Firstin Wireless Technology Inc (OTCMKTS:FINW) Inching Its Way Up
Until about a year ago, the operations of Firstin Wireless Technology Inc (OTCMKTS:FINW) (f/k/a Passionate Pet, Inc.) consisted of nothing more than running a pet store located in Irvine, California. Predictably, the number of people interested in the stock wasn’t huge. Volumes were small and the price movement was virtually non-existent.
Then, in April 2013, they completed the acquisition of a private company called Firstin Wireless Technologies and officially became a player in what they like to call “the mobile VoIP revolution“. According to company descriptions around the internet, FINW‘s mobile applications should give you a superior quality while massively reducing the costs associated with roaming services.
Once again, however, investors seemed unimpressed and the stock remained stationary. It wasn’t until a couple of weeks ago that we finally started seeing some movement. The trading volumes picked up and FINW began ascending the chart. The climb isn’t explosive, but the fact that more than $750 thousand worth of shares changed hands during Friday’s session suggests that a lot of people are now paying attention to the ticker.
To some extent, this could be attributable to the press release which came out about an hour before the start of Friday’s session. According to it, FINW are ready to launch a series of mobile applications which could potentially save users up to 50% over the regular costs associated with the long distance communication and roaming charges.
Unfortunately, the increased interest is also caused by the involvement of the pumpers. The campaign started on January 8 and it immediately had its effects on the volumes. Since then, we have received more than twenty emails from a range of promotional outfits, the most prominent of which seems to be Damn Good Penny Picks. According to our database, the total budget amounts to $62 thousand and virtually all the emails talk about “Buyouts“, “Break outs” and “Madness“. There’s no shortage of optimism among the pumpers, but, considering the tasty compensations that they received, this is somewhat understandable.
In reality, things look a bit underwhelming. FINW filed their latest annual report three weeks ago and it shows that, as of September 30, they had:
- no cash
- $77 thousand in current assets
- $938 thousand in current liabilities
- no revenue for the period
- yearly net loss: $36 thousand
Hardly the figures to justify the market cap which, at $0.30 per share (Friday’s close), stands at more than $26 million. The fact that someone has spent $62 thousand on the promotion, however, means that there are people who can profit from the inflated price. But who are they?
We’ve no way of knowing for sure, but we do read in the report that on July 22, 2013, FINW issued 32.5 million shares as a conversion of debt. The management team didn’t deem it necessary to disclose who got the shares and how they were valued and there are also no traces of a restriction feature on the stock. One thing is certain though, if the ticker continues its ascend, the former creditors might decide to cash in.
In any case, the disproportionately inflated market cap and the fact that the ticker hasn’t had a red session in almost two weeks should warrant a lot of extra caution. Doing your own due diligence and carefully considering the risks is, as always, absolutely essential.
While FINW‘s ascend is slow and steady, Mentor Capital, Inc. (OTCMKTS:MNTR) registered an absolutely explosive session at the end of last week. The ticker managed to jump up by a staggering 759% after the management team announced the first major acquisition in the medical marijuana industry. Worldwide Internet (OTCMKTS:WNTR) too informed us about a major deal on Friday and, predictably, their stock also made a 91% run, finishing the week at $0.0044 per share.
