Firefish Inc (OTCMKTS:FRFS) Gets Another Look

Our readers will remember well Firefish Inc (OTCMKTS:FRFS).In our previous article, we noted that the stock was exploding up on the stock charts. The company had not provided any news to the market to justify the market move. Thus, we tried to find out what could be happening. We said that new shareholders could be buying a big stake. Also, that the stock was a low float runner.Recently, the share price jumped again, so we became more interested on the company. From below $0.01, the share price spiked to more than $0.03 in just one session. Additionally, the following day it increased again crossing the $0.07 share price level for some hours.On top of it, more than 40 million shares changed hands some days. This shows that the market seems to be quite interested in this business.Have a look at the share price reaction before we show our new research: 1 month chart for FRFSFor those who are getting to know the company in this article, here's a brief background. Firefish was incorporated in the State of Nevada on April 29, 2008. It is headquartered in New York. The company offers mobile and internet marketing services to that retailers along with educational services to the young learners and young adults. Additionally, an English, Math and Science competency competition is organized every year. It is called as Primary Olympiad. Primary Olympiad LogoBusiness and key executivesThe market did not receive news from the company. Thus, we continue to face difficulties explaining what was going on. We decided to check more closely the business and the profiles of the executives who lead the company. Additionally, we studied the revenues obtained in the previous years. In our opinion, it may explain what's going on.The businesses are provided in India, so let's try to understand the mobile and internet business in this country.According to the company's materials, the number of smartphones in India is low, but there are more than 700 million feature phones in the market. Text messages are used to advertise content through this type of mobile phones. But, what about the mobile advertising industry in India?The company noted in its last annual report that its growth is expected to be extraordinary: "It is expected to grow from its current size of $5 million to over $400 million by 2015 driven both by tremendous mobile phone penetration and the growth of the organized retail industry. "What has the company done so far?The company has developed an online platform that provides innovative marketing services in India. Read the following:

"For our mobile advertising services to retailers we have developed an online platform. This platform allows retailers to log into their account, choose a consumer segment to send their advertising message to selecting age, gender, location and income levels, compose the advertising message to send, personalize the message via addressing the consumer by name, and schedule the message for later delivery." Source

Has the company a database?Yes. According to the company, it owns a database with users obtained from social networking services. Additionally, its size has increased quite a bit thanks to user acquisition events and database purchases.Has the company been successful?Only by checking at the financial accounts reported in the last 10-K, we see that the company has been able to monetize its businesses. For the year ended March 31, 2015, $144,305 were received, whereas $176,072 were received in the previous year. These revenues were noted to be coming both from the the Primary Olympiad and the other business models.We appreciate that the company was already making revenues in 2015. Start-up companies sometimes take much longer time in a pre-revenue stage.Regarding the bottom line of the P&L, the company is not delivering positive net income, which again makes a lot of sense. In our opinion, the market is appreciating more the revenue growth in FRFS. This is what should be checked to understand the share price dynamics.Regarding the balance sheet of the company, $25,141 is the amount of assets shown in the last 10-k, whereas $286,175 is the amount of total liabilities. Thus, we believe that raising capital will be needed soon, which, we don't believe, will be a big problem.Who is leading the company?Harshawardhan Shetty is the CEO, and President of Firefish. We believe that his profile should be highlighted. He has quite a large expertise in business:

• Employed as an Investment Banker in the Media and Telecommunications franchise of Citigroup Global Markets in New York.
• Received MBA degree from Tuck Business School at Dartmouth.
• Manager in strategy and business development at a large Indian based NGO, Pratham.
• Worked in consulting and business development for i2 Technologies, based in Dallas.
• Computer programmer in Infosys, Bangalore, India.

GIFA Holdings Inc.

According to the iHub Forum, GIFA Holdings Inc., which is very large company, is about to reverse merge into FRFS. If this is true we need to be alert, as the share price could increase when the merger is announced in the OTC Markets website.

Additionally, we could read a 13 page amendment, wherein it is noted that the company has 160 million shares outstanding. Additionally, Insiders seem to own 62% of those shares, thus the “float must only be around 50 million shares.” The low float explains the large share price volatility. Have a look at it:

The images were taken form https://investorshub.advfn.com/boards/read_msg.aspx?message_id=135532554ConclusionCurrently trading with a market cap of $3.9 million, FRFS is an interesting story among small caps. We believe that many things could explain the large price volatility seen in the market. As we said, the low float of the company could one reason. Also, if the company is preparing its new financial statements, the share price could be reacting to it. Finally, if a new Primary Olympiad competition is being organized, the market may also react.We encourage readers to act always fully informed once the company delivers its due financial statements, or makes an announcement.To sum up, stay alert on this name as it is really in play!Be sure to check out our coverage on FRFS!We will be updating our subscribers as soon as we know more. For the latest updates on FRFS, sign up below!Image courtesy of sandeepachetan.com via FlickrDisclosure: We have no position in FRFS and have not been compensated for this article.