There are some companies that really do not belong on a public market, and we rather see AIM-listed, social media SaaS pure-play, SocialGo as one of them. A switch in core business from interactive educational children's toys into ‘kit-build’ social media platforms (see SocialGo yet to see the ‘value’ in social media) briefly excited investors at the end of 2010 when ScoialGo's shares topped 4p. But it’s been pretty much downhill all the way since then, and SocialGo's shares have been trading under a penny since mid-January.
So while today’s trading update was full of positive messages, it contained no sign of positive profit (see Keep a watching brief on SocialGo). Not every social media play will be able to ride the wave. In fact, most will fall off their boards.
(Ed's note: And for the avoidance of doubt, we don't do stock recommendations - we just make observations about market dynamics).