Profire Energy, Inc. (OTCBB:PFIE) On The Road To Recovery After Record Quarterly Results
In our previous articles about Profire Energy, Inc. (OTCBB:PFIE) we have stated that they are a rather unique company among the various pennystocks. Although they operate in what might be the paid pumpers favorite industry – oil nad natural gas, PFIE have no intentions of digging the ground and searching around. Instead they offer burner managements systems to the other oil companies making them safer, more efficient, and more compliant to the various regulations.
This business plan has turned PFIE not only into a company generating millions in revenues but also into a truly profitable one. It doesn’t come as a big surprise then that in late-October they reached record price ranges of above $4 per share. Since then the ticker has subsided a bit but during the last two sessions it started plummeting and lost nearly a full dollar of its value.
The reason for the drop was the management’s decision to enter into $4.7 million private placement of their common stock. This is the first time in its whole history that PFIE has resorted to external financing and investors might have overreacted a bit. The sold shares will be unregistered with the per share price settled at $2.18. The accrued funds will go towards the further growth of the company, product development and potential acquisitions and as part of the agreement they will try to uplist to a national exchange.
The pullback might have been the perfect time for traders to increase their position in the company. Right before market opened today PFIE filed its financial report for the second quarter of the fiscal 2014 and the stock surged by 20% sitting at $3.60 at the moment. The report revealed record revenues and net income:
- $602 thousand cash
- $15.4 million total current assets
- $3.6 million total liabilities
- $9.3 million revenues
- $2 million net income
PFIE is going in the right direction and is continuing to improve on its previous results. This, however, cannot be said for Fuse Science, Inc. (OTCMKTS:DROP) who lost nearly 30% during yesterday’s session. The stock of Nevada Gold Corp. (OTCBB:NVGC) is 20% up today after a pump with a budget of $800 thousand began touting them.
