CrowdGather (CRGW) is an Internet company that operates Web forums, message boards and other social outlets that link people together in a manner similar to that of larger rivals Facebook.com and Myspace.com. The company will be launching an online search engine as one of its primary lines of business. CrowdGather is also developing a Centralized ID Management Tool designed to link topical forums in a central location. The California-based company’s revenues and profits will be primarily generated through online advertisements.
CrowdGather’s management team has extensive experience in online and traditional media, with current executives having logged time at media giants such as LionsGate, Playboy, Yahoo! and America Online. The company went public in April of this year and currently has about 5,000 shareholders. CrowdGather was formerly known as General Mayhem LLC and was founded in 2004. Currently, there are nine full-time employees.
It is speculated that CrowdGather’s unique technologies could be a boon for shareholders, either in the form of the company moving to a major US exchange or being taken over by a traditional media company. Traditional media conglomerates are attempting to bolster their presence online as evidenced by Microsoft’s stake in Facebook and News Corp.’s stake in Myspace. On the other hand, a move to a major exchange would attract buying of CrowdGather shares by institutions, which would benefit smaller shareholders.
Of note to potential investors, CrowdGather traded more than 48,000 shares on Aug 26, about 50 percent more than the daily average for the past three months and the company’s market capitalization has surged to almost $73 million recently. The shares have traded between $1.30 and $2.10 in the past 52 weeks. CrowdGather lists more than $500,000 in assets and less than $40,000 liabilities on its balance sheet.
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