Freedom Energy Holdings Inc (OTCMKTS:FDMF) Getting High

On April 15, 2009, Freedom Energy Holdings Inc (OTCMKTS:FDMF) issued a press release in which they said that the annual revenues for 2010 “could be well in excess of $20 million“. Less than two years later, the 2010 report came out and it showed that the annual revenues actually came in at less than $200 thousand.

This could serve as something of a warning for people who are willing to put too much faith in FDMF‘s press releases, but despite this, an announcement from yesterday resulted in a 33% price jump. The PR came out around 12PM and it informed us that Brian Kistler, FDMF‘s CEO, is going to convert 1 billion of his common shares into preferred stock. Mr. Kistler also said that there’s a new company website and that they’re moving closer to getting their Extraction of Liquid Asphalt from Shingles (ELAS) project going.

Considering the colossal O/S count (which, according to the company profile on the OTC Markets’ website, stands at around 5.2 billion) and the dreadful figures in FDMF‘s latest financial report, this is some good news. But is it enough to push the ticker up? And is it enough to result in a dollar volume of more than $800 thousand?

Apparently, it isn’t. If you take the time to dig a bit further, you’ll see that there’s quite a lot of buzz around message boards and social media. It has nothing to do with the ELAS project and little to do with the new share structure. All the excitement is, in fact, centered around some rumors according to which FDMF is about to enter the marijuana industry.

Quite what caused the speculation is unknown, but it seems that there might be something to the hearsay. A diligent investor has somehow stumbled upon a document filed with Florida’s Secretary of State according to which Mr. Brian Kistler incorporated a company called Global Medical Marijuana Forum Inc. on April 9, 2014.

At the moment, any predictions about Global Medical Marijuana Forum’s future and the connections between it and FDMF can only be based on guesswork, but despite this, investors seem genuinely excited by the notion of having another wild pot stock on their hands. Some even reckon that FDMF is about to be picked up by an investment group that goes by the name of #wolfpack.

That might not be such a good thing though. If you’ve been following the market closely, you know that the #woflpack have been highly supportive of numerous pot stocks whose performance over the last couple of months has left a lot to be desired. Growlife Inc (OTCMKTS:PHOT), for example, got suspended by the SEC and is about to resume trading on the Grey Market while the charts on the right belong to Tranzbyte Corp (OTCMKTS:ERBB) and AvWorks Aviation Corp (OTCMKTS:SPLI). We reckon that they pretty much speak for themselves.

Of course, the involvement of the so-called #wolfpack is not yet confirmed and despite their track record, a potential confirmation of FDMF‘s transformation into a cannabis company will probably result in a surge in the right direction.

Treading carefully, however, is absolutely crucial. The latest financial report tells us that during the period ended December 31, 2013, the company converted 19,100 preferred shares into 1.91 billion common ones. It also tells us that there’s a lot more preferred stock held by non-related parties who “objected to having their names released“.