Most all investors look to read about their favourite company being named in the same breath as a household name. It can make stock prices surge and rejuvenate a company’s liquidity, some very important components of any investment. Sometimes it is in a "roundabout" fashion, but it still can generate a bit of a whirlwind, and sometimes a full-blown cyclone, of activity, by getting the attention of the investment community as to what a small or micro-cap company has to offer in potential.
Vancouver-based Fireswirl Technologies Inc. (TSX-Venture:FSW) has been releasing news relatively regularly about penning deals, but not received too much of a pop in share price. Fireswirl is engaged in creating revenue by engineering electronic and mobile commerce solutions for content providers through its broad applications for solutions requiring multiple payment interfaces, multi-currency and multi-language capabilities. The company also has one of China’s leading e-commerce platform providers, Beijing Xingchang Xinda Technology Development Co., Ltd. ("XCXD"), as a subsidiary.
Fireswirl appears to be a blossoming company with total operating revenue for the quarter ended June 30, 2011 increasing by 4.7% as compared to the year prior quarter to $5.0 million.
Moreover, that quarter brought about an agreement for collaboration between XCXD and Netrada Management GmbH, an international provider of full service e-commerce solutions for the fashion, beauty and lifestyle industry with over 2,000 employees.
Some short-lived rises in share value came with those pieces of news, but on Tuesday, shares soared in excess of 61% to $0.145 on news of a deal between XCXD and Sino Light Enterprise (Shenzhen) Limited, which is China’s number one animation brand and an associate company of Sandmartin International Holdings Limited (SEHK:482).
The agreement is for an e-commerce collaboration with Sino Light in which XCXD will set up, operate and maintain Sino Light’s official and flagship online stores, namely "XiYangYang Official Online Store" and "XiYangYang Taobao Flagship Store", respectively, to sell apparels with "Pleasant Goat and Big Big Wolf" branding for a term of two years.
The explosion in share value may have been solely from the good news, but kicking in the fact that Sino Light has entered into a license agreement with an affiliate of Disney Enterprises, Inc. related to the licensing of "Pleasant Goat and Big Big Wolf" problem didn’t hurt the stock garnering attention either.
Sino Light, who designs, manufactures, and/or sources, marketing and sales of the Pleasant Goat and Big Big Wolf products, opened its first retail outlet less than two weeks ago and plans to open more than 1,100 retail locations in the next three years. All good news for the potential of Fireswirl and its shareholders. Proper due diligence is encouraged as always.
