Formcap, Corp. (OTCMKTS:FRMC) Still Up Despite Silent Promoters
Formcap, Corp. (OTCMKTS:FRMC) makes the dollar look doable- yet at the same time, the steep climb looks less and less sustainable. After selling at the end of last week, FRMC added a bit to its price, clocking in at 90 cents. Dollar volumes were above $342,000, and the ticker added 12.5% on the new week’s opening. 
But none of this is surprising, given that FRMC saw 35 emails in November, for a budget of $67,500 up to now. What is worrying, though, is that it’s been a bit more than a week since the last email, and this means that the promotional effect may wear out, leaving FRMC to drift or even drop precipitously. 
The last email for FRMC came in on November 25th from The Green Baron, with a small compensation of $5,000.
We don’t have to look much beyond the business description of FRMC to raise a red flag. This microcap is among the many that dabbles in crude oil exploration. The promises, plus the email campaign, boosted the market cap of this oil prospector to a whooping $82 million and above, a giant sum compared to the slim financial set, containing:
- cash: $35
- current assets: $11 thousand
- current liabilities: $456 thousand
- no revenue
- quarterly net loss: $959
The story of FRMC will probably follow that of First Titan Corp. (OTCBB:FTTN), which was enjoyed for its steep climb, touted as potentially touching $2.50, only to drop later to $0.70. Oil and gas give an initial boost of credibility to many OTC companies, but real production rarely materializes.
Another recent promotion that fizzled out sadly is the Nevada Gold Corp. (OTCBB:NVGC), which is now suspended for trading for aggressive promotion, bearing the skull and bones sign on its OTC home page. The security bears the Caveat Emptor warning, though initially NVGC had all the signs of a solid company, awaiting gold and silver earnings any time now.
If you still believe FRMC is capable of vaulting the dollar levels, keep in mind that promoted tickers face severe shifts in direction, so plan your investment accordingly, to avoid getting burned. We’ve mentioned other red flags surrounding this ticker, so invest at your own risk, knowing the older and the later developments.
