Foy Johnston, Inc. (PINK:FOYJ) Record Buying follows PenyStockRumors.net Mention
Foy Johnston, Inc. (PINK:FOYJ) has always traded choppily, but never in such high volumes. As the spring of 2013 seems to cause interest in various sub-penny tickers, we need to see if there is more than one reason for the spike in activity, and what caused investors to mop up hundreds of millions of shares from a company that was barely traded in the past years. 
The business model of FOYJ is no unusual for a penny stock- mining prospects offer the perfect mix of future expectations and respectability. The severely underpriced triple-zero stock stands for a company that holds the following financial strengths and weaknesses (according to OTC filings, as a pink sheet FOYJ is not filing with the SEC):
- Zero cash
- $64 million market cap
- $23 million other (unspecified) assets
- $4,210 sales
- $22,483 net loss
The company itself reveals in its financial results that the existence of the entity is an ongoing concern contingent on securing more funds. With more than 128 billion shares outstanding, and a 5-billion free float, it is unknown how the company could manage to do this without overstretching the dilution. In the future, we may expect a reverse split which could make the shares more manageable. Curently, the company has 200 billion shares authorized. While FOYJ perhaps exists as a vehicle for Cameroon Mining to trade on the US market, the movement of the stock has little to do with the success of the mining business.
Besides the March 11th financial disclosure that could have sparked interest, FOYJ also fell into the hands of paid promoters for its amazing potential to gain significantly and attract investors as a very accessible triple-zero stock. PenyStockRumors.net took up the ticker on Wednesday, creating amazing buying volume, but we are yet to see if FOYJ will resist the quick sales and reach a higher position.
The payment for mentioning FOYJ was $7,000, with four emails hitting inboxes on March 13th, only to admit to disappointing gains in the end. In the next few days, we will see if investors will be able to sell fast enough this practically worthless stock, however cheap they acquired it. Another pumper, MBSA, mentioned the ticker in a $2,000 email, hardly adding to the weak gains on the day. MBSA is known for monster alerts that turn on their creator, so its previous pick Optex Systems Holdings, Inc. (OTC:OPXS) has spiked in volume, but hardly added half a cent to its value.
In the case of underpriced bids, be prepared to afford the losses or better stay away from blatantly pumped companies that disappoint quickly.
