Firemans Contractors, Inc. (OTCMKTS:FRCN)’s Upward Run
Firemans Contractors, Ins. (OTCMKTS:FRCN)’s stock was barely making any waves in the OTC markets and was moving in tripple zero land for quite a while. Recently, however, a good upward run pushed them into the double zeros and the volumes of traded stock increased.
The climb begain on February 20, when the company announced that they have engaged John Pentony, an industry veteran, providing investor relations services. At least that is what the press release said. The truth is that Mr. Pentony is no more than your average paid promoter, owner of Stock Guru.
Nonetheless, the news that described him as a trusted professional and not just somebody who sends emails for compensation were enough to spark a run in which FRCN has gained a total of 150% in price.
Mr. Pentony has touted FRCN‘s stock back in October 2012 for an $18 thousand compensation, but it seems that things have gotten more serious. What’s even more frightening is the fact that he is mentioned not only as an investor relations representative, but as a shareholder as well, which makes it certain that he will put all his efforts in promoting the stock.
Furthermore, yesterday the company announced that the report they had promised on December 18, 2013 from a third party, with an opinion on the company is available. The third party was Grass Roots Research and Distribution, Inc. (GRRD) and let’s not get fooled that their opinion is unbiased.
In fact, it is stated in clear writing (although in small letters) in the disclaimer of the report that the received compensation “constitutes a conflict of interest” as far as it goes to GRRD’s objectivity on the profiled companies. We wonder how objective someone can be setting prices for a stock, when they have been compensated $11.5 thousand.
Nonetheless, FRCN jumped 53.85% in yesterday’s session, closing at $0.002 on a record volume. There were a massive 189.9 million traded shares, which alongside the increase in price managed to make up for $343 thousand in dollar volume.
Still, FRCN doesn’t have that big of a market cap ($602 thousand), which leaves room for growth. The fact that the price movement is provided for by paid promoters, however, is a bad sign which leads us to think that we might see a serious correction.
This is the exact reason for which we would advise you to do your due diligence and weigh out the risks, before deciding to bet on FRCN‘s stock.
Extreme Biodiesel, Inc. (OTCMKTS:XTRM) is also getting the pump treatment, however, they aren’t moving up as successfully as FRCN. OncoSec Medical, Inc. (OTCMKTS:ONCS) on the other hand are ascending the charts and registered a gain of some 23% on high volume yesterday.
