The Power of PR: go SearchGuy go

For months, I’ve been watching with interest the publicly traded search engine company headquartered in Mountain View, CA, just miles from where I lived during the dot com bubble. SearchGuy.com went public in May through a reverse merger. For SearchGuy.com, the bubble is not over. The company runs from press release to press release as it tries to grow into its valuation.

The company had 100 million outstanding shares and at one point had a stock price of $0.75, giving it a market capitalization of $75 million. Today, it is trading at $0.589, but last week it “retired” 50 million shares, so now it has only 50 million outstanding shares and a market cap of just under $30 million. Sill, that’s not bad for a company which has never announced revenue and whose company headquarters in Mountain View are actually just an executive suite. (To keep overhead costs down.)

Today, in an exciting announcement, the company announced it is partnering with Valueclick’s Search123 for paid search results. This is significant because it isn’t just SearchGuy announcing something it is thinking about doing, or telling us what it is going to work on next, like so many past press releases. This time, it’s an actual partnership with a good company.

Searchguy’s traffic is still extremely low, but a couple of times it has broken into the Alexa top 100,000, usually after a good press release or two.

I may sound a bit sarcastic, but I’m actually extremely hopeful that SearchGuy will grow into its valuation through execution and deals. I want to see small startup companies be able to access capital from public markets.

2 Comments

  1. I bought many 1000’s of SHGY because all it needs is exposure. I think it has just got
    some with the deal it just made with Exchange Wathch it start to cimb by end of Nov & Dec 2004.

  2. SHGY needs a lot more than just exposure–frankly, that’s about ALL it has right now. If you look at the company’s traffic and revenue possibilities, I think you’re eyes will be opened. I tried to visit the company in July, but it doesn’t even have an office. I’ve tried to contact the management team to no avail. I don’t think this stock has any value right now. Why did you buy it? Because of their PR strategy?

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