First Titan Corp. (OTCBB:FTTN) Tanks by a Fifth
Natural resources and oil and gas in particular seem to act like a magnet for overexcited investors. First Titan Corp. (OTCMKTS:FTTN), a company aspiring for success in the sector, generated significant dollar volume yesterday. Sadly, selling was the order of the day and the ticker ended the session nearly 20% down.
FTTN slipped right under the $1 mark and stopped 14 cents lower, closing at $0.86 per share. The company, led by Mr. Robert Federowicz, has resumed its rapid-fire press release barrage but the PR hype did nothing to prop the price.
When we last covered the ticker, we mentioned the rather underwhelming results of the company’s Alabama property production. Last year FTTN set its estimates for the well to be at 400 to 800 thousand barrels of oil on a daily basis. A press release from late October informed that the same Alabama well produces roughly 1% of the lower estimate, or 370 barrels per day. Despite this wild discrepancy between estimations and reality, the company had the face to come up with another bit of PR, stating that production ‘exceeds expectations’.
The revenue figure FTTN posted for their most recent reported quarter ending June is equally underwhelming – $2.9 thousand, and that, expectedly, leads to a bottom line of net loss. Despite all this, the company is still publishing PR estimates for a new well in Louisiana, mentioning 4 million barrels of oil. Believers had better keep their fingers crossed and hope those estimations are not as miscalculated as those for the Alabama well.
It also bears repeating that there was a promotional tout for FTTN, paid for by the company itself, costing $100 thousand for a period of 180 days, as per the disclaimer. We have also previously looked over the involvement of Mr. Federowicz with other OTC tickers that were less than successful, including Aristocrat Group Corp. (OTCMKTS:ASCC) – an entity that has generated no revenues since inception, and Quantum International Corp. (OTCMKTS:QUAN) – a Pink Limited Info company that also reports no revenues in its balance sheet.
Whether FTTN will bounce after the significant dip from Monday remains to be seen but the ticker certainly has got a lot to lose if the slip continues.
