on social networking technology, a technology sector that has seen a super growth recently due to tremendous valuations seen by companies such as Twitter and Facebook.”
There should always be a level of caution expressed by investors when a company starts to throw around the valuation of social networking sites like Twitter and Facebook, like they are positioning themselves to create the same type of value. MSEZ has said “The two new social networking technology tools are meant to empower the wisdom of the crowds: sharing of predictive sentiment coming from news stories and web documents with friends and followers, for profits. For the first time, a social network will focus on profits for the benefit of network participants.”
MSEZ continues, “The social media sentiment tools will have a social networking focus on the positive or negative sentiment resulting either from web documents or from video reports that predict moves in earnings, stock prices, indexes, funds, sectors, industries, markets, products, movies etc.” How this equates to generating revenue wasn’t really revealed by the company.
Another issue that investors may not want to overlook is MSEZ hasn’t said the social media sentiment tools have been developed yet. It’s great that they have plans to develop the technology but if it isn’t up and running right now, then it does shareholders very little good.
Also on Friday MSEZ announced they had retained Mina Mar Group to assist with Mergers and Acquisitions and retained Mina Mar Marketing Group as the company’s Investor Relations provider. In this announcement MSEZ CEO and President Marian Munz stated “We have a long journey ahead of us and our ship is just about ready to set sail.”
Munz then outlined the next 30-45 days, informing investors of the eleven steps that the company intends to achieve over that time period. They were listed as: 1. Commence Reporting our Activities on OTC Markets 2. File our Financials 3. Complete an updated OTC Markets Adequate Disclosure and file. 4. Remove the STOP rank icon from our quotation 5. Obtain Current Issuer Rank with OTC Markets 6. Our current authorized share structure is 50 billion shares since Aug.19, 2010. Our plans project reducing the authorized share structure by an estimated 45 to 48 Billion shares. 7. Our current share structure (Shares Outstanding) is 7,412,601,970 as of Oct 18, 2010. Through a complex financial arrangement which will be outlined in our Adequate Disclosure filing we project and anticipate to be able to retire (buy back) anywhere from 3.5 to 4.5 Billion shares. 8. MSEZ new Outstanding share structure is targeted to be at approximately 3.5 Billion shares 9. Our internal records estimate that a majority of the 3.5 billion shares will be restricted shares. 10. We estimate our float will be approximately 593,926,870. Following all of this internal re-organization and OTC Markets filings within the aforementioned 30-45 days we intend to obtain a certification letter from our transfer agent, and a legal opinion from a qualified securities attorney which we will file on OTC Markets. 11. Commence seeking a suitable merger candidate. MMG mandate is to locate a suitable company with revenues in the 5-7 million annual range and assets in the 4 to 6 million dollar range.
Ambitious, to say the least but the good news for investors is they have a clear understanding of what MSEZ intends to do over the next 30-45 days, if they can’t produce the results that they intend then there will be few who are willing to wait around for the next set of promises.