IZEA Holdings Inc (OTC:IZEA) pretends to be ‘the world leader in social media sponsorships’, yet its market positions hardly bear any resemblance to those of the industry leaders.
Yesterday, IZEA surged by 8% closing the session at $1.35 per share. Although traders actively played with this stock by generating a 52-week high turnover of 223 thousand, IZEA stock somehow failed to end the week on a high note and get back where it used to be. Indeed, if you shorted your IZEA shares in late-August, you could have had a huge profit on the deal.
Now that these times seem to be gone for quite a while, interested parties have gone the extra mile by investing $25 thousand into a paid advertising campaign. The promotion which flooded investors’ emails last night is expected to give IZEA shares a boost in the forthcoming session. Given the lack of past promotions in favour of IZEA, however, calculating the possible impact of the present PR would be quite a long shot.
IZEA’s core purpose is to provide a bridge between advertisers on the one hand and social media publishers on the other. Moreover, the company claims to have made in excess of 2 million sponsored posts so far for various organizations.
In terms of financials, IZEA has kept a transparent profile as it is a regular SEC filer. The company’s latest 10-Q form which covers the quarter ended Jun. 30, 2011 is the most recent financial report made available to the general public. According to it, IZEA’s balance sheet discloses:
- cash reserves in excess of $2 million;
- working capital surplus of approx. $1.5 million;
- $845 thousand in revenue as opposed to $794K accumulated in Q2 of 2010;
- a quarterly net loss of $604K accounting for a 7% improvement over the same quarter last year.
Although IZEA’s financial indicators have shown definite signs of improving, the company’s management must do its best to accelerate the rate of growth. Only then will it be able to maximize shareholder value and start thinking about becoming a world leader.
