Singlepoint Inc (OTCMKTS:SING) Caution Is Warranted

On August 21, 2017, we published our last article on Singlepoint Inc (OTCMKTS:SING) called "Singlepoint Inc (OTCMKTS:SING) Is The Latest Bitcoin Runner". We were correct in recommending to have a close look at the company.What happened? First of all, the share price reacted to two press releases. In addition, the share price increased as a result of the large amount of social media mentions on this company. As of August 25, 2017, we could find 1,263 reactions in Yahoo Finance Conversations, comments on the iHub forum, many comments on Seeking Alpha, and articles published on many other websites.The increase in the market capitalization of the bitcoin helped too. In this piece, we will provide all the details as well as a very significant warning.The SEC halted FIRST BITCOIN CAP COM NPV (OTCMKTS:BITCF). Many on the Internet are telling that SING could be the next company to be halted, so we will assess what happened with BITCF. But, before that, have a look at the recent share price action:SourceRecent DevelopmentsOn August 22, 2017, SING released that it had signed a letter of intent to acquire Dr. FeelGood, which is a medical marijuana distribution company developing an ordering technology. SING would pay in the form of combination of cash and stock. As of this writing, this deal has not yet closed. Any news regarding these matters could make the share price move quite a bit. SinglePoint CEO, Greg Lambrecht, was quoted:

"This acquisition is right in our wheel house. I previously took a distribution company public on the NASDAQ and believe with my experience in distribution we can grow this company quickly. The acquisition of Dr. FeelGood will be the third acquisition of the year. Through the acquisition of DIGS Hydro and Convectium, SinglePoints revenue has increased 378 percent compared to the first quarter of 2017. SinglePoint is in a better position than it has ever been before." Source

On August 23, 2017, NetworkNewsWire released a report titled, "Cannabis and Cryptocurrency: The Time Is Now," featuring several companies that are making use of cryptocurrency to finance its operations. SING and BITCF were assessed in the report. Have a look at it:

"While cryptocurrency wallets can be obtained at the point of sale through SinglePoint's solution, SinglePoint and BITCF intend to implement a consumer-first approach and invest heavily in enticing customers to sign up for their cryptocurrency wallets ahead of time. This will ensure consumers can make their onsite cannabis product purchases without delay, and it also lets vendors deploy loyalty programs, special offers and more and to access consumer data regarding products." Source

On August 23, 2017, the management of the company provided more information about the Letter of Intent to acquire Dr. FeelGood. Youtube was used as a platform. Readers can access the video here. We watched the video and did not find any new reference to the letter of intent that may affect the share price. We will be waiting for a more definitive deal.The SEC halts BITCF - What is Social Media sayingA few days ago, BITCF was halted by the SEC. For what reasons? This is what the market received from the organization:

“The Commission temporarily suspended trading in the securities of BITCF because of concerns regarding the accuracy and adequacy of publicly available information about the company, including, among other things, the value of BITCF’s assets and its capital structure." Source

We assessed the case in an article called "What's Next For FIRST BITCOIN CAP COM NPV (OTCMKTS:BITCF)?". We said the following about it:

"Outside of a relatively vague and generic statement from the SEC highlighting the value of BITCF’s assets and its capital structure, among other things, as being at the root of suspension, the driver behind the action remains unclear." Source

How does the trading halt affect SING? SING's share price declined as a result of the news, which came on Thursday. The decline was not dramatic. The big question is: could the SEC halt SING as well? Both are direct competitors and their business model is very similar, thus the SEC may decide to investigate the business of SING too. Hence, we recommend to stay alert and be cautious.What's social media saying?Twitter and iHub claimed, right after BITCF got halted, that SING could be halted as well.ConclusionIn this article, we saw that SING continues to show good developments, such as the letter of intent signed with Dr. FeelGood. Additionally, investment reports, such as the last one published by NetworkNewsWire, are mentioning good things about the strategic direction of the company. Conversely, the SEC halted this week BITCF; a direct competitor of SING. Many in social media are saying that SING could be the next. Thus, we encourage readers to be very careful on this name.We will be updating our subscribers as soon as we know more. For the latest updates on SING, sign up below!Be sure to check out our coverage on SING. Image courtesy of Dominic Yap via FlickrDisclosure: We have no position in SING and have not been compensated for this article.