MK Automotive Inc (OTCMKTS:MKAU) is a penny play that recently pivoted into the content streaming space. The stock got big legs on Tuesday, powering over 60% higher on better than 22M shares changing hands. The breakout took this stock well above its 50-day and 200-day simple moving averages. The motivating factor for buyers was clear: the company announced that the May 16, 2017, debut of the Clikia App for iPhone, iPad and AppleTV in the Apple iTunes Store went off without issue. “Users are now enjoying Clikia on their Apple devices, as Amazon fire TV, Amazon fire Tablet and Roku users have been doing for several weeks.”
“The Clikia App’s availability has, in our view, put us on the Streaming Map,” said MKAU CEO and Clikia founder, David Loflin. “And that Streaming Map,” added Mr. Loflin, “is getting bigger and bigger, given the dramatic acceleration in cable TV subscriber losses. As reported recently by the analyst firm MoffettNathanson, the quarter-over-quarter subscriber losses have, since the start of 2016, gone from minus 1.2% to a whopping minus 2.4% for the quarter ended March 31, 2017. Clikia is on the right side of the business.”
MK Automotive Inc (OTCMKTS:MKAU) acquired Squuak.com in December of 2015. Squuak.com is a new social media and content sharing tool and platform that lets your followers see your what you’re doing on Facebook, Twitter, Linkedin,, Pinterest, YouTube, GooglePlus and others all in one place.
The Squuak.com Social Media Platform is designed to be used by individuals as well as businesses.squuak is a new social media tool unlike anything else. The large social networks are not designed to interact with each other because in many ways they are competitors.
“So then how does one share their entire social media footprint when they are contributing to 10 or more different social media networks and content sharing platforms, Until now it couldn’t be done. Facebook, Twitter, Linkedin, Pinterest, YouTube, and GooglePlus are registered trademarks of their respective companies.”
However, the company just announced that it has acquired a video content service provider, Clikia, thus entering the $37 billion video streaming revolution known as “Cutting the Cord.”
MK Automotive Inc CEO David Loflin said, “With the acquisition of ‘Clikia’ we enter the ‘Over the Top’ video content delivery industry. ‘Over the Top,’ or ‘OTT,’ is the term used for the delivery of Film and Television content over the internet.
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Heading into today, the company had been getting very promotional with its Clikia campaign. To prove that out, management just put out the first promotional video for Clikia’s subscription-based streaming service.
According to another recent press release, MKAU also provided analysis of recent streaming industry news. Citing a report by MoffettNathanson, an independent research boutique, FastCompany.com, in its May 3, 2017, article “Cord-cutting spikes fivefold in cable TV’s worst quarter ever”, states that Pay-TV providers (i.e., cable companies) lost five times more customers during Q1 2017 than they lost during Q1 2016.
In addition, the company also recently announced that it is launching a Kickstarter campaign to raise additional funds to help with expansion. In theory, the money is coming in for future access to the product, and implies no dilution for shareholders. It’s absolutely ideal for this stage if they can pull it off.
Lastly, the company also just announced that it has successfully renegotiated the conversion rate of an existing convertible note, to the effect that 4.7 billion shares are no longer available on full conversion. The company also announced that its efforts to restructure other existing convertible debt instruments are ongoing.
“Only the successful launch of our Clikia video streaming service had priority over our efforts to restructure our convertible debt structure,” said MKAU CEO and Clikia founder, David Loflin. “These debt restructuring efforts are fundamentally important to the future progress of our company — they are important to our business efforts, of course, but they are equally, if not more, important to establishing, in the market, the reality that our management seeks to serve the best interests of our shareholders and for economic fairness in all company transactions. I am extremely optimistic about our business and financial evolution,” Mr. Loflin added.
So, while the move on Tuesday was aggressive and clearly linked to press on the iTunes debut, we would also point that there has been a lot going on under the surface here. That said, we have also noticed some other pressure pushing to the upside in the form of investor awareness campaigns being run by third party players.
Currently trading at a market capitalization of $1.9M, MKAU has virtually no cash on the books, which must be weighed relative to virtually no total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments transpire. For continuing coverage on shares of $MKAU stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!