Far East Energy Corp. (PINK:FEEC) Halts Its Downward Slide
Since February Far East Energy Corp. (PINK:FEEC) have been in a state of freefall. Just till a day ago the ticker had lost almost 70% of its value and dropped to $0.04 albeit on a traded volume of 23 million – a record number for the year. Maybe yesterday’s session marked the end of that period and the beginning of a reversal as FEEC gained 25% to close at $0.05.
FEEC is a company focused on coalbed methane exploration and development in China. Although they made a significant progress compared to 2011, the 10-k report for 2012 still raised some concerns:
- $1.3 million cash
- $75 million total assets
- $48 million total current liabilities
- $1.6 million revenues
- $27.1 million net loss
FEEC‘s sales volumes increased by 85% but are still a long way from the targeted levels in order for the company to achieve profitability. Their main source of financing will remain the public offerings and private placements so further dilution is to be expected.
So far despite the relatively low price of the shares they have not been targeted by any promoters. Some companies, 1st Energy Corp (PINK:FNRC) for example, haven’t had such luck. FNRC has been dragged to the bottom after a series of promotions starting back in October, followed by November, December, February and the last attempt was from April 15. Looking at the chart it is evident how successful were all of them.
FEEC announced that on April 18 it will hold a conference call hosted by the CEO of the company to update shareholders and other interested parties. We are awaiting the official news article about how that call went and what was discussed. Also keep in mind that next month should see the filing of their financial report for the first quarter of 2013.FEEC is currently poised to go either way on the chart. Planning accordingly and deciding what are the acceptable losses for you should precede any action you take on the market.
