Stock Cabin Launch a Promotion on Spectral Capital Corp (PINK:FCCN)
Back in March 2011, we wrote an article about Spectral Capital Corp (PINK:FCCN). Our interest in them was sparked by a promotional campaign that was initiated by multiple paid newsletters and if you run through our database, you will see that quite a lot of emails were sent during the two-week pump.
This time, things are a bit more modest. As of right now, we have received only one email on FCCN. It was prepared by Stock Cabin and the disclaimer tells us that they have received a not inconsiderable $10 thousand for their efforts. That’s quite a lot of money for a single email and you are probably expecting all the information inside to be true and rather useful. But is it?
Stock Cabin explain how FCCN reached as much as $1.16 a couple of weeks ago which is true, although this was an intrday high that lasted for no more than an hour. They tell us that the ticker could soon go to these heights once again, which nobody can be really sure of and they speak about “market conditions”, “x factors” and a host of other things that are not really informative. Because of the lack of some truly useful information in Stock Cabin’s email, we had to do a check on the company and see what all the fuss is about.
If you read through our previous article, you will see that back then they were boasting about some mining claims in Russia. Did they do anything with those claims? Not really. FCCN announced recently that they are no longer interested in the mineral exploration business and that they are changing their operations through two acquisitions of intellectual rights and software platforms. The first one is a mobile search engine that is still in the beta testing stage and the other is a data monitoring system that, in FCCN‘s words, is revolutionary.
This, by the way, is not the first time that they have changed their field of operations. They started off back in 2000 as a live entertainment business and they wanted to make money out of organizing professional wrestling competitions. That wasn’t very successful, so they decided that they want to develop a new internet search engine, however, that didn’t work out either. Then came the mineral exploration adventure which brought them nothing but huge losses and now they are back at it all over again.
It’s still quite hard to predict how successful all this will be, but when the announcements came out around the middle of March, investors were mightily impressed. The volume went through the roof and the price gained as much as 55% in a single trading session. Not long after that, however, it dropped quite hard and right now they are standing at $0.60 which is nearly 50% off the high that they reached.
Stock Cabin are hoping to lift the stock off the ground once again right now, and there is a possibility that they make it but we’re not too sure about the long-term performance. And we can’t really be certain until we see some more promising financial statements from FCCN. Here are the figures that we found in their report covering the third quarter of 2012:
- cash: $132 thousand
- current assets: $133 thousand
- current liabilities: $2.5 million
- quarterly revenue: $100 thousand
- quarterly net loss: $1.4 million
Looking through this statement, as well as the older ones, we’re pretty sure that a lot of people are keeping their fingers crossed that the new business and the new software products will be more profitable for FCCN. Unfortunately, the recurrent losses and failed business models make a potential investment in their shares quite risky.
Even more so when you consider the fact that FCCN is currently a target for a paid pump. Stock Cabin has been in the promotional business for quite some time now and one of their more recent picks was Hokutou Holdings International Inc (PINK:HKTU). The pump took place in February and you can see form the chart on the right that things didn’t really go well for the people who jumped in on the hype.
