An Army of Pumpers Promote the Hell Out of Force Energy Corp (PINK:FORC)
The OTC marketplace is full of pink sheets aspiring to become the next tycoons in a number of industries and Force Energy Corp (PINK:FORC) makes no exception. The company has contemplated acquiring high-potential natural gas and oil wells, as well as rare earths deposits for quite a while, yet it is nowhere near any breakthrough as shown by its poor financials. As it seems, however, there are investors who simply refuse to accept this, which is why they engaged a whole army of promoters to ramp up the market value of FORC shares no matter what.
It was not until FORC submitted a full-blown 10-K annual report on Feb. 27 that promoters started bombarding investors’ mailboxes with loads of emails promoting the hell out of FORC shares. Even though none of the pumpers revealed to have received any compensation whatsoever, the campaign did surprisingly well yesterday giving FORC a boost it had never experienced before. Indeed, FORC shares gained an astounding 400% within a single session. What about today, though?
Ninety minutes into today’s session, FORC is down 27% from its previous close with a volume of some 16 million. For the record, FORC‘s turnover on Feb. 28 clocked in just under 60 million. The quick fall is fairly logical considering the company’s dreadful financial state which, it seems, has not improved one iota for the fiscal year ended Nov. 30, 2012. Here are the highlights:
- $35K of cash vs. $442K in current liabilities, resulting in a working capital deficit of $407 thousand;
- zero revenue (as always)
- annual net loss of $1.07 million
- aggregate loss (since inception) in excess of $3.9 million.
Needless to say, those figures speak for themselves and would hardly impress you even if you were all eternal optimists. In this respect, it is only natural for FORC shares to occupy the lowest price segments of the OTC marketplace. What is more, even FORC‘s pre-promo quote of $0.003 per share seems way overvalued in the light of the company’s mounting losses and total inability to generate any revenue. Who is to blame for the company’s miserable financial condition, though?
From a shareholder’s perspective, the first person that comes to mind when studying a company’s financials is the CEO. Tim DeHerrera has served as FORC‘s CEO since August 2010 through a series of employment agreements stipulating, among other things, his executive compensation. On paper, DeHerrera’s salary has increased dramatically for the last two years or so but since the company is short of cash, he has been granted the right to convert this insider debt into common shares at a conversion price of $0.10 per share. To date, DeHerrera has amassed in excess of 12 million shares.
So, the CEO will certainly have a vested interest in pushing the market price of FORC stock beyond that threshold. Despite the stock’s shocking surge yesterday, however, FORC shares still have a long way to go before climbing up to the pink sheets quotes tier. How exactly such a scenario will take place is beyond belief. Does he have the vision to turn the company into a well-oiled revenue-generating machine? Not really. In fact, that same person is the chairman of Grid Petroleum Corp (PINK:GRPR). The latter is currently trading at $0.001 and is on the verge of falling back to the triple-zero zone. Hardly an example of a successful company, isn’t it?
