This stock is going up because people like the unique idea of an internet club with a catchy name "Key Club" that will give big discounts to it's members from big name companies like ATT, Hertz, most of the airlines etc. The greater the number of members, the greater the number of company sponsors and discounts. The exponential potential of this internet site is great. If they reach 1 mil members + , the company will become a powerful force on the internet pursued by companies with discounts to give and advertisers who will gladly pay for the exposure. This is why they are giving the $89 member fee free until 1999, to develop that member base number to give them clout in the internet world. The stock is going up because the site is opening next Friday, OCT 30, and there is a lot of anticipation. The stock is going up because the float is estimated at 6 mil shares with most being in the hands of insiders leaving 2-3 million publicly held.
The stock is just becoming known and as people learn about what their plan is they are buying shares because they like the idea. This upward trend will continue as more people hear about KCAP and greater numbers check it out to see what all the hub bub is about. Will it pull back, ofcourse, at some point, a great deal depends on their internet site launch and it's functionality. Will it crash? IMHO it won't unless the company delays the site launch or the site is not viable. Too much interest in this one to crash right now, and too much potential on the upside of $5 that people won't panic or loose site of the future of the internet. Goldfinger, I feel you are just testing the waters on this thread to see if you want to add KCAP to your self embodied short list thread. You have taken shots at KCAP without stating any facts or DD. If you believe this company is hiding something or has other intentions of fleecing the shareholders instead of making their business a profitable one, please let us know in good faith for that is what this thread is all about. However, if you are blindly beating the bushes for your next short with no facts to back it up, be careful what you say, the SEC is cracking down on internet manipulation of both bashers and hypsters.
Happy investing - MM |
