Force Protn Video (OTCMKTS:FPVD) Suffers Serious Correction
Force Protn Video (OTCMKTS:FPVD) suffered another nasty 16.89% drop yesterday, in spite of being touted by a third party.
It should not come as a surprise to anyone that FPVD received a “research report” from Trader’s Choice. After all, if there’s anything that goes hand in hand with toxic funding, it’s pumps.
And, as we discussed the last time we covered FPVD, the company has a sizable amount of toxic debt to its name. At the end of Q1 2015 it sold 100 thousand shares at half a dollar a pop. As bad as that sounds, unfortunately it is not the end of the matter – FPVD then proceeded to sell five times that much at prices of a DIME per share.
Another $159 thousand worth of convertible notes was issued just under three months ago, and this particular batch can be transformed into shares of FPVD common stock at a discount of 40% to the current market price.
Add that to the company’s mediocre achievements to date and suddenly it seems like something of a miracle that the ticker hasn’t dropped under a dollar, or even further down – yet.
Fortunately, the noteholders’ evident reluctance to flood the market with cheap shares FPVD shares and crash the ticker gives regular investors time to reconsider their position. However, investors may want to think really careful on where they stand, because once the temptation to sell those cheap shares gets too great and said shares suddenly end up on the market, the ticker will probably find itself in dire straits.
