Formcap Corp. (OTCMKTS:FRMC) Climbs to Unstable Prices

It seems that the management of Formcap Corp. (OTCMKTS:FRMC) has been able to do what the paid pumpers failed to achieve back in October. During the pump for the company we received more than 30 email alerts but they had very little effect on the performance of the stock despite a total budget of $67 thousand.

Since the end of the pump FRMC has been creating hype all on their own making one impressive climb adding a full dollar to its price when compared to the start of November. Yesterday the stock gained another 9% and closed the day at $1.34. Despite the positive session judging by its performance it may be reaching some highly unstable price ranges.
$1.34 was also the opening price for the session and FRMC barely managed to returned to it just before the closing bell from a low of the day of $1.15.

It is impressive how the company is managing to keep its stock above the dollar levels when they have one of the most discouraging balance sheets among the oil and gas exploration pennystocks. According to the quarterly report they finished the period ending September 30 with just:

• $35 cash
• $12 thousand total current assets
• $456 thousand total current liabilities
• zero revenue
• $959 net loss

With financials such as these it is no wonder that FRMC has been constantly diluting its common shares. In October 2012 they did a 1-for-50 reverse split that brought their outstanding shares to just 2 million. As of November 15 when the financial report was filed that number had turned into 92 million shares. More importantly the company will have to secure a lot more funds if they want to continue their operations in the Cowley County, Kansas. Or they could just let the leases expire, something FRMC has already done in the past.

Investors should also note that apparently Cowley County is quite popular among pennystocks because Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) has also announced plans to drill for oil there. Unlike Formcap though TGRO is being actively hyped up by a $2.5 million pump which makes it even more riskier choice for investment.