Fuelstream, Inc. (OTCMKTS:FLST) Awakens on Delayed Promotional Effect

Fuelstream, Inc. (OTCMKTS:FLST) is a knot of contradictions- a company seemingly very active with contracts and fuel deliveries, yet barely traded on the OTC markets, and with some shaky financial information. Of course, we are focusing on the latest events, a doubling of the price last Friday, to 12 cents. FLST added 108% on dollar volumes above $400,000. Nearly 6 million shares were bought up in the last two days of the week, without previous warning.

Let’s start with the obvious, the latest financial statement containing:

• Zero cash

• $180,000 assets (receivables)

• $5.5 million total current liabilities

• Zero sales

• $579,261 net loss for the latest reported quarter

It is easily seen that FLST has several problems, firstly a huge working capital deficit, and an accumulation of debt and losses. It seems like FLST does not actually have enough working contracts, although it reported several “agreements” to assist with fuel deliveries.

It seems there was a campaign to promote FLST, starting July 10th, but that only caused selling off of the previously inactive stocks. The company has great upside potential based on a market cap of just $1.9 million with 15 million shares outstanding, a miniscule price among more diluted, more overhyped companies. This means a promotion and PR could work really well. Yet the peaks caused would have questionable stability. The new week will show if the momentum holds. The email on July 10th caused a small climb, and later a loss of more than 50% on higher than average selling volumes.

The promoters for FLST are Otcmagic, receiving $10,000 for their email of July 10th. After that, FLST relied mostly on press releases, and the latest peak was triggered by news of the company’s entrance onto the US market. The main argument of the pumpers is that FLST was traded at $3 only three months back, and may revisit those prices easily. But the fall was steep, and FLST lost nearly 90% of its value, so it will be difficult to turn the tides. It is easily seen that FLST did not respond directly to the July 10th email, but now with momentum gathering, there may be a chance for an upward trend.

The paying party for the Otcmagic campaign is One22 Media Llc. Both are average- compensation pumpers, receiving less than $10,000 per message. Otcmagic has already taken up other promotions, and it is uncertain if it will take up the ticker again. Its current selection is Epazz, Inc. (OTCMKTS:EPAZ), a rebouncing ticker that has shown a broad daily range. Meanwhile, One22 is touting Bayside Petroleum Co (OTCMKTS:BYSD), but only one email caused a spike, the rest of the messages unable to stem the exodus of investors.

FLST will have to reveal itself more to allow clearer assessment. But so far, there are enough red flags to declare that a climb would not be sustainable. It is best to explore FLST only if you can afford a sharp correction, as the ticker has shown in the past.