Frozen Food Gift Group, Inc. (OTCMKTS:FROZ) Shaken Down by Short-Sellers

For Frozen Food Gift Group, Inc. (OTCMKTS:FROZ), everything seems to be going right- except for the depressing stock price. The frozen food and store displays company is still a double-zero stock, and one that is rather indecisive about its latest rising trend. On another day of volatility, FROZ sank down by more than 30% to $0.009. Selling volumes expanded to $1.03 million.

The main reason we can trace for the rise of FROZ is the sudden flood of corporate updates and information. In fact, what remains of FROZ is just the shell, which is filled up with the contents of American Performance Technologies, a company producing proprietary motorbike engines. APT is known for its MotoVox brand of small two-stroke engines, and it claims earnings of $25 million in the past three years.

The only question is: with such robust sales in the future of FROZ, far exceeding its attempt to hawk frozen products, why are investors not eating up the the offer? The first reason may be the relatively subdued activity, where FROZ is not really touting its new qualities. Also, FROZ has rarely caught the attention of paid pumpers, and the spring of 2014 is no exception- this company is just not hot enough to be inflated further.

Investors’ forums remain largely optimistic, for several reasons. FROZ is seen as a good technical opportunity. Also, for others the rising is just beginning, with volumes to increase soon as short selling decreases and more newcomers appreciate the qualities of the company. For now, however, FROZ is offering up a lot of volatility and is still unsettled in its new role.

FROZ looks like a sure bet in its business model, but there are enough examples of companies that sink their stock price despite the potential. The reasons for this are many, among them the clearest one is over-promotion.

This was the nemesis for Fresh Healthy Vending International, Inc. (OTCMKTS:VEND), which continues its sinking trend in the past days, cutting all promises for a continued performance in the higher price ranges. For now, VEND had one day of compensatory bargain buying, which was expected given the rapid fall. Still, the ticker is way below the peak promotional values, standing at $3.59.

Sometimes, companies with amazingly innovative products and business models remain stagnant. Only recently the stock of Bioelectronics, Corp. (OTCMKTS:BIEL) became more active, unsticking itself from the muddy bottom at triple-zero positions. BIEL is now drifting sideways around $0.003, despite the promises to deliver innovative pain-management products in an easier manner after the FDA lifted the restrictions over electrical pain-management devices.

Unfortunately, no technology is a ticket to OTC markets success. In the case of FROZ, the creation of stronger momentum and positive sentiment is still to be expected. Remember powerhouse stocks like World Moto, Inc. (OTCBB:FARE), which also rose on promises for a world-changing technology. For now, FARE is awaiting a further direction, as it drifts sideways around $0.10, away from the dollar levels that many investors expected. FARE put its claim to fame on a motorbike taxi meter, and the new year should show if sales start to materialize.

If you like FROZ after its transformation, keep in mind that the low price hides enough risks, so plan the trading or investment with losses in mind.