RE:RE:What's with this stock?Really guys? You don't like the stock exchange? Stock exchange is a place where Mr.Demand and Ms.Supply have a date. That’s it. You are wandering what is happening to Slyce stock price? I think that, there are few very powerful forces that are pushing stock price down.
1) World forces - US economy is in bad shape, that's why Feds are keeping the interest rate low for such a long time. Canada’s economy is in bad shape - oil is our economy’s main export good and oil prices are too low for our oil companies to have a profit (massive layoffs, projects for billions of dollars are on hold). Bank of Canada cut the interest rate once at the beginning of the year, cut it again couple of days ago and probably at the end of the year will cut it for third time. Why? Because Canadian economy is diving into recession, BoC cut GDP forecast few times, last one was from 1.9 to 1.1, maybe we will end the year in negative (GDP will shrink). The picture doesn’t look nice. Yesterday world powers signed a deal with Iran and now it is expected that Iran will flood the market with cheap oil. That’s more bad news for our main export good, projects frozen for unknown time, more layoffs. How is this affecting Slyce? Well, when the economy is in recession more and more people are without jobs, their buying power decrease, and they will look to buy mainly necessities and less fashion shoes.
2) Stock market forces - if you fallow big media covering stock markets (Bloomberg, CNN money, Forbes, Times, etc.) you will see that everybody agrees that the stocks are overvalued. The question is, when the stock market will collapse - after weeks, after months or after a year. Now all this talk (doesn't matter is it right or wrong) is making the investors nervous. Some of them are cashing out and exiting the market. Others, with higher risk threshold are selling their small cap stocks and buying big blue chips companies. Why? Because when the market collapse is the best time to initiate M & A (Mergers & Acquisitions). How this is affecting Slyce? Well Slyce is small cap, so it is under sell pressure. Maybe some sellers are exploiting the situation, exiting now (putting downward pressure) in order to buy Slyce later at much cheaper prices.
3) Slyce forces - yes, it is my opinion that Slyce is pushing their stock down. What I mean? I mean Craves is a mistake. Do you remember what is Pounce for? If you check Pounce description in App Store or Play Store you will see "take a picture of any product, see results, click to buy" and the pictures are with girls holding fashion bags or wearing shoes. And now we have Craves and Slyce’s management is telling us that Craves is oriented for fashion products. I am sorry, but I am confused. These girls in Pounce description are holding fashion bags, wearing fashion shoes. Aren't these fashion products?!?!? So....why do we have Craves now?!?!? What Craves can do that Pounce cannot?!?!?Please tell me... But it is OK... let’s accept Slyce management’s decision, let’s assume these guys know what they are doing. Tell me what message we are sending to customers - "Ms.Jenny this is Craves, please use it for fashion products search ONLY, and for ALL OTHER searches please use Pounce". Do you think that when Ms.Jenny see something that she likes and she pull her smartphone to take picture she will remember which app for what purpose? Customers are lazy, they want ONE stop solution. ONE STOP. Another point - in marketing we have something called "market cannibalization". Investopedia definition "The negative impact of a company's new product on the sales performance of its existing related products. Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product. This can negatively affect both the sales volume and market share of the existing product. Market cannibalization occurs when a new product intrudes on the existing market for the older product, rather than expanding the company's market base. Rather than appealing to a new segment of the market and increasing market share, the new product appeals to the company's current market, resulting in reduced sales and market share for the existing product." Isn't that awesome. Pounce is a new product, it is in a baby stage and Slyce management is introducing Craves. What about to focus on Pounce and solve all problems related - customers are complaining a lot about Pounce crashes, search results are far from perfect (example - I took a picture of red bag and results are for three red bags, two underwears, three shoes and etc. and I am "WTF is this? I am looking for red bag not for underwear!”), searching takes too long (should be optimized), and many other problems - customers are complaining about issues with payments, options, deliveries, they want to be able to read reviews before buying. There is a lot of work to be done and instead of nailing it, focusing entire team efforts on Pounce Slyce management is releasing second similar app. Attention now is divided between two image search apps. Probably they have two teams working separately on these two apps. Now tell me guys is this smart? Economy is in bad shape, most likely will get even worse, number of unemployed people is going up, up, up; stock market is waiting for huge downward correction and usually in such a situation small cap stocks are taking bigger hit AND on top of all that Slyce management is releasing Craves instead of perfecting Pounce.
Isn't it better to have one killer product instead of two mediocre products?!?!