Peculiar acquisitions, odd cash at hand, a press release and a set of promoters – this is what it takes to bring the hype for a “pink sheet limited information” company like Searchlight Solutions Ltd.(PINK:SLLN). What would it take to keep the interest, however, is another matter entirely. 
The good news first. More than 16 million shares exchanging hands. This was yesterday. The bad news – this stock is still in sub-penny levels, Wednesday closing at $0.006 per share. Much like the beginning of the month, there is news to sparkle such huge trading activity, as well as promotions to sustain it. Several promotions again, and short overview of the business of recently acquired Linux Labs International Inc. So far, nothing out of the ordinary.
Then, there are the facts that pop up after a short research on the matters above. First of all – the acquisition. Looking at the website of Linux Labs, there is not a single name mentioned – no general management, no staff. On the other hand, the annual report for 2010 could be of help for this issue. One can read there that:
What a person could also find there is the $4 in cash that the company had at the end of last year. Fortunately, it includes financial information for the last few years. Unfortunately, it is unaudited. This is probably one of the reasons why there was very little trading activity before the announcements and promotions started coming out. A question that might come to mind is – what happens when the artificial hype sparkled by promoters is over? More than 16 million shares traded yesterday, less then 16k shares traded two months ago. Certainly, a situation which prompts for caution to be applied before an investment decision is made.
