Can Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) Begin Climbing Again
After a long stay at triple zero levels, the stock of Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) began climbing again as 2014 began and we are quite sure that some people made a profit from the craze in the medical cannabis sector.
There were, of course, periods of descent, but for now the ticker is staying in double zero land and the management is trying hard for it to continue to do so, pushing it with regular optimistic press releases. The most recent slide of RFMK cost the ticker 63% of the peak value from March 24 and it was time for action.
The company kept silent for a while, but recently came up with a press release that announced a shareholder update. The update contained information about the anticipated start of production of the company’s dry vaporizer, informed us that RFMK is going to file a patent application and the Depository Trust Company (DTC) chill, which has been and issue for quite a lot of time now.
This led to the first green close RFMK has made since the beginning of the month as the ticker gained 22%, recuperating the previous day’s losses. As the stock went on to close at $0.0049 we saw a total of 128.9 million shares change their owners, generating some $522 thousand in dollar volume.
Still, the financial report covering the quarterly period ended September 30, 2013 doesn’t really show appropriate numbers that can back up the current $16 million market value of RFMK.
- cash: $1,812
- current assets: $362 thousand
- current liabilities: $181 thousand
- revenues: $3,242
- net loss: $90 thousand
Furthermore, what troubles us the most is some info we found from the beginning of 2012 on investor message boards, with claims that RFMK‘s CEO, Tom Allinder ran a website called DTCchill.com, providing service to remove DTC chills. This is disturbing on a whole new level, because it questions his professional credibility, judging by the state RFMK has been in for more than a year.
The user continues his post with allegations that RFMK is a “pump&dump” scheme that are backed up by facts he found in the company’s filings about issuance and conversion if quite a lot of preferred stock whose owner remains unknown. What is more troubling is the fact that this is not the first person referring to RFMK as a “scam”.
Another red flag comes when you see that Mr. Allinder was defending a company called SpongeTech Delivery Systems (OTCMKTS:SPNGQ) back in 2009, whose stock has hit rock bottom by now and as you can see by the fifth letter of its ticker symbol the company is in bankruptcy proceedings.
With all that said it would be best for you to proceed with caution and do your due diligence if you even have any ideas of investing in RFMK.
Growlife, Inc. (OTCBB:PHOT) also finished its first session in the green in a while with a small 1.92% gain on a massive $14.4 million dollar volume. Other stocks in the cannabis industry like Tranzbyte Corp. (OTCMKTS:ERBB) and Hemp, Inc. (OTCMKTS:HEMP) didn’t do so well and continue to slide down.
