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.