Fastfunds Financial Corporation (OTCMKTS:FFFC) Soars Ever Higher
Back in 2012, Fastfunds Financial Corporation (OTCMKTS:FFFC) effectuated a 3 for 1 forward split and shortly after, their stock started sliding down heavily towards the bottom of the charts. The pumpers tried to break the fall a few months later, but, apart from a short climb, they failed to influence the performance.
Since then, the ticker has made several attempts to get back to the levels occupied during the summer of 2012 but instead of doing it, it slipped further down. In September 2013, it dropped into the land of the triple zeros and it looked like there’s nothing that could get it out of there.
If you take a look at FFFC‘s latest financial statement, you’ll see that the pitiful performance is not that surprising. Back in 2012, they talked about the acquisition of an entity called Carbon Capture USA, Inc. and how this was a major step towards FFFC‘s diversification. The 10-Q covering the period ended September 30, 2013, however, shows that this step hasn’t really paid off. In fact, it left the company with:
- $2,129 in cash
- $56 thousand in current assets
- $10 million in current liabilities
- quarterly revenues of just $7,646
- quarterly net loss of around $228 thousand
Despite the dismal-looking figures, FFFC‘s stock has recently experienced some intense trading. The potential gains from the last eight sessions come in at a whopping 850%. The ticker closed Friday’s trading at $0.0019 per share and we can see from the message boards that some investors are hoping to see it break through the penny barrier by the end of this week. So, what are the odds of this happening?
Considering the reason for the impressive surge, we’re somewhat unsure about the bright future everyone is talking about. The run is still fueled by the pres release that came out on January 22 with which FFFC informed us about the entrance into the medical marijuana business. There’s no doubt that the excitement around the cannabis industry is quite strong at the moment as can be seen from the recent performance of other penny stocks like Creative Edge Nutrition Inc (OTCMKTS:FITX) and Plandai Biotechnology Inc (OTCMKTS:PLPL).
Unfortunately, like announcements from days gone by, FFFC‘s latest press release contains little more than forward-looking statements. They did inform us that their new subsidiary will provide financial help to start-up marijuana businesses, but they didn’t tell us if they have already began talking with potential partners. They also suggested that they have found private equity fund that is willing to finance some of the projects, but they don’t seem too keen on naming their source of fresh cash.
The mysteries around the recent developments are all the more disturbing considering some of the red flags listed in some of our previous articles.
At least until FFFC provide us with more details around the new subsidiary and its business, the stock remains extremely speculative and risky. The hype around the marijuana industry won’t last forever and the lack of solid operations and revenues could soon start taking their toll which is why considering the risks and thinking through your investment decisions carefully is absolutely essential.
