Family Room Entertainment (PINK:FMYR) and The Stock Psycho go to the Movies
Grab the popcorn, everyone, the drama of Family Room Entertainment (PINK:FMYR) is about to unfold. FMYR exploded yesterday gaining over 90% in just one trading session which must have made the company directors very happy. The Stock Psycho also have a reason to celebrate since their promotional emails have certainly helped, but, then again, they were generously rewarded with a compensation of $450,000. But let’s leave that for a moment and ask ourselves: “Is FMYR really worth $0.98 per share?”.
Well, they are supposed to be in the movie-making industry, which is, no doubt, a highly lucrative business. Unfortunately, we’re unable to see what exactly FMYR‘s contribution is. The descriptions we found on the Internet are about as comprehensive as a text book explaining the mechanisms of nuclear fusion. We do understand that their primary source of revenue so far has been motion picture production, but now their website (which contains more typos than a student’s essay written under the influence) states that they don’t have any intentions to produce movies in the foreseeable future. They also say that the company is looking around for other business opportunities, possible mergers etc. No concrete plans, of course.
The Stock Psycho seem to have no problems with that, and although they will have you believe that FMYR‘s financials included in their email are up-to-date, they aren’t. FMYR did file a report in December, as The Stock Psycho claim, however the figures in it are quite different. They reflect the company’s performance during Q3 of 2012, not, as the email suggests, Q2. Here they are in a nutshell:
- cash: $14 thousand
- total assets: $67 thousand
- total liabilities: $521 thousand
- revenue: $3,129
- net loss: $25 thousand
We continued reading the report, which contains even more typos than the website and we did manage to find out that, during the last year, more than 1 million shares of common stock were issued. There is no mention who got them or why, but we doubt that it has made shareholders too happy. Speaking of shareholders, there are a total of 1,119 of them, and we wonder if they are aware of the fact that FMYR‘s business address corresponds to a UPS office as seen in the picture on the right. Probably not.
We’re also pretty sure that they haven’t read this article by New York Post, in which there are some rather serious allegations against FMYR‘s CEO, Mr. Stanley Tepper and the company itself. It would seem that FMYR along with another company (appropriately called Warning Model Management, Inc.) have issued some untruthful press-releases according to which Paris Hilton was involved in a company project. What followed was a lot of shares being sold and a lot of money being lost as you can read for yourself. Now, about 7 years later, the email sent from The Stock Psycho quotes the names of Hollywood stars even more famous than Ms. Hilton.
Because of this we fear that after the surge yesterday, FMYR will crash heavily. Which, coincidentally, is exactly what happens to many companies promoted by The Stock Psycho. CoroWare Inc (PINK:COWI) is a prime example, who having reached a high of $0.0072 during the pump from two weeks ago, are now at ground zero (or $0.0006 to be precise), which is probably where they belong.
The situation around FMYR right now reminds us of a good crime movie. You have all the ingredients: some bad guys with dubious past, deception, characters trying to help the bad guys, suspense… everything. Unlike a good crime, movie, however, we’re pretty sure what the ending will be. That’s precisely why we would advise you to be particularly careful.