Penny Stock
We brought up the name UpSNAP (UPSN) and for good reason. Things got off to a great start with the stock charging up from $2.43 per share to an interim high of $3.20 good for a gain of over 31% within a week. Since then the company has had to reinvent itself twice to survive.
What initially attracted us to UpSNAP was its interesting business model. No one likes to pay fees for making “411″ (directory calls) on their mobile phones because it is expensive. If users can text the name of the business or person they were looking for, UpSNAP would respond with the search query and relevant phone number. In the event the search result was a business as well as advertiser on UpSNAP, the user could reply via text messaging and UpSNAP would call the phone user via Voice Over IP (VOIP) with the business on the other line. Everything sounded revolutionary but there were a few problems.
First, lots of advertisers had to sign on and secondly the product had to work. After testing UpSNAP numerously we found the mobile search function to be “buggy” and just not very dependable. It would be no surprise if potential advertisers had the same experience and decided it was just not worth the trouble. It’s quite a shame because UpSNAP was in this space early and before companies like Google Mobile and 4INFO dominated the market. This just goes to show that ideas without proper execution equates to very little shareholder value.
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