First Titan Corp (OTCBB:FTTN) Hesitates Around the $2 Mark

A year ago, First Titan Corp (OTCBB:FTTN)’s stock was sitting well above the $3 per share mark. The company CEO was penny stocks star (we’ll get to that in a minute), Mr. Robert Federowicz and the PR department was working flat-out generating optimistic announcements designed to get investors all fired up. In reality, the company had little to shout about.

The annual report covering the twelve months ended September 2012 reveals that back then, FTTN had less than $2 thousand in cash, quite a lot of debt, no revenue since inception and a yearly net loss of more than $1 million. Predictably, the stock started sliding down and by the end of December, it had already slashed half of its value. Mr. Federowicz decided to step down and a person by the name of Harvey Bryant took the helm. In mid-January 2013, FTTN became the target of a paid pump that landed a massive blow on the price. By the end of March, the ticker was already deep in the $0.30 – $0.40 range and it seemed like it will never get out of there. There has been some stirring up over the last few months, however, and it seems that FTTN is now trying to get back above $2 per share. Will it manage to do it though?

Well, one thing is for sure, the PR activity is just as intense as it was back in 2012. A new announcement is made virtually every day but the really big problem is, they don’t seem too convincing. A total of nine new entries have hit the company’s Yahoo! Finance profile over the last thirty days, but not one of them informs us about an acquisition, any sort of definitive agreements or even letters of intent. Instead, words like “targeting”, “expanding”, “positioned”, and “considers” get abused leaving investors with no idea of what the company is actually doing.

On the bright side, during his tenure, Mr. Bryant has managed to improve the balance sheet a bit. There is now a more solid cash position and some revenues (albeit dismal). Surprisingly, however, just as the clouds started to clear, Mr. Bryant decided to resign from his position and leave the company with… Mr. Robert Federowicz.

As we mentioned, this is quite a famous name in Pennyland, but we’re not sure that his reputation is exactly pristine. As the 8-K informing us about the change in the management team suggests, he is or has been involved with numerous shady penny stock companies like Aristocrat Group Corp (OTCMKTS:ASCC), Quantum Int. Corp (OTCMKTS:QUAN) and Obscene Jeans Corp. (OTCBB:OBJE). You can see from the charts on the right that the performance of QUAN and ASCC under his leadership leaves much to be desired and it’s safe to say that he is not particularly well received by a large portion of the investors.

FTTN itself is not the ticker of your dreams, either. We already mentioned how badly it has been performing over the last years and the not particularly informative nature of the announcements coming out of the company headquarters at the moment raises the risk of a more severe correction in the near future.

And since we mentioned FTTN‘s headquarters, we should also point out that the same exact address (down to the number of the suite occupied) hosts the principal offices of Mr. Federowicz’s own ASCC, Rainbow Coral Corp (OTCBB:RBCC) and Nu Earth Corporation (OTCMKTS:NUEC). That’s probably because it’s offered as a virtual office.

Make sure you do the right amount of due diligence and exercise extra caution before putting any money in a stock that is currently fueled by nothing more than a lot of overly optimistic forward-looking statements.