FlashZero Corp f/k/a Children’s Internet Inc (OTCMKTS:FZRO) Targeted by a Nasty Pump
For some reason, various people have been desperately trying to pump up FlashZero Corp f/k/a Children’s Internet Inc (OTCMKTS:FZRO) over the last few days. The first attempts were carried out by some small scale promotional outfits last week when they sent out a few no-compensation emails. The free promotion didn’t really work and the stock remained illiquid.
Some third parties decided that there’s unfinished business, however. They called Stock Mister, Penny Stock Prophet, Penny Stock Locks as well as a few other smaller newsletters, paid a grand total of $50,500, and ordered a more comprehensive campaign. Volume-wise, the promotion has been a success. If you want to get an idea of how exciting the last two sessions have been for FZRO, you should consider this: on Tuesday and Wednesday, investors traded around 3.9 million shares – about 23 times the number of shares traded during the preceding four weeks.
Unfortunately, while the paid pump did manage to draw some attention to the stock, it failed to actually lift it. In fact, the campaign turned out to be something of a disaster. On Wednesday, FZRO crashed hard and it wiped out an eye-watering 70% of its value in a matter of a single session. In other words, it dropped from $0.14 to $0.04. Yesterday, it bounced by around 27% and although that may sound amazing, it only resulted in a close of just over $0.05 which is still a hefty 64% below the levels occupied prior to the paid pumpers’ arrival.
The people behind Stock Mister and their colleagues are probably a bit embarrassed about what happened and so they should be. The same goes for the people who lost money, by the way. All they had to do to avoid getting burned was a little bit of due diligence.
If they had done their research, they would have seen that FZRO doesn’t look like the most solid company on the OTC. Back when it was still called Children’s Internet, for example, it was named in an SEC complaint because members of its former management team were doing some things they weren’t supposed to be doing.
Of course, those people are now gone. In fact, a few months ago, the company even announced a new business plan and a new management team, but even so, things are still not looking good.
Take the press releases, for example. There’s been only two over the last seven months and the second one came out yesterday – slap bang in the middle of the promotional campaign. We say that it’s a press release, but the truth is, it’s so fluffy, that it looks more like an unnecessarily long sales pitch.
The financial reports are even less convincing. FZRO uses the alternative reporting standards which means that when the management team decided to disclose the results for the third quarter of 2015, they published no less than three documents.
The file of the first one seems to be corrupted and can’t be opened. The second one contains the management disclosure and the quality of the scanned PDF copy is so bad, that it’s almost unreadable. The third one is better when it comes to quality, but unfortunately, it’s absurdly uninformative. Although it’s supposed to cover the period ended September 30, 2015, the statement of stockholders’ equity it contains stops in June 2014.
It did, at least, give us an idea of how bad FZRO‘s situation was about a month ago:
- current assets: $2,000
- current liabilities: $1,995,201
- quarterly revenue: $2,690
- quarterly net loss: $5,567
You should be able to draw your own conclusions from these figures.
