Keek, a TSX-Venture tech stock which has enjoyed incredible liquidity at times in 2014, has lost almost 90% of its value in the past 12 months.
Keek is a leading global mobile video social media network with over 72 million members.
Despite its wide-reaching popularity and increased usage of the company’s app its valuation has plummeted.
Towards the end of 2014, Keek announced plans to consolidate its share structure which had over 300 million shares outstanding.
On January 14th, Keek confirmed that further to its press release dated December 23, 2014, the share consolidation of 30:1 for its common shares were to be effective January 15, 2015, as previously anticipated.
The consolidation has failed to stop Keek’s decline. Its share price fell 15.56% on its first day of trading post consolidation, 3.29% on the second day and was down 9.5% this morning. This is often what happens following a share consolidation. Negative momentum often plagues companies which opt to roll their shares back, and for whatever reason follows the said company into its new structure.
Keek share price volatility continues
We last wrote up Keek in early November along with POET Technologies and a few other tech stocks that were, at the time, leading the TSX Venture in liquidity. Below is a short excerpt from that article.
“Keek Doubles from October low and POET leads junior tech stocks higher
Keek was another hugely liquid tech stock Monday. Its volume has been increasing of late and has traded nearly 10 million shares since October 30th.
Keek was up 15% to $0.15 per share on over 2 million shares traded by 1 PM EST.
The stock has doubled in value from a 52-week low of $0.075 per share, which it hit on October 29th.
Keek’s 52-week high is $0.35 per share.”
Following Keek’s 30:1 consolidation, its 52-week high is now $10.50 and its shares have dropped nearly 75% from its previous pre-consolidation price of $0.15, equivalent to $4.50 post consolidation. Keek was down 10.88% to $1.31 per share Tuesday morning.
Keek – 1 Year Chart
Tech stock Keek to named official video app
Keek announced on January 5th that it has been named the official social video app of Find Your Grind and Learn to Ride at Sundance Film Festival on January 23-24th, 2015.
Despite Keek’s app being available in over 190 countries across 6 global regions, and in 36 languages, investors have not been impressed with the company’s revenue numbers. Keek is now working to overcome the same challenge many start-up tech stocks face: its capability to turn its popular app into consistent, growing revenue.