Sharing Services Inc (OTCMKTS:SHRV) Making Big Moves

Sharing Services, Inc. (OTCMKTS:SHRV), the online travel agency, is releasing very interesting news, and it seems that traders are celebrating it by pushing up the company's share price. Before we explain them to you more, have a look at the recent movements:SourceBusinessThe company was incorporated in the State of Nevada on April 24, 2015, and launched its web TaxiCabSharing.com and phone application on November 1, 2015. According to its most recent 10-k, this website helps clients schedule taxi cab rides with other clients in close proximity to them and going to the same destination. The company provided a little more information about the services in the annual report:

"Providing a simple and efficient way for our end users to (1) enter their destination, (2) enter their departure time – in 15 minutes, in 30 minutes or now, (3) view the profile of and chat with potential ride share candidates to discuss a meeting place and rules of fare sharing – such as 50/50 equal sharing or 40/60 first out of the taxi sharing, and (4) to confirm and book the taxi share." Source

Additionally, the company will use a booking confirmation fee to charge for its services. The idea is to sell taxi share packages that will expire at the end of the year from the date of activation.Recent DevelopmentsThe most remarkable announcements made in 2017 were the following. On March 8, 2017, SHRV company announced its intention to be transformed into a more diversified travel holdings company to profit from other business opportunities. In our opinion, this is quite ambitious, but the opportunities are larger than focusing only on the cab business. Traders appreciated the new business initiative and pushed up shares this year with the thinking that the larger the market, the bigger the revenues. We highlight the words of the President and CEO, Jordan Brock:

"We are excited to start our journey toward creating a diversified travel holdings company. Our management team offers over 50 combined years of relevant business development, travel and technology experience. Our goal at Sharing Services is not only to participate in the $7-plus trillion travel industry, but to transform it. We look forward to announcing several new product launches, including a ground-breaking mobile application, and other key corporate developments, throughout 2017." Source

On March 27, 2017, the company announced “VacationFunding.com”. Clients obtain funds from the company to buy tickets in advance, and right before the flights, they make the payment to receive them. Please check any travel website such as Expedia. If you buy the tickets 6 months in advance, they are cheaper as the company likes to plan also in advance. By using VacationFunding, you can profit from this "arbitrage" by buying cheap flights and paying them later, right before you fly, when they cost much more on the website. F.A. Walters, Sharing Services treasurer stated it in the following way:

“We believe we can become the preeminent solution for all vacationers who want or need a vacation but also need help in the form of a payment plan, and, along the way, create a significant financial return for our investors.” Source

Finally, another business creation was the portal PathAways International, which will be launched by the company on June 1, 2017. We need to see what is all about in June, but the company advanced in the press release that it will be a "members only community", in which unique member will receive special offers and a wholesale booking engine.Market ReactionTraders appreciated very much the information about the new ventures of the company in 2017. They actually pushed the share price from $0.75 to close to $1.20 in less than two months.What happened in May? - Check this document that we foundWe could not find any press release to explain what happened on May 8, 2017. The share price declined sharply that day, and it had to be due to any corporate change or new information released by the company. After some time, we found out a hidden document released by the company, in which we could read the following:

"In summary, the Amended Articles (i) increase the number of authorized shares from 200,000,000 shares to 710,000,000 shares, consisting of 500,000,000 shares of Common Stock (Class A), 10,000,000 shares of Class B Common Stock and 200,000,000 shares of Preferred Stock" Source

Shortsellers pounced and SHRV declined from $1.15 to $0.75 a share. The company increased the amount of authorized shares, but that does not mean that the company increased the total outstanding shares. These shares are the authorized shares, which means that the company could issue them. The float and the total outstanding shares are still the same. Most likely, the company did this because it's about to make a big acquisition.ConclusionTraders are liking what they see so far from SHRV and its management team. First of all, the idea of creating a holding to invest in new opportunities in the travel industry is a smart move. Additionally, the creation of “VacationFunding.com” that will finance flights and hotel bookings for clients, and the launching of the the portal PathAways International were also appreciated. Finally, we wrote that the recent increase in the total authorized shares was an excuse by the shorts to pressure the stock. However, the float and total outstanding shares remain the same. We believe there's a big development coming from the company and why the authorized share count was increased. To sum up, there is a lot to like in this company. Hence, investors need to stay on top of the company's developments as they're happening. We will be updating our subscribers as soon as we know more. For the latest updates on SHRV, sign up below!Disclosure: We have no position in SHRV and have not been compensated for this article.