Is Something Brewing for 1st NRG Corp(PINK:FNRC) ?
Maybe last week’s rainy weather finally provided the right conditions to end the decline that 1st NRG Corp, (PINK:FNRC) had been experiencing since December 2012.
1st NRG Corp. is a CBM (Coalbed Methane) exploration and development company that’s not been doing so well recently. Judging by their performance on the stock market one wouldn’t believe that natural gas prices have gone nowhere but up in the past 6 monts. During the same period FNRC suffered a massive drop of -99.33% and managed to hit an all time low of $0.0015. Till last week that is.
Come March 25, they exploded with 80 mil shares traded and a cumulative price gain of more than 200% to close at $0.0052 on April 1. As there are no apparent reasons for this sudden change in stock movement, we decided to do a bit of research on our own and what we uncovered wasn’t pretty.
The latest financial report filed by 1st NRG Corp. is for the period ended December 31, 2012 and it is enough to raise some concerns:
- $1616 cash
- $6 mil total liabilities
- $28 thousand total revenues
- $17 mil assets.
- $880 thousand net loss
While the $17 mil certainly are impressive for a PINKsheet company, it must be noted that more than 80% or around 14 mil of them are in a restricted cash account and therefore cannot be used freely.
The picture gets even grimmer with the addition of our previous coverage about a prolonged paid pump promotion of FNRC‘s stock, that ultimately had no discernible effect in creating share value.
A press release going back to March 1 is the only current update about the operations of the company. They have finalized a deal to develop 7,150 acres in Eastern Ohio and an agreement to deliver an Oil and Gas Lease and surface use for 1,370 acres located in Banner County Nebraska. If any new natural gas well will be discovered and subsequently exploited is impossible to ascertain.
Investing in FNRC must be accompanied by exercising sufficient amount of caution as the stock is extremely volatile, with no way to predict what the next trading session may bring.
