Fortitude Group, Inc. (OTCMKTS:FRTD) Starts To Hesitate Once More
Last Friday the stock of Fortitude Group, Inc. (OTCMKTS:FRTD) was able to post one of its best sessions in quite a while after the company announced that they have been able to purchase 8.5% of the public float of the company, or 27.5 million shares, through open market transactions. The news was enough to lure investors back dramatically increasing the traded volume for the day to 23 million shares resulting in a 17% jump in share price.
As we said in our previous article yesterday the company tried to replicate this performance by issuing another PR related to their Share Repurchase Plan. According to the statement FRTD have retired and returned to treasury around 20% of their outstanding shares or around 185 million. At the start of the session it seemed that the PR was working and the stock surged upwards by close to 20% climbing up to $0.032.
The positive sentiment this time proved to be quite short-lived though and for the rest of the day FRTD was slowly sloping down closing the session just 2.2% in the green at $0.027. The performance becomes even more depressing when you take into account that half an hour before the start of the session the paid pumper Blue Horseshoe Stocks sent out an email alert touting the company. For this they bagged the sum of $5000 as compensation.
Previously we have talked quite a lot about the numerous plans for acquisitions announced by the company just to never be mentioned again. Well, yesterday FRTD decided to update their shareholders about the acquisition of ProCap Funding, Inc., a company that was supposed to bring around $10 million in financing enabling FRTD to finish their other ventures. Apparently this has not been the case and the deal was actually been paused adding it to the other failed business plans of the company.
Without this funding and with dismal financials at the end of 2013 –
• $1250 cash and total current assets
• $1.48 million total current liabilities
• ZERO revenues
• $376 thousand net loss
• $1.48 million total current liabilities
• ZERO revenues
• $376 thousand net loss
-many investors are wondering how the company has been able to pay for the recent share buybacks. Not to mention that despite talking on multiple occasions about millions upon millions in projected revenues the official site for the company is still nothing more than a “under construction” sign.
In early trading today FRTD has resumed crashing down and at the moment are 8% in the red trading at $0.025. The stock of one of the older marijuana pennystocks – Tranzbyte, Corp. (OTCMKTS:ERBB) is also going nowhere but down logging in 6 consecutive sessions of corrections. Today starts no different with the stock slashing another 10% from its value and dropping below 3 cents per share. 