Investors Lost Faith in Foy Johnson Inc (PINK:FOYJ)

People who have been dealing with penny stocks for a while should know by now that a company with an extensive promotional history like Foy Johnson Inc (PINK:FOYJ) is, more often that not, a bad choice, but there are still those who think that they know better and, of course you have the inexperienced investors who fall for the bright promises found in the promotional emails. They later regret it bitterly but, unfortunately, they can do nothing to improve their bank statement at the end of the month.

How bad is FOYJ‘s promotional history? Well, it all started in April 2011 when a couple of emails hit the inboxes in an attempt to introduce FOYJ to the general public. The alerts contained the usual mixture of technical details that nobody understands and talks about the rising price of gold which was supposed to skyrocket the ticker to new heights. Predictably, that didn’t happen and after a short and not very impressive run, FOYJ hit rock bottom. It was left there for quite a while but then, out of the blue, a new wave of emails hit investors at the beginning of February. This time the pumpers were backed up by some press releases that sounded just as optimistic and, of course, the price of gold was also included. Despite the announcements some of the newsletters managed to get it horribly wrong and their emails presented a company that is producing paints, lacquers, wood varnished and a lot of other products, while FOYJ are, in fact, a mining company. The dodgy research wasn’t a surprise and neither was the failure that followed the pump.

The promoters continued with their desperate and not very successful attempts to create some artificial hype around FOYJ throughout March, but, unfortunately for them, it would seem that investors had already learned their lesson and the price remained virtually unaffected. Now, there is another set of emails touting FOYJ and this time Stock Mister, a promoter that we’re all too familiar with, has taken on a different role and they are now acting as the third party, paying a total of $15 thousand for the pump. Is there even a glimmer of hope that things will be different this time, though?

Well, when the previous pumps were carried out there was no annual report, so the only thing that we and the investors had to work with was the 10-Q for the third quarter of 2012. Now, however, the 10-K is published and we were quite eager to find out if there is anything promising to be found in it. The good news is, for the first time ever since their inception, FOYJ have actually generated some sales but, unfortunately, that’s the only positive thing that we can say about the statement. Here are the figures:

• cash: $0
• current liabilities: $501 thousand
• revenue: $ 4 thousand
• net loss: $22 thousand

In the meantime, the promoters are explaining how you can triple your investment in case the stock miraculously reaches an intraday high from a couple of weeks ago. We’re not impressed.

That said, the pumpers in question go by the name of WinningPennyStockPicks who are also utilizing their affiliated newsletters in order to increase the impact on the investors. We have seen what they’re capable of and we can safely say that their track record is not exactly picture perfect. All these newsletters were part of the pumps on Sunbelt Intl Corp (PINK:SUNB) and Intelligent Living Corp. (PINK:ILVC) and the charts on the right show pretty clearly how horribly wrong it all ended for the people who trusted them.

With that in mind, and with results from FOYJ‘s previous promotions, we can say that the chances of a crash landing are strong. When you include FOYJ‘s dismal financial statement into the equation, things look even more disturbing.