Fusion Pharm, Inc. (OTCMKTS:FSPM) Trying To Recover
Fusion Pharm, Inc. (OTCMKTS:FSPM) is another stock that benefited from the hype surrounding the medical marijuana industry after dispenseries started selling pot for recreational use in Colorado. The jump they made was a bit late, compared to other companies in the sector, but was substantial.
After breaching the $2 per share mark, however, FSPM dropped and did it quite fast, losing 32% in just one trading session. The volume of traded stock also became smaller and the daily trade values fell below $1 million.
Now, the ticker is trying to recover from the fall and despite the lack of news, it managed to secure a green day in yesterday’s trading. The large amount of traded shares in the beginning of the session pushed the price as low as $1.03 per share, but FSPM managed to recover after things quieted down a bit and began to climb.
This attracted more attention and we saw some more intense trading around 02:00 PM, when the stock’s price reached its peak for the day of $1.63 per share. By the end of the session FSPM had gained 19.84% in value and closed at $1.51. The 595 thousand shares that changed their owners on the other hand managed to generate some $801 thousand in dollar volume.
What’s bad is that we have no current information about the company’s financials and the latest report covering the quarterly period ended June 30, 2013 doesn’t really give promising numbers.
- cash: $3.4 thousand
- total current assets: $541 thousand
- total current liabilities: $116 thousand
- total liabilities: $356 thousand
- revenues: $330 thousand
- net income: $15 thousand
On the bright side of things the company is operating at a profit, however, the cash they have on hand is very little and the net income has dropped by a whopping 96% compared to the same period in 2012.
What’s even more worrying is the fact that the outstanding shares of the company might get quite a lot, if the owners of 1.47 million preffered stock decide to convert it at the 100:1 ratio judging by the 20 thousand shares converted to 2 million as listed in the table on page F-4.
In any case, be sure to do your due diligence and weigh out the risks, because after all FSPM is not exactly a cheap OTC stock and may start to drop further down taking you on a bad trip.
GrowLife Inc (OTCBB:PHOT) also managed to recover some of the value it lost in the final sessions of last week and gained 33% on a substantial volume. Hemp, Inc. (OTCMKTS:HEMP) got back up and added 46% in price, while Terra Tech Corp (OTCBB:TRTC) jumped 26%.
