Clikia Corp (OTCMKTS: CLKA) is trying rise from the dead if a 50% spike from all-time lows is anything to go by. The spike could be attributed to a reduction in short sellers who have piled pressure on the stock in recent months. However, the big question remains, does the emerging upward momentum have what it takes to continue pushing the stock up?
Clikia Share Price Analysis
The stock finds itself languishing at all-time lows after shedding more than 80% in market value over the past 12 months. A plunge below the $1 a share mark, early last year, appears to have given short sellers a reason to continue pushing the stock lower.
Clikia struggles, in the market, stems from a lack of substantial updates and press releases needed to ascertain its long-term prospects. Subdued market activity thus does not come as a surprise as investors sentiments appear to have hit all-time lows.
For the stock to bounce back, Clikia will have to serve groundbreaking catalysts affirming growth metrics as well as long-term prospects.
Clikia casts itself as a provider of streaming (over-the-top) content as part of a television subscription service. The company streaming service offers 65+ cable television channels through the Clikia App available on both Google Play Store, Amazon, and Roku.
It is impossible to pinpoint the exact trigger behind Clikia’s recent spike in share price and market activity. The company is yet to release any substantial update that in most cases would have triggered renewed investor interest, conversely fuel the upward momentum.
The last piece of information about Clikia came out in February as the management reiterated they were working round the clock to continue delivering premium movie package in a bid to attract more subscribers into the network.
“We know our subscribers want this premium package and we remain pleased with the progress made to date,” stated CEO David Loflin.
In the press release, the executive reiterated that a premium movie channel would go a long way in strengthening Clikia competitive edge ideal for holding on to customers and attracting more. As it stands, the company is relying on the premium movie channel to win over customers shunning traditional cable connections.
Early in the year, the management also reiterated that operating independently from any cable company is a competitive edge that should work to Clikia advantage as it pushes for market share in the highly competitive streaming business.
“At its core, streaming is a movement away from traditional cable companies. Those companies are now fighting to dominate the streaming space by offering streaming capability with their monthly cable subscriptions. Clikia, being independent of any cable company, simply streams its cable television content through the Clikia App,” Clikia in a statement.
After restructuring from MK Automotive, Clikia finds itself in a sector where competition is the order of the day. The emergence of the Netflix Inc. (NASDAQ: NFLX) and Amazon.com, Inc. (NASDAQ: AMZN) poses the biggest threat in the company’s push for market share in the multi-billion streaming sector. However, amidst the stiff competition, Clikia stands a chance on carving a niche market for itself in the sector
The company has since set sights on offering a premium movie channel. While a novel idea, the company will have to replenish its library with blockbuster titles if it is to give subscribers a reason to shun other services in favor of its own.
As the cable, cutting menace continues to gather pace Clikia remains well positioned to attract a substantial amount of people into its network. Competitive pricing will have to come into play if the company is to shrug off competition and grow its subscription base.
Clikia faces an uphill task to continue its solid performance after a 50% spike in the share price. A lack of substantial updates could trigger short selling pressure in line with the long-term bearish trend.
However, given that the stock appears to have hit bottom after coming under immense pressure over the past 12 months, any positive news should go a long way in strengthening market sentiments.
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Disclosure: We have no position in CLKA and have not been compensated for this article.