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Edward Vranic, CFA
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I am a private investor based out of Toronto, Canada and I have been investing since 2003. After 8 years in Corporate Finance with a Canadian Telecom company I have decided to dedicate myself full-time to the capital markets. I write on Seeking Alpha to demonstrate my financial analysis and... More
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  • Keek: Heavy Buying From Pinetree Capital 14 comments
    Jun 24, 2014 1:00 PM | about stocks: KEEKF, POETF

    In my previous blog post which briefly mentioned Keek (OTCQX:KEEKF), I was promised a message board of serious investors. Instead I saw a couple of upset day traders accusing me and Danny Deadlock of a pump and dump and that KEEKF's volume has dried up. Keek trades much more actively on the TSX Venture Exchange under the symbol KEK. What those investors wondering if Keek is a pump and dump are probably unaware of is the volume wasn't driven by myself or Danny Deadlock, but it was driven by heavy investment from a fund manager in Canada who already held significant interest in Keek's old incarnation of Primary Petroleum. The insider buys can be seen here:

    (click to enlarge)

    Pinetree Capital is a well-known fund in Canada led by Sheldon Inwentash which focuses on early-stage investment opportunities. Its portfolio has suffered in recent years thanks to the significant pullback of resource stocks on the TSX Venture but the company has made a bit of a comeback through POET Technologies Inc. (OTCQX:POETF) (PTK on the TSXV) and appears to be doing the same with Keek as it looks to get into technology plays.

    Referencing the table above, Mr. Inwentash and Pinetree have combined to buy more than 4.4 million shares just in the time period from June 12 to June 19 with the biggest purchase made at 16.6 cents. The only dump that took place was from a relative of the former CEO for 100K shares. The buying represents nearly a third of all volume that occurred on KEK for that week. Looking at the buying history on PTK:

    Suggests that once Pinetree determines a business is of interest to them, the fund is relentless with its buying as represented by the numerous green marks pointed out on PTK's chart over several months. Pinetree's recent buying spree on KEK was a little over $600K in cash. If the buying on PTK is any indication, KEK could be seeing a lot more investment from this fund with added buying pressure potentially causing the stock's price to spike. Since Pinetree started buying PTK in the $1 range, its stock price rose above $2.50 before pulling back to $1.50-$2.00 range where more buying throughout May took place.

    Disclosure: The author is long KEEKF.

    Stocks: KEEKF, POETF
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Comments (14)
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  • Joe2922
    , contributor
    Comments (479) | Send Message
     
    Please, Edward, one rookie type accused you of pump/dump but a few of us defended you! She is mad at herself for other past personal failures in stocks and took it out on you....emotional....so please don't misunderstand the entire msg board because of one person's outburst. I appreciate your candid analyses. Join us, the more educated posters the better.
    I'm holding all my shares and planning to add more.
    24 Jun 2014, 04:16 PM Reply Like
  • bizwiz_69
    , contributor
    Comments (4) | Send Message
     
    Oh come on Edward, laugh a little. We're just small investors. :)
    24 Jun 2014, 04:22 PM Reply Like
  • sts66
    , contributor
    Comments (3258) | Send Message
     
    Don't think it's the idiot who claimed he pumped KEEKF is the problem with him not going to IV, he said he cannot open a free account - Blue is charging all new users? I'd not heard of that - can't try it out because I don't want to delete my cookie and it's account info.

     

    Hmm...appears he's right:

     

    http://bit.ly/1sFFYvB

     

    No option to bypass the "pay to play" page that I can see, just like he said.
    25 Jun 2014, 04:32 PM Reply Like
  • Edward Vranic, CFA
    , contributor
    Comments (1064) | Send Message
     
    Author’s reply » It's been solved now. Joe sent me another link that allows people to join for free. It reminds me a little like facebook in the early days, when you had to be invited by someone to join. Hey, maybe its a prelude to its popularity ;)
    25 Jun 2014, 10:03 PM Reply Like
  • sts66
    , contributor
    Comments (3258) | Send Message
     
    Glad to hear that - care to share the link for free IV sign-ups so it's here for prosperity for others to find in searches?

     

    Re: IV's popularity, it's well deserved, a great site with tons of options and apps - after Yahoo destroyed their stock MB's and IHUB started allowing shorts to be board moderators, stifling info exchange via constant deletions of valid posts, a ton of folks flocked to the IV boards. Even better, there are plenty of actual experts over there that use their real names to post so people can verify their credentials if desired.
    26 Jun 2014, 02:42 PM Reply Like
  • Edward Vranic, CFA
    , contributor
    Comments (1064) | Send Message
     
    Author’s reply » I think Joe should be the one to decide if he wants to share it. He gave it to me in confidence.
    26 Jun 2014, 02:58 PM Reply Like
  • Joe2922
    , contributor
    Comments (479) | Send Message
     
    I put the link to join IV and post free at top of keekf board -- IV wants people to post free (it has always been free to read and join) but hackers made him keep the link a bit private. Join IV, Post free, go to KEEKF board at http://bit.ly/K8DbTf and it's right there at top of the message board when viewing all messages. Would love more people to join in the discussions there, can post active links, images, very cool site.
    5 Jul 2014, 07:11 AM Reply Like
  • Greenfire87
    , contributor
    Comments (657) | Send Message
     
    Edward,

     

    What do you think the chances are that someone like Yahoo would buy out KEEK?
    22 Jul 2014, 09:41 AM Reply Like
  • Edward Vranic, CFA
    , contributor
    Comments (1064) | Send Message
     
    Author’s reply » Given the aggressive purchasing of other similar apps out there, I think there's a very good chance. The management team needs to focus on US expansion since I think that's the key that's missing that has left Keek off the radar screen up until now.

     

    We are presented with a rare opportunity to roll the dice on a buyout because Keek had to take the intermediate step of merging with PIE to get access to cash because the old leadership team greatly misread the investment appetite for Keek more than a year ago. The old management's mistakes becomes our opportunity because we never see a chance to get in on Snapchat or WhatsApp before it's too late.
    22 Jul 2014, 11:03 AM Reply Like
  • sts66
    , contributor
    Comments (3258) | Send Message
     
    What do you think about all the recent hires and the below - signs that KEEK is gearing up to go on a charge?

     

    NEW YORK, NY--(July 22, 2014) - Keek Inc. (TSX VENTURE: KEK) (OTCQX: KEEKF) announced today that it has awarded its media and marketing account to independent agency Giant Spoon. Giant Spoon will serve as the company's agency of record and will partner with Keek's marketing team to create immersive brand experiences and position the company in the marketplace. Keek has also recently hired Atrium PR for its B-to-B and Consumer PR and The Blueshirt Group for all Investor Relations work.
    22 Jul 2014, 12:42 PM Reply Like
  • Edward Vranic, CFA
    , contributor
    Comments (1064) | Send Message
     
    Author’s reply » I think all of these new hires and outsourcing is exactly what a company should be doing for manageable growth. So it is going on a charge, but all relative young companies should be doing this. Keek is just doing what it's supposed to do and we're so use to seeing TSX Venture and OTCBB stocks sit there while management collects a salary that we're surprised when we see an actual company being built!
    22 Jul 2014, 12:54 PM Reply Like
  • sts66
    , contributor
    Comments (3258) | Send Message
     
    Wish GasFrac were being as sensibly run as KEEK appears to be....lost a boatload in that one....so far on paper, but not much hope for recovery.
    22 Jul 2014, 01:28 PM Reply Like
  • Edward Vranic, CFA
    , contributor
    Comments (1064) | Send Message
     
    Author’s reply » Throw a dart onto a board filled with TSX Venture stocks and chances are dozens or hundreds of people have lost a ton on that stock, in excess of 50%. It's the perils of that exchange but the good thing is you have math on your side.

     

    One big gainer can offset several heavy losses on the TSX. I've had that happen to me a few times. For instance, I got my ass handed to me on LXV/MBO, but as it has tanked it has taken up an ever-shrinking % of my portfolio as my other picks carry their own weight. Now if MBO ever recovers, it'll be a nice bonus rather than something that must happen for me to do well.

     

    If you really hate GasFrac and want to deal with it psychologically, add your paper loss from GasFrac onto the average cost of Keek. When Keek hits that point, sell both and you're essentially "breakeven". It's not the greatest strategy to trade but it is a decent way to keep your sanity over your large losses.
    22 Jul 2014, 04:30 PM Reply Like
  • sts66
    , contributor
    Comments (3258) | Send Message
     
    Didn't exactly write that Gasfrac bit properly - "boatload of losses" means large -% loss, not large cash loss - didn't want to bet a whole lot on them - bet enough to be sorry I bought the stock, but in the overall scheme of things it was a small buy. When I have misses like that where there is still a chance of recovery someday I just hold and hope - not much difference between an 80% loss and 100% when the cash involved is relatively small. I never tie sells together in my IRA, no tax advantage to doing that - taxable account doesn't see much action, all is long term buy/hold in there.
    22 Jul 2014, 07:48 PM Reply Like
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