Marijuana Hype Drags Fastfunds Financial Corporation (OTCMKTS:FFFC) Out of the Triple-Zero Levels
Fastfunds Financial Corporation (OTCMKTS:FFFC) experienced some intense trading during yesterday’s session. The ticker jumped up and doubled its value in just six and a half hours while the dollar volume racked up in the meantime exceeds $1 million. As you probably know, the surge of interest towards the former triple-zero stock was created last week when FFFC announced that they want to enter the marijuana business. Indeed, the cannabis industry is quite hot at the moment and some people think that the current ascend is just the beginning. Is this really the case though?
Before we get to FFFC‘s chances of future success, let’s see how they’ve been getting on in the past. Back in April 2013, there was a series of press releases informing us that the company is about to launch a line of revolutionary financial instruments. At one point, they announced that they’ll use a clever processing system to help an entity called NET LIFE Financial Holdings with their mortgage applications. According to a press release issued on April 11, NET LIFE had somewhere in the neighborhood of 6,000 applications each of which was worth, on average, around $150,000. FFFC was supposed to receive 1% of the loan value of each mortgage. So, did they?
By the looks of things, something, somewhere went terribly wrong. The latest 10-Q shows that the nine months ended September 30 have resulted in $23 thousand in revenues and a net loss in the region of $1.1 million.
Last week’s press release about FFFC‘s venture into the marijuana world is similarly optimistic, but we reckon that the past failures could be sufficient to scare away some of the more cautious investors.
Others, however, will say: “That was a long time ago. FFFC now has a new CEO and President, Mr. Henry Fong, and he will take the company to the top.“.
Indeed, the former President, Barry Hollander, stepped down from his position last week and the helm was taken over by Mr. Fong who will now have to steer the company into the fiercely competitive marijuana industry. When you have his track record in mind, however, you’ll see that he might have some issues.
As we mentioned in our previous articles, Mr. Fong is listed as the CEO of another small cap enterprise – Alumifuel Power Corp (OTCMKTS:AFPW). We did some digging around and we managed to find one of AFPW‘s press releases from a couple of years ago. As you can see from this link, back in May 2012, they were talking about boosting the company’s visibility in the multi-billion dollar back-up power market. The zero under the quarterly revenues section in their latest financial statement, however, suggests that AFPW remained pretty much invisible.
If you continue your research, you’ll also stumble upon this New York Times’ article. We reckon that reading it before making your final decision on FFFC might not be a bad call.
FFFC wasn’t the only marijuana related stock to receive a massive boost during yesterday’s session. Alternative Energy Partners, Inc. (OTCBB:AEGY) jumped up by as much as 117% and finished the day at $0.0061 while Latteno Foods, Inc. (OTCMKTS:LATF) managed an even more impressive 177% in gains and a staggering $1.7 million in trade value.
